Free Consultation: 877-535-2324

Wine Promotions in Restaurants: Do Beverage Sales Contribute or Cannibalize?

A controlled field study of wine promotions in a mid-priced chain restaurant generated three key findings: (1) selected wine recommendations increased sales by 12 percent, (2) food-wine pairing recommendations increased sales by 7.6 percent, and (3) wine tastings increased sales by 48 percent. In general, 69 to 87 percent of the increase in sales of promoted wines come from diners who would likely have ordered a non-promoted wine. This means that 13 to 31 percent of the increase come from diners who would have otherwise ordered liquor, beer, and nonalcoholic drinks. Specific implications for responsible restaurateurs are outlined, including the caveat to not cannibalize sales by promoting a lower-margin, lower-profit wine.

Download the entire study in a pdf here from GetGame.Biz

Related posts:

  1. Constant Contact Survey Results: 93% of U.S. Restaurants anticipate strong sales in 2006
  2. Technomic's Annual Survey Sheds New Light on Bar Sales at Chain Restaurants

Leave a Reply

“How We See It”

Today’s Hospitality101 Show

Today’s show dealt with several industry topics that include: social media, service, hospitality, marketing, and had brand mentions (more…)

RestaurantWorx™ Support