Why Restaurant Wine Prices Are Much Higher Than in Stores
Translated from Croatian, summarized and contextualized by DistantNews.
At a glance
- Restaurant wine prices are significantly higher than retail due to various operational costs.
- These costs include rent, energy, staff wages, maintenance, and taxes.
- The article explains the "markup" on food and wine in hospitality, comparing it to international practices.
The significant price difference between wine purchased in a store and the same bottle served in a restaurant often sparks debate. While customers might wish for lower prices, restaurateurs explain that the higher cost reflects a multitude of operational expenses beyond the wholesale price of the beverage. These include rent or property costs, energy consumption, salaries for all staff, equipment maintenance, and various other overheads.
We would all be happier if purchasing prices favored restaurateurs so they could offer affordable prices to guests.
Restaurateurs detail that the "markup" on food and wine covers more than just the product itself. It encompasses the cost of maintaining the dining space, ensuring a pleasant atmosphere, and compensating the entire team for their service. The article highlights a list of often-overlooked expenses, such as ZAMP copyright fees, POS system maintenance, equipment certification, cleaning supplies like caustic soda and dishwasher detergents, waste disposal (including costly grease trap cleaning), and even small items like candles and flowers. Taxes on ingredients and wages also contribute to the overall cost.
Comparing the situation to international practices, the article notes that in cities like Paris, a common pricing strategy for food and drinks involves multiplying the base cost by three or five. This is a standard business model that allows establishments to remain profitable, especially given the high cost of real estate. For instance, a 19-square-meter space in Paris can cost a million euros. The article suggests that Croatia, in general, faces challenges with high operational costs, making it difficult for restaurateurs to offer more accessible prices.
All the difference between purchase and sale, the so-called RUC (price difference), covers rent or space costs, energy, salaries of all staff, repairs of breakdowns and equipment, plus other costs.
The piece emphasizes that understanding these hidden costs is key to comprehending why restaurant prices differ so starkly from retail. It suggests that customers may not be aware of the complex financial structure supporting a dining experience, leading to a perception that prices are unfairly inflated. The author implies that the service and ambiance provided, along with the extensive operational necessities, justify the higher prices in the hospitality sector.
In Paris, every restaurateur will coldly explain that with food and drinks, it's multiplication by 5 for one item, by 3 for another. And no one will get excited or question it, because it's the only way they can survive and earn something.
Originally published by Veฤernji List in Croatian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.