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Building a successful Wine by the Glass program By Thomas Sauzet

Build A Successful Wine By The Glass Program Indian Market

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Few tips for hoteliers & restaurant owners on how to build a successful wine by the glass program!

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Page 1: Build A Successful Wine By The Glass Program   Indian Market

Building a successful Wine by the Glass program

By Thomas Sauzet

Page 2: Build A Successful Wine By The Glass Program   Indian Market

•The wine culture is still at its early stage of development

•The consumption of wines is increasing steadily

•The offering of wines is increasing dramatically

•The level of knowledge of the decision makers (at a Manager level) is

increasing rapidly

•The level of knowledge of the F&B staff is very limited

•The level of knowledge of the consumers is very limited but increasing

rapidly

•The consumers are willing to explore new horizons

Summary

The importance of developing a

successful Wine by the glass

program

Current situation in

India

7 steps to build a successful Wine

by the Glass program

How to build a successful Wine by the Glass Program?

By Thomas Sauzet

Page 3: Build A Successful Wine By The Glass Program   Indian Market

•The average check on wine is increasing steadily

•The average wine list size is increasing offering more variety to the

consumers

•The by the glass selection is generally limited to 4 to 8 reds, whites &

sparkling all together

•Wines by the glass are available in almost all restaurants and hotels

•Wine by the glass represents the major share of restaurants / hotels wine

sales

•The wines selected for the Wines by the Glass are generally entry level

Summary

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in

India

7 steps to build a successful Wine

by the Glass program

By Thomas Sauzet

Page 4: Build A Successful Wine By The Glass Program   Indian Market

Customers view: Either you are sold a glass of perfectly acceptable wine at an absurdly high mark-up, but more often than not…you are given something barely drinkable that tastes as though it came out of a five-gallon plastic container…

Hotels / Restaurants view: Selling wine by the glass is a necessary evil to please guests who are too cheap to buy a bottle

One need to understand how much a wine-by-the-glass program can influence what your customers talk about, taste

and buy. And when strategically priced, promoted and stocked, a wine-by-the-glass program can be profitable and a

boon to your overall wine sales.

Hotels / Restaurants view v.s Customer view

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in

India

7 steps to build a successful Wine

by the Glass program

By Thomas Sauzet

Page 5: Build A Successful Wine By The Glass Program   Indian Market

•Customers seek quality when dining out, including their choice of wines

•Consumer level of knowledge is low: great way to educate them

•Better margins for the restaurant / hotel

•Enable to deplete high inventory wines

•Enable to deplete pricier wines

•Build loyalty with regular wine drinkers in your restaurant / hotel

As in all aspects of the restaurant experience, the wine-by-the-glass program should intrigue and entertain your customers.

With the wine knowledge increasing, the customer will be willing to pay a premium for wine with a high perceived value.

Understand this key point, as it is critical to any restaurateur who wishes to succeed at selling wine.

The importance of developing a successful Wine by the

glass program

Current situation in India

Facts

How to build a successful Wine by the Glass Program?

7 steps to build a successful Wine

by the Glass program

By Thomas Sauzet

Page 6: Build A Successful Wine By The Glass Program   Indian Market

Many customers respond to an increase in choices

with an increase in spending.

By offering more choices, you allow them to step

up to incrementally more expensive wines, and then

wine-by-the-glass becomes an asset, not a liability,

in the struggle for higher check averages.

Facts

How to build a successful Wine by the Glass Program?

The importance of developing a successful Wine by the

glass program

Current situation in India

7 steps to build a successful Wine

by the Glass program

By Thomas Sauzet

Page 7: Build A Successful Wine By The Glass Program   Indian Market

When it comes to creating a by-the-glass list, what is it that determines the makeup of the list, or rather who?

Does consumer preference lead the way, or do wine directors feel they know best?

For most operations, it's a little bit of both.

Some restaurant / hotel take the stance that customers are looking to them to expand their horizons.

How to build a successful Wine by the Glass Program?

The importance of developing a successful Wine by the

glass program

Current situation in India

7 steps to build a successful Wine

by the Glass program

Questions?

By Thomas Sauzet

Page 8: Build A Successful Wine By The Glass Program   Indian Market

Your budget

You number of covers

Your customer profile / base

Your sales goals

The decision process involves the following seven steps

The number of wines as well as the quality you offer by the glass will be predicated on :

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

How to build a successful Wine by the Glass Program?

By Thomas Sauzet

Page 9: Build A Successful Wine By The Glass Program   Indian Market

Step One

Assess Your Service Capacity

Assess your storage capacity

Ask yourself how much wine is likely to be served in one shift.

Forecast how many wine drinkers will prefer to purchase by the glass versus bottle.

Attack the problem by day part:

•At lunch, very few wine bottles are served and rarely will your guests buy more than one glass.

•At dinner, you can expect to sell more bottles of wine than separate glasses.

Track sales by day part, and in time you'll get a sense of your inventory requirements.

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 10: Build A Successful Wine By The Glass Program   Indian Market

Step Two

Target your Sales Goals

Take your worst-case scenario from your forecast

Create modest ambitions and closely track every sale

From the results, you can decide how you want to grow your by-the-glass selection

You should expect revenues to increase at a greater rate than sales by volume

Example:

If you offer only one Chardonnay for Rs. 400 per glass and you begin offering two different Chardonnays, one for Rs. 350 and the other for Rs. 500, the total dollar sales will increase. Indeed the Rs. 500 glass of Chardonnay will likely outsell the less expensive Chardonnay.

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 11: Build A Successful Wine By The Glass Program   Indian Market

Offer balance & choice (within the limits of the space and budget of the restaurant )

It should include:

•Variety of grapes

•Regions

•Styles (see next slide)

•Price points

Step Three

Try to Please Most of the People Most of the Time

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 12: Build A Successful Wine By The Glass Program   Indian Market

The Elements of Style: A Well-Rounded Wine-by-the-Glass Inventory

Sparkling wines. This includes Champagne and bubbly from other places, including some that are a bit sweet (Champagne Extra Dry, Asti, Cava…)

Light white wines. This usually includes Sauvignon Blancs and Pinot Grigios, but there are many wines throughout the world that could be included here.

Rich white wines. This usually describes wines with significant flavors derived from time in oak barrels; these flavors include nutmeg, allspice, ginger, coconut, cinnamon, and black pepper, as well as textures such as creaminess and butteriness. Grapes such as Fume Blanc (the same grape as Sauvignon Blanc), Semillon and Chardonnay frequently offer wines in this format.

White wines with some sweetness. This much-maligned category includes some German wines, Rieslings and Gewurztraminers from other places. These wines can be delightful with highly seasoned and spicy cuisine.

Step Three

Try to Please Most of the People Most of the Time

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 13: Build A Successful Wine By The Glass Program   Indian Market

The Elements of Style: A Well-Rounded Wine-by-the-Glass Inventory

Powerful or intense reds. Cabernet and Zinfandel clearly belong here, but there are examples of many red grapes in this category.

Light, fruity reds. Beaujolais is the torchbearer for this style, although the traditional wines of this area in France are rather tart and can be intense. Many red wine drinkers find Pinot Noir to be most often light and tasty, and good examples can be found at reasonable prices. It can also be radically expensive, because many consider the grape to be the finest in the world.

Spicy or earthy reds. This is a rather arbitrary category, based on the idea that wines can be roughly described as light-bodied, medium-bodied or intense, and these wines are medium-bodied. But what can separate wines in this ilk such as Grenache, Merlot or Shiraz, or regions such as Chianti or Rioja, from lighter reds is a greater sense of texture and weight.

Step Three

Try to Please Most of the People Most of the Time

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 14: Build A Successful Wine By The Glass Program   Indian Market

The Elements of Style: A Well-Rounded Wine-by-the-Glass Inventory

Roses. The option lies between a crisp and tart rose or lightly sweet.

Dessert wines. These wines come in a myriad of colors and styles. Some are sparkling and light-bodied such as Asti Spumante. Some are white and barely sweet and some are as rich as pancake syrup. Red dessert wines tend to be fortified wines, as with Port. But regardless of the color, most of these wines can be counted upon to last days, even weeks, after they are opened.

Step Three

Try to Please Most of the People Most of the Time

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 15: Build A Successful Wine By The Glass Program   Indian Market

Step Four

Consider Pricing

The categories that reflect popular opinion should be the focus of your first efforts with high-priced offerings.

Grapes such as Pinot Grigio, Chardonnay, Merlot and Cabernet Sauvignon best represent those categories.

In the example mentioned above, two Chardonnay labels were offered, one at Rs.300 and the other at Rs.500. The next step would be to introduce white Burgundy or highly regarded Chardonnay for Rs.800 or more. By offering different price ranges, styles and regions of origin, the customer is given a reason to test the wines.

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 16: Build A Successful Wine By The Glass Program   Indian Market

Step Five

Train the Staff to Sell and Serve It

If there is a single and simple reason to explain the failure of ambitious wine programs, it's that servers are not trained to

communicate the program to the guests.

Train through multimedia programs, videos, seminars, and even trips to vineyards.

Find four simple words to describe the wine

Example:

Perhaps it's a Sauvignon Blanc from New Zealand. A simple description could be that it is light, refreshing, and tastes like green apples and grapefruits.

Any more information than that is probably wasted.

Give your staff the opportunity to taste the wines

Teach how much wine is to be served and in which glasses. If you pour 150ml, you'll receive about five glasses per bottle and you should price accordingly.

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 17: Build A Successful Wine By The Glass Program   Indian Market

Step Six

Develop a Promotional Program

The best way is to begin your wine by the glass program with some specific targeted wine promotions.

Winery/Region of the Month Program

Start by selecting 2 wines (a new red wine and white wine each month) in addition to your regular BTG selection then develop to a greater number of wines.

Offer a complimentary taste of the wine to your customers. This allows your clients to taste a new wine and the opportunity to buy a glass or a bottle with their meal.

Get your wine supplier involved in the promotion will generally help reduce any costs on the printing and development of marketing materials.

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 18: Build A Successful Wine By The Glass Program   Indian Market

Step Seven

Create Visibility & Develop Awareness

Wine by the Glass menu

The menu is either included in the regular wine list or on its own. Wine notes are a must to insert in the menu.

Table tents

Table tents are generally a great way to showcase additional information on the producer, region…as well as pictures.

It is primordial to showcase your Wine by the Glass program as well as providing a maximum information on the wines to the

customer.

News letter

Can be useful specially if you are showcasing a wine of the month program.

Website

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 19: Build A Successful Wine By The Glass Program   Indian Market

Wine flights

Wine flights (tasting of small portions of 50ml) give the opportunity to your customers to taste different wines before taking their final order. It enable the customer to get rid of his eventual inhibition. It is a great way to educate them.

Regular Wine Tastings

Regular tastings with your customers enable not only to build knowledge but also loyalty. If loyal, these customers represent a gold mine for any restaurant / hotel and will enable you to develop your Wine by the Glass Program successfully.

Creation of a Wine Club

The creation a Wine Club enables you to identify your customers who are having an interest into wine drinking. These customers are regular drinkers and are generally drinking higher quality wines. If loyal, these customers represent a gold mine for any restaurant / hotel and will enable you to develop your Wine by the Glass Program successfully.

Step Seven

Create Visibility & Develop Awareness

How to build a successful Wine by the Glass Program?

The importance of developing a

successful Wine by the glass

program

Current situation in India

7 steps to build a

successful Wine by the

Glass program

By Thomas Sauzet

Page 20: Build A Successful Wine By The Glass Program   Indian Market

Upscale hotels / restaurants today are successful with their wines by the

glass program because of their consistent volume of customers.

This consistency allows the F&B Manager to more accurately forecast

consumption and usage. Accuracy in forecasting reduces the waste or

spoilage involved in a wine by the glass program.

This waste/spoilage factor is a tough one to overcome for a small to medium

size Private restaurants. The ability to offer 10 to 15 wines by the glass at

one time, and prevent them from oxidation, is difficult for even high volume

restaurant operators.

How to build a successful Wine by the Glass Program?

By Thomas Sauzet

Page 21: Build A Successful Wine By The Glass Program   Indian Market

Vacuum pumps + -Withdraws air out of the bottle and a rubber stopper caps the wine.

Easy and practical. Mixed reviews on its ability to preserve aromas (a critical wine preservation factor). Generally can keep wine fresh for 3-5 days.

Nitrogen gas bottles + -Injects inert gas into the bottle, expelling air.

Each bottle can serve 80-120 applications. Can keep wine fresh up to a week.

Wine dispensers systems+ -Injects inert gas into the bottle and seals it airtight.

Easy to use. Can keep wine fresh for 2+ weeks. Size and accessories vary by brands.

Wine Preservation Systems

How to build a successful Wine by the Glass Program?

By Thomas Sauzet

Page 22: Build A Successful Wine By The Glass Program   Indian Market

With my special thanks for your

participation & attention

Educating ourselves about wine and its proper use can only

help us to enjoy it to the fullest, and to make it part of a

gracious way of life. By Thomas Sauzet