Over at NYC-based blog Eater, they've started a new series inviting local restaurant and bar owners to write a column. This week, William Tigertt from Freemans walks readers through the math that determines the markup on an order of Johnnie Walker Blue, a premium whiskey. According to his calculations, a place like the SoHo Grand is marking up that drink by 441%!! Tigertt creates the JWBI, the Johnnie Walker Blue Index, and determines that the average markup is 275% around the downtown hotels.
Wow. You're better off laying down a good 200 dollars for the whole bottle yourself.








Reader Comments (Page 1 of 1)
9-09-2006 @ 4:11PM
Phil said...
The restaurant is NOT "ripping people off", it has determined the price point necessary to not lose money. No restaurant requires anyone to drink a luxury spirit such as this, and those willing should be (and usually are) willing to pay the price. Restaurants must account for the salary of the bartender, the rent it pays, the utilities, the glassware, decor, ice, spillage, pilferage, the liquor license required to sell the items, and MANY other factors than simply the cost of the bottle. If people do not like to pay such prices, go to your local liquor store, buy the 'house scotch', and drink it at home.
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9-09-2006 @ 5:33PM
TedSez said...
I agree that restaurants need to be able to make a profit. But the ridiculous markups many of them have on wine and liquor seems ridiculous.
At least the food you get in a restaurant is unique to the chef and the ingredients -- it's something you can't get anywhere else, and it's worth paying for all the effort that goes into it. But the alcoholic beverages (or, for that matter, the bottled water) are the exact same thing that you would buy in a store yourself, for a tiny fraction of the price. All they do is open a bottle and pour it into a glass.
I realize that a lot of people enjoy drinking in restaurants, and a good glass of wine can certainly add to the enjoyment of a meal. But let's go ahead and admit that it's a form of price-gouging, one that we accept because it subsidizes the profits of the restaurant as a whole.
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9-09-2006 @ 5:35PM
TedSez said...
P.S. Please re-edit "But the ridiculous markups many of them have on wine and liquor seems ridiculous" as you see fit.
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9-09-2006 @ 6:07PM
SUE said...
I stopped ordering anything but water (with lemon when possible)- years ago. Can you imagine the money I have saved. Just add a sweet and low to the lemon water and you have great lemonaide. Call me cheap. But the profit margin is out of this world on a glass of weak tea.
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9-10-2006 @ 4:43PM
Crosius said...
Although I do think 441% is a bit steep, I understand the calculation. A bottle requires space in inventory, and it spends time in inventory until it is consumed. So a bottle of liquor/wine must pay for it's storage space*storage time + a profit margin.
Since a premium liquor gets consumed slowly it spends a long time in inventory, so it's got a bigger "rent" to cover than a popular table wine.
But JW Blue is overpriced to begin with - it's a "conspicuously expensive" scotch that people buy for the bragging rights as often as they buy it for the taste. Since half the people buying it as "showing off" that they can afford it, why wouldn't the restaurant soak them for all they can?
SUE> Agreed. There are some things I just don't bother getting at the restaurants any more.
As long as the coffee at restaurants keeps tasting like the grounds are being re-used, I wait until I get home for coffee.
As long as I can spot a mass-produced ingredient in a dessert, I don't bother. (Some restaurants are conspicuous enough to have the exact same item on the dessert menu, with the exact same bit of clip art, as other restaurants).
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9-29-2006 @ 2:19PM
MJ said...
My god.I bought a couple of bottles of Johnny Walker whiel in Miami. much cheaper......It was god awful for the age you would think it was nice and $200 a bottle... The Johnny Walker gold is like smooth cream $60 for a 5th just add ice. Share only in an emergency. when i buy at the store they have to look up the price. It is always changing. Wouldnt order this out while dining ever!
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