By-the-Glass Pour Cost and Oxidation in a Bistro
A 60-seat neighbourhood bistro runs 12 wines by the glass, all poured at 150 mL from 750 mL bottles. The target pour cost is 24%. The list includes a Marlborough Sauvignon Blanc at $13.80 per bottle, sold at $11.00 per glass and currently moving 4.2 glasses per day, and a Barolo at $42.00 per bottle, sold at $17.00 per glass and moving 0.7 glasses per day. Staff use a vacuum pump and keep opened bottles in the upright fridge; white wines are held for four days and reds for five. In the last month, three guests returned Barolo as oxidized, and the bistro's glass sales have fallen 8% overall. The owner wants to add two more by-the-glass wines and is considering a Coravin or an argon cabinet, but the capital budget is $4,000. A local rep has offered a discounted Barolo at $34.00 per bottle if the bistro commits to six bottles per month.
1. Calculate the current pour cost and gross margin per glass for the Sauvignon Blanc and Barolo, and identify which wine is the real problem.
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At 150 mL per pour, a 750 mL bottle yields five theoretical pours. Sauvignon Blanc: bottle cost $13.80 ÷ 5 = $2.76 per glass; at $11.00 the pour cost is 25.1% and the gross margin is $8.24. Barolo: $42.00 ÷ 5 = $8.40 per glass; at $17.00 the pour cost is 49.4% and the margin is $8.60. The Barolo is the real problem, but not only because the percentage is high. At 0.7 glasses per day, a bottle lasts about seven days, well beyond the five-day red hold, so oxidation and returns are structurally inevitable. The Sauvignon Blanc is close to the 24% target and turns over in about 1.2 days, so it is not the main issue. The 8% fall in glass sales may be partly a trust effect from returned wine. The Barolo’s cash margin per glass looks acceptable, but its effective margin after waste is much lower, and it ties up premium inventory in a slow format.
2. Recommend a preservation and list strategy within the $4,000 budget, including whether to take the Barolo discount and how to price it.
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Do not take the discounted Barolo just to keep it by the glass. At $34.00 per bottle, the cost per 150 mL pour is $6.80; at $17.00 that is a 40% pour cost, still far above 24%, and at 0.7 glasses per day the bottle still lasts over a week. To hit 24% on a $6.80 cost, the price would need to be about $28.33, which is unrealistic for this list. Better options are: remove the Barolo from the by-the-glass list and sell it by the bottle; or keep it as a Coravin-only premium pour at $21–$24, where the higher price reflects the preservation cost. Within $4,000, buy two or three Coravin units for the slow premium reds and use argon or a small wine-preservation cabinet for the faster whites. Reduce the by-the-glass list from 12 to about 8–10 lines, add a cheaper Nebbiolo or Barbera at around $24–$28 per bottle and $9–$11 per glass, and price the Sauvignon Blanc at $11.50–$12.00 to protect the 24% target.
3. What staff SOP changes would reduce oxidation and returns?
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Every opened bottle should be labelled with the date and time and the initials of the person who opened it. Whites should be stored cold and reds at cellar temperature, not in the upright fridge, because over-chilling reds masks faults and does not slow oxidation better than inert gas. Use argon or Coravin according to a written rule: vacuum pumps are not adequate for a seven-day Barolo. Taste every open bottle at the start of each shift and again before service; any bruised-apple or Sherry note means discard and record. Set maximum hold times by wine style and preservation method, and give staff authority to refuse a suspect pour before it reaches the guest. Record returns by wine, day, and staff member so the owner can see whether the problem is storage, slow turnover, or a faulty shipment. Train staff to explain oxidation to guests and to offer a fresh bottle or an alternative without argument. These changes cost little and protect the premium list.