geli wrote:Ronnie, I believe that restaurateurs and bar owners have to buy through distributors, which ensures that they pay the correct tax, etc, and the prices that they pay through distributors for both wine and spirits are higher than regular retail. Which is why restaurateurs/bar owners are occasionally busted for buying retail--they take the risk in order to save some $$.
Which still doesn't excuse the amazingly high mark ups on the Saigon Sisters wine list!
Sorry but this is NOT correct unless a lot has changed since I was in the business.
Distributors buy from producers, paying tax upon receipt of shipment. Pricing is wholesale to all--who then mark up accordingly--retail always marking up significantly less (20-30%) than on-premise (100-300% on wine is typical--annoying, but typical) who are factoring in service and other issues into their pricing.
The restaurant or bar buying retail is doing so because either:
a) they are on the "list" for not having paid their distributor or violating state law, barring shipment to them
b) they are buying such small quantities of something that the price they are quoted from the distributor is more than the retail markup of the deeply discounted price a large chain can buy something at or
c) they ran out and can't get a delivery in time to open.
A restaurateur pricing something like Gruet Rose at 500% mark-up is either a mistake or larceny.
"Knowledge is knowing a tomato is a fruit; wisdom is not putting it in a fruit salad." Miles Kington