RESTAURANT WINE PROMOTIONS THAT WORK
When it comes to selling wine in restaurants, what promotions work? Not all advertising is profitable, and some of the results might surprise you, as they did us.
A 12-week study conducted by Brian Wansink Ph.D., director of the Cornell University Food and Brand Lab, and other researchers was aimed at uncovering what kind of effect various table-tent wine promotions have on restaurant wine sales. The study took place in two restaurants of the Texas chain, Rockfish Seafood Grill, 22 miles apart in Houston.
Not shocking, but worth reiterating: more recommendations equal more wine sales. Getting waiters and sommeliers to recommend a wine brand is like putting gold straight in the brand-owner’s pocket.
[Ed. Note: In a recent conversation with a beer-distributor-turned-wine-wholesaler, he observed that wine sales are largely influenced by the people selling it, rather than by mega-branding, hence the abundance of small brands. If a waiter at a restaurant, wine editor, or a trusted friend recommends a brand, chances are consumers are going to try it.]
According to the study, if a wine company promotes five wines, those promotions will increase sales by 39% without "cannibalizing" other wines.
Be careful, though, since promotions CAN cannibalize. Out of the wines that were promoted, between 69-87% of sales came from other wines that patrons would have ordered anyway. The study’s recommendation? Stick to promoting higher-margin wines, mid-priced or above, and avoiding margin-cutting price promotions.
But if you’re going to promote, why not do it in bulk. The study showed that a table-tent promotion of five wines increased its sales more than promotions recommending a single wine or three, spurring a 39% increase for the five featured wines, a 12% increase in overall sales and a 4% increase in total restaurant sales.
Big on food and wine pairings? Keep it small, according to a study co-authored by Collin Payne. Suggested wine and food pairings are effective, but only in small doses. More than three wine recommendations "and people give up.” Table-tents featuring five food and wine pairings decreased wine sales by 11% and all other wine sales by 14%, perhaps because the excessive choices confused and/or intimidated diners.
Offering wine tastings, however, is a great way to push sales. In fact, not only did the study find that two-ounce tasting portions increase sales by 18-47%, but more the merrier. The single tasting promotion increased subsequent sales of full glasses by 18.2%, but when five tastes were offered, the total increase in sales for all five wines grew an astonishing 47.3% week on week.
A 12-week study conducted by Brian Wansink Ph.D., director of the Cornell University Food and Brand Lab, and other researchers was aimed at uncovering what kind of effect various table-tent wine promotions have on restaurant wine sales. The study took place in two restaurants of the Texas chain, Rockfish Seafood Grill, 22 miles apart in Houston.
Not shocking, but worth reiterating: more recommendations equal more wine sales. Getting waiters and sommeliers to recommend a wine brand is like putting gold straight in the brand-owner’s pocket.
[Ed. Note: In a recent conversation with a beer-distributor-turned-wine-wholesaler, he observed that wine sales are largely influenced by the people selling it, rather than by mega-branding, hence the abundance of small brands. If a waiter at a restaurant, wine editor, or a trusted friend recommends a brand, chances are consumers are going to try it.]
According to the study, if a wine company promotes five wines, those promotions will increase sales by 39% without "cannibalizing" other wines.
Be careful, though, since promotions CAN cannibalize. Out of the wines that were promoted, between 69-87% of sales came from other wines that patrons would have ordered anyway. The study’s recommendation? Stick to promoting higher-margin wines, mid-priced or above, and avoiding margin-cutting price promotions.
But if you’re going to promote, why not do it in bulk. The study showed that a table-tent promotion of five wines increased its sales more than promotions recommending a single wine or three, spurring a 39% increase for the five featured wines, a 12% increase in overall sales and a 4% increase in total restaurant sales.
Big on food and wine pairings? Keep it small, according to a study co-authored by Collin Payne. Suggested wine and food pairings are effective, but only in small doses. More than three wine recommendations "and people give up.” Table-tents featuring five food and wine pairings decreased wine sales by 11% and all other wine sales by 14%, perhaps because the excessive choices confused and/or intimidated diners.
Offering wine tastings, however, is a great way to push sales. In fact, not only did the study find that two-ounce tasting portions increase sales by 18-47%, but more the merrier. The single tasting promotion increased subsequent sales of full glasses by 18.2%, but when five tastes were offered, the total increase in sales for all five wines grew an astonishing 47.3% week on week.
posted at 12:17 PM
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