Posh restaurants selling wine to patrons at more than three times the cost price have defended the mark-up as an industry standard needed to cover costs and make a small profit. Owners said they had to push up the prices to cover overheads, including wages, rent and advertising. And the high costs of buying and preparing food meant profits on meals were low, restaurateurs said. But wine experts accused owners of outrageous mark-ups, with some of Sydney’s top establishments adding as much $100 to the price. The Sun-Herald compared the prices of a number of Australian wines at some of the city’s top restaurants. The wines were randomly selected. At Aqua Dining at Milsons Point, a bottle of 2004 Shelmerdine Merindoc shiraz was listed at $134 a bottle. The restaurant’s supplier, Mezzanine, quoted the wholesale price (including tax) as $34.40. Aqua’s Bill Drakopoulos said he was not aware the wine had been marked up so much. “That is a bit high,” he said. “The reality is we are on the harbour. We need to make a profit.” At Pyrmont’s Flying Fish restaurant, a bottle of Shaw and Smith M3 chardonnay sells for $90. It costs $26.88 from Red+White. A bottle of 2005 Howard Park chardonnay is on the menu for $100. The price from distributor Negociants is $31.54. Flying Fish owner Peter Kuruvita said: “The industry standard is to mark up wine by about three times. One for rent, one for the purchases and the other for the profits. I don’t think anybody goes out there to rip anyone off.” The Sun Herald, June 22.
Jun 30
