PROVEN values - restaurants' wine service

Nation's Restaurant News, August 31, 1998

Brand-name wines are wines that sell. And the biggest boom is in all types of varietals. Quality, consistency, taste and confidence are the key characteristics of well-known name-brand wines. And these are the primary reasons why so many successful operators of casual and fine dining restaurants are building sales-as well as winning relationships with happy diners through carefully managed wine programs.

"Brand-name wines offer cork confidence," says Rob Gillette, senior food and beverage director for the Marriott Corp. "The product has to be in the bottle. The quality has to be there." "Branded wines are by definition wines that sell," says Dick Wallingford, vice president of national accounts and exports at Beringer Vineyards in St. Helena, Calif. "They do not require labor to sell. The brand names are proven values to consumers, and that's what has made them popular." Some argue that when an establishment offers unrecognizable names, it won't have to contend with price objections from those diners who have shopped for the same brand of wine. But others counter that this advice may not be the best, most profitable approach for most operators. That's because surveys consistently show that when an operator chooses to list branded wines he is giving his customers what they want. "If you look at the Wine & Spirit surveys of 1,600 restaurants around the country, you will see that every wine identified - both by the glass and by the bottle - is a name brand. Consumers buy them because they have confidence in them. They know how they taste. And they like that taste," Beringer' s Wallingford says. Business is on an upswing for all tiers of varietals, says Jeff Bartfield, director of national accounts for the Canandaigua Wine Company, a producer and marketer of widely-known brands including Almaden, Inglenook, Paul Masson and Taylor California Cellars. The tiers Bartfield mentions include the first-tier "fighting" brands where price is paramount. The second tier is for the premium names and the third tier is reserved for super-premium labels. "People are going from non-varietals (e.g., Chablis and blush) to varietals (e.g., cabernet, chardonay, merlot, pinot noir). More and more they are choosing wine over hard liquor. Wine, especially red wine -- and especially since the French Paradox was first reported on by 60 Minutes in 1991 -- has been perceived as a healthy part of the diet. Two glasses of wine a day are good for you. There is a mystique to wine that you don't find in mixed drinks. And what's more fun for consumers is that there are distinct flavor differences from brand to brand," he says. How do operators build a wine list? "A successful list offers choices in each flavor profile. You need to provide a diversity of choices on each tier," Bartfield says. "You have to be able to cater to each class of customer who comes into your restaurant, In order to take care of everyone the list ought to be organized so the trade-up scenario takes small steps. Start with a glass at $3.50, for instance, and then progress to selections for $4 and $4.50 and you will sweep up as many sales as possible." Trends are also important. "You have to watch the brands and the flavors that are 'in'," Bartfield says. For example, merlot is very popular right now. Some say it is part of the swing from white wine to red, and that merlot is milder than cabernet, which has for many years been the best-selling red wine. According to Frank Sutherland, a wine expert and syndicated columnist from Tennessee, merlots are more "approachable" and less expensive than cabernet savignon. Cabernets usually have more tannins (the chemicals in grapes that give wine structure and character) than merlot, and tannins are what makes mouths pucker, Sutherland writes. Another trend is the down-pricing of wine. According to Canandaigua's Bartfield, there's been a good harvest and an abundance of juice in California. "Customers will be getting a better value, a better brand of wine at a better price. Price increases have been a key concern for restaurant operators. But if there are more values available in the marketplace, restaurants can promote that value to their patrons. One caution, though, is that operators need to look at the markup, not the percentage increase, if they want to make a profit. You put dollars, not percentages in the bank," Bartfield says. Nation's Restaurant News spoke with owners and managers of independent restaurants and restaurant chains that are building their businesses through successful partnerships with leading wine purveyors. All agreed that support from the wine companies has been critical to the growth of their programs, from the initial tastings of wine through list development to on-going promotions and waitstaff training. "In the past five or six years Americans have become more sophisticated in wine," says Steve Shlemon, vice president of operations for Carrabba's Italian Grill, a chain of 62 "upper" casual dining locations headquartered in Tampa, Fla. "You can purchase wine at so many different retail outlets, so we've had to spend a lot of time training employees to know more than our customers. This is where partnering with producers plays a huge role. They help us sell their product, and they spend a lot of time teaching our employees to sell more. "There's a lot of outstanding product out there, and we've gone from 12 to 25 different kinds of wine in the last two years. People pick brands they are comfortable with, and so it's our job to find out what those brands are and add them to our list. Advertising has proven very effective. It makes the brands recognizable and sought after," he says. A new operation, Papa Vino's Italian Kitchen, wants to develop its concept where wine is a dinner staple and guests are not intimidated by the wine selection. Headquartered in South Bend, Ind., this two-year-old, eight-store chain already sells a lot of wine. According to Lin Burns, vice president of operations for the Italian division of Quality Dining, Inc., (the parent company for Papa Vino's), wine is at least three percent of sales in all locations, but more than 10 percent in some stores. "When we open new locations we do tastings with the support of wine purveyors. They keep us well informed, including helping the wait-staff develop their tastes and learn proper pronunciations," Burns says. Waiters at Papa Vino's approach every table with house wine in handcrafted pitchers. Servers are happy to mention the brand - Banfi's Placido - to guests. They also promote wine flights, a sampling of four wines from the regular wine list, the selections ranging from $6-$8 for the four glasses. Burns keeps the wine list at 25 items "so it won't get out of hand," and all listed wines can be served by the glass. Store managers are free to introduce brands that may be popular locally. "We try to stick with well-known brands," Burns says. "If the producer advertises, we can sell it." Brand support is at the heart of the success Hyatt Hotel restaurants have experienced with their wine program, according to Philip Kendall, vice president of food and beverage for the chain, which has 108 properties and 250 restaurants. "I was exposed to Beringer's progressive wine list and discovered people taste five things: sweet, salty, sour, bitter and umami [Japanese for deliciousness or savoriness]. So when we talk about wine, when we want to sell wine, we talk about those tastes. "On our lists, we rate everything from mild to strong," says Kendall, who has built a "template" of 200 branded wines from which individual property managers will select the wines to feature in their locations. "Some may need only 25 wines, while others may choose 125," he says. The determining factors for wine selection at Hyatt properties begin with taste. Is it a good wine? Second, are the wines available? And third, are they backed by a distributor who will provide good service and support? Stan Kaminski, who manages the San Francisco Hyatt, has chosen 62 selections for his wine list, and all of them have name recognition. "A lot of people travel to San Francisco, business travelers and vacationers, from this country and abroad. It is important that we offer wines they've heard of. When we do a wine promotion we will try to get major lines behind it. They are excellent at staff training and marketing support. For anyone to be successful with wine, you have to have a trained staff. Wine is a hand sell at the table," Kaminski says. There's one place in the country where one is likely to be able to please just about every palate. That's Pizza Man restaurant in Milwaukee, where owner Mike Amidzich has earned the Wine Spectator Award 10 years in a row. Pizza Man is said to be the largest "wine bar" in the world, offering 300 wine selections by the glass. The restaurant began as the standard pizza-delivery place 28 years ago, but 10 years ago when Amidzich took over he wanted to do something different. Now pizza is only 30 percent of the business, while the restaurant is better known for escargot and ribs and an incredible selection of wine. "We started wine to upscale," says Amidzich, "I try to keep changing things. I always liked great wine and I wanted to specialize, to do one thing really well. Our claim to fame is that all 300 wines are California wines. People are familiar with the names. They can say the names. "People are limiting their intake, but they are seeking better and better quality. They feel they drink less, so they may as well get the best quality. Being able to taste a unique wine brings people in, and many don't care what it costs," he says. When Amidzich began his extensive program he started with 170 wines. "Every year we try to cut back, and every year we add some. It's like a wedding list that just keeps growing," he explains. Initially the restaurant lost money because of wine spoilage. Then Amidzich discovered Private Reserve, a gas in a spray can that helps keep wine from spoiling. "Oxygen destroys wine. By putting in this mixture of gas, which is heavier than oxygen, you form a blanket on the wine, It saved me a fortune." Food and wine have a natural affinity that shouldn't be missed, says Michael Merriman, director of beverage operations for California Cafe Restaurants, which owns the Napa Valley Grille concept, developed in 1993 for the Mall of America in Minnesota. Wine is profoundly evident in the decor of Napa Valley Grille -- from room dividers made from wine racks to trellises, arbors and even wine labels etched in masonry on the walls. Napa Valley Grilles have a cozy atmosphere, encouraging longer stays and offering a wine list of 200 selections, 15 of which are featured by the glass. Twenty-two percent of sales are in wine. "The staff is wine savvy," says Merriman. "It's a tough job, actually an on-going process to keep our servers updated. With the wine business constantly changing, our training goes on daily. That's why we are glad to have so much support from wine producers." Merriman's wine business is three-fold, pretty much equally divided between private label, wine by the glass, and wines from the bottle list. The house wine is produced by Roundhill, and servers are proud to share that information with people who want to know where the wine originates. The glass program features selections that are not on the regular wine list. This part of the program especially serves the needs of individuals who want to taste different wines. Featured selections are changed every four weeks to provide variety both for regular customers and the waitstaff, which enjoys the challenge of learning about new wines. The bottle program is targeted to higher-check customers who are usually not as price sensitive. How do they choose their wines? "It's critical to consider consumers and brands," Merriman says. "In terms of brand awareness, there are those who come into our restaurants knowing exactly the kinds of wine they will want. There are probably an equal number, though, who ask what is new or will see an interesting label and ask what it is. Wine selection is a multi-layered process. With more than 700 wineries in California, we are constantly trying to keep up with what's new. You have to pick products that you believe in, and that comes from tasting and from working closely with wine producers."