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Define progressive wine list format & other options
- A wine list ordered by flavor profile.
- Other options are arranged by color, region, and varietal.
State the national average wine product cost
36% per Golden Gate Restaurant Association Economic Study
State typical sliding scale wine mark-ups
- Markup from wholesale to restaurant prices is 3X for average-price wine, 4X for inexpensive wine, and 2X for expensive wine.
- Average wine bottle at 2X average entree price works well.
- Loss of product due to numerous causes
- Spills & breakage
- Over pouring and un-recorded comps
- Fee charged by restaurant if they allow you to bring your own wine
- Illegal in some parts of USA
Define POS and state what it is used for
Point of Sale (POS) systems are used for accurate product cost % and perpetual inventory.
Give the formula for Product Cost calculation
Change in Inventory (Beginning Inventory - Ending Inventory) + Net Purchases
- Cost of Goods Sold (COGS) is the Product Cost.
- Product Cost (Wholesale) ÷ Product Sales (Retail) = Product Cost %
State the formula for Contribution Margin
Sales Price (Retail) – Unit Cost (Wholesale)
Define 86 list
"Stuff" you're out of
State 3 ways of dealing with a Dog on your wine list
Eliminate, keep as loss leader, adjust prices, change producer, staff training, promotion, suggesting food pairing
State what government agency controls the sale of alcohol in California
- State Department of Alcoholic Beverage Control (ABC).
- There is an equivalent in each state.
Define the term Control State
- The state is the wholesaler & retailer.
- Consumers buy from the State Store or ABC Store.
- Retailers buy from an authorized agent of the State.
Define the term Blue Laws
Any law designed to regulate conduct on the Sabbath.
State any 2 restrictions under California Tied House Laws
- Note: These laws are widely violated in the industry
- Max. "net-30 billing" w/o account being put on COD for new orders.
- Retailers may not purchase alcohol from other retailers for re-sale
- Suppliers may not furnish money, free goods (including alcohol) or other things of value.
- Suppliers may not provide cash or secret rebates to accounts or employees of accounts
- Suppliers may not pay, credit or compensating a retailer for advertising
- Suppliers may not give performance-based incentives; including supplier payments to retailers for cumulative volume purchases
- Suppliers may not invest (loan money, purchase stock or other) in a retailer unless the investment is permitted by an ABC Act exemption
- Suppliers may not furnish samples in excess of 1 bottle of wine, 1 bottle or can of beer or 1 bottle of distilled spirits for any one account
- Suppliers may not provide any form of free service, such as stocking wine or spirits products from a storeroom
State any 2 restrictions under California Dram Shop Laws
- Illegal for a retailer to serve after hours or minors, alcoholics, or intoxicated persons.
- Retailers may also be liable for illegal activity on the premises regardless of whether you are aware of the activity or not.
- Owner, Manager, Server may be found liable.
- Penalties may include jail timeif there is an alcohol related death.
State a training program that may reduce your liquor liability
- LEAD: Licensee Education on Alcohol and Drugs
- LEAD: California ABC provides FREE training on or off-site to any licensed retailer, & you may face lower fines if you are cited for a violation.
- TIPS: Health Communications provides training for a fee (www.gettips.com)
- Either of these will also lower your liquor liability insurance premiums.
Define on-sale and off-sale licenses
- On-sale: allows consumption onsite or offsite (e.g., restaurant or bar)
- Off-sale: alcohol must be consumed offsite (away from place of purchase)
Define the term Personal Guarantee
A section of a credit application, or a separate form, which means you will personally pay the debts even if the business folds.
What WHITE wines are likely to be on the test?
- Sauvignon Blanc: France or NZ
- Chenin Blanc: France
- Pinot Gris: France or Italy or USA
- Riesling: France or Germany
- Gewurztraminer: France
- Viogner: France or USA
- Chardonnay: France or USA or Australia
- Torrontes: Argentina
What RED wines are likely to be on the test?
- Gamay: France
- Pinot Noir: France or USA
- Syrah/Shiraz: France or Australia or USA
- Sangiovese: Italy
- Nebbiolo: Italy
- Malbec: Argentina
- Zinfandel: USA
What is the Volstead act?
The Volstead act enabled federal enforcement of the Eighteenth Amendment. Named after Andrew Volstead, Chairman of the House Judiciary Committee. The Eighteenth Amendment prohibited the production, sale, and transport of "intoxicating liquors" but did not define "intoxicating liquors" or provide penalties.