When going out to a restaurant, you may find yourself opting to order a bottle of wine for the table, but there’s one mistake you may be making, according to one wine expert. While it may seem like a good choice to order the cheapest wine, restaurants often load the largest margins onto the cheapest wine because they know diners instinctively choose it to save money.
According to the experts at Into the Vineyard, the average markup on UK restaurant wines is approximately three times the retail price, with some London establishments charging up to 10 times the bottle’s cost. While research by the American Association of Wine Economists (AAWE) found that profit margin on the cheapest wines can exceed 300%, whereas mid-tier bottles often have markups closer to 150–200%, and offer a noticeably better taste.
Colin Simpson, wine expert and director of Into the Vineyard, says: “Many diners assume the cheapest wine is the most budget-friendly choice, but restaurants often price strategically, with hidden profit margins built into the lowest-cost options.
“Mid-range wines frequently provide the best combination of quality, taste, and value, offering a more enjoyable experience without the exorbitant markup found in premium bottles.
“Restaurants understand consumer behavior: diners hesitate to choose the cheapest option, fearing it reflects poorly on their sophistication.
“As a result, these bottles are deliberately profitable. In contrast, wines slightly higher on the list often have lower relative markups but superior taste.”
With this in mind, Colin has shared his tips for getting the best value from your wine:
- Avoid opting for either the cheapest or most expensive options, as these often have the highest profit markup.
- Consider mid-tier options, as these will often be the best value for money.
- Ask for sommelier recommendations, including their favourite ‘hidden gems’.
- Check online reviews before purchasing. The app Vivino can provide user-based ratings to guide selections.
