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Abstract

A controlled field study of wine promotions in a mid-priced chain restaurant generated three key findings: (1) selected wine recommendations increased sales by 12 percent, (2) food-wine pairing recommendations increased sales by 7.6 percent, and (3) wine tastings increased sales by 48 percent. In general, 69 to 87 percent of the increase in sales of promoted wines come from diners who would likely have ordered a nonpromoted wine. This means that 13 to 31 percent of the increase come from diners who would have otherwise ordered liquor, beer, and nonalcoholic drinks. Specific implications for responsible restaurateurs are outlined, including the caveat to not cannibalize sales by promoting a lower-margin, lower-profit wine.

Keywords

wine sales beverage sales restaurants recommendations wine promotions menu pairing sampling

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The wines paired with food were also the wines featured alone. The wines and pairings were as follows: (1) RM Coastal Chardonnay SC with Maryland Crab Cakes, (2) Hogue Riesling with Santa Fe Fish Tacos, (3) Rancho Zabaco “Dancing Bull” Zinfandel with Shrimp Parmigiana, (4) Ecco Domini Pinot Grigio with Rockfish Combo, and (5) Sterling “Vintner’s Collection” Cabernet Sauvignon with Steak.

To be able to statistically test these wine and food promotional results, a two-way contingency table analysis was conducted on the individual sale figures shown in Exhibit 3 (6 Wine Promotions × 7 Wine-and-Food Categories). The overall chi-square for this contingency table was significant, p < .001. This result suggests that the wine promotions had a significant effect on sales.

10.

See D. Whitlark and S. M. Smith, “Using Correspondence Analysis to Map Relationships,” Marketing Research 13:22-28. To further examine the statistical significance of individual sale figures within the aforementioned contingency table, we computed adjusted standardized chi-square residual scores, which are akin to “z-scores.” The “z-scores” pertaining to the five-wine promotion results for the promoted wines, total wine purchases, and total restaurant sales were all significantly different from what was expected from the corresponding baseline sale figures (p < .05 in all cases).

11.

Both p-values related to adjusted chi-square residual “z-scores” for the decrease in sales of target wines and all other wines were less than .05.

12.

The single target wine was RM Coastal Chardonnay SC.

13.

This comparison was also conducted with three promoted wines, but an inventory stock-out made this condition noncomparable. This situation also did not allow us to make global evaluations of the effect of “tasting” promotions on total wine purchasing nor total sales of the restaurant.

14.

“Pouring on Profits: Global Glut, By-the-Glass Boom Boosts Wine Sales,”

Nation’s Restaurant News, November 2004, pp. 46-48, 50-50.

Wine Promotions in Restaurants

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