| RESTAURANT WINE MARKUP POLL -> A fair mark-up | Start A New Topic | Reply |
| Post Info | TOPIC: A fair mark-up |
| Posted By: Peter Posted On: May 23, 2004 Views: 588 | A fair mark-up Considering an establishment that does not sell alcoholic beverages pays about a $8,000 insurance premium every six months vs. one that does sell alcoholic beverages and pays a $16,000 insurance premium every six months, a 2X mark-up ($30) is not unreasonable. I'm in the final stages of purchasing a cafe that serves an average of 150 lunches per week, 350 dinners per week and 300 appetizers alone per week (snacks). They also serve 20 litres of wine and about 400 bottles of beer. On this alcohol they make about $1,500 gross profit. Over $307 of this per week goes to insurance premiums. About $75 of this goes to their liquor license. Then there is overhead, etc. Selling alcoholic beverages is a very expensive proposition to the proprietor. If he's tripling the retail cost, this is not only reasonable, but he's covering the expenses most are unaware of. |