Tap into profits: Making Money With Specialty Beers

With the explosion of the beer market, Americans now have more than 2,100 different types of beer to sample. And, it seems, equally as many stylish beer glasses to serve them in, like Libbey's new Gibraltar Pilsner. Restaurants can pop a top on profits and appeal to patrons' diverse taste for beer by increasing their beer menus to reflect the expanding beer market.

While it used to enough just to offer the mainstay national brands, restaurant patrons now are searching for those hard-to-find brews and the restaurants that serve them.

"People are opening their minds to different beers because they are better educated," says Bill Kunz, executive vice president of food and beverage operations for Gaming Development Entertainment Co., which owns three Growlers Pubs in the St. Louis area. "People are drinking less but drinking better. They are more adventurous."

David McClean, owner of Magnolia Pub and Brewery in San Francisco, agrees. His restaurant offers anywhere from 10 to 12 brews at a time, eight or more of which are brewed on-premise. "It is a lot easier to sell people on a different type or style of beer from the major brands than it was 10 years ago," McClean says. "At this point, people walk into a pub or restaurant expecting to taste something different. (While) before you were really trying to convince them something different from the normal brand is good, now they expect it. . . People coming into a pub or restaurant are pretty much predisposed to trying something new."

SMOOTH SELECTION
Of course, restaurant can't just throw a bunch of beers on the menu and expect to down the profits. At the three Growlers Pub locations, creating a beer menu is a science. The pubs swap out some the 131 beers on their menu twice a year. Heavier beers are added for the winter months while lighter beers are added in he summer. Beers also are chosen according to popularity or whether they fit a category or style not already offered on the menu. To help select each new menu, Growlers enlists the help of fourth-level and above members of their Royal Order of Tasters, a club for people who have drunk at least 100 of the different beers at Growlers. "We split the tasters into two groups because we usually have around 90 beers to sample," Kunz says. "So they sample about 45 beers each and rate them." The tasters' ratings are then considered with other factors, such as a beer's style and potential appeal to the general public, before Growler's management makes the final selections.

Choosing which beers to add to the more than 30 on the menu at Atkins Park Restaurant in Atlanta isn't quite so scientific. "We usually only add a beer when it is a hot product or something that is being requested a lot," co-partner Keven Drawe says. "You can't just jump on the newest products because you really don't want to be stuck with cases of beer you can't sell. You have to let the public decide."

SELLING THE SUDS
Once a beer is added to the menu, it has to be promoted. Ways to do this range from hosting a keg-tapping party, when the beer is first offered to the public, to marketing the new addition with on-premise advertising and on beer menus. "We try to sell people on the experience of a new beer by advertising on our web site and sending out e-mails and newsletters to our regulars," McClean says. "Since they take a few weeks to brew, by the time the beer is ready to tap and serve there is already a little buzz for it. We also announce and market new beers on a chalkboard on premise and on our beer menu."

When new additions are ready to serve, the job of promoting and selling the beer falls onto the shoulders of waitstaff and bartenders. Staff tastings give a restaurant's sales force first-hand knowledge of new products, and get them excited and motivated. While they're sampling new beers, management can outline the sales strategy. "To get people to try and drink new beer, it all starts with the bartender and server," Kunz says. "Some people think you can bring in a lot of beer and then have a great beer menu. It is more than that. It is having a plan behind it about how you are going to move it. It takes an educated staff. It takes a good menu that is going to make them a smarter drinker. Then they learn to appreciate it and develop their taste."

But for any restaurant to succeed at expanding its beer menu, it has to have other keys to success already in place - such as good customer service with great food. Matching food and featured beers or hosting beer-tasting dinners can make a diverse beer menu a vehicle for helping boost food sales as well. "The beer is the hook but the food should keep them coming back for more, along with the beer," Kunz says. ". . . The key to success here is the great food and great choices of beer going hand in hand. That is what customers are looking for today and you have to deliver it."

Partial Source: Shea Stewart, Restaurant Marketing

Glass Handling: Better Beer

To make sure glasses are clean, a 3-sink system is ideal. The first is for washing, the second for rinsing, and the third for sanitizing the glasses. Use cleaners and sanitizers specifically designed for cleaning beer glasses. Here is the procedure:

Empty any remaining beverage into an open drain. . .not into the first tank.

Wash the glass in a sink containing clean, warm water and a solution of odorless, low-sudsing, non-fat cleaning compound.

Consider using a nylon three-spindled bristle brush to wash the glass. Using a triple brush enables you to clean 2 glasses at once while cleaning the glasses exterior. Brush all surfaces, inside and out including the bottom

Rinse the glass in the second tank, by placing the bottom of the glass in the water first. This is called, "heel in, heel out" rinsing.

Rinse the glass in the third tank containing a sanitizing chemical, using the heel-in, heel-out method.

Finally, let the glasses air-dry upside down on a stainless steel wire rack or deeply corrugated plastic surface for complete order free drying.

Note

Try to avoid storing glasses in overhead bar areas where heat, tobacco, and other odors can detract from the overall cleanliness. Also try not to store glasses in a freezer or refrigerator that also contains food products. Odors can easily be transferred to your glassware. And never towel dry glasses. Towels can leave lint and other germs on the container.

Automatic dishwashers may do an effective job in cleaning glassware. It is recommended that operators follow the manufacturer's procedures for ensuring a thorough cleaning job.

The above procedures may be preempted by state and/or local laws/regulations which may require additional equipment/procedures other than those outlined in this text.

Could be the robust economy. Or, that a growing percentage of the Baby Boom generation is now in the affluent 45- to 54-year-old group that spends the most on wine and liquor. Whatever the underlying reason, there's no denying people are getting pickier about what they drink. And they're putting their money where their mouths are. In a two-decade trend, consumers are drinking less (alcohol), but better.

Primary evidence: the rise in the popularity of 'single-source' drinks. Patrons are paying premiums for single-vineyard wines, single-distillery Cognacs, single-barrel whiskeys and - in the very epitome of the robust trend - single-agave field tequilas.

Singular sensations
At first it seems like a contradiction: Americans today are drinking 16 percent less alcohol than they did in 1979, according to <I>Impact,</I> a leading beverage industry magazine. Yet the most expensive drinks sell best.

Two years ago, Jack Daniels introduced the concept of 'single-barrel' Kentucky whiskey at $35 to $40 a bottle, more than double the price of its regular whiskey. And consumers are supporting the premium offerings. Even Ireland is getting into the act. For centuries, most Irish whiskies have been blends of many malts. But now, whiskey aficionado and Texas oilman Mark Andrews has been importing single-malt Irish whiskies from various distilleries and selling them unblended at premium prices. Other packagers have been doing the same thing with Scotch for years: Whyte & Whyte is one. It's a hot trend.

Still, marketing such pricey potions creates a danger of backlash. Tariffs can get cranked up to the point of ridiculous. Bottom line? Operators should price these selections to realistically cover the increased cost of the wholesale bottle with a decent markup, but avoid getting too carried away by the profit motive.

Great glasses boost bottom line
An excellent profit-building strategy is to increase the perceived value of these singular sensations by serving them in spectacular looking, top quality glasses. Browse our on-line product catalog for numerous whiskey service selections available in a wide range of styles, and capacities. For the ultimate value-added presentation, consider any one of several striking <I>Luigi Bormioli</I> liqueur or rocks offerings including No. PM22 Single Malt</A> Scotch.

In California, winemakers are beginning to buy the sacred-soil concept, now widely accepted in Europe, especially now that they've been in business long enough to figure out the best places to plant grape varieties. Perhaps California's most distinctive single-vineyard wine is Heitz Wine Cellars' "Martha's Vineyard" cabernet sauvignon. Its so popular around the country that the current vintage, 1992, is almost sold out at $77 a bottle. Apparently, it has a subtle minty flaver imparted from a nearby stand of eucalyptus trees. Clones planted in other vineyards do not produce the telltale taste, according to winemaker David Heinz.

Single-vineyard wines; single-source Libbey stems
Premium wines of all kinds, and now those from single-vineyards, acquire higher perceived value when the stem in which they are served has sheer-rim eye-appeal, crisp lines and proper balance. The way the stem feels in the hand is integral to memorable wine consumption experience. Again, look no further than our foodservice glassware catalog</A> on our website, for inspiration. Our Luigi Bormioli offerings are, of course, the ultimate for sophisticated and spectacular wine service.

Another innovation, an offshoot of growth in single-vineyard wines, is the new market for single-distillery Cognacs (brandies made in the Cognac region of France) recently introduced by Hennessy.

But, outdoing all other singular sensations - for sheer audacity if nothing else - is Mexico's new single-agave field tequila. Dubbed Jose Cuervo Limited Edition, it retails for $1000 a bottle. Has it gone too far?

What's next? Budweiser's new sensation - single-hop farm beer. . . or, Miller's single-copper-vat-forge ale? Just kidding. Not!

Partial source: Chicago Tribune, March 1, 2000

A bouquet of profits from a simple bottle of wine.

Take a $50 bottle of imported or domestic cabernet sauvignon from the wine list in an upscale restaurant. Seems like a splurge, but it is a special occasion. . . our anniversary after all. That's how most patrons justify the cost of a pricey vintage. It might be harder for them to take the plunge if they realized that the winemaker only made about $2 on the deal.

In the wine game that's actually not bad money. Take Ravenswood, a well-known winery in Sonoma, California. Ravenswood has been a producer of premium wines for nearly 20 years. In 1998 the winery, which is publicly traded, posted a net profit of about $1.5 million on sales of $17 million. With some 131,000 cases of wine sold, that translates to a profit of about 95 cents a bottle.

The Robert Mondavi Winery, also a public company, netted $29 million, selling some 6.8 million cases, about 81.2 million bottles of wine. Net profit per bottle: 36 cents.

Markups mean profits
So where did the patrons $50 go? Mostly to the restaurant. Lets make that point again. Mostly to the restaurant! The winery sells the wine to a wholesaler - a distributor - for about $12.50. The distributor marks it up about a third, selling it to the restaurant for about $16.50. A package store retailer might sell it to a customer for about $25 and a restaurant for double that to a willing patron. Voila! $50. Actually, $60 with tax and tip. Maybe even more, if its served in a spectacular or Luigi Bormioli stem.

Most restaurateurs justify and defend the high cost as a way to hold down the cost of food and general overhead. According to the recent restaurant poll conducted by <i>Wine & Spirits</i>, the average price paid for cabernet sauvignon was $56 a bottle. A barometer of good times?

Maybe. But, for certain, one huge opportunity for food and beverage operators nationwide. Are you getting your piece of the pie?

The right glass
Integral to successful wine promotion is the appropriate glassware. The more consumers learn about wine, the more consumers learn about wine, the more they expect the right glass. Schenectady Restaurant Supply carries a complete line of wine glasses, carafes, decanters and bar supplies to make sure your wine service is the best (and most profitable) possilble.

Partial source: Frank J. Prial, New York Times News Service; Chicago Tribune, September 29, 1999

Family restaurants explore bolder, regional tastes.

Operators in the family-dining segment are making life a little spicier, turning up the taste of new dishes as adult patrons clamor for offerings with bolder flavors.

This doesn't mean they're abandoning such staples as pot-pie, meatloaf, and beer-battered Friday fish, but they are reacting to changing consumer preference for more garlic here, a little more curry there, a sprinkling of slivered almonds or a side of salsa. Moreover, several family chains are featuring regional dishes to cater to consumers' broadening tastes. This means, in Wisconsin, bratwurst may share a kid's menu with hot dogs; in the South, hushpuppies with fries. Jambalaya might be offered in addition to spaghetti and meatballs in Lousiana; grilled salmon with battered cod in the Northeast.

Credit a strong national economy for many of these changes. More people are working and find themselves too busy to cook. They're dining out more than ever before, and have more choices about where to eat. The National Restaurant Association says industry sales will top $362 billion this year, a 2.9 percent increase over the 1999 figure.

New attitude drives segment
The new attitude in the family segment is simple but powerful: hold to traditional strengths - a comforting meal of generous portions, attractively priced - but don't be afraid to experiment. If you don't you'll be history. Consumers with ample disposable income are not unwilling to abandon cozy family eateries for casual or upscale restaurants to satisfy their craving for food with a bit more bite or regional influence.

According to Dennis Murray, area director in central Florida for Columbus, Ohio-based Bob Evans Farms Inc. restaurants, operators in the family segment have traditionally let consumers season their own food, but now they're using more flavors to make for more distinctive tastes.

"In the family-dining segment," says Murray, "seafood items have been deep-fried. Now we're going to char-grilled. We recently added char-grilled salmon fillet." Also new is a barbeque sauce called Wildfire, which has a bit of a kick to it, and is now used on numerous menu offerings including the char-grilled salmon. New menu items helped boost same-store sales 5 percent during fiscal 1999.

Livelier menus benefit from bolder tabletops
Today's bolder direction in family-dining is breathing new life into the segment nationwide. What better way to raise patrons' awareness of these flavorful new offerings than by reevaluating the tabletop. Libbey's broad Syracuse China offerings abound with numerous styles, designs and colors to enliven the decor of any family-oriented restaurant, regardless of overall theme or desired atmosphere.

Even minor changes on the tabletop - the addition of a colored Libbey glass, a Southwest - inspired Cantina soup bowl, or Signature Too patterned plate from Syracuse China - can help get the regulars and newcomers alike excited about new food and beverage offerings to the benefit of the bottom line.

Building your business.

According to Restaurant Business' recent report on the state of the restaurant industry, foodservice establishments enjoyed one of the best years ever in 1999 and the millenium years are continuing the trend. A strong economy, double income families and fewer meals prepared at home are driving the dining-out demand to record highs. At least 50% of every food dollar went to away-from-home foodservice operations in the last year. These key indicators of industry vitality are expected to remain strong well into 2001. But, one message is clear, first impressions count.

Selecting the right flatware, glassware, china, and service accessories is one of the most important decisions you can make to contribute you your customers' first - and lasting - impression of your establishment. Whatever you choose, for whatever reason, style, durability, availability, cost - take your time to consider how all of the tabletop elements will work together to enhance your patron's dining experience.

Good news! Now you can obtain every product you need to make a dynamic, memorable tabletop statement from a single source, Schenectady Restaurant Supply.

Flatware from Schenectady Restaurant Supply that has a solid, substantial and well-balanced feel adds to the enjoyment and perceived value of any meal - appetizer, soup, salad, entree, and dessert.

Chinaware from Schenectady Restaurant Supply is the main component of the tabletop. It adds style, ethnic theme and personality to the most important part of your operation - the food!

Glassware from Schenectady Restaurant Supply is the most dramatic and least expensive way to create ambience, establish a style and improve the appearance of a table setting.

We can give you some great ideas with our extensive product line. Call or eMail us today!

Trend Spotting

What's Hot

1. Infused oils (Check out our decorative glass bottles!)
2. Pan-seared
3. Espresso/specialty coffee drinks (We have terrific mugs to choose from!)
4. Asian/Thai
5. Meatless/vegetarian dishes

What's Not

1. Taco salad
2. Fondue au fromage
3. Cream-based sauces
4. Chef's salad
5. Blackened

Source: National Restaurant Association. 1998 "What's Hot. . What's Not" survey.