Fast Answer
Restaurants mark up wine 200% to 300% over wholesale cost — meaning the bottle on the list usually runs 3 to 4 times what the restaurant paid. In expensive markets like New York, that ceiling has crept up to 5 or 6 times cost, and it's trending higher, not lower.
A Personal Experience
Back in 2016, I enjoyed dinner with my wife and a friend at a tavern in Philadelphia. We started at the bar, waiting for our table, and ordered two draft beers and one glass of wine. The bill was over $35. Ouch!
We sat down and ordered a bottle of Malbec, a purple grape variety with a dark, inky color and big tannins. I have typically found Malbecs to be great value, especially those from Argentina like this one.
In addition, the Malbec was a great food-and-wine pairing for our meals.
One of the reasons I purchased the Malbec was because, at $63, it was one of the lowest-priced bottles on the wine list. I was a little surprised for a tavern, but hey, we were out for a fun night of dining with a friend.
For the record, the wine was delicious—so much so that I wanted to purchase more for home consumption. In Pennsylvania, restaurants have to purchase the wine from the state liquor stores, so individuals like me can order any wine I find on a restaurant’s wine list.
I did a quick search on the Internet for the same bottle of Malbec we enjoyed at this tavern—the same wine, the same year. I was shocked when I saw the price of the wine I found online—$13.00. That makes the $63 I paid at the tavern almost FIVE times the retail price. Outrageous!
I know restaurants charge more than the one-time markup. I remember years ago when a $10 wholesale bottle of wine sold in a restaurant for $20. Those were the days.
The $63 Bottle That Started This Whole Page
That $63 Malbec is the whole reason this page exists, and I wrote about it years ago, assuming I’d stumbled onto an outlier. I hadn’t. The industry standard I found back then — 2.5 to 3 times wholesale — is still roughly the baseline today, but the ceiling has moved.
Restaurants in major markets are now routinely pushing 5 to 6 times cost, and that’s making news in the industry as I update this. Here’s the full story, what the math looks like today, and how to order without getting stung.
Today’s Restaurant Markups
I decided to research before getting upset over this 5-time markup. Maybe I’m just way behind the times, and this is an industry standard. I searched “Wine Markups in Restaurants” and found the following results:
According to an article by Gretchen Roberts called The Lowdown on Restaurant Markups in the WineEnthusiast,
Randy Caparoso, a restaurant wine consultant at Wine List Consulting Unlimited, says industry-wide markups average two and a half to three times wholesale cost. A bottle priced at $10 wholesale might sell for $15 retail, but $25 to $30 in a restaurant.
OK, that’s more than I would like to pay but 2 1/2 – 3 times WHOLESALE cost, not RETAIL cost. Of course wholesale prices vary from state to state, and state laws and taxes can affect those prices.
I also learned in this article, position on the wine list matters.
Most lists follow a graduated markup, with the highest markups on the cheapest wines, and lower markups on higher-end wines. A $10 wholesale wine may be marked up to $30, but a $50 wine might be just $80.
Following my wine experience, even if the restaurant paid retail for the Malbec I ordered, using the 2 1/2 – 3 times ratio, I should have expected to pay $32.50 – $39.00. That’s more like it.
What’s Changed Since I Wrote This
The math I found back then hasn’t really changed at the baseline — Randy Caparoso’s “2.5 to 3 times wholesale” figure lines up almost exactly with the 200–300% over-wholesale figure that Google’s own AI Overview cites today.
What’s changed is the ceiling. The $63 bottle that felt like an outrage in 2016 — almost five times retail — is now closer to what major metro markets consider a normal top end. Industry press was reporting on restaurants pushing toward six times the cost in the last day before I updated this page. The tavern that lost me as a customer for life didn’t turn out to be an outlier. It turned out to be early.
Typical Markup by Bottle Price
| Wholesale Cost | Typical Restaurant Price | Why |
|---|---|---|
| $10 | ~$30 | Cheaper wines carry the highest percentage markup |
| $20 | ~$50–60 | Still a steep percentage, though a bit more moderate |
| $50 | ~$80 | Markup percentage drops, but dollar profit stays healthy |
| $100+ | ~$150–180 | Lowest percentage markup, but the highest dollar profit per bottle |
These are illustrative ranges based on the graduated-markup pattern most wine lists follow, not a fixed formula — actual pricing varies by restaurant, region, and how the specific bottle is positioned on the list.
Why The High Markups?
Restaurants lean on the alcohol margin because food rarely gives them room to do so. A common industry benchmark — the 30/30/30/10 rule — allocates restaurant revenue into roughly 30% food cost, 30% labor, 30% overhead, leaving about 10% profit.
Wine, with a much lower cost-to-sale ratio than food, is one of the few places left to make real margin. That doesn’t make a 500% markup fair. It does explain why it exists.
According to Anna Bernasek in her Newsweek Business article,
Restaurants say they mark up wine because they add value to the drinking experience. First, they take time to select a wine list to go with your dinner.
They may also advise what wine pairs best with menu items and, for those who want it, some education about the wine itself. Some provide fine glassware, and of course they all open the bottle and pour it for you.
But is all that really worth an additional $53 for your bottle of Ferrari-Carano? And don’t forget that you’re paying a tip on that extra charge.
Restaurant Costs Factor Into the Equation
Depending on your state, a restaurant will pay a percentage of the markup for a state tax “or penalty” for alcohol consumed at the point of purchase. According to restaurant.com, a state looks at it as a way to
This will discourage people from drinking multiple glasses while out, but it will also provide a significant source of revenue for the state.
The actual amount of wine excise tax varies greatly from state to state. As the map on TaxFoundation.org shows, the highest rate in 2014 was in Kentucky at $3.56 per gallon to a low of just $0.11 in Louisiana.
The size of a restaurant can also affect the markup. Large chain restaurants can buy their liquor in bulk and get wholesale prices, while smaller restaurants that may purchase only odd lots of wine don’t receive the discount.
Also, there’s a good chance a smaller restaurant’s per-customer operating costs are higher, so they have to pass these extra costs on by marking up both food and wine prices.
Should You Buy Wine By the Glass or By the Bottle?
I personally like to buy by the bottle. Depending on the pour a restaurant offers, which can vary from 4 glasses per bottle to 6 glasses per bottle, and the price they charge, I usually find a bottle is the way to go.
For example, a 750 ml bottle of wine equals 25.36 ounces, so if the restaurant is getting 4 glasses per bottle, each glass offers 6.34 ounces. That’s a very fair pour and one I would be thrilled with.
Unfortunately, I find many restaurants using 6 pours per bottle or 4.23 ounces per glass, which, in my opinion, does not justify the $10 to $17 per glass they charge. At an average of $14 per glass, we are talking about $3.31 per ounce.
If a restaurant charges $14 per glass and serves 6 pours from a bottle, we are talking about $84 per bottle of wine. That’d better be an excellent bottle of wine they are serving. Now, if they serve 4 pours per bottle, we are talking about a $56 bottle of wine. That’s a huge difference.
How Restaurants Can Sell More Wine
In my opinion, I think restaurants would do better by pricing wine with lower markups (of course I do) for a few reasons:
- I am more likely to return to a restaurant where I feel I’m being charged a fair value for the wine.
- I am definitely not returning to the tavern I just went to, where they are marking up the wine 500%.
- If the prices are reasonable, I think more people will be willing to buy a bottle of wine instead of a glass or two.
- I’m also more likely to buy a second bottle of wine if the price feels right.
- If a restaurant marks up a $50 bottle of wine to $200 on its wine list, it may sit there for a while before someone buys it. If they have a case of it in their cellar, this is a substantial investment that does not make them any money.
- If they mark up that same $50 bottle of wine to $125, they will likely sell it in less time, freeing up capital for more wine or other expenses while still generating a $75 profit. The same goes for more moderately priced wines.
- A $13 bottle of wine marked up to $43 (forget $63) will not sell as quickly as a $30 bottle, and the restaurant still makes $17 per bottle. If you sell two, three or four times as many bottles at this lower price, it will more than make up the difference of selling fewer at the higher price.
What Readers Have Told Me Since
A few stories from readers over the years are worth adding to my own:
- After I published this, a reader named Linda pushed me to actually contact the restaurant instead of just writing about it. I did — I called the manager the next day and told him what I’d found. He said he’d walk me through his numbers and call me back. He never did.
- A reader named Ronald described dinner at a five-star restaurant in San Diego where the staff wouldn’t produce a wine list at all, pushing a $400-per-person pairing instead, until he insisted. When he finally saw it, glasses of 2006 Veuve Clicquot Grande Dame were $130 each — a bottle retails for $149 to $159. That’s a worse markup than my Malbec, with the added insult of not wanting to show him the prices at all.
- A reader named Dara made a case I think about often: restaurants could likely make more money charging a flat handling fee over retail instead of a steep percentage markup, since only about 10% of diners currently order wine despite most Americans drinking it. Price it fairly, and more people order — including a second bottle.
- Another reader, Hal, made a fair point: the $25–40 range on most wine lists is often filled with mediocre bottles, even though plenty of genuinely good wine is available at $10–15 retail. If home cooks can find it, restaurants buying in bulk should be able to as well.
How to Get Better Value
- Skip the second-cheapest wine. It's typically marked up the most, since people avoid the cheapest option to not look cheap, and restaurants know it.
- Go one or two bottles up the list instead. The markup percentage tends to ease as the price climbs.
- Avoid the big recognizable brands (Clos Du Bois, Beringer, La Crema, Kendall Jackson). Name recognition alone commands a premium.
- Try lesser-known varietals like Malbec, Tempranillo, or Mourvèdre — less competition for attention on the list often means better relative value.
- Ask the sommelier for a bottle at a specific price point. That's literally their job, and most are glad to help rather than just upsell.
- Check the wine list online before you go if the restaurant publishes one, and spot-check a few prices against retail.
BYOB and Corkage Fees
- What it is: Restaurants without a liquor license — or in a few states like Utah, even some that have one — let you bring your own bottle for a corkage fee.
- Typical range: $5 to $25 per bottle at most restaurants.
- High-end exception: Destination fine-dining spots like Per Se or The French Laundry can charge around $150 in corkage.
- Best for: A specific bottle you already own and love, or sidestepping restaurant markup entirely where it's allowed.
My Conclusions
Dining out is a luxury. You don’t have to go out for dinner or order wine when you do, but wine is an important part of the experience for many of us. I’m all for restaurants making a profit and taking care of their employees, but I also believe they have to respect their customers.
I don’t go out as much these days as I did before kids, and I may be a little naive about current pricing practices. I’m not even sure if this new knowledge will change my dining habits in the future, but I know one thing. The tavern I went to last weekend has lost me and my friends as customers for life.
Frequently Asked Questions
How much do restaurants typically mark up wine? 200% to 300% over wholesale cost is the standard, meaning the bottle on the list usually runs 3 to 4 times what the restaurant paid. In expensive markets, that ceiling can reach 5 to 6 times cost.
Why is wine so much more expensive at restaurants than at a store? Restaurants rely on alcohol for the profit margin that food can’t provide. Food costs alone can eat up to 30% of revenue, and wine’s markup helps cover labor, rent, and overhead.
Which wine on the list has the worst value? Usually the second-cheapest bottle. People avoid the cheapest option to avoid looking cheap, so restaurants mark that one up the most, banking on it being a popular choice anyway.
Is it better to order wine by the glass or by the bottle? By the bottle, in most cases. Restaurants have to account for wine that goes to waste from an opened bottle they can’t fully sell by the glass, and that cost gets built into the per-glass price.
What is a corkage fee? A charge, usually $5 to $25 per bottle, that lets you bring your own wine to a restaurant instead of buying off their list. Some high-end restaurants charge significantly more.
Is the “75-85-95 rule” related to restaurant wine pricing? No — that’s a wine labeling regulation, not a pricing rule. It sets the minimum percentage of a grape variety, region, or vintage that a wine must list on its label, and has nothing to do with markups.
Does a restaurant’s wine markup vary by price point? Yes. Markups are graduated, with the highest percentage on the cheapest bottles and progressively lower percentages, though still higher dollar profit, on expensive ones.
Can I ask about wine pricing or value at a restaurant? Yes — asking your server or sommelier for a wine at a specific price point is a completely normal request, and most sommeliers are glad to help you find good value rather than just push the most expensive bottle.
- For the flip side of ordering smart — matching what's in the glass to what's on the plate — see Food and Wine Pairing.
- If Ronald's story about a restaurant refusing to show a wine list sounded familiar, you'll enjoy The Official Somm Movie Trailer — a look at the people whose job is the opposite of that experience.
- More dining-out frustrations, cataloged: Restaurant Pet Peeves.
11 Responses
Have you ever figured out how much the rum costs in a Cuba Libre? Or the whiskey in a Manahatten?
I’ll bet the mark-up is more than wine! And a lot less inventory to keep.
Excellent point Milt.
Have you spoken to the tavern in question? Unless you’ve given them a chance to explain and correct the problem, it’s really not fair to go public. I know that, to your credit, you didn’t name the particular tavern and that they aren’t the only culprits.
I would send them a note letting them know the numbers you found, i.e. $13 vs $63, and telling them that, because of this obscene markup, none of the four of you will be back. I would add that you have been and will continue telling other people about your experience. Bars and restaurants rely largely on word-of-mouth for new customers and definitely don’t want anyone giving them a bad review. It wouldn’t hurt to mention that you’re a food blogger.
The reason that I say you should tell them the difference between retail and their price is that they may not know the retail price and may set their price based on whatever they are paying.
Another reason for buying by the bottle instead of the glass if you have more than one person drinking it is that when you buy per-glass, you’re paying for some of the wine you don’t drink. The restaurant has to open the bottle and can only keep the undrunk portion for so long. If the bottle isn’t finished, the rest is thrown out. One of the reasons you pay more for four (or six) glasses of wine than you would for a bottle is that the cost of the discarded wine is included in your cost. This is also one reason why the house wine is cheaper than other similar wines.
Hi Linda, thank you for your comments and feedback. Yes, I did call the manager of the restaurant the next day (before I wrote the post) and pretty much told him everything you suggested in your comments. He said he would like to show me how he arrives at that mark up and would call me back with numbers but I never heard from him. In our conversation, he did say the main reason they used such high markups was because of how well they treated their employees. I’m glad to hear they are taking care of their staff. I do understand your explanation of paying for discarded wine but this is a very busy bar/restaurant so I don’t believe much is tossed at the end of the night. At the end of the day, this is not such a big deal. We had a good time, enjoyed our food, I learned about a new wine that I can buy at a local liquor store at great value and I learned that some restaurants are charging 5 times over retail.
While on vacation recently in San Diego my wife and I had dinner at a 5 star restaurant called Addison’s. I expected to pay a premium on wine but when we were offered a glass of champagne 2006 vintage Vueve Clicquot Grand Dam on arrival to our table, I expected to pay a 300% markup. No prices were offered and when I asked for the wine list they continued to push the wine pairing with dinner. I only received the wine list after insisting on seeing it. Too my surprise the glasses of champagne were $130 each. A bottle sells for $149 to $159. The wine pairing which I did not order was $400 per person. I have dined at many fine restaurants, but have not seen this degree of markup on higher priced wines anywhere. Nor have I seen such a reluctance or refusal to be open about the prices. We spent the rest of evening laughing about how pretentious the entire restaurant experience was. I am lucky enough to be able to afford to make this kind of mistake. But as we sat there seeing some younger couples out for a special occasion, we wondered, how many of them would get the surprise bill of a life time and really not be able to afford it. Any restaurant, no matter how good the Chef is, should be open about their pricing and allow patrons the experience without surprises.
Absolutely Ronald and thank you for sharing your story.
This is an old article but it’s relevant that the restaurant was in Philadelphia. Pennsylvania IIRC has a state-controlled liquor board that sets pricing. They require restaurants to pay the same retail price as consumers and buy wine through the state liquor board. Running a restaurant in a state like Pennsylvania creates challenges that customers don’t know about.
Hi Amber, great point, but that’s not exactly true from my understanding and someone who lives in PA. Restaurants and country clubs do get a discount that other walk in customers do not get. Also because PA is one of the largest buyers of wines in the country, they can get great deals on many of the wines consumers buy as well as restaurants. What is great about PA state liquor board is I can purchase the same wines that are being sold in restaurants so if I have one that I really like, I can special order it from the liquor board.
My biggest complaint about wine in restaurants is simply the poor quality of the cheaper wines. I drink wine at home and find that if you are diligent, you can find many good wines in the $10 to $15 (retail) range. One would expect these to be found on a wine list for $25 to $40, which is fair, but not for the generally lousy wines on wine lists in that price range. If I can find nice wines for a reasonable price, why can’t the restaurants?
Hal, I couldn’t agree with you more. I find some amazing wines, both red and white, in that range. Thanks for sharing.
I buy a lot of wine, sometimes several bottles in a week. I buy very good wine of the types I like. (Just spent over a thousand on 14 bottles.) And I buy very inexpensive wine if it’s a good bargain, like some at Trader Joe’s for $5-10.
But, When I go to a restaurant, I never consider buying wine. The markup is just outrageous. If they were to price wine at a retail price, plus a handling fee, their profit would probably increase. A handling fee of$3-$5 per glass and $5-10 per bottle would probably motivate everyone who likes wine to order it. Plus it would motivate return visits for sales of food.
It has been my experience that only about 10% of the people in a typical restaurant orders wine, while 70-85% of Americans drink it. It is really stupid that restaurants are losing all that profit.