Wine Promotions in Restaurants: Do Beverage Sales Contribute or Cannibalize?

Cornell Hotel and Restaurant Administration Quarterly 47.4 (2006): 327-336

10 Pages Posted: 1 Aug 2014

See all articles by Brian Wansink

Brian Wansink

Retired

Glenn Cordua

University of Houston

Ed Blair

University of Houston - C.T. Bauer College of Business

Collin R. Payne

New Mexico State University

Stephanie Geiger

University of Houston

Date Written: November 1, 2006

Abstract

A controlled field study of wine promotions in a midpriced 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

Suggested Citation

Wansink, Brian and Cordua, Glenn and Blair, Ed and Payne, Collin R. and Geiger, Stephanie, Wine Promotions in Restaurants: Do Beverage Sales Contribute or Cannibalize? (November 1, 2006). Cornell Hotel and Restaurant Administration Quarterly 47.4 (2006): 327-336, Available at SSRN: https://ssrn.com/abstract=2474337

Brian Wansink (Contact Author)

Retired ( email )

607-319-0123 (Phone)

Glenn Cordua

University of Houston ( email )

4800 Calhoun Road
Houston, TX 77204
United States
713.743.2442 (Phone)
713.743.3696 (Fax)

Ed Blair

University of Houston - C.T. Bauer College of Business ( email )

Houston, TX 77204-6021
United States

Collin R. Payne

New Mexico State University ( email )

College of Business
Las Cruces, NM 88003
United States

Stephanie Geiger

University of Houston ( email )

4800 Calhoun Road
Houston, TX 77204
United States

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