Chapter 6 - Hospitality Sector Flashcards
(15 cards)
What are the key sub-sectors of hospitality sector
Bars & Restaurants
What % does hospitability sales account for in UK
- 20% of sales by VOL
- 40% of sales by VALUE
- VS. Retail sector 80% of sales by VOL
What are the two styles of bars from a wine perspective?
- Specialist wine bar
- General bar
Describe a specialist wine bar
Discuss the ownership, staff, customer, selection/offerings, prices
- specialise in selling wine, similar to specialist wine retailer
- indie owned, individual wine bars or form part of a small chain
- knowledgeable well train staff who can hand sell
- seek out wines from smaller producers, often less known regions/grapes
- aimed at high-involved customers who are willing to pay above avg prices for very good/outstanding wines (up to super premium)
- many offer food (from artisan cheese/charcuterie to full 3-course meals) & wines to match w/ the food
- some have small regularly changing selection of wine, others have wine range of wine at diff prices
- no big brands -can’t compete on price w/ larger bar chains (who have strong purchasing power), tend to stock SMALL PRODUCERS
Larger Chains:
* larger chains like Davy’s - sell large vol, have their own-label wines, good option for med size producer
* some have chains in airports (Vino Volo)
Describe a general bar
Discuss selection/range, prices, concepts
- less of a wine focus; wine just one of the drinks on offer
- limited wine range, usually major companies, well known regions/grapes
- inexpensive to mid priced, chosen to appeal to wide range of ppl, drunk w/ or w/o food
- in wine producing countries, dominated by local wines
- can be same wines as those in retail outles, but with bar mark up due to high cost, producer sometimes make brands only sold to hospitality (to avoid consumer direct price comparison)
- some have specific theme, which will influence range of drinks (eg Irish bar - more Guiness, less prominence w/ wine)
What are the categories of restaurants?
- non destination
- casual dining
- fine dining
Describe non destination resturants
Discuss selection/range, prices, concepts, ownership, themes
- meal not the make focus for consumer (quick meal)
- most are part of chains, some indie owned
- wines need to appeal to wide range of consumers, tend to be well known regions/grapes
- inexpensive to mid priced
- dominated by local wines in wine producing regions
- many have country-based theme, wines may be heavily drawn from relevant country
Desribe casual dining
Discuss selection/range, prices, concepts, ownership, themes, staff
- falls btw non destination & fine dining
- can be for** quick to longer meals**
- most indie owned, often individual biz or small chain
- offer **high quality food & wine w/o formality **of fine dining
- mid to premium priced wines
- wines chosen w/ wine & food pairing in mind, menu may have suggestions
- mixture of better known region/varieties to less known
- staff trained to advise/provide recco to customers
- dominated by local wines in wine producing countries
- if theme centered on country, may dominate list
- some will choose from other countries as well
Describe fine dining
- destination resturants, where the experience & meal are reasons for the visit
- can have 1+ michelin stars or prestigious head chef
- food & wine pairings very important
- trained somm & highly skilled staff to make reccos
- many offer ‘tasting menus’ w/ wine pairing
- wines are of highest quality, often limited qty, super premium
- source of pride of producer whos listed
- often use brokers to seek hard to find wine for their list
What type of retailer would customer seeking high vol, inexpensive branded Chard go to vs not?
SOLD AT:
* supermarket & convenience shop as large vol is avail at low price
* appeal to large number of low involved, price conscious consumers
* supermarkets offer convenience of being food/other goods at same time; wine is transported from shop to home by customer
NOT SOLD AT:
* deep discounter - they have their own private label
* casual dining - well known brands not typically sold as diff in price compared to retail is obvious
What type of retailer would customer go to who are seeking a low vol super premium Cab Sauv?
- specialist retailer & fine dining - due to small vol avail + high price point
- appeal is to high involve consumers who seek specialist wine retailers for their product range
Which likely & unlikely routes to market for direct to retail would a producer choose for a high vol, inexpensive branded Chard
- as high vol inexpensive product, wine likely sold direct to retailer
- branded wine sold to supermarkets & chain of convenience shops
- alternative: make use of agent/distributor/broker who understand market (so producer can focus on production) or joint venture also possible, but intermediary adds cost and product needs to be offered at lowest price
Which likely & unlikely route to market for direct to retail would a producer choose for a low vol, super premium Cab Sauv
- unlikely sold direct to retail as inefficient to deal w/ many specialist wine shops & fine dining restuarants
- more likely to use agent, distributor, broken as they know market and can offer wine to many small appropriate outlets
- producer can focus on production
- additonal cost absorbed due to high price of product
- joint venture unlikely as small vol
Which likely & unlikely routes to market for direct to consumer would a producer choose for a high vol, inexpensive branded Chard
- unlikely to sell via cellar door or wine club - consumers are low involvement & unlikely to travel to cellar door or subscribe to wine club
- not sold via consumer events like food & wine fairs - give high vol & lower price, producer unlikely to dedicate staff
- vol too great to distribute from companys own online shop due to cost of logistics
Which likely & unlikely route to market for direct to consumer would a producer choose for a low vol, super premium Cab Sauv
- likely to do cellar door & offer customer high quality experience to build brand loyalty
- w/ small vol, wine club can be used to build loyalty and make exclusive offers to limited client base
- unlikely for consumer events - most consumer unlikely to spend large amt on impulse purchase
- not sufficient vol to offer to general public via a website
