With diners taking their first cautious steps back into restaurants this summer, millions of Canadians will soon be grappling with a familiar pre-pandemic problem: ordering a bottle of wine.
On top of taste preferences and food-pairing concerns, one of the biggest factors that goes into the decision tends to be price. Many diners opt for either the house wine or the cheapest one on the menu. Oenophiles, meanwhile, tend to reach for something more pricey, but most diners go for something in the middle — with no idea where the best bang for the buck lies.
A recent study from British researchers at the London School of Economics and the University of Sussex attempts to answer that age-old question — and the numbers hint at some counterintuitive conclusions.
The researchers looked at 249 restaurants in London that had wine lists posted online. In total, the restaurants that were examined had 6,335 different bottles of wine listed online — a large database that the researchers were able to cross-reference against retail prices for those same bottles.
In a finding that will come as no surprise to anyone who’s ever ordered a bottle of wine to go with dinner, the price of a restaurant wine was found to be, on average, about 300 per cent more than it would cost at the retail level. And while markups vary depending on the restaurant and type of wine, there were some broad trends in the numbers that drinkers may want to quaff.
‘Is the second-cheapest particularly bad?’
A well-trod urban legend has it that the most popular wine on a restaurant wine list is often the second-cheapest, because most people like the idea of buying a cheap wine, but not necessarily the cheapest. “It is based on the idea that people don’t like looking cheap when they sit in a restaurant,” said Vikram Pathania, an associate professor of economics at the University of Sussex who co-authored the report.
“You don’t want to go to the cheapest because, well, your dining partner or the waiter stare at you … so you study the wine list hard and long — then go to the second anyway,” he said in an interview with CBC News.
Following that logic, conspiratorially minded diners have long suspected that restaurants are aware of that impulse and will therefore adjust their wine list so that the wine that is cheapest for them to acquire will be priced second-cheapest to compel diners to buy it, in order to maximize their profit.
“The argument goes that people who run restaurants know this, and they can actually charge a fat markup on the second, exploiting this stigma of ordering the cheapest,” Pathania said.
But according to his research, the theory doesn’t hold up — the second-cheapest bottle of wine on the menu is actually a decent value, with the markup only about 25 per cent more than one would pay for the cheapest bottle of plonk on the menu.
“To be fair, you are being ripped off if you buy bottles of wine in the restaurant. But the question is: Is the second-cheapest particularly bad? And no, it’s not particularly,” Pathania said.
The researchers discovered that the markup on wine tends to peak in the middle of the wine list, while the wines at the bottom and top of the price scale often offer the best value. (CBC)
Where diners really get corked, the data suggests, is when they order wines numbered three through six on the menu. Then the markup can be more than 50 per cent higher, on average, than the best bargain on the list.
Markups in absolute terms are obviously higher for the most expensive bottles, but in percentage terms, higher-end wines are actually often a better value than the cheap offerings, the data suggests.
Even better news for frugal foodies is that the cheapest wine does actually tend to be the best value. “The cheapest is actually a relatively low markup, then the second-cheapest is slightly higher. Third is even higher. It kind of peaks in the middle, and then towards the high end, the markups start falling again,” Pathania explained.
Rules different in Canada
Toronto restaurateur Suzanne Barr has run kitchens and restaurants around the world, including more than one in Canada, and she says while it’s true that alcohol sales can be a reliable money-maker for restaurants, they are less of a cash cow in Ontario because of the way the province regulates alcohol via the LCBO.
Unlike many other jurisdictions where restaurants pay wholesale rates, for the most part any business selling alcohol in Ontario pays the same price as drinkers. “What a lot of people don’t understand is that glass of wine that we’re selling for $15, we’re maybe making, I don’t know, $3 or $4 off of,” she said in an interview.
Barr says most restaurant owners craft a wine list the same way they craft a menu, to make sure it follows a theme and goes with the overall atmosphere of the place. But they are obviously aware that there’s money to be made on some bottles over others.
“It’s like having a [go-to] dish on the menu,” she said. “It’s not gonna cost us that much to make, but we know we’re gonna sell a whole ton of these.”
Barr says that with the return of restaurant dining, she suspects customers will be compelled to splurge more than they did before the COVID-19 pandemic and buy that expensive bottle to treat themselves after they’ve been stuck eating at home for so long. “Because maybe when I go to the LCBO or the Wine Rack, I’m just gonna get that Yellowtail because that’s really what I can afford.”
WATCH | Suzanne Barr says pandemic has left diners in the mood to treat themselves:
Toronto-based restaurateur Suzanne Barr says she expects people will be more willing than usual to spend big while dining out after being cooped up at home for more than a year during the pandemic. 0:48
Only time will tell what diners do as they return to eating in restaurants for the first time in more than a year in many parts of Canada, but Pathania’s research offers some helpful advice for the millions of diners about to take the plunge.
“I have a rule of thumb: If you’re paying the bill and you think the cheapest is drinkable, go for the cheapest,” he said.
But given that high-end wines are often less marked up in percentage terms than the cheapest ones, “if there’s a wine you really like and you know your wine, then go for it.”
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
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