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April 12, 2007

Restaurant Mark Ups

I'm sure there's been a report out or something on the mrak ups that restaurants charge on their booze. That would explain the number of stories on it all today. One thing I noted:

That’s the price charged at The Dochester Grill for a 1964 Petrus Pomerol Bordeaux, while Gordon Ramsey charges less than half for the same wine.

A Dorchester spokesman expressed surprise when told of the price difference:  “He must have bought it a long time ago: you would not now be able to buy one on the open market for that price.”

That would mean that Gordon Ramsey is grossly undercharging then. You shouls be attempting to sell at replacement costs plus margin, not historic costs plus. Still that little bit of recondite accountancy aside, this had me gobsmacked:

Do you think it is fair restaurants can seemingly charge what they like for drinks?

Now I know that there are indeed people out there who would say no. Those who think the Guardian is too right wing and other mouth breaters for example. But that is from the blog of Ellee Seymour.

When self-confessed Conservatives start to question the very basis of the free market (there is only one possible answer to the question posed, YES!) then I'm afraid that the next two stages must inevitably be the plagues of frogs and the Four Horsemen saddling up. We're obviously about to be called home, the experiment has failed.




April 12, 2007 in Food and Drink | Permalink

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Comments

As I also said at Ellee's, there's no necessity to legislate for this sort of thing. They can charge as they like and the market will determine what's sustainable and what's not.

Posted by: jameshigham | Apr 12, 2007 9:43:56 PM