Where US cocktail prices are hitting the top shelf
Drinks at low- and high-end restaurants have gotten more expensive as customers try new brands.
Restaurant Sciences, a Massachusetts firm that tracks food and beverage sales across North America, says the average price of a cocktail hasn't changed much at casual dining spots, bars or nightclubs over the past six months. But at family dining, fine dining and "upscale casual" establishments, prices have jumped 4.5% to 11.2% during that same span.
So what do the folks who pay less than $40 to feed a family have in common with the swells who don't even consider it dinner if they haven't broken a Benjamin? They're both bar novices who are into trying new things, according to Restaurant Sciences President Chuck Ellis.
"We believe that the increasing price of spirits is the result of a mix of moderate price-taking by operators in the upper and lower tiers, combined with some upward product migration or experimentation by consumers," Ellis says. That assessment probably goes down like a fine scotch at Diageo (DEO), whose premium brands -- including Tanqueray, Ketel One and Johnnie Walker -- benefit as consumers venture higher up the bar shelves.
Ellis adds that it's mostly smaller establishments and not chains like Texas Roadhouse (TXRH) or Darden's (DRI) Red Lobster that are raising prices. "Independent restaurant operators are driving the spirits' increases, since the chains are far more prevalent in midscale casual dining, where prices are holding steady," he says.
Think you can beat those price hikes by switching to a nice glass of wine? Sorry, MSN moneyNOW picked through some of Restaurant Sciences' other data and found a similar pattern in wine pricing.
The study reports that, on average, midprice, casual-dining restaurants raised the costs of their vino by a little less than 2%. High-end, "white tablecloth" establishments -- think Ruth's Chris Steak House (RUTH) -- posted an average 5.35% increase. But the biggest jump was found at affordable family-dining venues, where the price of wine served climbed an average of nearly 8.4% in six months.
Granted, wine is derived from a fixed commodity that can take a beating if the weather patterns shift in the wrong direction. Global wine production dropped 6.1% last year to its lowest point in nearly four decades after weather conditions worldwide damaged grapes. Yet America's taste for wine hasn't waned. Consumption of table wines reached 749 million gallons last year, or about 2.73 gallons per U.S. resident of legal drinking age.
Not that supply and demand don't take their toll on spirits prices as well. Back in February, the Distilled Spirits Council announced that overall sales of U.S.-made liquor by companies like Beam (BEAM) and Brown-Forman (BF.A) grew by 3% last year, with supplier revenue up 4.5% as consumers moved to higher-end products and embraced small craft distillers.
Whenever I look at a restaurant menu that includes mixed drinks, the prices of those drinks are never indicated. Why is that?
You wouldn't order a filet mignon w/o knowing its price...why would you order a Long Island Iced Tea w/o knowing how much it's going to cost?
Greed is the engine that has driven up the price of cocktails,(and food) they charge more because they get
away with it. The average diner doesn't even know what a cocktail costs them, there is no reason that a drink
at a bar or restaurant should cost $12 to $16 , some of these "chisler's" charge $2.00 more if you order a drink
straight up instead of over the rocks.They claim it takes more liquor, bull------t.
Check liquor prices at the store, no great rise in price, yet these restaurant owners claim they need to pass on the
cost increase even though they buy in bulk & pay wholesale prices. I don't accept this & my defense now is to ask the price of a drink if it doesn't sound "kosher" I pass. They should be required to post prices so that you know what your
being charged, just as they do on a menu. HF
Has anyone else noticed that Alcohol containers are not required to post nutritional facts? I don't know why they don't have to but water bottle do. They must have excellent lobbyists
Another thievery of the American workers that just want to stop for a beer after work, without blowing a 'Benjamin'.
5 bux for a beer Colorado Springs = 2.25 for the same beer in Alamosa, CO.
Come on really, how are they supposed to hide that from the Mrs.????
in some atmospheres, price doesn't matter. my son started out as a part-time bar-back while in college. from there, he moved up to become executive chef at a club in a large city a few years later.
he left these parts because the patrons were more interested in strong, cold drinks than unique, well prepared dishes.
If we are going to drink we just stay at home. It's a lot cheaper and you don't feel like you have to leave ASAP.
We eat out all the time and we hate that the staff member are shoving the check in your fact before you are even half way done eating. They say I will just leave this here for you for when you are done. If it's not that then they are trying to up sale you with some pie or ice-cream and telling you to leave room.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Thursday session on an upbeat note with blue chips showing relative strength for the second consecutive day. The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%) settled ahead of the Russell 2000 (+0.2%) and the Nasdaq Composite (+0.1%). It is worth mentioning the benchmark index posted its fourth consecutive gain, registering a new record closing high at 1992.38.
Equity indices climbed out of the gate thanks to early strength among ... More
More Market News
New legislation is allowing foreign companies to finally invest in the country's vast oil reserves.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'