Restocking is a reflex in many restaurants: a wine runs out, so it is ordered again. But that logic conceals a serious problem: you are funding inertia, not profitability.
The right question is not "has it run out?" but "is it worth bringing back?"
Annual restocking expenditure depends on the units purchased and their cost, not just the number of wines. Calculate purchases during the period × unit cost for each wine and add the amounts. There is no demonstrated annual figure for this article.
The 3 questions before restocking any wine
1. Did it sell well or did it simply run out?
They are not the same. A wine can run out in 6 months (slow) or 2 weeks (fast). Turnover speed is a useful filter. The following timeframes are indicative, not universal rules; adapt the criteria to seasonality, cellaring roles and service:
- High turnover (< 30 days per unit): review availability and need before restocking.
- Medium turnover (30-60 days): restock if the margin justifies the wait.
- Low turnover (> 60 days): question it seriously before restocking.
A common mistake is confusing "it ran out" with "it sold well". A bottle can run out simply because one unit came in and someone ordered it after ruling out the alternatives. That is not demand: it is chance.
2. What margin did it actually generate?
Cost × multiplier is a way to propose a price, not a margin formula. Calculate margin using consistently defined revenues and costs, and identify recorded wastage. To decide whether to restock, also review these factors separately, without automatically adding them to the margin percentage:
- Storage cost: cellar space that could hold a more profitable wine.
- Wastage cost: for by-the-glass service, wine lost through oxidation or incomplete service.
- Opportunity cost: what you would have sold instead if that space had been free.
- Financing cost: the capital invested in that wine generates no return until it sells.
3. Is there a better wine for that slot?
Before restocking the same wine, ask whether that place on the list could be filled by one that:
- Has a better margin with a similar sensory profile.
- Fills a price gap that is currently uncovered.
- Meets actual demand you are neglecting.
- Offers better purchasing terms (rebates, volume discounts, exclusivity).
The "I already know it" trap
Many sommeliers and service managers restock out of familiarity: "I already know it, I know what it is like, the team understands it". That has real value: reducing the training effort. But it also has a cost: giving up the exploration of alternatives that might perform better.
Familiarity is not a business argument. It is a bias to manage.
Restocking decision matrix
| Turnover | High margin | Medium margin | Low margin |
|---|---|---|---|
| High | Prioritise availability and review | Restock and renegotiate price | Renegotiate or replace |
| Medium | Restock | Evaluate alternatives | Do not restock |
| Low | Investigate why it does not sell | Do not restock | Remove from the list |
This matrix is a guide for discussion, not an automatic purchase or removal order. Add seasonal demand, supplier lead times, budget and each wine's role before deciding.
Clear signs that you should not restock
- The wine has been on the list 3 or more times and has never had good turnover.
- Another wine on your list has a similar profile and better performance.
- The purchase price has risen and the margin no longer justifies the space.
- Your service team does not recommend it or know it well. If the floor does not sell it, the cellar stores it.
- It only sold on promotion or by the glass at a reduced price.
- The supplier offers it insistently. Someone wanting to sell it to you does not mean you should buy it.
How to systematise the restocking decision
The most common mistake is deciding wine by wine, at the moment of ordering, with the supplier on the phone. That leads to reactive, emotional and expensive decisions.
The alternative is a monthly restocking review that cross-references:
- Turnover ranking for the previous month (units sold / days on the list).
- Calculated margin ranking using consistent criteria and the effect of recorded wastage; opportunity and capital are reviewed separately.
- Current stock versus consumption speed (do you have enough for 2 weeks or 4 months?).
- Available alternatives on the market at the same or a better price.
- Service-team feedback: does the team recommend it? Do customers ask for it?
These five inputs allow a decision to be prepared for review; the time required depends on the volume and quality of the information.
Practical example
A fictional example, not an observed Winerim result: a list of 90 wines reviews ten positions each month. The table shows review decisions; the same wine could appear in several months:
| Month | Wines reviewed | Removed | Replaced | Kept with adjustments |
|---|---|---|---|---|
| January | 10 | 3 | 4 | 3 |
| February | 10 | 2 | 5 | 3 |
| March | 10 | 4 | 3 | 3 |
The table totals 30 reviews: 9 removal decisions, 12 replacement decisions and 9 decisions to retain with adjustments. These are 21 removal or replacement decisions, not necessarily 21 distinct wines. It does not allow a margin improvement to be calculated or attributed.
What to do with wines you remove
Taking them off the list is not enough. The remaining stock must be managed:
- If little stock remains: offer it as a suggestion of the day, a special pairing or a reduced-price glass until it runs out.
- If a lot of stock remains: negotiate a return with the supplier, offer it at private events or include it in set menus with an adjusted margin.
- If it cannot be sold: record the loss and learn. Every bottle thrown away is a lesson in how not to buy next time.
Frequently asked questions
What if the wine comes from a supplier I have a good relationship with? The relationship is valuable, but it should not fund wines that do not perform. A good supplier understands that you prefer to optimise your range. If they do not, the relationship is commercial, not strategic.
How many wines should I remove each month? There is no fixed number. What matters is having a process: review the worst-performing 5-10 each month and decide. Over time, your list refines itself. There is no validated monthly replacement percentage for this article: do not remove wines just to meet a quota.
What if a regular customer asks for a wine I have removed? It happens, but less often than you think. And when it does, it is an opportunity to recommend something new. If the customer always returns for the same wine, consider keeping it, but with data, not fear.
Will I lose diversity if I remove many wines? Not if you replace them thoughtfully. Diversity is not having many labels: it is covering the styles, prices and profiles your customers need. You can have 60 very diverse wines or 120 that overlap.
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