Restaurants and hotels are charging customers around four times the purchase price for wine and champagne
infomatique | June 21, 2008 at 03:40 pmby
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Before we adopted the Euro as our currency people in Ireland were not so aware that prices in Ireland were much higher than in the rest of Europe. As soon as we joined we began to notice but then we began to notice that the difference began to increase rather than reduce and now things have just about reached breaking point. This may also partly explain the vote against the Lisbon treaty.
For example it was announced that the new iPhone would not cost more than $199 anywhere (actually they said almost anywhere) but the price here is equivalent to $460.
The value of Sterling reduced greatly relative to the Euro and yet the British supermarket chains who operate here did not adjust their prices downwards even though they source in the UK. All sort of excuses are offered: the cost of doing business in the Republic is much higher than elswhere (they never mention that corporation tax is only 12.5%); Ireland is an island so the cost of transporting goods from abroad must be recovered (so why does this not apply to Northern Ireland); the best excuse is used by Easons when they claim that they buy Sterling six months in advance when it was high relative to the Euro, how do they always manage to be so unlucky?
Another thing that I have noticed is that if a restaurant here in Dublin begins losing customers they respond by increasing their prices thus punishing their loyal customers.
Restaurants charging 300% mark-ups on wine
22 June 2008 By Susan Mitchell
'); //--> Restaurants and hotels are charging customers around four times the purchase price for wine and champagne.
An investigation by The Sunday Business Post also revealed huge price variations between the prices charged by restaurants for the same bottles. In one case, a bottle of champagne was being sold for more €300 more than the supplier was charging.
The figures were calculated without including the substantial trade discounts that can be negotiated with suppliers.
A bottle of Pinot Grigio Sacchetto costs €29 at Balzac on Dublin’s Dawson Street. Cassidys, a supplier, charges €6.60 a bottle – a mark-up of about 340 per cent. The executive chef at Balzac said the wine menu was under review.
Ashford Castle charges €500 for a bottle of vintage champagne that is available from a Dublin restaurant for less than half that price. One supplier sells it for €65 and it has a retail price of approximately €245. The sommelier at Ashford Castle said the champagne was bought through London at €200 a bottle, and the mark-up was lower than was typically charged.
The president of the Restaurants Association of Ireland, Gina Murphy, said restaurants were not trying to rip people off, and huge cost variables could explain the mark-ups and substantial price variations.
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