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Posted: Tuesday, May 27 2008. 11:04

UK Restaurants Also Charge 500 percent Profits

An investigation by London Telegraph, that will be music to the ears of the Indian five-star hotels, has revealed that some of England´s top chefs are charging upto five times the cost of wines in their restaurants.

Restaurants with the highest mark-ups on low-end or mid-range wines include those owned or founded by Raymond Blanc, Heston Blumenthal and Jamie Oliver.

Consumer watchdogs and wine experts accused the restaurants of greed and said the high prices could deter customers from dining out.

The largest mark-up uncovered by The Telegraph was at Blumenthal's three Michelin-starred restaurant, The Fat Duck, in Bray, Berkshire, where a bottle of 2005 Bourgogne Aligote costs £58.

 Berkmann Wine Cellars, sells a bottle for £12.12 per bottle – showing that The Fat Duck is selling the wine at almost five times what it paid for it. Taking VAT into account, that makes a profit of £35.73.

At the two Michelin-starred Le Manoir Aux Quat' Saisons, in Great Milton, Oxon, owned by Raymond Blanc, a 2006 bottle of Corbière La Tour Château Grand Moulin costs £26. The wine can be bought from their supplier, the General Wine Company, for £5.37 – a profit of £16.08 after VAT.

And at Fifteen Cornwall, near Newquay, which was founded by Jamie Oliver, a 2006 bottle of Belisario Verdicchio di Matelica sells for £27. The same bottle can be bought for just £6.08 from the restaurant's supplier, Liberty Wines, which means a £16.20 profit per bottle after VAT.

The mark-ups were calculated using the prices printed on the restaurants' menus, without taking into account any service charge added later to the bill, and using the suppliers' standard trade prices.

The restaurants argue that the large profit margins are necessary to cover other costs, such as staff and wine storage. A spokesman for Le Manoir Aux Quat' Saisons said its 384 per cent mark-up on wine was justified by the "dining experience".

Of course, one minor factor that makes the situation different in India is that the 5 star hotels get the wines at duty free prices and they are expected to pass on the benefits to the consumers-editor

       

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