Rick Mitchell, proprietor of downtown Oakland’s Franklin Square Wine
Bar and Luka’s Taproom & Lounge, has what he delicately describes
as some “excess capacity” at the wine bar these days. It’s a common
complaint as of late among many of his peers in the restaurant biz, and
given our economic woes, they’re not expecting a big improvement any
time soon. But Mitchell, whose innovative ideas have brought him great
success at Luka’s, isn’t waving the white flag — far from it.
Instead, he’s adapting to the needs of thirsty local Wineaux by
switching to what he dubs a “Plumpjack-style” pricing system — a
reference to the decision made by San Francisco’s PlumpJack Café
upon opening to offer wine at retail prices instead of the 200 to 300
percent markup that’s customary at restaurants.
Franklin Square’s version of this strategy amounts to slashing
prices to two times wholesale — “basically retail,” according to
Mitchell. A quick fact-check confirms this: The menu boasts a 2007
Quivira Sauvignon Blanc and a 2006 Martin Ray Pinot Noir for $20 and
$24 a bottle, respectively — representing a $12 price cut on both
wines. At Bevmo, the Quivira is $16.99 a bottle, while Martin Ray Pinot
runs $21.99 at Wine.com. Compared to
typical markups, this is Wineau nirvana. For his part, Mitchell
hopes consumers, via the media, will get wind of his new pricing
— and his motives aren’t purely selfish.
“The larger story is the economy and the impact it’s having on the
nascent Oakland wine industry,” says Mitchell. He goes on to explain
that despite “a lot of hope and hype” surrounding local wineries and
wine bars, East Bay vintners aren’t drawing the tasting crowds they’d
like to see, and wine bars are having to weigh different strategies for
keeping their businesses alive. At Va de Vi Bistro and Wine Bar in
Walnut Creek, management decided to go with the direct approach,
recently inaugurating a “bail-out flight”: $9.99 for three three-ounce
glasses. Mark 49 and Vine Wine Bar are keeping prices stable, but both
of these spots have offered affordable wines by the glass and by the
taste from the get-go.
That takes care of local wine bars, but what does the future hold
for local wineries? The good news is that there are still signs of life
from the effort to turn Oakland’s Ninth Avenue Terminal into a
“Vintner’s’ Hall” housing and showcasing said wineries. The developers
behind the project say city management seems to be on board; here’s
hoping they stay there — and that the terminal’s new tenants can
avoid the perils of “excess capacity.” For more information, visit
NinthAvenueTerminal.com.
