WHNetwork Blog

Margie,

As a Farm Winery in Kansas, we have had to be creative and "green" for a long time - to survive and grow. We produce over 50 internationally awarded wines, as well as old-fashioned jellies, syrups, fudges, and a health product that really works for viruses, asthma, allergies, and lots of things.
We diversified when we began as a winery, and made other things to sell in our tasting rooms.
Over the years, we have added a banquet/reception room - with outdoor patio, gazebo, fountain, and bridge into the vineyard. Weddings are booked every weekend, and we offer them as a package deal - at a price that is lower than most of the venues in the urban area 10 miles from us. We also rent the area for meetings, seminars, and events.

For several years, we had an interactive comedy/mystery dinner theater every weekend and catered the meal. It worked well, but was very labor intensive. It did bring new people to the winery.
The weddings seem to bring lots of new people, and they are much less work. We have a part-time event coordinator on staff, and she takes care of all the weddings and staffing.

With the economic depression increasing as it has, and not looking like there will be any relief for a long time, we have been restructuring our tasting rooms and stores. We have cut back on inventory, had a lot of sales, and are focusing more on our own products. We offer specials, sales, and loyalty cards.

Another creative idea is barter. We belong to two different bartering organizations, and are able to use "trade" dollars for many of the expenses we incur. There are fees and of course tax reporting involved, but if you are trading your products and services - retail to retail - with other businesses, your actual cash investment is usually lower. The theory is good, but sometimes you have to be careful not to think of them as not really being money.

Those of us who are family, and on a salary, work a lot of extra hours - to save money. We also do more events, wine tastings, and work a lot of charity fund-raisers. Keeping our name, our products, and our taste in front of the customers and community is important. Getting people to accept that there is actually world-class wine made in Kansas is sometimes a "leap", but we have the medals to back it up - over 500 of them. We are well known in California international wine events and competitions.

We have had to work smarter, and more, to keep our family owned company surviving in this bleak economy. We have five stores - four in Kansas, and one in Illinois. We are planning to close our Kansas City store at the end of the year, and re-evaluate the others for the long term.

We have marketed heavily in the tourism sector - adding value to bus tours, with free wine tastings, free tours. Everything is handicapped accessible, and we have large restrooms - geared to groups.
Our winery tour is now on DVD, and we have a section in the tasting room to sit and watch it, so anyone can have a tour at any time, without having to walk thru the winery or take someone off a job to lead them. It enables us to show each part of the tour at the optimal level for interest and information also. When bus tours contact us, or groups wanting to come, I send them a copy of the DVD tour, and they can play it on the tour bus on the way to the winery - generating excitement and anticipation in the group - as well as knowledge of our products in advance of arrival. I do a "step-on" welcome to all buses, with some additional information, answer any questions, and make sure they know we appreciate each and every person who stops.

We do classes in wine making and wine appreciation also. The DVD concept has been added there as well. We are putting the classes on DVD's, so they can be sold in the tasting rooms, and on our website.
Those sales add revenues over and over, with little investment after the initial master has been produced. We have in-house graphics, photography, and DVD production, so that makes it more affordable for us also. (Fortunately we have lots of talented people in our family!)

Keeping things personal, and building relationships with our customers and potiential customers - is a good way to build and keep business. We do charity events, help with fund-raisers, donate to organizations and events - keeping up our part in supporting the communities that support us.

There are a lot of creative things out there to reduce costs, gain business, and keep a market presence. We are always looking for new ways, and praying for a better economy in the future.

Merry O'Callahan-Bauman
V.P. Wyldewood Cellars
http://www.wyldewoodcellars.com

Well, I have been unemployed for 2 years now, since August 2008. Some businesses were already in a downturn. I have over 20 years in sales with wine/liq wholesalers in Atlanta. Many restaurants have closed many retail (package stores) have closed. Some wholesalers have discontinued whole lines of brands and dumped them in the market, effectively killing that brand for quite some time.

I do not eat at restaurants at all anymore.

Perhaps there will be some turn around after the elections in November. One things I am pretty sure of is that the economy will not go back to what it was, it has to change and probably that change will mean a slower growth pattern. Just my opinion.

Well, I know Starbuck's is testing the idea of selling beer and wine after 4 pm as well as serving some food items. Perhaps expanding your concept beyond the traditional WInery offerings and doing something outside the norm can be a stimulus. I think discounting is dangerous because it says "I am desparate to the customer who then becomes less appreciative of your offerings. In fact, I believe in bucking the trend and upscaling and investing in your business to make your company "shine like you are strong" is a good approach. Bj's Brewhouse restaurants have had great same store gains due to increasing the quality of ammenities, dishes and napkins. They offer no coupons and few deals, just an awesome experience. People will spend money on that.

Margie,

Re: Wine And Hospitality Ezine: Restaurants & Wineries Getting Creative in the Poor Economy

Thank you for your information briefs. They are very well crafted.

In resonse to your request for innovative ideas on how restaurants can make a greater profit.

I associate with a keg wine installation company (J&D Delivery and Installation Services) whose central office is in NYC and thought you might be interested in how the reusable keg (also called by some - wine by the glass or draft wine) is used to increase profit via wine. Kegs used hold 20ltrs, save space and are reusable.

Restaurants that use our keg wine system save money on bottle disposal nor waste money on wine bottle containers- there are no bottles. Keg wine system also protects wine from contat with air insuring that wine does not go bad etc.

The wines that are usually supplied with the system are premium quality house wines. A five oz. glass of wine may cost a restaurant between 50 to 80 cents! Quality of wine enables sale of up to $10-$12 - most sell it for $8. The Keg Wine system also promotes a wine serving model that enables greater congenial waiter-client contact that translates into more wine and deserts sold.

With best wishes,

Saul Troen