Wines & Vines

September 2013 Wine Industry Finance Issue

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wine marketing "Café Champagne staff are here to provide the information each visitor needs to have a memorable experience," explains food and beverage manager Christine Lindemann. "They are all well versed in the ingredients of every dish served and how those ingredients  may be complimented by each wine on our wine list." Meritage at Callaway Winery, which seats up to 200, has a list that includes non-Callaway bottles, primarily so the restaurant can offer diners varietal wines that Callaway does not produce. The list features 11 whites and 16 reds by Callaway and 15 non-Callaway labels. Chef Mike Henry estimates that beverages bring in about 30% of the restaurant's revenue, and about 30% of the wine sold in the restaurant is by the bottle. Callaway also offers 6-ounce glasses and 3-ounce tastes. Originally planned as a banquet center, Falkner Winery's Pinnacle Restaurant costs nearly doubled during permitting and construction to reach $3 million. To recover costs and improve the prospects of profitability, winery owners Ray and Loretta Falkner decided to have their banquet center double as a 110-seat restaurant. Pinnacle opened in 2006—six years after Falkner Winery opened. Despite its early challenges, Pinnacle broke even in its second year. The troubled economy hit the restaurant hard, Ray Falkner admits, but it regained profitability in 2010. "At this stage, the restaurant's revenue is about 25% of the total operations," about where they want it, reports Falkner. Pinnacle's wine list features 15 Falkner wines (six whites, eight reds and one Port); they sell between 500 and 1,000 bottles every month. Wines are also served by the glass, but not in flights. Bottles are pricier in the restaurant than in the tasting room, but if customers buy a bottle in the tasting room and bring it to the restaurant to enjoy with their meal, they pay a $20 corkage fee. Wine club members buy wine at half-price when dining in the restaurant. "The only way we can run the business effectively is keeping a pretty clean distinction among the three different profit centers," Falkner says, referring to winery, restaurant, and banquet center. Since opening six years ago, the 90-seat Shorty's Bistro has served Mount Palomar wines exclusively (by the bottle and by the glass, with no wine flights). "We never considered serving other wineries' wines," says Kris May, operations director at Mount Palomar Winery, one of Temecula's oldest wineries. The bistro has the sales to back up that decision, Meritage at Callaway Vineyard & Winery offers guests an expansive view over the estate Cabernet Sauvignon vineyards. selling an estimated 4,000 bottles per year. The wine list features seven white, 10 red and five dessert wines; the price for virtually every 6-ounce glass is $7.50. What is on the menu? Variety is the spice of life and the key to repeat visits to winery restaurants in the Temecula Valley, where the bulk of visitors live less than 90 minutes away. Jim Carter had a vision. He wanted to create a resort in the Temecula Valley, and a fine restaurant was an important part of that vision. The 480-seat Vineyard Rose opened in 2004, one year after South Coast Winery opened. From its first day, the 12,000-square-foot restaurant has served breakfast, lunch and dinner, making it very unusual among Temecula Valley restaurants. (The morning meal was necessary to serve guests staying in South Coast's villas.) "Very, very few Temecula winery restaurants actually serve dinner seven days a week," explains Vineyard Rose restaurant manager Nathan Rivera. "I think, in large part, that also helps us." Three years after opening, Vineyard Rose was breaking even. Italianate architecture and lush landscaping, in addition to generous views of the vineyards, encourage diners to relax and savor meals made from local and regional products including some "field to fork" items from Carter Estates Gardens. Frequent menu changes take advantage of the fresh seasonal produce and give visitors a reason to return often. A summer menu, for example, included dishes with summer vegetables and fruit, and emphasized seafood as a light entree option. Among winemaker Jon McPherson's recommended wine pairings are the frutti di mare in tomato-leek cream sauce ($32) with the South Coast 2010 Pinot Grigio, or vegetable cannelloni with herbed ricotta cheese and estate vegetables ($18) paired with the winery's 2008 Wild Horse Peak Tempranillo. Although chef Mike Terry is "the captain of what our menus become," says community relations director Crystal Magon, Vineyard Rose menus are designed by a team that includes the winemaker. "We are constantly cognizant of how our wines can showcase our food, and how our food can showcase our wine," Magon says. Vineyard Rose serves wine by the glass (6-ounce pour) and by the bottle, and it offers one flight of three 2-ounce pours with purchase of a gourmet cheese palette. The wine list is expansive, featuring 50 South Coast wines (white, red and sparkling) and more than twice as many wines by other winemakers. At Meritage at Callaway, chef Michael Henry creates diverse, seasonal menus that accentuate Callaway's long history of fine Temecula wine. The cuisine is based on the "small plate" concept of big flavor and variety, with menu selections paired with the best of what Callaway Winery offers.  The restaurant's menu offers tapas, salads, entrees and dessert using local, sustainable and organic ingredients. Unique and flavorful entrées, soup specials, and wine and tapas pairings are created daily. pr actica l win ery & vin eya r d SEPTE M B ER 20 13 61

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