The Consultant - Q1 2009 - (Page 20) PERSPECTIVES asia-pacif ic When Denise the Wine Shop, a chain of almost 20 wine retail shops, organized their Denise Annual Wine Fiesta, in order to showcase wines from more than 60 producers, consumers paid only S$0.50 per glass for tastings. Grayson Durham, CEO of Denise, has the same prediction, “2009 will probably mean that there will be bigger demand for less expensive wines, but the consumers will still insist on value, which is fair enough.” To cope with the expected lull period after February, more savvy restaurants are already ramping up their marketing programs by appealing to the cost-conscious crowd. The Wine Company group of restaurants in Singapore, which also features retail wine sales, has started their marketing campaign by running a two-month long contest, which gives customers a chance to win a return trip to Cape Town, South Africa, as well as a sponsored three-day stay at one of the South African wineries they represent. To enter, they must spend S$500 in a single receipt for retail wines. This carrot was appropriately dangled during the festive season to encourage customers to buy more wine for their home parties, pushing sales beyond the restaurant. To provide even more value, they have also started to more aggressively promote The Wine Company Privilege Card; for just S$20, this allows savings of up to 20% on purchases. Recently, they grabbed the attention of customers with their cellar promotion of a ‘12 for 12’ tasting – 12 tasting portions of their wines for $12. The group has also made the move to invest in communications, and have introduced a monthly e-newsletter to communicate promotions more effectively with their existing database. As Belinda Lim, partner of The Wine Company shared, “Response has been very positive, and there has been much more interaction between our guests and our company since we began this pro- MARKET At the Tasting Room, sales haven't yet slumped. Here, wines are sold at retail prices without the usual restaurant mark-ups. The unassuming, friendly restaurant and wine shop also offers wine flights that include 3-to-5 samplesized portions. INTERNATIONAL cess.” They are also prepared to invest in a more sophisticated website, as they believe that now is the best time to push their branding. Other restaurants, however, are reacting in a more predictable manner and slashing prices to cater to the lower-priced demand. For example, Relish, a gourmet burger joint, has added a 150g option for S$14.50 to the menu, instead of the usual 180g for S$17. Casual wine bars/cafes, such as Vino Vino are also offering cut-rate prices, such as $8 for grilled sirloin steak (usually priced at $16.50 for 200g) on Tuesdays and Sundays. However, it’s not all gloom in the F&B scene at the moment. Some restaurateurs are going ahead with expansion plans, despite the economic climate. Khoo, for one, revealed that growth plans are in place, although the information is classified at the moment. Restaurants in Singapore, such as Bedrock – a steakhouse and whisky bar, and Oriole – a café that serves English and European fare as well as award-winning coffee, were recently opened by Keith Loh, owner of Whitebait and Kale, as well as Aerin’s. Teng sums up the situation concisely. “There have been a lot of new, inexperienced start-ups in the past 18 months. If the market does contract by say, 20-30%, it’ll be a challenge for these to survive,” he said. “Prices are already very low, I cannot see how operators who continue to discount will be able to survive especially as rentals are still very high.” He believes the economic recession could be a blessing in disguise as it will sift out the survivors. Jenny Tan (jennytan@thewordsmith.com. sg) is an independent food and beverage writer based in Singapore. She contributes to the weekly wine review of the Straits Times (the national paper), and to regional publications such as Appetite and The Edge. Her latest project is Dish, a chef management company that aims to raise the profile of chef talents in Asia. 20 theconsultant
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