Red Wine Sales Plummet in San Francisco, High-End Restaurants Hit Hard

Sales of red wine in San Francisco are falling sharply, causing significant financial strain for high-end restaurants and reshaping the city's alcoholic beverage consumption trends. Data from Toast, a hospitality technology platform, shows that red wine consumption dropped by 11.9% between the second quarter of 2023 and the same period in 2024. This decline surpasses those of other categories such as white wine, sparkling wine, and whiskey.

The shift in consumer habits is hitting restaurants with extensive wine cellars particularly hard. Acquerello, a two-Michelin-star restaurant with a wine cellar housing around 15,000 bottles, has seen its overall wine sales decrease by 24% so far in 2024, with red wine sales down by 27%. Gianpaolo Paterlini, the restaurant's wine director, confirmed that many prestigious red wine labels, including Barolo and Barbaresco, remain untouched in the cellar. This marks a dramatic change for a restaurant that has traditionally paired high-quality red wines with its tasting menu.

The San Francisco Chronicle reports that the red wine sales slump extends beyond Acquerello, affecting the entire Bay Area. Consumers appear to be cutting back on alcohol overall, with red wine seeing the steepest decline. While whiskey sales fell by 9.3%, white wine dropped by 4.7%, and sparkling wine by 8.6%, non-alcoholic beverages increased by 1.8%, suggesting a growing preference for healthier options or abstinence from alcohol.

Molly Greene, wine director at Saison, a Michelin-starred restaurant, pointed to a negative perception of red wine among diners, who associate it with hangovers and health risks. In response, Saison has shifted its wine pairings to focus on white and sparkling wines, which now dominate sales. Greene also noted that the high cost of red wine is discouraging customers. A glass of red wine in San Francisco restaurants averages $17.19, compared to $14.55 for white wine and $15.69 for sparkling wine.

This shift poses a serious challenge to restaurant profitability, as alcoholic beverages are typically a key source of revenue. Paterlini stated that Acquerello remains profitable when the restaurant is full, but admitted that occupancy has not always reached capacity this year.

In response to declining wine sales, some restaurants are implementing new strategies to attract customers. Kevin Born, wine director at Rich Table, has introduced one-ounce champagne tastings for $6 and half-pours of wine priced between $8 and $13, allowing guests to sample premium wines without committing to a full glass.

Others are relaxing wine service policies to encourage consumption. Greene revealed that Saison used to prohibit two guests from sharing a wine pairing with their tasting menu. Now, the restaurant allows pairings to be shared, a move aimed at preventing guests from skipping alcohol altogether. Despite inflation, Greene has resisted raising the price of Saison's full wine pairing, which remains at $198, even though the restaurant recently increased its tasting menu prices.

Not all restaurants are experiencing the same downturn in red wine sales. At Delfina, an Italian-Californian restaurant, red wine remains a customer favorite, thanks to dishes that pair well with full-bodied reds. Wine director James Butler highlighted the popularity of dishes like risotto with Barolo and bone marrow or ribs cooked with Barolo Chinato, which help sustain interest in red wine.

Despite these efforts to adapt, concerns persist. Paterlini disclosed that Acquerello has not purchased new bottles for its cellar since May 2024—a significant departure from its usual practice of regularly restocking its wine offerings. Industry professionals are bracing for a fundamental shift in dining culture, as changing consumer preferences challenge long-held norms in San Francisco's fine dining scene.