San Francisco Wine Prices Surge 16 Percent, Glasses Now Top $45 at Some Restaurants

In San Francisco, the price of a glass of wine has reached new heights, with some restaurants now charging as much as $25 or more. At La Mar Cebicheria, an upscale Peruvian restaurant on the Embarcadero, a five-ounce pour of Russian River Valley chardonnay is listed at $35. Even a glass of Alsatian grand cru riesling, considered a more budget-friendly option, costs $24. These prices are significantly higher than what diners paid just a few years ago.

Industry professionals and customers alike are expressing concern over these increases. A longtime San Francisco sommelier recently noted paying $25 for a glass of Sancerre at a Marin restaurant. The trend is not limited to high-end establishments. At Octavia, a New American restaurant, the average price for a glass of white wine has risen 12.5% in the past two years, from about $16 to over $18. Prospect, another well-known spot, has seen its average red wine by the glass climb more than 16% since spring 2024, from $18 to $21.

At Dalida in the Presidio, which opened two years ago, every category of wine by the glass includes at least one selection priced at $30 or more, with several options exceeding $45. There are no wines under $18 per glass on the menu.

Several factors are driving these increases. Tariffs on European Union wines have added a 15% levy since August, raising wholesale costs for importers and restaurants. Labor costs in San Francisco continue to rise, putting additional pressure on restaurant owners to increase prices wherever possible. Changes in American drinking habits also play a role; younger generations are drinking less alcohol overall, which means restaurants must make up lost revenue from fewer sales.

Some business owners are trying creative solutions to keep prices manageable for customers. Bahman Safari of Bar Bibi in Nob Hill uses “mixed markups,” slightly overcharging for some wines so he can offer others at lower prices. He also avoids importing wines subject to high tariffs and encourages staff to recommend lesser-known varietals that offer better value.

Despite these efforts, many in the industry believe prices will continue to rise. Joel Arias of Frenchie Wine Bar in Noe Valley says vendors have warned him that further price hikes are coming soon and have encouraged him to place orders before costs go up again. Adam Manson of Big Finish in the Mission reports that his wholesalers and European wineries have absorbed some tariff costs so far but expects this may not last.

Labor costs remain a significant challenge. Erin Rickenbacker and Rafa Saenz, owners of El Chato in the Mission District, work behind the bar every night to keep staffing expenses down. Rickenbacker notes that it is easier for businesses to raise prices on products already perceived as expensive, such as wine by the glass.

The impact of high prices is being felt by customers as well. Some regulars at local restaurants say they feel overcharged for wine and are less likely to return except for special occasions. Manson at Big Finish has responded by keeping most of his by-the-glass offerings at $16 or less, which he says has helped build a loyal neighborhood clientele.

The situation is complicated by supply issues overseas. After several years of low-yield vintages and weather-related crop damage in Europe, producers raised their prices. Even after better harvests in 2022 and 2023, those higher prices have not come down.

As San Francisco’s wine prices continue to climb, both restaurateurs and customers are left wondering how sustainable this trend will be. For now, many operators are searching for ways to balance rising costs with customer expectations while hoping that further increases do not drive away their core clientele.