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The Bottled Water Phenomenon; An Easy Sale,
But Is it an Abusive Sale
by William F. Orilio, MHS / August 2003

Bottled water is a phenomenon that�s hard to explain in this day and age.  It�s gone so crazy that it makes for a great add-on for increasing revenues.  Everyone buys water�flavored water, natural springs water, mineral water, sparkling water, fortified water � regardless of what they�re doing, especially at restaurants.  There are multiple waters out there, almost as many as there are beers.  Sometimes it�s difficult to make a choice.  I have no objection to water being sold in restaurants, and find it to be a very nice addition to the offerings that a restaurant has. 

The good thing is all you have to do is have a server ask the guest if they care for bottled water; sparkling or still.  This is an easy way to increase the average per-person check.  As we all know, the profit margin with bottled water is astronomical.  As such, every restaurant should be offering it to their guests, all the time.  Not only at the dining table, but also at the bar.  Water can be very refreshing, especially if the guest orders an appetizer or other food item at the bar.  Bottled water should always be offered.

What I find perplexing, even though I�m in the business at many different levels, is the fact that when the bottle is empty at most restaurants, you automatically get served another bottle.  The server doesn�t ask if you would care to have another bottle, they just bring it.  I find it quite disturbing to get the check after ordering one bottle of water, but have gone through three or four, and they all appear on the check at $8 or more.  This is simply wrong.  While water increases the average per person check, and is an easy sale and a high-profit item, it�s disturbing to find out that you�ve been charged for three or four bottles of water when you originally placed an order for one.  This raises the question, �Where do we draw the line?�  As we all know, you don�t simply serve a second bottle of wine without first asking the guest if they want it.  Why should an $8 bottle of designer water be any different? 

It seems to me that the pendulum swings one way or the other.  You�re either offered water options when the server initially approaches you or you�re not, in which case you either have to ask or you get tap water.  An easy sale becomes a lost opportunity.  However, if the pendulum swings the other way, and you�re offered water, it sometimes turns from an easy sale to an abusive sale, and could even be considered gouging.  Operators should take a serious look at this from the guest�s perspective.  At $8 a bottle, if a party of four goes through four bottles of water, this increases the average per person check by $8.  With $24 added to your guest check unexpectedly it can be a little bit of sticker shock, and possibly deter guests from spreading good word of mouth and/or returning to the establishment. 

I�m fortunate enough to frequently travel across North America visiting hospitality industry establishments.  I spend more than half of my waking hours in hotels and restaurants, evaluating them for quality of service, honesty and integrity.  More often than not, when guests have ordered a bottle of water, the water keeps flowing and they get charged on their guest check for more than one bottle. I hear the complaints when the check hits the table.  Guests hate it when that happens.  They very seldom complain to the server, probably because they would be embarrassed disputing the bill over bottled water.  If they�ve consumed it and it�s on the check, they feel obligated to pay for it even though they didn�t request it.  This is taking the guest hostage.  That�s not hospitable in any sense of the word. 

Increasing the average per person check is honorable in this industry, but not at the unexpected cost of the guest.  Clearly servers should ask the same question about water that they do about other beverages.  There is a clear difference between increasing the average per-person check and gouging the guest.  Don�t squander the opportunity to make astronomical profits on an item such as bottled water simply because of greed.  Keep the customer happy with water options and purchasing at their will, not because the server pushes it on them. 

Look at the profit margin that one makes on a bottle of beer versus a bottle of water.  When you see the difference in the two, you almost have to ask yourself from both an operator�s and a consumer�s standpoint, �Why don�t you have more options for water?�  Not only more options, but multiple sizes.  Many restaurants these days are only carrying the large bottle of water, either a still water or a sparkling water, but usually just one brand.  Believe it or not, many people won�t drink certain bottled waters because they like other brands so much.  While �water is water�, some people just don�t like it when there�s only one brand offered.  It does take up room, and can deplete storage area for other items that need to be behind the bar, but there should be an area where you could keep two or three different brands, and enough kept chilled so that it can be served at all times. 

Within the past 30 days, I have assessed several high-end restaurants.  I was surprised to find out that they all offered only one size�a large bottle.  The problem with this is that not all guests want bottled water.  More often than not, a single guest would like to have bottled water, whether it is at the dining table, or while sitting at the bar.  No one wants to sit at the bar with a large bottle of Evian, Voss, Panna or whatever brand you may be serving.  In most cases, the cost of two small bottles of water can either equal or exceed that of one large bottle of water, increasing profits even more.  More than likely, if you have a small bottle offered, the guest is going to order more than one.  With different sizes and varieties available, there may be multiple orders of water at the table for small bottles and second servings, again increasing profits to a greater extent than that of one large bottle. 

When you think about it, the picture is as clear as�well, water!  Be hospitable.  Don�t gouge your guests by serving them bottles of water they didn�t order.  Give them multiple options and everyone will be happy.  After all, the best kind of guest is a happy guest. 

William Orilio is CEO of Grantham, Orilio & Associates, Inc., a San Diego-based hospitality consulting company.  He has taught restaurant and hotel management at San Diego Mesa College for 18 years.  For more information, contact him at [email protected], or visit www.goashoppers.com

Contact:
GRANTHAM, ORILIO & ASSOCIATES, INC.
William F. Orilio MHS
CEO/President
4490 Fanuel St. Suite #222
     San Diego, CA 92109
800-711-7776
[email protected]
www.goashoppers.com
Also See: Manhattan's Ritz-Carlton Hotel Provides 'Water Sommelier'; Up to 12 Selections / June 2002
Forget Damage Control - Managers Should Focus on Pulling the Weeds! / William Orilio, MHS / May 2003
Salt & Pepper Shakers Being Purloined? Retail Them! / William Orilio, MHS / Feb 2003
Simplicity, Not Basics; Post Hospitality Bubble of 2000 / William Orilio, MHS / Nov 2002
Super Bowl Deception Leaves Bad Customer Perception; Short-sighted Greed Overtakes Hospitality in San Diego / William Orilio, MHS / Feb 2003


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