The History of BYO
The Arguments Against BYO
- The industry's slim margins in Australia with high labour costs makes BYO unviable. Even charging corkage means your more reliant on food to make money.
- Diners miss out on the full experience of dining at your restaurant if they bring their own bottle of wine. Much thought is given to matching wines with menu items by restaurants. BYO doesn't allow for this.
- It has become quicker, easier and more affordable to apply for and obtain a liquor licence. In Victoria for example it costs $429.50 to apply for a full licence In NSW the cost is $700.
The Arguments For BYO
- BYO keeps customers happy.
- You can attract a name for yourself as one of a reduced number of restaurants still offering the option.
- It encourages customer loyalty and repeat business. If it is more affordable to eat at your restaurant then diners will do so more often.
- If you are offering proper cellaring, wine service and good glassware then it is reasonable to charge corkage to offset these costs. Customers understand that there is a cost attached to BYO so it can still be profitable.
- Event if your not offering an extensive wine service then customers are in almost all cases willing to pay corkage to offset the lost revenue from wine sales.