There has been plenty of talk recently around whether restaurants offering BYO is a thing of the past. In this post we look at the history of BYO in Australia as well as the arguments for and against offering it in your restaurant.
The History of BYO
Their appears to be a numbers of factors that contributed to the development of the BYO culture in Australian restaurants. In the past liquor licences have been more expensive and difficult to obtain, making BYO the default position for many restaurant. Going out for a meal on a regular basis was never as common as it is today. In the past eating out was seen as an expensive indulgence. Today some people decide never to cook at home. Wine matching is also a relatively new phenomenon. Not as much thought was given to matching wine with menu items. If wine was available it was usually a choice between red and white wine usually from a cask. In this environment it is easy to see how bringing your own wine became quite widespread. Given the changing times is it still something that should be offered today?
The Arguments Against BYO
Is BYO dead? That's the question people have been asking of late. Let's look at the reasons against offering BYO in your restaurant:
- 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
Despite the arguments against offering BYO there are plenty of reasons why you should still consider offering it in your restaurant. Here are just a few:
- 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.
Is There A Third Option?
Does the choice have to be between offering BYO or forgoing it all together? Some restaurants are having a bet each way and offering BYO on some nights of the week. For example you might wish to offer BYO from Sunday through to Thursday when there are fewer customers. On the weekend you offer a licensed only service. Hospitality Magazine provides the example of Barrel Bar and Dining in Sydney's suburb of Cremorne as an example of a restaurant who has done just that. During the week when the restaurant offers BYO, diners are encouraged to bring along their own wine with the food then matched accordingly at the suggestion of staff.
The Bottom Line
The decision about whether to offer BYO at your establishment depends on what type of restaurant you want to be. BYO is more common in smaller eateries, offering an affordable meal out that want to attract a regular customer base. Those not offering BYO are usually larger, full service restaurants that diners would eat at less often. Think about your restaurants offering before deciding what the best option is for your business.
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