Latest / Restaurant Business with Fexingo: Food Service, Hospitality, and Independent Operators / Why Restaurant Corkage Fees Drive More Wine Sales
Transcript
- Lucas: Luna, I want to talk about something that diners either love or hate — corkage fees. The charge restaurants impose when you bring your own bottle of wine. Luna: And I bet most operators have strong feelings about it too. Some see it as a money grab, others see it as a necessary evil. Lucas: Right. But a 2025 study from Cornell — they surveyed 1,200 US restaurants — found something that surprised me. Establishments with a corkage fee actually sold 14% more wine by the glass than those that banned BYOB entirely. Luna: Wait — so charging people to bring their own wine leads to more wine sales? That seems counterintuitive. Lucas: It does, but the logic is actually pretty straightforward. When a restaurant has a no byob policy, the message is basically: 'We don't trust you to bring something good, and we want you to buy our overpriced bottles.' That breeds resentment. Luna: So a corkage fee, even a modest one, signals that the restaurant is confident enough in its wine program to let you bring your own. Lucas: Exactly. The Cornell study found that the optimal fee range is $15 to $25 per bottle. At that level, the fee acts as a filter — it keeps out someone who just wants to drink cheap wine from home, but it doesn't discourage the serious collector who wants to share something special. Luna: And that serious collector often ends up buying wine from the list anyway, especially if the sommelier engages them. Lucas: Right. The data showed that about 40% of tables that brought a bottle also ordered at least one bottle from the restaurant's list. They might bring a rare Bordeaux but then order a glass of Champagne to start. Or they realize they need a second bottle and choose from the list because the corkage cap is two bottles per table. Luna: That two-bottle cap — that was another finding from the study, right? That the most profitable policies cap it at two. Lucas: Yes. Beyond two bottles, the table is essentially dining on their own wine, and the restaurant loses the margin contribution from beverage sales. A two-bottle cap keeps the BYOB benefit as a gesture, not a loophole. Luna: I remember reading that some high-end restaurants in New York actually waive the corkage fee for guests who order a bottle from the list first. That seems like a clever middle ground. Lucas: It is. And the Cornell study specifically looked at 'corkage waivers' tied to wine club memberships. Restaurants that offered a free corkage for wine club members saw a 22% higher likelihood that the member would visit during the month they received the waiver. It's a retention tool. Luna: So the fee itself isn't really a profit center — it's more about shaping behavior. Lucas: Exactly. The median revenue from corkage fees across the study was just $2,400 per year for independent restaurants. That's negligible. But the incremental wine-by-the-glass sales — that was significant. Those 14% more glasses at an average $14 per glass adds up. Luna: And you also have to factor in the guest who now feels welcomed, who might upgrade from a glass to a bottle next time. Lucas: Right. The study tracked repeat visitation. BYOB tables returned at a rate 8% higher than tables that didn't bring wine. There's a loyalty effect. The guest thinks, 'This restaurant lets me bring my own wine for a fair fee — they're on my side.' Luna: But there's a flip side. What about restaurants with very high corkage fees — like $50 or $75? I've seen that at a few steakhouses. Lucas: The study found that fees above $30 per bottle actually discouraged people from bringing wine altogether, and those restaurants didn't see a bump in wine-by-the-glass sales. The high fee just feels punitive. It tells the guest, 'We don't really want you to do this.' Luna: So the sweet spot is $15 to $25, and you treat it as a hospitality gesture, not a revenue stream. Lucas: Exactly. And here's where it gets interesting from a menu engineering perspective. The study also looked at wine list composition. Restaurants with corkage fees had on average 30% more wines by the glass offerings than those without. They were actively trying to convert the BYOB guest. Luna: Because if someone brings a bottle of red, but you offer a compelling Champagne by the glass, you might get that add-on sale right at the start. Lucas: Right. And the sommelier's role is crucial. The Cornell data showed that when the sommelier or server acknowledged the guest's bottle — offered to decant it, asked about the vintage — the table was 50% more likely to order a glass of something else from the list. Engagement drives conversion. Luna: That makes sense. You're not just saying 'here's your fee, here's your glass.' You're creating a wine conversation. Lucas: And the fee itself can be structured to encourage that. Some restaurants apply the fee per table rather than per bottle after the first one. Or they reduce the fee if the guest orders a bottle from the list. The study found that dynamic pricing of corkage — where the fee changes based on what else the table orders — was rare but highly profitable. Luna: Honestly, if today's episode helped you rethink your restaurant's wine policy — maybe saved you from a lost bottle sale or two — that's worth a coffee. You can find us at buy me a coffee dot com slash fexingo. Lucas: Yeah. That kind of listener support is what keeps this show ad-free and focused on data like the Cornell study. Appreciate anyone who chips in. Luna: Alright, back to the corkage strategy. One thing I want to ask — what about casual dining? Most of the study data seems fine-dining heavy. Lucas: Good question. The study did include casual and midscale restaurants — about 30% of the sample. And the results held. Even in casual settings, a $15 corkage fee led to higher wine-by-the-glass sales than a no byob policy. The key is that the wine list itself has to be decent. If you only have two wines by the glass, the fee just feels like a tax. Luna: So it's not just about the fee — you need the wine program to back it up. Lucas: Exactly. The study's authors emphasized that corkage works best when the restaurant has a wine program worth talking about. If the list is generic, the guest's own bottle might be more interesting. But if the list has depth, the corkage fee becomes a gateway to showcasing what you have. Luna: I've also noticed some restaurants using corkage as a marketing tool. They'll promote 'Corkage-Free Mondays' or waive the fee for certain wine regions. Lucas: That's smart. The study didn't specifically test promotions, but it did find that restaurants that advertised their corkage policy on their website or social media had 12% higher BYOB traffic. Transparency matters. Guests want to know the fee before they arrive. Luna: So the worst thing you can do is have a hidden fee that surprises people at the table. Lucas: Right. The study data showed that restaurants with unclear policies — 'corkage available upon request' — had lower guest satisfaction scores than those that stated the fee upfront. Ambiguity breeds suspicion. Luna: And what about the operational side? Does corkage add much work for the server? Lucas: The study estimated that each corkage event adds about three minutes of server time — opening the bottle, presenting it, pouring. That's manageable. And if the fee is $20, and the server gets a tip on that, it's actually a decent use of time. Especially compared to the time spent on a complicated cocktail. Luna: One last thing — what about the guest who brings a bottle that's already on the list? I've heard that can be awkward. Lucas: The study addressed that. Most restaurants in the sample had a policy that if the guest brings a bottle the restaurant carries, they still charge corkage. But some upscale places will waive the fee as a courtesy. The study noted that those that waived it saw higher guest satisfaction but no significant change in wine sales. It's a goodwill gesture. Luna: So the overall takeaway: charge $15 to $25, cap it at two bottles, advertise it clearly, and use it as a way to start a wine conversation that leads to more glass sales. Lucas: That's the summary. And the data is clear — a well-designed corkage policy doesn't cannibalize wine sales. It actually grows them. For independent operators especially, it's a low-risk way to differentiate and build loyalty. Luna: I think a lot of owners who currently ban BYOB might want to reconsider after hearing these numbers. Lucas: I hope so. The Cornell study is one of the few pieces of real data on this topic, and it's surprisingly actionable. Next time we're at a restaurant that does corkage well, I'll be paying closer attention. Luna: Same. I might even bring a bottle.