Corkage Dilemma: A Wine-Wine Solution

[AKR]

We used to be long time clients of Rob, and have met him a number of times. I still have some of his 'products'!
Great guy and very unusual
And I totally agree with him on the below. If anything I think a lot of places totally get it wrong when it comes to BYO

==============

Corkage Dilemma: A Wine-Wine Solution
Restaurants need to profit, but rigid policies deter diners.
By Rob Arnott
March 29, 2021 6:36 pm ET

A top Miami businessman brought a 1959 Chateau Latour for a friend’s birthday dinner at a prominent local Italian restaurant. He offered to buy a top champagne from the wine list so that the restaurant could earn a good profit. The manager refused, so the celebrants left and took their business elsewhere.

Restaurateurs earn much of their profit from customers who order good wines with their meals, and many charge a “corkage” fee to encourage customers to do so. I get it: A diner who pays $25 to open a bottle of swill may be unprofitable. Some states help the restaurateurs—but assuredly not the customers—by banning corkage.

In some cities, notably those heavily reliant on tourism, where repeat business is hardly a foregone conclusion, many of the best restaurants refuse to allow customers to bring their own wines at all. In California, almost all restaurants allow corkage. But, in Miami and New York dozens of top restaurants don’t. While most will be flexible with regular customers, a few are utterly rigid about their rules.

Like many wine collectors, my wife and I generally avoid restaurants that hew to a rigid no-corkage policy. We want to bring a wine from our own cellar that almost certainly won’t be on the wine list. Assuming wine collectors are desirable customers, this is a lose-lose outcome.

As a businessman, I would hate to lose my best customers, which invites a simple question: If wine collectors are desirable customers, because of their overall spending and because they introduce friends to the restaurant, why not have rules that welcome them, while discouraging the corkage-to-save-money crowd? Perhaps set corkage at the median price on the wine list. Perhaps set a minimum bill per person, if customers bring wines of their own.

I had a more recent and slightly different experience at the aforementioned Italian restaurant. I wanted to bring a 50-year-old wine for my wife’s birthday. A manager, perhaps chastened by the previous episode, agreed to one of the above win-win choices. But a more senior manager angrily rescinded the offer in a terse email, in which he said the fellow who showed flexibility was “a manager in training and he absolutely misspoke. We cannot accommodate this request.”

This foolish response undermines managerial initiative and assures another lost customer. My friend and I both eagerly share our stories with our wine-collector friends. There are myriad win-win compromises. Why not give one of them a try?

Mr. Arnott is founding chairman of Research Affiliates

[s*d*r]

It’s a constant frustration not to be able to bring a special bottle to a special restaurant for a special occasion.

Once at a local Italian restaurant I offered to pay a $1000 corkage for the privilege. I was joking of course but the manager didn’t know that for sure and still refused my attempt to make a deal.

Another time years ago, at a fancy French restaurant in San Francisco, I brought 5 bottles of wine with me. Although corkage had never been a problem there before, the haughty new Sommelier said he decided to change the policy and the manager backed him up. My suggestion there was to purchase 5 bottles off their list - and not open them, just hand them back. Refused again. Fortunately, one of my guests was a local wine merchant who reminded them he had supplied most of the bottles on the list. Suddenly, everything was now okay.

As bad as the corkage situation is in the US, I am under the impression it is far more strict in much of Europe, especially France.

[AlexR]

It is a pity that most restaurants in many countries charge large, if not outrageous mark-ups for wine.

Their reasoning is that it makes up for the poor margins on the food.

I don't buy that reasoning, and I do not think that the cost of storing and serving wine justifies multiplying the price by three or four.

Corkage is very civilized, as long as it, too, is not way overpriced.

I sure wish the pactice were more widespread.

All the best,
Alex R.

[JoelD]

I couldn't agree more. I almost always pick restaurants based on their corkage policies and try to find that perfect mix of a great restaurant with reasonable corkage fees. I was able to do this a lot on my recent Napa/SF trip. 20$-35$ per. All very reasonable and worth it. It's definitely a turn on and some places will negotiate if you're opening a lot of bottles. Either Minimum spend for the group. Or total fee for unlimited open bottles.

[JimHow]

It seems Washington DC is pretty corkage friendly, no?
I wonder if NYC, as it emerges from the pandemic, will loosen up more.
I remember post-9/11 they bent a lot of rules.

[JoelD]

It seems Washington DC is pretty corkage friendly, no?
I wonder if NYC, as it emerges from the pandemic, will loosen up more.
I remember post-9/11 they bent a lot of rules.

Yes there was a law, years ago that made all restaurants in DC offer corkage of no more than $25. However the cap has been lifted. But most good places still charge between $25 and $50. Some cap at 2 bottles but we can usually swing minimum spends, or total fee for unlimited corkage at good French bistro's. Marcus is the king of finding these deals. So solid on corkage, although I found SF/Napa to be even more friendly at high end restaurants.

[Claudius2]

Guys
The typical food service markup is the same for food as wine which has always seemed to be crazy to me. So a wine worth say $30 costs $100 at a restaurant and the same applies for the food. The exact ratio will of course vary but the whole thing is rather silly and puts me off eating out.

The Singapore market is even stranger as few restaurants have decent wine lists and those that do are way over priced. So these days I will just drink then at home and drink water at restaurants.

Things in Australia were a lot better as a lot of restaurants are not licensed and BYO is popular and corkage if usually only $5 or so per bottle. So I’d even take my Riedel glasses when drinking top wines and the cook at my favourite restaurant liked me as I’d give her a small serve of Margaux, HB or Mouton from time to time.

[AKR]

I realize restaurants are a high mortality biz (most do not survive to age 5) but I cannot even begin to count how many places told me NFW for corkage - under any terms - and later, 'closed for renovations'. Even here, a generally corkage friendly locale, I still - when the world truly reopens - favor the places that make it easy/straightforward and not some complicated production that makes it seem like I am being granted some massive boon.

I had to drive down to my office on Monday - I had not been in many many months - and so many of the usual venues were all closed, with the gloomy Knight Frank or CBRE leasing signs out front. It will be a long time for them to reopen, retenant.

=====

On funky restaurant experiences, Mrs AKR picked up takeout/counterservice Chinese yesterday from a place that offers service with a sneer, and they now have surcharges for paying with cash (2%) or credit cards (4%). The only way one can actually get the stated menu prices is by paying with Venmo (which is only accepted on $50 tabs or more). And this is not in a great area, where either smart phones or Venmo like apps, are the certainty they might be in say a college town. The owner/cashier also aggressively urged Mrs. AKR for tips (which I'd warned her about) when the payment screen was turned to her. I doubt this place even pays min wage to staff, let alone tips customers might think they are giving....

Which meant the kids got an econ lecture on tips, game theory, and repeat biz with their noodles last night -- and why their hair stylist gets tipped well and why counter service dragon lady gets zero -- and how that is rational for all players.

[JimHow]

I had to drive down to my office on Monday - I had not been in many many months - and so many of the usual venues were all closed, with the gloomy Knight Frank or CBRE leasing signs out front. It will be a long time for them to reopen, retenant.

You should see midtown Manhattan. Unbelievable.

[Nicklasss]

It’s a constant frustration not to be able to bring a special bottle to a special restaurant for a special occasion.

Once at a local Italian restaurant I offered to pay a $1000 corkage for the privilege. I was joking of course but the manager didn’t know that for sure and still refused my attempt to make a deal.

Another time years ago, at a fancy French restaurant in San Francisco, I brought 5 bottles of wine with me. Although corkage had never been a problem there before, the haughty new Sommelier said he decided to change the policy and the manager backed him up. My suggestion there was to purchase 5 bottles off their list - and not open them, just hand them back. Refused again. Fortunately, one of my guests was a local wine merchant who reminded them he had supplied most of the bottles on the list. Suddenly, everything was now okay.

As bad as the corkage situation is in the US, I am under the impression it is far more strict in much of Europe, especially France.

Stu, i like K and you, so will open a BYOW restaurant without corkage, but i have to control every bottle you bring in!

Nic

[dstgolf]

Ottawa has been reasonably corkage friendly and like many here we had favoured restaurants with corkage with a few offering free corkage Sun/Mon nights. We typically avoid going to places that we can't BYOB unless we're joining some friends that have chosen a place and not into wine which is a rarity for us as we usually go out with other winos. There are enough good to very good restaurants that have BYOB licenses and encourage you to bring your own but we'll see where everyone heads post pandemic and who is still alive. I think the landscape may change dramatically for the F & B industry.

[DavidG]

Corkage friendly places are rare around us. Twenty miles east there are a few in Baltimore. Forty miles south DC has a decent selection. I think the no-corkage places are leaving money on the table, but I’m no restaurateur.

[Blanquito]

Corkage in Colorado is a nightmare. Still 100% illegal in theory and largely in practice too. If any venues around here had a decent wine list with even half way decent prices, this could be a tolerable situation but I’ve yet to find that combo.

[Jay Winton]

Corkage in Colorado is a nightmare. Still 100% illegal in theory and largely in practice too. If any venues around here had a decent wine list with even half way decent prices, this could be a tolerable situation but I’ve yet to find that combo.

Equally bad in Delaware, our new home.

[JimHow]

You guys think you got it bad, you should see New England.

[JoelD]

Corkage in Colorado is a nightmare. Still 100% illegal in theory and largely in practice too. If any venues around here had a decent wine list with even half way decent prices, this could be a tolerable situation but I’ve yet to find that combo.

Equally bad in Delaware, our new home.

Good to know, Jay. I'm actually heading out to Lewes to watch my sister's house/pups. Good thing I got plenty of good drinking/corkage out of the way last week in Napa/SF.

[stefan]

In Texas it is illegal to bring alcohol into a restaurant that has a full bar license. It is legal to bring alcohol into a restaurant that has only a wine and beer license. We had a very good restaurant that had only a wine and beer license, but it closed during the pandemic.

[AKR]

Yeah, New England and the Rockies are pretty sucky for corkage. I'm not very sympathetic when I hear people in the F&B industry complaining. There is some ways they can help themselves - corkage is low hanging fruit - and they seem to think that they are cannibalizing sales, when in reality, some customers don't even walk in the door because of the shitty policies. In a world where chefs can be hired for a night for $300, and a cleanup person is another $100 the day after, some households can just host parties at home.

My uncle used to run a restaurant. It was crazy all the stuff they would pull!

[OrlandoRobert]

I am really surprised to read about all these experiences. I live in Orlando and have a beach house in Vero Beach, Florida, and every single restaurant I go to in each city allows BYOB and most just charge a reasonable corkage, generally $15-$25 per. I bring special, mature wines, nothing that is on their lists, happily pay the corkage fee, tip the server on a reasonable bottle price so he/she does not get screwed, and almost always offer a taste to the server. Normally when I go, we always also order something off the wine list and often start with a cocktail.

Was just at Ruth's Chris last week with my buddies, and we brought 8 bottles for 6 guys. They were totally cool. Corkage was $25 per. We tipped the waiter like 50%, so he was happy as a clam. And we gave him a pour of Li Pin! Had another wine guy's night with BobbyGoulet and some other buddies at Southern Social in Vero, and we had them open 4 bottles, and while they have a $15 corkage fee, they did not charge us. Maybe because I am a regular? We tipped heavily that night.

The only place in Orlando that I know of that does not allow for corkage, is an Italian restaurant called Enzo's. It's really one of the better restaurants in town, and would be in our rotation, but we never go because of that dumb policy. So they lose our business. I'm sure they would have liked our business this past year. F*ck them. Their wine list is not that great for my palate.

Just seems like a stupid business decision to exclude the higher-end wine crowd from your place, as you are generally dealing with a more affluent, generous crowd that enjoys fine dining. Charge us higher corkage if necessary, I don't care, I just want to drink what I want to drink.

[Blanquito]

Party in Orlando!

[Nicklasss]

Party in Orlando!

OrlandoRobert bring the Le Pin, blanquito his weekdays wine Magdelaine, and myself the Chinon.

And no whoopie pie please.

[OrlandoRobert]

Party in Orlando!

OrlandoRobert bring the Le Pin, blanquito his weekdays wine Magdelaine, and myself the Chinon.

And no whoopie pie please.

It's been a good week! BobbyG and I have had all of that this past week! The 1970 Magdelaine was gorgeous.

And we did have some Vietnamese whoopie pie concoction that was awesome, but we paired it with scotch.

[JimHow]

Mmmmm. We have GOT to get down there!

[AKR]

I am really surprised to read about all these experiences. I live in Orlando and have a beach house in Vero Beach, Florida, and every single restaurant I go to in each city allows BYOB and most just charge a reasonable corkage, generally $15-$25 per. I bring special, mature wines, nothing that is on their lists, happily pay the corkage fee, tip the server on a reasonable bottle price so he/she does not get screwed, and almost always offer a taste to the server. Normally when I go, we always also order something off the wine list and often start with a cocktail.

Was just at Ruth's Chris last week with my buddies, and we brought 8 bottles for 6 guys. They were totally cool. Corkage was $25 per. We tipped the waiter like 50%, so he was happy as a clam. And we gave him a pour of Li Pin! Had another wine guy's night with BobbyGoulet and some other buddies at Southern Social in Vero, and we had them open 4 bottles, and while they have a $15 corkage fee, they did not charge us. Maybe because I am a regular? We tipped heavily that night.

The only place in Orlando that I know of that does not allow for corkage, is an Italian restaurant called Enzo's. It's really one of the better restaurants in town, and would be in our rotation, but we never go because of that dumb policy. So they lose our business. I'm sure they would have liked our business this past year. F*ck them. Their wine list is not that great for my palate.

Just seems like a stupid business decision to exclude the higher-end wine crowd from your place, as you are generally dealing with a more affluent, generous crowd that enjoys fine dining. Charge us higher corkage if necessary, I don't care, I just want to drink what I want to drink.

Some manager has a guy bring in YellowTail once, and figures -- oh I gotta whack that mole - so he bans corkage thinking that will get Mr. Yellowtail to turn into Dr. Cristal.

[Racer Chris]

I've decided to do more delivery from fine restaurants, so I can continue to eat at home and drink what I want, while eating a fine meal made by a professional chef.

[s*d*r]

I am really surprised to read about all these experiences. I live in Orlando and have a beach house in Vero Beach, Florida, and every single restaurant I go to in each city allows BYOB and most just charge a reasonable corkage, generally $15-$25 per.

That’s amazing how different things are a few counties north. Just can’t do that in a lot of places in South Florida. Even the J. Alexanders chain has a 1 bottle per table limit here.

So are all the Disney World restaurants corkage friendly too?

[OrlandoRobert]

I am really surprised to read about all these experiences. I live in Orlando and have a beach house in Vero Beach, Florida, and every single restaurant I go to in each city allows BYOB and most just charge a reasonable corkage, generally $15-$25 per.

That’s amazing how different things are a few counties north. Just can’t do that in a lot of places in South Florida. Even the J. Alexanders chain has a 1 bottle per table limit here.

So are all the Disney World restaurants corkage friendly too?

Wow, I'm surprised Miami is not more BYOB friendly! It's been a while, but I used to go to Michy's quite a bit when it was hot, and always brought a bottle.

I'm not sure about the Disney hotels, I generally avoid the tourism area like the plague. I have brought wine to Capa at the Four Season's out there, and they were cool. Also brought a bottle to Capital Grille off I-Drive. All cool.