What is the meaning of BYO and corkage?
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BYO meaning
For many Australians, BYO is one of the great traditions of our restaurant culture. BYO stands for “bring your own”, and it means that you can bring your own wine or beer to a restaurant. That means you don’t have to purchase from the restaurant’s crafted wine list, and it’s often a cheaper option. Corkage refers to the price some restaurants will charge for opening and serving the byo drinks.
First introduced in 1965, the BYO movement really took off in Australia in the 1970s. Many small restaurants were able to open without having to pay thousands of dollars for a liquor license. Dining out suddenly became affordable.
Today many restaurants hold a liquor license but still offer diners the choice between BYO and purchasing from their house wine list.
Corkage meaning
For customers there is a downside to BYO, and that’s corkage. For many restaurants selling alcohol at a marked-up price is an important part of making a profit. When customers bring their own wine to the restaurant it reduces their profit margin. So, restaurants charge corkage as a fee for BYO. This covers the cost of using stemware, keeping the bottle cool, and the service of the waiting staff.
Restaurants set their own corkage rates and there are no standard guidelines. It may vary from a charge per person (regardless of whether they drink the wine or not) or per bottle. With rates varying from $1.50 per person to as high as $50 per bottle, it’s important that you ask about corkage rates when you make the reservation at the restaurant.
If you find that the corkage fee is too high, you might want to save your bottle of shiraz or champagne for another event, and purchase your wine from the restaurant instead.
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BYO and Corkage – Common Questions
What is BYO?
BYO is short for Bring Your Own. At restaurants with a BYO policy, customers are allowed to bring their own alcohol.
What is corkage?
Restaurants that allow BYO usually charge a corkage fee to customers who bring their own beer, wine or liquor. This enables the restaurant to offset some of the revenue lost due to customers not purchasing alcohol.
Is there a limit on BYO?
Unless explicitly stated, there is no limit to how much alcohol you can bring into the restaurant. This is of course subject to local liquor licensing laws.
How much is the corkage fee normally?
The corkage fee varies widely depending on the restaurant. Expect to pay between $1.50 per person to $50 per bottle. We highly recommend checking with the restaurant beforehand.