What is a Corkage Fee?

How many of you have had that customer?

You know the one… walks in clutching a bottle of wine like it’s their firstborn, all smiles, and says, “Mind if I just drink this? It’s my favorite, and it’s not on your menu.” And you’re standing there thinking, Sure, Susan… but who’s paying my rent this month?

Now, restaurant owners are nothing if not creative. We’ve come up with all sorts of clever ways to bring people in and keep them coming back: Bottomless brunches, Margarita Mondays, DIY pizza nights. Some of you have even tried those “eat in the dark” experiences, because apparently nothing says fine dining like stabbing your salad in total darkness.

But lately, there’s another trend on the rise, one that’s got both diners and restaurateurs talking: BYOB which stands for “bring your own bottle.”

Now, here's the thing: alcohol makes up about 21% of total restaurant sales. So naturally, the first thing you may wonder is if people are bringing in their own bottle of wine, won't that just mean lost revenue? Well, enter the corkage fee.

Today, we're going to teach you everything you need to know about this fee, including how it works and why (if done right) it might just be the most underrated upsell on your menu.

What is a corkage fee in restaurants?

A corkage fee (or corkage charge) is what a restaurant charges when guests bring their own bottle to enjoy with a meal. Most often, this applies to bottles of wine (because, let’s face it, few people BYOB a can of lager to a three-course dinner), but it can, however, extend to beer, white label spirits, or even soft drinks.

There are tons of reasons why customers love the idea of bringing in their own bottles. Maybe it’s their favorite vintage, an expensive wine that’s impossible to find on your list. Maybe it’s a sentimental, special bottle they’ve been saving for a special night. Or maybe they just like feeling a little more in control of their dining experience. Whatever the reason, the corkage fee lets you give them that flexibility without a lot of lost revenue.

Now, if people are bringing their own alcohol into your restaurant, some may ask why they're still being charged. Well, there's an easy answer to this:

Because even if the customer brings the bottle, your team still does the work. Someone has to chill it, pour it, and polish the glasses afterwards.

Corkage fee vs BYOB: what's the difference?

A lot of people think these two terms are the same thing, but they’re not.

BYOB is the policy. The BYOB policy allows customers to bring in their own wine, beer, or other drinks.

The corkage fee, on the other hand, is the price you charge for allowing BYOB.

Some restaurants embrace BYOB fully, offering a friendly corkage charge so diners can enjoy their favorite wine without buying from the menu.

Others don’t allow it at all - no exceptions, no corkage, no BYOB.

Why do restaurants charge corkage fees?

A corkage fee exists to cover the costs of serving someone else’s alcohol.

Sure, part of it goes to the waiter who will serve your food and service alcohol, but it’s not just that.

The corkage fee also typically includes the:

• Wine service

• Glassware

• Storage

• Opening

• Clean-up

Plus, it pays for pouring, chilling, cleaning the glasses, and even the occasional breakage.

For restaurants with a liquor license, a corkage fee also helps offset the revenue they might lose from in-house alcohol sales. Even if only a few customers bring their own bottles, the business still needs to make sure it covers its costs.

In fine-dining establishments, this becomes even more important. These restaurants spend big on curating the restaurant's wine lists, training staff, hiring a sommelier, and maintaining high standards, so the corkage fee is a way to let guests enjoy their chosen bottles without cutting into the restaurant’s bottom line.

How much should you charge for corkage?

Many restaurants charge between $10 and $40 for a corkage fee per bottle of wine.

In New York City, for example, the average corkage fee is around $36 per bottle, though some restaurants set their corkage charge much higher, sometimes exceeding $100.

As a rule, the more upscale the restaurant, the higher the corkage fee.

If you’re introducing a corkage fee for the first time, a simple way to start is by matching it to the cheapest bottle of wine on your menu.

From there, you can choose whether to charge per bottle or per person, sometimes called “per stem.” A well-priced corkage charge keeps your policy fair, clear, and profitable, while giving customers the flexibility to bring their own bottles.

Corkage fee rules and regulations

Before introducing a BYOB policy at your restaurant, the first thing you need to consider is legality.

Do your research so you know whether you can allow customers to bring in and consume their own wine or spirits, whether you’re allowed to charge a corkage fee, and if your restaurant needs a liquor license or BYOB permit.

Here’s a quick look at how BYOB and corkage laws work in major cities:

• New York City: Restaurants must have a liquor license to allow BYOB. Corkage fees aren’t mandated, it’s up to the restaurant whether to charge one.

• Philadelphia: BYOB is widely embraced, including wine and hard liquor. Restaurants don’t need a liquor license to allow BYOB, and corkage fees are unregulated.

• Boston: BYOB is typically prohibited, and in areas where it’s allowed, corkage fees are not permitted.

• Los Angeles: BYOB is only allowed at restaurants with liquor licenses, and there are no rules limiting corkage fees.

As you can see, corkage fee laws vary widely, so knowing your local laws is really important. Maybe you'll get to charge a flat rate, or maybe you'll not be allowed to have customers consume alcohol they brought in themselves.

How to set and communicate your corkage policy

You’ve decided to let customers bring their own bottle, and with it you'll charge corkage fees.

But a corkage fee only works if people actually understand it and don’t feel like they’re being hustled.

This is where having clear corkage fee policies, and communicating this wine program well, comes in.

Here's how you can do that:

1. Menu placement: Don’t hide your corkage fee in tiny print at the bottom of the dessert page. Make it clear and upfront. Transparency builds trust, and trust builds repeat customers.

2. Train your staff: Every server and host should be able to explain your corkage policy without breaking a sweat. They should know exactly what the corkage fee covers and be ready to spin it as part of the guest experience.

3. Communicate during reservations: If someone calls or books online, a friendly heads-up about your BYOB policy and corkage charge avoids awkward surprises when these patrons arrive.

4. Handle special occasions thoughtfully: Birthdays, anniversaries, or large parties may be worth waiving the corkage fee, or at least offering a discount. Or maybe you can introduce a policy where they can bring in two bottles instead of one, if it's their birthday. It’s a great way to make guests feel special; customers enjoy feeling like VIPs.

Managing corkage with your POS system

That's it from us - we've packed this blog with everything there is to know about how you can make money and sell beverages while allowing customers to bring in their own bottles.

Now, as a restaurant owner, there’s one key thing to get right: tracking your corkage fees. If it’s done on paper or in your head, it’s easy to forget, miscalculate, or confuse your staff. That’s where your POS system comes in.

With the right setup, your POS can add a corkage fee automatically, track which tables are paying, and even give you reports on how much extra revenue you’re making.

It makes life easier for your team, keeps your customers happy, and ensures your BYOB policy is profitable, not stressful.

At Epos Now, we help restaurants set up restaurant POS systems that handle corkage fees and other tricky charges effortlessly.

Speak to our experts today to see how your POS can work harder for you and turn BYOB into a seamless, revenue-boosting experience.