The new BYOB move allows customers to bring their own bottles of wine to restaurants in exchange for a $5-$25 corkage fee. While the announcement may seem to benefit costumers, is this a good news or bad news for restaurants?
I believe that the new rule put into place is good news for restaurants. One might say that restaurants may lose alcohol sales as customers will most likely bring their own bottle of wine instead of ordering it from the restaurant. However, I disagree. Customers who usually order a bottle of wine at a restaurant will most likely continue to order wine at the restaurant because to them the extra $10-$15 is insignificant, and will not be an incentive to alter their decision in whether to bring wine or to order wine. While customers who usually do not order wine at restaurants will continue to not order the wine at restaurants. The new rule may provide an opportunity or an incentive for customers to go out to eat more, at a relaxing and nice atmosphere while also not having to spend the extra money for a bottle of wine. I think the new BYOB rule may actually be an incentive for more customers to dine out more in restaurants, thus actually increasing the restaurants’ profits.
Source: Class 1 readings