BYOB goes mainstream

 

A trend has taken hold in restaurants in Fairfield and Westchester counties, wagering that “bring your own bottle” policies can overcome reliable beverage incomes while accounting for the loss of alcohol revenue with individual style and customer service.

According to Rick Sampson, CEO of the New York Restaurant Association, what began as a way for restaurants to remain relevant while waiting for a liquor licenses to be approved or after losing one to an infraction, has become a fashionable and timely trend.

Philadelphia is regarded by most restaurateurs as the epicenter of the established system of BYOB, but it seems Fairfield and Westchester are getting in on the game.

“It”™s not all that uncommon any more to hear that a restaurant is BYOB,” said Sampson.

Said Mike Corini, account executive at InsuringMyRestaurant.com, an arm of Keep Insurance in Valhalla, N.Y., “With a BYOB restaurant you do not need liquor liability coverage because you”™re not technically serving the liquor.”

Corini said liquor liability is defined as the type of coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder. He said letting your insurance company know of the situation would be the best route for a restaurant owner because a company may not insure you if it is not disclosed.
According to Steven Harris, president of New York State Beer Wholesalers, he was astounded that businesses could function on a fulltime basis without the capability or income that results from sales of spirits. He said the general principle is food breaks even for an establishment, while the liquor sales provide the profit.

Stamford”™s brand new Little Buddha is the latest entry in the list of successful Thai restaurants owned by Shiva Natarajan with locations in Darien, Greenwich, Norwalk and New York City, all of which offer BYOB services.
Well-known Westchester BYOBs include Conte’s Fishmarket in Mt. Kisco and Comfort in Hastings-on-Hudson. 
“People don”™t understand that most restaurants rely heavily on their liquor sales to survive,” said Richard Rosenthal, chairman of the board of the Connecticut Restaurant Association.

Rosenthal said corkage fees, which are not required by all BYOB”™s, can range from only a few dollars to upwards of $30 for the services generally associated with enjoying a drink (and for the privilege of bringing your own).
“I don”™t think you should be allowed to bring your own wine to a restaurant that sells wine,” said Rosenthal. “People try to weasel out of paying a corkage fee, which isn”™t right.”

Rosenthal said because of the bitter economy many of the BYOB restaurants in Connecticut have reduced or eliminated their corkage fees.

According to John Bourdeau, co-owner of Ristorante Lucia in New Milford, his establishment recently waived its corkage fee to give patrons a break.

Sampson said the odd formula of not being able to offer something has found advantage in those who are penny pinchers, as well as the customers who would like to show off and share rare wines from their own collections.
“It”™s not a guaranteed to be successful, but it can create some inviting character for an establishment,” said Sampson.

Tutti Invitati in Westport and Portobello Restaurant and Pizza in Brookfield have been BYOB for years and both said their established bottle business is doing better than ever.

Natarajan said his other restaurants, under the name The Little Thai Kitchen in Greenwich and Darien and Thai Spice in Norwalk have been doing great in the down economy. Data for Little Buddha were not available
“People really love the BYOB thing,” said Natarajan.

Little Buddha does not have a corkage fee and Natarajan decided against getting a liquor license because the BYOB is so popular. In his other restaurants, Natarajan has reduced his corkage fee to $3.

Sampson said BYOB could prove to be very successful for businesses provided the trend doesn”™t become too commonplace.

Sampson said demand for BYOB in restaurants may also be reactionary, because people in the tri-state area are sick of paying $10 for a glass of wine or a beer.