Should Your Restaurant Allow BYOB? Corkage Fee Pricing Guide for India
How to set corkage fees for customers bringing their own alcohol. Legal rules, pricing strategy & profit impact for Indian restaurants.
Quick Answer
BYOB is legal in most Indian states for restaurants without a liquor licence. Charge ₹300–800 corkage per bottle (or ₹150–300 per person) to cover glassware, service, and lost beverage margin.
Is BYOB legal for Indian restaurants?
Restaurants without a liquor licence cannot sell alcohol but can allow customers to bring their own in most states. Some states (e.g., Gujarat) prohibit all alcohol regardless.
Check your state excise rules and municipal bylaws before offering BYOB. Display your policy clearly at the entrance and on your menu.
- Legal in: Maharashtra, Karnataka, Delhi NCR, Tamil Nadu (with conditions)
- Prohibited or restricted in: Gujarat, Bihar, and some dry districts
- Hotels with bar licences have different rules — consult excise department
- Never serve alcohol to minors regardless of BYOB status
How to set corkage fees
Corkage compensates for lost beverage revenue, glassware, ice, and service time. Indian fine-dining typically charges ₹400–800 per bottle; casual dining ₹200–400.
Per-person corkage (₹150–300) works for groups sharing multiple bottles. Waive corkage for special occasions to build loyalty.
- Benchmark against local restaurants with similar positioning
- Include one complimentary appetizer with corkage to soften the fee
- Cap bottles at 2 per table to manage consumption
- Train staff to explain corkage politely before opening bottles
Writing and displaying your corkage policy
State the fee, bottle limit, and any restrictions (no beer, wine only, etc.) on your menu and at the host stand. Ambiguity leads to billing disputes.
Update your digital menu instantly when you change corkage rates — DineCard makes this a 30-second edit.
- Add a "House Policies" section to your menu
- Include corkage in reservation confirmation messages
- Post a small sign at the entrance
- Train hosts to mention BYOB policy when seating
Profit impact: BYOB vs full liquor licence
A liquor licence in Maharashtra costs ₹5–15 lakh annually plus inventory. BYOB lets you serve wine enthusiasts without that investment.
Corkage revenue on 20 bottles/week at ₹500 each adds ₹40,000/month — meaningful for a 40-cover restaurant.
- Liquor licence: high margin but high compliance cost
- BYOB: lower revenue per table but zero inventory risk
- Hybrid: offer curated wine pairings alongside BYOB option
- Track corkage revenue separately in daily sales report
Customer experience tips
Provide proper wine glasses, ice buckets, and openers. BYOB guests expect service quality equal to wine they brought.
A polished QR menu with clear policies reduces awkward conversations at the table.
- Invest in 12–24 decent wine glasses (₹200–400 each)
- Offer simple food pairing suggestions on the menu
- Chill white wines in a dedicated fridge if possible
- Thank BYOB guests — they often become regulars
Frequently Asked Questions
What corkage fee do Mumbai restaurants typically charge?
Fine dining: ₹500–1,000 per bottle. Casual and neighbourhood restaurants: ₹250–500. Some waive corkage on weekdays or for regulars.
Can I refuse BYOB customers?
Yes — BYOB is a privilege you offer, not a right. State "No outside alcohol" on your menu if you prefer. Consistency matters to avoid discrimination complaints.
How do I add corkage policy to my menu with DineCard?
Add a "Policies" or "Information" section to your QR menu via the DineCard dashboard. Update fees anytime without reprinting. Free 14-day trial at dinecard.in.
Do I need a licence to allow BYOB?
Generally no separate licence for BYOB at unlicensed restaurants, but verify with your state excise department. Licensed bars cannot typically allow outside alcohol.
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