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Wednesday, April 30, 2008

Setting Corkage Policies

I will be discussing a series of restaurant policies that you should set, if possible, before you start operating. These are policies you should equip your frontliners with especially since there cannot be an owner or manager in the restaurant at all times. Also, these policies are all needed for proper guest interaction.

One of the policies you should set is corkage policies. Corkage fees are what you charge guests who bring in food from other sources to the restaurant. This means that the restaurant will not be benefiting in any way from the food since it's sale opportunity lost to the restaurant.

The first question you should answer is: Should you or should you not allow guests to bring in food from other sources to the restaurant? I would always suggest not to allow guests to bring in food. Why? There is the danger of the food not being good and other people might think that it came fromthe restaurant. It also deprives the restaurant more opportunities to sell some more menu items. It adds to the work of the waiters and some expenses too, without adding any profit for the restaurant. Guests who bring in food will request for extra plates, spoons and the like which you have to buss out and wash afterwards.

At the most, I allow food items to be brought in by guests during functions that the restaurant cannot serve like roasted pig or calf and party or birthday cakes.

The downside is being strict about this policy could be a turnoff for guests.

So what do you do if the guest gets in the restaurant and happens to have food with them? It might be a waste not to eat the food. You have two choices: to allow the guest to consume the food inside the restaurant or charge a corkage fee.

A corkage fee should be set at an amount that will almost pay for the revenue lost to the restaurant or a set amount for different food categories. Example, is a rate for certain mL of drinks, a meat dish, a dessert and such.

This is usually a touchy subject for restaurants who have operated without a policy and have somehow spoiled guests. It is definitely an owner's decision.

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