Whether you're unable to obtain a liquor license or choose not to serve alcohol at your restaurant, you can still provide a comprehensive beverage service by implementing a BYOB (Bring Your Own Bottle) policy.
BYOB, an acronym that stands for "Bring Your Own Bottle," describes a restaurant where guests are encouraged and permitted to bring their own alcoholic drinks. Some establishments may have specific variations of BYOB, such as "Bring Your Own Beer," "Bring Your Own Booze," or "Bring Your Own Wine" (BYOW).
With a BYOB policy, guests can enjoy their preferred drink even if the restaurant does not have a license to serve alcohol and there is no alcohol on the menu. Some businesses limit the number of bottles you can bring, while others only allow certain types of alcohol.
BYOB Laws for Restaurants
Before offering BYOB service, check with local authorities to ensure you comply with all applicable laws and regulations. They will be able to provide you with information about the requirements and restrictions in your area.
Here's what restaurants need to know about BYOB laws across the U.S.:
1. Federal Regulations
At the federal level, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the importation, distribution, and labeling of alcohol. While it doesn’t govern retail sales, restaurants need to comply with federal laws for advertising, labeling, and tax payments.
2. State Licensing
Each state has its own system for liquor licenses, which often include multiple types (e.g., on-premise consumption, beer and wine-only, full liquor). In general, acquiring a license can involve significant fees and sometimes a lengthy process.
Caps on Licenses: Some states limit the number of licenses available, which makes it more challenging for restaurants in specific areas to obtain one.
Renewals and Transfers: Liquor licenses must be renewed regularly. Some states require that restaurants meet specific conditions to keep their licenses.
Alcoholic Beverage Control Agencies by State
Michigan Department of Licensing & Regulatory Affairs
Ohio Department of Commerce
3. Local Laws
Some local municipalities have their own restrictions on alcohol sales as well, (e.g., prohibiting sales on Sundays, curfews, setting hours alcohol can be served). Some jurisdictions require additional permits.
4. Age Verification
The federal minimum drinking age is 21, and restaurants must ensure they check IDs to avoid serving minors. Fines and penalties can be severe for noncompliance. Many states require establishments to use specific methods such as ID scanners or for age verification.
5. Responsible Service
Certain states, (eg., California) mandate that staff undergo Responsible Beverage Service (RBS) Training to reduce over-serving and prevent serving intoxicated patrons.
6. Dram Shop (Civil) Liability Laws
Under "dram shop" laws, restaurants can be held liable if they serve alcohol to visibly intoxicated patrons if that person causes harm as a result of the intoxication. One example of this is a car accident. If a restaurant serves a visibly intoxicated person and that person is involved in an accident resulting in injuries, the restaurant may be held liable for damages resulting from those injuries.
7. Happy Hour Restrictions
Some states regulate how restaurants can advertise or promote discounted alcohol sales (e.g., happy hours or special promotions).
Restrictions may include:
Setting Time Limits: Setting specific hours during which alcohol can be discounted.
Advertising Rules: Limiting or banning advertisements for discounted alcohol.
8. BYOB (Bring Your Own Bottle)
In some states, restaurants without liquor licenses can allow customers to bring their own alcohol. However, there are often rules governing corkage fees and whether servers can pour drinks. It’s important to check your state’s alcohol licensing laws before offering this service to your customers.
9. Alcohol-to-Go (Takeout and Delivery)
Temporary or permanent rules allowing restaurants to sell alcohol for takeout or delivery have evolved since 2020, with conditions for these sales varying by state. As these laws have changed several times over the last four years especially, it’s important to check the regulations in your state and municipality.
10. Taxes and Reporting
State and Local Taxes: Restaurants must collect and report state and local alcohol taxes. This may vary by jurisdiction.
Reporting Requirements: Some states require restaurants to submit regular reports on alcohol sales to ensure compliance with food-to-alcohol sales ratios.
11. Penalties for Non-Compliance
Regular compliance checks (i.e., "sting" operations) may be conducted by local authorities. Failure to comply with alcohol laws can lead to steep fines, temporary liquor license suspension, or full revocation of license.
BYOB Laws for Restaurants by State
BYOB laws in the US vary by state, and often by local jurisdiction within the state. While some states allow BYOB, others have strict restrictions or outright prohibit it.
Key Considerations
Corkage Fees: Many states that allow BYOB permit restaurants to charge a corkage fee, but this can vary by jurisdiction.
Local Jurisdiction Authority: Even in states where BYOB is generally allowed, cities and counties may have the authority to impose additional rules or bans, so it’s essential for restaurants to check local regulations.
Unlicensed vs. Licensed Restaurants: BYOB is usually more common in restaurants without a liquor license. In states where restaurants hold a liquor license, BYOB may be prohibited to protect licensed alcohol sales.
States That Commonly Allow BYOB for Restaurants
Below is a breakdown of states that generally allow BYOB in restaurants, but with local variations and restrictions:
Northeast
New York: BYOB is allowed for restaurants without a liquor license, but they cannot charge a corkage fee unless licensed. Restaurants with a liquor license may not offer BYOB.
New Jersey: BYOB is permitted for restaurants without a liquor license. Municipalities can impose restrictions on BYOB practices.
Pennsylvania: BYOB is allowed in unlicensed restaurants. For the most up-to-date laws in PA, read our recent blog post.
Connecticut: BYOB is generally allowed for unlicensed restaurants and corkage fees can be charged.
Massachusetts: BYOB is allowed in some areas but typically only in unlicensed restaurants. Cities and towns have the power to regulate or prohibit BYOB.
Southeast
Florida: BYOB is permitted, but each county or city may have its own restrictions. Restaurants without a liquor license can allow patrons to bring alcohol.
Georgia: BYOB is allowed, but regulations differ by county and municipality.
Virginia: BYOB is generally allowed, but local regulations may apply. Restaurants can charge a corkage fee.
North Carolina: BYOB is permitted in restaurants without liquor licenses, but restrictions may vary by municipality.
Midwest
Illinois: BYOB is allowed, but local ordinances. May apply. Chicago allows BYOB, but regulations on corkage fees and consumption vary.
Ohio: BYOB is allowed, but is regulated at the local level. Unlicensed restaurants can offer BYOB, but state laws govern how alcohol is handled.
Missouri: BYOB is generally allowed in unlicensed restaurants, though local restrictions may apply.
Wisconsin: BYOB is permitted in unlicensed establishments, but local municipalities may impose specific rules.
Southwest
Texas: BYOB is allowed, but regulations differ by region. In dry counties, BYOB may be prohibited entirely. Restaurants without a liquor license typically allow BYOB, and corkage fees may be permitted.
Arizona: BYOB is allowed in unlicensed restaurants, but restrictions may apply. Local jurisdictions can set additional rules.
West Coast
California: BYOB is permitted in both licensed and unlicensed restaurants. Licensed restaurants can allow patrons to bring their own wine and may charge a corkage fee.
Oregon: BYOB is allowed, but primarily for wine and beer. Restaurants with a liquor license can also allow BYOB and may charge corkage.
Washington: BYOB is allowed, especially in unlicensed restaurants, but municipalities may impose specific restrictions.
Mountain West
Colorado: BYOB is allowed, but it’s subject to local ordinances. Unlicensed restaurants typically allow patrons to bring alcohol, but corkage fees and service rules vary.
Nevada: BYOB is permitted, but local jurisdictions may have specific regulations regarding types of alcohol and how it can be served.
States with Specific Allowances for Restaurant BYOB Policies
These states allow BYOB, but under stricter or more specific conditions:
Tennessee: BYOB is allowed in certain counties with specific conditions.
South Carolina: BYOB is allowed, but local ordinances and alcohol laws vary by county. Some countries restrict certain types of alcohol.
Kentucky: BYOB is typically not allowed in "dry" counties, but in "wet" or "moist" counties, BYOB may be permitted with restrictions.
Alabama: BYOB laws vary significantly by county and city. In many dry counties, BYOB is not allowed at all.
States with Restrictions on BYOB for Restaurants
Utah: BYOB is generally prohibited, and the state has strict alcohol control laws that heavily regulate how alcohol can be consumed in public places.
Mississippi: In dry counties, BYOB is not allowed. In wet counties, restrictions are often imposed by local governments.
Arkansas: Many dry counties in Arkansas do not allow alcohol to be sold or consumed on premises. This includes BYOB.
Setting House Rules
Beyond the set of rules and regulations set in place by the local government, your restaurant may institute its own rules. To help you get started, we've listed some of the most common rules.
Limited seating/calling ahead: Some restaurants set a limit to the number of tables available for BYOB customers or ask guests to call ahead to ensure they have proper glassware and amenities on hand.
Charging corkage fees: If allowed by the state, corkage fees may be charged for opening and serving wine or other alcoholic beverages.
Beverage restrictions: A restaurant offering BYOB service may restrict the types of alcohol that guests bring.
Tipping: Though not required, consider encouraging guests to tip their servers for BYOB service.
Common Ways to Enhance BYOB Service
BYOB establishments only serve non-alcoholic beverages and food, with guests providing their own alcoholic beverages. Even though they cannot serve alcohol, many BYOB restaurants will take extra steps to enhance their beverage service and create a comprehensive serving experience.
Offer corking services: Some BYOB restaurants offer wine uncorking for free or a small fee.
Furnish complimentary glassware: Some restaurants offer guests complimentary glassware (e.g., wine glasses, beer mugs), allowing patrons to drink their beverages properly. This attention to detail levels up the dining experience.
Provide bartending supplies: Many BYOB establishments provide guests with bartending supplies, (e.g., bottle openers, corkscrews, ice buckets). This allows guests to mix their own cocktails or open a bottle without the assistance of a server.
Host BYOB Events: BYOB events are a popular choice for a wide range of occasions, including work gatherings, birthdays, and sports viewing parties. The flexibility of choosing their beverages allows guests to enjoy their favorite drinks while also saving on costs. It adds an element of personalization to the event, as guests can choose their preferred beverages to suit their tastes.
Key Considerations When Hosting a BYOB Event
Follow regulations: Ensure you comply with legal requirements and possess the proper permits and licenses for hosting a BYOB event.
Communicate your policy: It's important to communicate clearly with guests about your BYOB policy, letting them know what is allowed and any restrictions that may apply.
Provide supplies: Just as you would in your restaurant, provide basic amenities like ice buckets, bottle openers, and glassware.
Provide mixers and garnishes: Consider offering a variety of mixes and garnishes to allow guests the opportunity to get creative and personalize their experience.
Take Away
Offering BYOB services can be an appealing option for restaurants, especially those without liquor licenses. It provides a way to attract customers looking for a more customizable dining experience and can help establishments stand out in competitive markets.
BYOB laws in the U.S. are highly state- and locality-dependent, so restaurants interested in adopting a BYOB policy must carefully check with authorities to ensure compliance.
It is crucial for restaurants to understand and abide by federal, state, and local BYOB laws, as regulations vary widely and change often. Ensuring proper age verification, managing liability under dram shop laws, and setting clear guidelines for corkage fees are essential steps for implementing BYOB services. Additionally, it’s important to set your own house rules to keep your BYOB service running smoothly and consistently.
With careful planning and compliance, restaurants can create a welcoming, flexible environment for patrons to enjoy their favorite alcoholic beverages while dining.
By Eileen Strauss
