Christy Clark’s ascension to the B.C. premier’s office excites liquor reform advocates who believe restaurateurs should be legally allowed to let customers bring their own wine in exchange for a corkage fee.
They want Victoria to change conditions of food-primary restaurants and change sections 42 and 35 of the Liquor Control and Licensing Act to enable restaurateurs to allow patrons to bring their own wine.
“I don’t expect her to be rushing to deal with liquor policy issues but, in the long term, I think we will get a better, more intelligent system,” said Legacy Tax + Trust Lawyers associate Mark Hicken.
Hicken, who actively supported Clark’s Liberal leadership bid, writes the WineLaw.ca blog.
He is organizing the second annual Wine Law in British Columbia conference March 29. It’s timed to coincide with the Vancouver Playhouse International Wine Festival, which starts March 28 and runs for seven days.
Solicitor General (as of press time) Rich Coleman told Business in Vancouver that legalizing corkage fees is not a priority because most restaurant owners do not support the concept.
“Corkage fees have been brought up over the years but it’s not supported by [the majority of restaurant owners],” Coleman said. “Any time I’ve met with them, they’ve said no. It’s not something they would want to support.”
Consumers, however, support the practice, Hicken said.
“The overriding concern of the government should be acting in the best interest of the taxpayers and consumers and voters in B.C.,” said Hicken.
Allowing corkage may actually boost business at restaurants that are grappling with the impact of the harmonized sales tax (HST), stiffer penalties for drivers being caught with a blood alcohol level above 0.05% and rising federal payroll taxes.
“When someone in B.C. thinks, ‘On Friday night, I want to drink that 20-year-old Cabernet Sauvignon that I’ve been saving,’ he would have to stay at home and make dinner at home,” Hicken said.
“If corkage fees were permitted, he could say, ‘Let’s go out for dinner.’ The restaurant will charge $20 as a corkage fee but someone else will make the dinner.”
Corkage fees are common in Quebec, Ontario and Alberta, as well as in Washington, Oregon and California.
The practice’s popularity in San Francisco stems from the city having both a sophisticated foodie culture similar to that of Vancouver and being in close proximity to hundreds of wineries.
L’Abbatoir Restaurant sommelier Jake Skakun believes charging corkage fees will not impact the amount of money restaurants such as his make on wine sales.
He argues that restaurants will be able to invest less capital and use less expensive restaurant square footage to house a large wine inventory.
L’Abbatoir co-owner Paul Grunberg, however, told BIV that he is not sure yet whether he would allow corkage were it legal.
Many restaurant owners, such as Earls Restaurant owner Stan Fuller, told BIV that they are ambivalent about the legality of corkage fees but that they generally favour less liquor regulation.
Indeed, the divide between corkage-supporting consumers and reluctant restaurant owners is most stark at the Smoking Dog Bistro in Kitsilano.
Jean Seguin is a strong advocate for allowing corkage. He and wife Judith sold the restaurant for $400,000 to Darrell Hannibal in October.
Hannibal vigorously opposes a legal change to allow corkage fees.
“We wouldn’t survive at all,” he said. “If it’s pushed on the owner to do it, there will be bankruptcies like you wouldn’t believe.”
Hannibal believes consumers would pressure restaurant owners to offer miniscule corkage fees that don’t make fiscal sense.
Earlier this month, Toronto Life magazine reported that one restaurant in that city had lowered its corkage fees from $50 to $30 and another had dropped fees from $45 to $25. The magazine then ran a list of restaurants and corkage fees.
Lists like that put pressure on restaurant owners.
But Hicken is convinced that entrepreneurs should be able to make business decisions and succeed or fail as a result.
“If the restaurant decides the corkage fee is $20, it’s $20. Sometimes, if you buy a bottle off their list, they will waive the corkage fee for one that you bring in,” Hicken said.
“I think it should be up to the restaurant owner. They can do whatever they want. It should be their business decision.”