Cakeage Fee – Should Restaurants Charge It Or Not?

You’ve heard of corkage fees, and maybe even wastage fees. But what about a cakeage fee? To a lot of people, they remain unaware of the existence of cakeage fees until they step foot in a restaurant and are suddenly asked for it.

What is a cakeage fee?

So, what is a cakeage fee exactly? Well, it’s similar to corkage fees, except this time it’s for cakes that you bring into a restaurant. Usually, restaurants charge customers as low as $5, with some charging $10. Some restaurants charge it per cake, but others charge it per person.

Of course, not all restaurants have implemented a cakeage fee. There are some who think there’s nothing wrong with letting customers bring in desserts from other places and eating them for free, while others are a lot stricter about it.

Believe it or not, this implementation of cakeage fees has sparked a debate between restaurant owners and restaurant-goers, the most notable being the one that involved Crown Perth’s Nobu Pastry Chef.

Why do restaurants charge cakeage fees?

If charging cakeage fees causes a discourse between a small business and the customers they’re serving, then why implement it in the first place? The answer is simple.

With the restaurant and food service industry being a critical contributor to Australia’s economy and one of the main sources of employment, the market has become saturated. In 2021 alone, the restaurant and food services industry reported a total of $45.78 billion in revenue.

Along with the tourism industry, it has become a significant contributor to Australia’s gross domestic product (GDP).

The point is that with the industry doing so well, hundreds of restaurants open up every year resulting in market share concentration being lower than expected with no major player having more than 5% share in the market.

Competition is at an all-time high and restaurants want to hold on to every chance of profit that they can. Every restaurant owner wants a slice of that market share pie.

Cakeage fees are there to cover the additional costs of the waiter’s time and washing the dishes whenever customers bring in their own cakes and ask the restaurant for a plate or for help in serving and storing it. For every cake you bring in, that’s an additional job given to the staff.

It also offsets any loss of revenue from the desserts that customers don’t end up buying because of the cake they brought, as well as making up for the extra time they spend at a table but do not order any food.

Not to mention, it works in discouraging customers from bringing in cakes from other places and encourages them to buy the ones that the restaurant serves instead.

Restaurants will still oblige any customers asking for help because, at the end of the day, customer satisfaction is always the main goal. But that doesn’t mean they’re not potentially incurring any losses or expenses, and cakeage fees are there to make extra certain that they don’t.

This is better understood by looking at an analogy: let’s say you’re taking your car to a garage to have it serviced. When they find something that needs fixing, you already expect to pay for the parts and any labor charges.

But if you bring something that you bought yourself like a new mirror, for example, and ask them to just fit it in your car while they’re there, you would still be charged with labor costs.

The concept of cakeage fees is the same.

Are Cakeage Fees In Restaurants Normal?

With the increasing cost of running a restaurant, it’s no surprise that restaurant owners add additional charges whenever they incur costs that are outside of their normal and expected operating activities, in this case, the additional labor and equipment costs for serving and storing cakes that customers bring in.

But make sure to call a restaurant first and ask permission to bring your own cake as a way of showing simple courtesy and respect.

Check out the infographic we created below – please share with anyone you feel may find this helpful!

Frequently Asked Questions

Should restaurants charge cakeage?

Whenever customers bring their own cake to a restaurant and ask to use the restaurant’s own resources (time and utilities), the restaurant is often put in a difficult position, having to choose between making customers happy above everything else or making sure that they still make enough profit to pay their bills.

Most restaurant owners have come up with a compromise: cakeage fees that are charged at a reasonable rate. It’s not a matter of whether they should be charging cakeage, because, at the end of the day, it’s still up to the owner’s discretion.

What is a cakeage fee?

A cakeage fee is what restaurants typically ask from customers who bring in their own cake to the establishment. It’s a fee they charge in exchange for the additional costs of labor and other expenses incurred as a result of customers asking to use their resources.

Is it rude to bring cake to a restaurant?

It can depend on the restaurant. There are restaurants that allow customers to bring in outside cake, while there are others that don’t. There are several reasons why some restaurants turn down any customers bringing in outside cake including:

• Liability – some areas have certain health regulations in place that make restaurants implement the ‘no outside food’ policy. When you bring in outside food and the restaurant serves it for you, the restaurant becomes partially responsible for any repercussions.

• Service issues – there’s a time and cost factor involved with the additional effort the restaurant would have to exert to store, serve and cut the cake for the customers, as well as the additional labor of clearing up and washing the dishes. Not to mention, restaurant personnel are more prepared to serve food from their own menu than outside it.

• House desserts – restaurants often have their own hired pastry chef because they prefer to sell and serve their own desserts. Some of them even create special birthday cakes for customers so they end up turning down customers who want to bring outside desserts to their establishment.

You shouldn’t automatically assume that any food service would allow you to bring in outside food. The best way to avoid any awkward or tense conversations is by calling the restaurant ahead and asking them for permission.

What is the common opinion of people regarding bringing their own bottle of wine to a restaurant to accompany their meal and paying a corkage fee?

– Generally, people are positive about bringing their own bottle of wine to a restaurant to have with dinner and paying a reasonable corkage fee.

– It allows people to bring their own favorite bottle of wine without having to buy it from the restaurant’s wine list which can be more expensive.

– It can also provide a more intimate dining experience as people can choose their own special bottle to share with their dinner companions.

– Corkage fees can also be a source of additional revenue for restaurants.