What Is Wine Consignment in a Restaurant?

Wine consignment is a sourcing arrangement in which a restaurant sells wine without necessarily purchasing the bottle outright before it is sold.

The restaurant and consignor agree on the economic terms of the arrangement, the wine becomes available through the restaurant’s program, and payment to the consignor is handled according to those terms.

The main advantages are access and capital efficiency.

Consignment can give a restaurant access to older vintages, rare bottles, large formats, and wines that may be difficult to source through conventional channels. It can also reduce the amount of cash that has to be committed before the bottle generates revenue.

The tradeoff is complexity. Consigned wine still has to be tracked, stored, reconciled, and managed accurately.

The exact legal and licensing structure can vary significantly by jurisdiction and license type.