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Should Restaurants Charge No-Show Fees?

20090424-empty-table.jpgWe’ve all had to cancel a dinner reservation. Life happens. And a courteous diner will call in advance and give the restaurant reasonable notice. But as any restaurant owner can tell you, not every customer is so gracious. For every night of reservations, some percentage will be no-shows. And for a small restaurant, or one without a steady stream of walk-ins, those missed covers can be the difference between a profit and a loss.

So what’s a restaurateur to do?

As times get tougher, for restaurants and everyone else, more establishments have started to impose steep fees for missed reservations. As Nation’s Restaurant News reports, Per Se in New York City charges $175 per seat for a booking canceled less than three days in advance; Momofuku Ko, with an online battle waged over every seat, charges $150 per person for less than 24 hours notice. Others impose fees only for in-demand occasions like Valentine's Day or New Year's Eve. But in either case, diners are increasingly held accountable for the tables they book—regardless of circumstances.

Are restaurants justified in charging diners a cancellation fee, as long as the terms are clear in advance? Or is this a sure way to drive away would-be diners?

35 Comments:

If it's a restaurant whose reservations are hard to come by then I can sort of see the justification. On the other hand, life happens and it seems unfair to punish a diner whose father passes away (for example) and can't make the reservation. This is a tough one. If you can afford to eat at this particular type of restaurant then you probably can afford to pay if you can't eat there. I don't have much sympathy for either side.

OK, now we know the culinary industry has come a long way. Chefs considers themselves doctors because they were the first to start charging no-show fees. I think it's a vulgar way to make money, especially if it's a higher end restaurant. For crying out loud, is Thomas Keller not making enough money from his mortgage-priced restaurants all over the country that he needs to start charging people who didn't eat at one?

Yes, I believe diners should be courteous and call to cancel a reservation as a matter of course. If circumstances permit. But if I'm laying under a bus with paramedics trying to restart my heart, Thomas Keller can go screw himself. My missed dinner reservation would be the least of my problems.

I'm the GM of a small bistro and wine shop - we do charge no-shows for things like winemaker dinners or for NYE parties, Valentines Day, and things like that - anything that requires a pre-payment, or a credit card to hold a reservation. If they give us 24 hours notice, we don't charge them, and obviously...if it's less than 24 hours and it's a genuine emergency, we don't charge them for the meal they're missing. We do it on these occasions because our chef is making food that isn't normally on the menu and will otherwise be wasted if the people he's cooking for don't show up. There isn't a way for us to recoup those losses.

This is a riot to me. As if they do not have a waiting list/people eating at the bar/people waiting for ANY seat. I am also proud to see people run businesses like businesses and not try and sugar coat that it is some really cool not business like experience. It is a BUSINESS, and whatever business practice they choose is how they convey to people.
You won't see me there. If something is hype I am in the opposite direction. I am still laughing over people paying 200 bucks for some foam.

Yet another sign of the times. Granted, we as diners should always do our part to cancel a reservation with as much notice as possible. However, to be charged a steep fee if we don't or can't give notice, while more or less fair to an establishment, will probably do more in the long run to alienate regular and potential clientele. The real trick here is that are some restaurants that can get away with this and many, many restaurants that have no business even thinking about charging for a missed reservation. Unfortunately, that determination is mostly subjective. For my part, it tends to be a (from-the-gut) call I make during the reservation process--if I don't feel like leaving a CC# with my name a number at a particular place, I stop the reservation, tell them why and make another call. I haven't gone hungry yet!

Of course they are justified if and only if those terms are spelled out in advance verbally when the diner makes a reservation and I think it would behoove any place doing this to send an email the customer has to read and sign off on to indicate their consent.

It's a contract and the diner is not obligated to take part - they can choose to dine elsewhere or take their chances on a walk-in table being available.

That said - do I think it's a good idea? In general no - but I can see it as useful for particular restaurants that have high ingredient costs and little to no walk-in business. But I think $150 - $175 per person for a cancellation fee is a bit much - even for Per Se or Momofuku.

I don't mind the cancellation fee since its spelled out. I can't speak for Per Se, but Ko only seats 12 people at a time so I'm sure missing a reservation for 2 or 4 cuts into the margin quite a bit since they only turned a fixed amount of tables every night. Especially if they can't get someone to take over that time slot.

i don't mind as long as i know in advance. there are very few situations in this day and age where people cannot make a phone call to cancel a reservation. if people can twitter about crossing the street, they have time to cancel a reservation. we all know those people who are serial reservationists--making multiple reservations for one night and deciding where to go at the last minute.

It's a commitment device. Restaurants that can get away with it should do it. Restaurants that can't get away with it will stop it faster than they started it. This is one of those situations where things just work themselves out. There really is no right or wrong. If you think it's wrong, I'm pretty sure Per Se and Momo Ko do just fine with the people who planned on showing up anyway.

Now if something crazy happens and you really have to go somewhere else. And you call to explain and they're dicks about it... then you should probably trash them to hell. But hopefully restaurants are run by people with brains so hopefully it doesn't come down to that. But if restaurants are super strict no matter the circumstances, I think individuals should pull no punches in getting back at the restaurants.

As noted in other comments, the key issues to me would be communicating the policy to the customer and the basis for the charges. Certainly there are the direct cost of any food preparation and the indirect cost of unused seating and table(s). And, under all but sudden and extreme circumstances, customers should honor their reservations. Aa well-communicated fee for no-shows might go far in helping them remember.

HOWEVER, if there is no lost revenue to the restaurant -- such as if the restaurant still had no available seating -- any no-show charges seem unjustified. If I'd arrived late for a reservation, had been charged as a no-show, and there were no tables available, I would never again attempt to dine at that restaurant.

I think a no-show charge is fine IF the seat can't otherwise be filled. I would be willing to bet that somewhere like Per Se has a waiting list that could fill needed seats very quickly. Just as comparison, I've been on the waiting list at Chez Panisse in Berkeley and gotten a call at maybe 5 pm for a 9 pm seating--and snatched it up (and I'm betting others would have if I didn't)!

Thus, three days seems totally unreasonable. On the other hand, if the person NEVER calls and the restaurant must hold the seats open for a certain amount of time, then a fee is acceptable because they have objectively lost business. Why not do it like my hairdresser: if you cancel withing 48 hours AND they can't fill the appointment, you're charged 50% of the price; if they do fill the appointment with another client, no charge. This seems to me to strike an appropriate balance between not letting customers screw over the business by cheating them out of customers, but also not having the business get excess money from customers when they're not losing any.

I'd be fine with it--they just have to make sure that it's always clearly communicated to the customer when making reservations.

One could argue you are not going to a restaurant when dining at Per Se or Ko, but are, in essence, purchasing a ticket to a dining experience, much like a Broadway show. In fact, Thomas Keller and David Chang are more famous than most Broadway stars.

Similarly, the sports ticket and a restaurant seat are both perishable items... If you owned Yankee or Mets tickets and couldn't make a game, you get stuck with the tickets, coincidence that the common phrase is "I had to east them!" Similarly, the sports ticket and a restaurant seat are both perishable items...

I could see this expanding to more restaurants in demand. Advanced purchasing of a seat reservation, and lower price a la carte menu. It would be an interesting way for the restaurant to keep average seat revenue up.

can i as a customer charge a restaurant back for making me wait past my reservation time? or how about when they "LOSE" my reservation? what rights do *I* have as a diner??

If they are willing to pay me if my table isn't available at the reservation time, I'm happy to pay a no show fee...

I hate this. I've been in the situation of wanting to cancel a reservation but knowing that the no-show fee was almost as much as the cost of having an actual meal... so we went even though one of us was sick, and needless to say, it was not enjoyable. So I understand that no-shows are a pain, but alienating a bunch of potential customers and actual customers with a policy like this isn't much of a winner either.

I agree with wotstaters. I would not give my CC# over the phone to a host/hostess. I've seen how "carefully" the reservations book is tended. Too many people have access to it, including other guests when the host/hostess is seating diners. If, indeed, online guests are fighting for these tables, it shouldn't be hard for the restaurant to fill them, even if they have to take walk-ins.

I understand the scenarios are different, but I am a hairdresser who charges no-show fees, anywhere from 50%-100% of the service cost. I would not dream of charging someone who has a legitamate reason (i.e., illness, the client was in a car accident, or has suffered a death or illness in the family) because life just happens sometimes. However, there are some people who consistently "forget" or show up 30min. late and expect my undivided attention. When a client (or restaurant guest) does this, serious money is lost by the service provider and odds are that I have turned away other clients because that time was reserved for Ms. Forgetful. Sometimes charging people for being inconsiderate is the only way to have them respect your time and efforts. Any business I lost has been made up for by new business that appreciates that I stay on schedule, and people who are responsible and considerate enough to cancel an appointment at least 24 hours in advance.

If it's a good restaurant then a no show isn't a big deal as they will be those waiting to fill the spot. Let's get real here, a doctor or medical specialist might charge if there's a no show, but they're performing a service & they usually call their patients the day before to reconfirm. To me, charging a diner a late fee helps to feed that restaurateur who has an over inflated ego. You don't need to charge anyone.........when a customer calls, just politely say that the reservation will be held for 15 minutes & after that it's gone.

Stick to the basics please & serve up great food along with great service (remember, those two go together) & they will come.

i had a midtown resto demand my credit card for lunch for a party of five last week.... 20 minutes before we were set to arrive. it should be noted the reservation was made for four people three days earlier (business lunch) and we had to add someone on last minute, as often happens. it wasn't that they couldn't accommodate us, they just demanded a credit card on policy for cancellations. utterly ridiculous i say. this place was NOT per se.

I'll pass on those places. The economy may soon prove that it's a quick ride from "Why yes, I'd be thrilled to have my name on your cookware" to "Yo! Soup jockey! Order up!"

For your average reservation, I think you should have to cancel eight hours ahead, at the latest (more for special occasions or menus).

If the restaurant lays out the terms from the start, sure, charge for no-shows -- but not $150-$175. You can fill those seats again and recoup. The fee should serve as a deterrent more than anything else.

I can see charging someone who doesn't notify the restaurant at all, but the fee for three days or one day is pretty steep.

When you buy a ticket to a theatrical production/concert and don't show you don't get a refund, but then you're only paying for the ticket, not a ticket and a meal. This sounds like it's being treated like a doctor's visit. I don't think this works like a doctor's visit though since you can usually cancel right before or the day before. I do think it's rude to not cancel a reservation, but I've worked in restaurants... people will show up. If you're counting on that one reservation then you have bigger problems...

What if you get hit by a car on the way to the restaurant? Or you get sick and think it would be better to keep your germs to yourself instead of going out to eat? Except that you missed the 24 hours in advance notice and now you're out $150 because you don't want to be the jerk sneezing on other customers....

I think charging people for missing a reservation is silly. What's next? Are we going to start charging people just for the opportunity to come to your restaurant (like a theater or concert hall?)

This brings to mind a hotel reservation where I paid to have the room held for me because my flight was going to be late, and I wanted to be assured of a room.

I got there, and they'd overbooked, so there was no room for me. But they still wanted me to pay the fee. Huh? The room wasn't held for me, so what was I paying for?

At a restaurant, I can see charging an advance fee for holding a table, or a set number of seats, if a restaurant has specific seating times. The understanding being that you need to be there at x time, or they'll offer up the table to someone else who is there and waiting. Or you pay the fee, and they'll hold the table for you until you arrive. Some people would find that fee perfectly acceptable and others would be sure to get there 15 minutes early. But in this case, it's the customer deciding if they want to pay or not. And if they aren't on time, they can't whine about not getting seated right away. And it gives other people the opportunity to snag a table that might otherwise sit empty while the restaurant waits for the reservation to arrive.

I have seen too many wealthy people make reservations at three different in-demand restaurants only to decide at the last minute which to honor to have much of a problem with this.

yes, for parties of 6+ or at upscale restaurants where a no show has an impact on their margins and screws up their reservation system. no, for 4 top or less at a place that allows walk-ins and isn't perpetually booked. regardless of a no-show fee, diners should always notify the restaurant if they're no longer able to make it. i also doubt too many restaurants besides per se could get away with a $175 fee with a 3-day cancellation policy.

Dear Diners out there...,

Most of the restaurants you mentioned have always charged this no-show fee.

Food prepared in a restaurant does not show up magically on your plate. If you go to a restaurant that has, oh say 9 or 12 courses, and that chef asks for reservations, this is because they need to know how much to prep for their night.

Every element duly considered and is made by a person. It is part of their workday. They typically get paid, otherwise they earn credits towards their own personal advancement, i.e. padding their resumes with great places they've worked and great things they've done, which is a form of compensation.

All of these require ingredients, a physical space to work in, tools, water, supplies. People that work in restaurants like to get paid, usually it is not as much as your fantasies take you towards believing but a fine balance between that and nothing.

If a Chef or restaurateur, decides to charge you for not showing up, good for them, good for their investors. Hopefully they'll still be open next year, because as a business, no one can survive by being so friendly and hospitable and open to all the excuses, you the patron can and will come up with to stand a restaurant up when you decide you don't feel like going out tonight.

It is my understanding that these fees come from restaurateurs that have enough experience with diners to have seen businesses fail, partly because of the reckless reservation habits of their patrons.

Hopefully, this is a sure way to keep the responsible, consistent and repeat customers called regulars that most restaurants depend on. If these kinds of policies drive away reckless diners that change their reservations willy-nilly, then that is what it is meant.

If you want to be spontaneous and live life without rigid rules, why even make a reservation, why go somewhere demands it or the fee associated in canceling? There are plenty of mediocre restaurants you can go to that won't charge you for not showing up. Live in mediocrity and get mediocrity.

Good Day.

Oh, and @therealchiffonade If you were under a bus and dying, I'm sure a restaurant like Per Se, would make an exception and just ask you or your family (if you had passed) to fax a copy of your EMS report or something and you wouldn't get charged.

However, I find it crazy that you think Thomas Keller is rolling around in the dough from canceled reservations. His food's reputation and consistency, no matter what chef is at the helm, and the fact that it continues to delight and surprise people, is part of what makes him successful and do not forget that most of the money paid in any restaurant goes to overhead. No matter the price paid, that higher price is for better ingredients, better staff, a better restaurant, it rarely, if ever goes to the bottom line.

Thomas Keller himself continues to provide mentorship to all of his cooks and chefs and they all go do their own thing and frequently open their own restaurants. He is not rolling in dough from the cancellations of dying people, that's silly. If he is rolling in dough, it is because he works extremely hard as do all of his staff.

"...just ask you or your family (if you had passed) to fax a copy of your EMS report or something and you wouldn't get charged."

Wow.

I don't know where I stand on small parties skipping out on reservations. However, I have long thought that any party of say 10 or more that reserves a table should not only be charge for not showing but if you reserve seats for 25 and 12 show up, the difference should still be paid. There is an extreme loss of moeny to the restaurant when you no-show a party reservation.

Will the restaurant pay me when they screwed up my birthday reservation and can't seat me and my 6 friends??

I just saw a show on BBC about how the big name chefs like Gordon Ramsay and Tom Aikens are not doing very well because of the bad financial times and people not eating out as much as they used to--particularly places that start at 75 pounds per head ($114). They actually were showing what you got for it at Ramsay's London--it all fit on a small platter. They said it was delicious, but not "value for money"--they felt very shortchanged portion-wise. Tom Aiken no longer owns his restaurant--he's just an employee there now that it went into receivership. And he's the youngest chef to ever get two Michelin stars.
I would NEVER give a CC number over the phone to some host or hostess to make a reservation--not with all of the ID theft going on these days.

If its spelled out clearly in the begining and not ridiculuosly high then YES, if its an across the board policy. But in these economic times it is a tight-rope they walk between profit and loss and I understand the need because of an inconsiderate few that create the need for such policies. The question of a CC# is valid and is an important issue to be worked out as I have given mine to hold reservations in the past but now I would have second thoughts.

Well, the idea is understandable and I sympathize, especially with the small business owner. But one wonders how "Joe Restaurant Owner" would implement the policy, if his/her place is not hot-hot-hot. If reservation is made on-line it's easy to get a credit card #, but how many people would give the number over the phone? and where is it kept? in the reservation book? How late is "no-show"? Farallon takes reservations in 15 minutes increments; if my party is 15 minutes late should I expect "seating if available" AND be charged a "no-show" fee? Especially at a less chi-chi place, I can see people coming in to complain about charges; that may be too high a price for a small biz owner.

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