A credit card for a reservation? Some restaurants fed up with 'no-shows'
Filling seats is always top of mind for restaurants, and some are looking at taking new measures to ensure those seats are filled, especially when it comes to reservation no-shows.
At Borealis Grille & Bar, owner Court Desautels is exploring the option of charging a fee for those who book a reservation but don’t show up.
The move comes after Desautels, who is also CEO of The Neighbourhood Group of Companies, said he is “definitely seeing a drop-off of people showing up for the reservations.”
Those who don’t show up after making a reservation at restaurants typically don’t face financial consequences, such those one might see when they miss a dentist appointment or hotel stay.
“The restaurant industry is one of the only industries that you can book ahead of time, but if you decide not to go you're not out any money,” said Desautels.
Some restaurants are now taking guests' credit cards when they make a reservation.
If there is a no-show, or a cancellation is made less than 24 hours ahead, a fee is charged to that credit card.
“If we had a smaller restaurant that was fine dining, I probably would've already implemented it,” said Desautels.
While the policy hasn't gained traction in Waterloo region yet, many local restaurants say they have considered it.
But in places like Niagara-on-the-Lake, restaurants such as Treadwell Cuisine have already implemented this system.
“Asking our guests to provide a credit card online when they make a booking through Open Table, it's a deterrent more than anything else,” said James Treadwell, founder of Treadwell Cuisine
Other platforms, such as Tock, allow restaurants to take money from guests ahead of time and apply that credit to their bill.
That's not the case for Treadwell -- they've stayed the course with their current strategy of a no-show fee -- which has been a success.
“Guests are definitely more likely to contact us when there is an issue. Often, they'll say, 'I just want to make sure because you have our credit card information,” said Treadwell.
When restaurants get stood up, it can mean excess ingredients and a loss in revenue.
But with these new strategies becoming more common, it's clear the most significant cost is always an empty seat.
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