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‘No-show’ – a term that is currently causing problems in the restaurant industry. In an industry in which every reservation counts, the unexpected failure of a guest to appear or a last-minute cancellation can have a significant impact on the restaurant and its profitability.
Those in the industry say that, alongside rising food prices and staff shortages, this is one of the biggest challenges that they are currently facing. And the industry is beginning to respond accordingly.
Fairness First!
“We’ve got 24 covers in our restaurant. Last Sunday, there were ten empty seats due to last-minute cancellations and no-shows.With a menu price of €325, it left me two employees’ wages down by the end of the evening, which we certainly won’t be able to make up for now this month,” 3-star chef Christian Bau from Victor’s Fine Dining in Nennig tells us. To counter such shortfalls, Bau says he’s had no choice but to take action: On 1 February 2024, he introduced a €250 per person deposit for every table reservation. Guests can still cancel their table for free, up to five days before their reservation date.
“I always plan my orders based on our reservations for the coming week,” explains the chef. “If someone calls at 4 pm to cancel their reservation for that evening, for me that’s no different to a no-show: By then, the lobsters have been delivered, the table set, the crockery polished, the sauces prepared and the staff allocated their hours and tasks.” Of course, this all entails staff and material costs, and in the event that a guest cancels at short notice, these will now be covered by the deposit they paid at the time of booking.
“I’m not looking to penalise anyone; it’s simply a matter of fairness. I know that things come up and am understanding about this and happy to accommodate customers wherever possible. If a customer has to cancel because of an emergency, they can, of course, change their reservation to another date. The deposit they originally paid will then be retained as the deposit for their new reservation.” It’s a brave step that Bau is taking his restaurant is the first 3-starred Michelin restaurant in Germany to introduce such a strict deposit policy.
Unfortunately, not everyone is happy about it. But Christian Bau remains optimistic: “You have to educate people and create acceptance – communication is key here. Customers need to understand all the work and costs that go into what we do and that it’s not just a sneaky scheme to take advantage of them. When I explain the reasons behind my decision, most people show understanding and acceptance.”
Between loss and trust
No-shows and last-minute cancellations are also causing problems on this side of the Moselle. “We lose somewhere between €30,000 and €50,000 a year because of this,” reveals Alice Caruso, room manager of 2-star restaurant Ma Langue Sourit. However, a strict down deposit policy is not being pursued here, but they are trying to strike the right balance: “We do demand bank imprints of 100€, but aren’t particularly strict about implementing it. In the current cost of living crisis, we think it puts people off. It also makes them feel like they’re not valued, which can undermine trust. We therefore don’t ask for a bank imprint from regular customers or for smaller table reservations. We do, though, ask for one for larger table bookings and from guests from abroad,” says Alice. It’s not something that restaurants like doing, but they need to safeguard themselves against losses: “We have no choice. If you book a hotel abroad, you expect to pay a deposit. It’s basically the same thing, just for a restaurant.”
A trend that is here to stay…
It is anticipated that deposits could well become more common, at least in the fine dining sector. Customers have very little to fear, though. It’s quite simple: If you play by the rules and turn up for your reservation, you won’t notice any difference.
Except perhaps a nice surprise when you go to pay, as the deposit that you paid when you booked your table will, of course, have been deducted from your bill. Ultimately, this trend could lead to a more respectful reservation culture, in which guests show more respect for service providers and restaurants are able to use their resources more efficiently.
Did you know?
From a legal point of view, a reservation binds guest and restaurateur pre-contractually. If the contract is not concluded, compensation may be claimed for the costs incurred for preparations for the guest’s reservation. Lawyers call this ‘culpa in contrahendo’.