How the Underground Market for Restaurant Reservations Is Making It Impossible to Book Prime Tables

If you’re having a bit more trouble nailing down your date night reservation, you might just have a bot to thank for that. 

Third-party sellers are increasingly snatching up dinner reservations these days — and it’s causing a headache for both restaurants and diners, according to a new report by the National Restaurant Association. It’s a phenomenon they call the “Ticketmaster-ification” of the dining industry — and something that concerns 72% of consumers, per the organization’s latest survey. 

Third-party platforms can seize coveted times before individual diners have the chance to book those spots, only to turn around and charge a fee for the seat. If those reservations end up unsold, restaurants may experience no-shows during peak times, which, as the National Restaurant Association’s Mike Whatley explains, could translate to lost tipping opportunities for servers.

“We wanted to look at the issue more broadly, so we asked consumers if they were aware of this issue,” as Whatley, vice president of state affairs and grassroots advocacy for the National Restaurant Association, tells Food & Wine. “The results are pretty remarkable from our perspective — you have 80% of consumers who think it’s important for restaurants and consumers to be protected from resale companies.”

Beyond being an inconvenience to the booking process, third-party reservations can impact the entire dining experience. Without a direct connection to the customer, restaurants often struggle to personalize the experience by confirming dietary restrictions, allergy concerns, and special occasions ahead of time. (Authorized platforms, like Resy, often include automated messages that can pave the way for a positive experience.) 

Based in Washington, D.C., the National Restaurant Association was founded in 1919 and today monitors the restaurant industry across more than one million restaurant outlets. As the association comprises a network of 52 individual state organizations, it’s easy to see why it might be concerned about this restaurant issue. Ultimately, the organization states it wants establishments to have control over the reservation process.

“We want them to have the ability [to work with third-party sites]. If they want that to happen, that’s their prerogative and they should be able to enter into a relationship,” Whatley says. “But we want restaurants to be able to have control.” 

Pain points for eager diners

If you’re someone who blocks out your calendar whenever reservations open up for a hot place downtown, you might have encountered this frustration before. Evolving technology can help these third-party sites book reservations from restaurant websites quickly, leaving you feeling like you aren’t able to realistically secure availability. 

“It makes some restaurants completely out of reach for some consumers,” Whatley explains. “Some consumers might be totally unaware that it’s even happening… they might assume it’s impossible to ever get a reservation there, but they don’t know this whole bot thing is happening. They give up and move on — and they’ve lost the opportunity to get into that restaurant.” 

However, that could change soon as state legislatures closely monitor the trend. Last year, New York became the first state to target the third-party reservation process with the Restaurant Reservation Anti-Piracy Act. This legislation requires restaurants to opt into third-party resellers via a written agreement before reservations are made available on their site. Other states, such as California and Illinois, have explored similar regulations this year. 

Ultimately, greater awareness — from both restaurants and consumers — is key to pushing back against the rise of unauthorized reservations. As more diners recognize what’s happening behind the scenes, and as more states consider legislation, there’s hope for restoring fairness to the reservation process.

Disadvantages for restaurants

Restaurant staff might not even be aware that reservations were routed through a third-party platform. As Whatley explains, third-party reservations can create confusion throughout the dining experience. Staff might not realize that a reservation has been made through a platform, which can lead to miscommunication during the process. 

Diners who paid top dollar for a reservation may expect a VIP-level experience — or extra perks, such as a complimentary round of drinks — after paying a premium. Those fees may go to the third-party platform, and in many cases, the restaurant may not even be aware of the fee. 

In fact, approximately 70% of consumers are concerned that “middlemen reservations” can financially harm restaurants. In the report, the National Restaurant Association tapped restaurant industry veteran Steve Woodruff to highlight how restaurateurs view the “black market” or unauthorized reservations. 

“Unlike ticket scalpers in entertainment, these third-party reservation sellers contribute nothing to the dining experience,” Woodruff, general manager of Commander’s Palace in New Orleans, says in the release. “They don’t make the food better, the service more seamless, or the atmosphere more enjoyable — they simply make it more expensive and frustrating.”