- Guests often book large reservations just to get in, then show up with only a fraction of the party.
- Many restaurants struggle to recoup revenue from no-shows and last-minute cancellations despite implementing per-person fees.
- Reservation platforms like Resy and OpenTable have minimal technological differences, and restaurant loyalty often hinges on cash incentives and perceived brand appeal.
- Third-party reservation resale platforms and ineffective credit card holds contribute significantly to the ongoing issue of no-shows.
- Some restaurants have chosen to eliminate reservations entirely to avoid the disruption of last-minute cancellations.
On any given Friday night at North of Bourbon, Lawrence Weeks’ buzzy restaurant in Louisville, Kentucky, the reservation books are generally full. Like clockwork, a reservation for six guests will show up with only two people.
“People will book a bigger reservation so they can get in the door, because there aren’t any other reservations available,” Weeks says. “And then when they show up it’s ‘Oh, four people couldn’t come.’”
These days, North of Bourbon charges a $25 cancellation fee for each guest who doesn’t show up. It’s a deterrent, he says, but it still happens all the time. Some restaurants can fill these seats with walk-ins, but in a smaller city like Louisville with less foot traffic, Lawrence says the seats typically remain empty.
“I don’t think that people understand how much one seat in a restaurant costs,” he said. “When you cancel a reservation, that’s lost revenue on our end that we can’t get back.”
It’s harder than ever to book a table — even if the tech makes it simple
Anyone who eats in restaurants has likely noticed that reservations are getting harder to book. According to restaurant data released by Resy at the end of 2024, restaurant spending is one of the fastest-growing sectors within travel and entertainment in its parent company American Express’ consumer business. People with money to spend are increasingly eager to spend it in restaurants. It’s counterintuitive that this growth has led to increased cancellations and no-shows, but rather like online dating, there’s a sense that a better reservation is always around the corner.
Platforms like Appointment Trader allow guests to flat-out buy hot reservations, many of which are booked by bots. People who are able to make reservations are increasingly booking multiple tables to keep their options open.
As OpenTable and Resy compete to keep top restaurants on their platforms, it would make sense to see them innovating around this key pain point for restaurants. Instead, most restaurant owners I spoke with say the technological differences between the two are minimal. Instead, cash payments from the platforms and their perceived “cool factor” of each are the deciding factors in considering a switch. Restaurants are coming up with their own solutions to manage cancellations and no shows.
A representative from Resy explained that third-party reservation resale sites often lead to no-shows and late cancellations at in-demand restaurants. The representative said the platform’s security team has “ramped up tech solutions and protections to reduce the amount of no-shows caused by bots,” but didn’t specify what those solutions are or if they’re effective. Both Resy and OpenTable are publicly backing bills around the country to ban unauthorized reservation resale.
People will do anything to avoid a no-show fee
One chef I spoke with mentioned that when he was using Resy, he noticed that when charging a fee for a no-show, the credit card on file often wouldn’t work. There’s a general awareness among restaurateurs that guests sometimes use incorrect credit card information, but doesn’t get flagged until the reservation is cancelled. By the time they go to charge the card, which point it’s too late. An OpenTable representative said the platform is preparing to roll out enhancements to their deposits feature that seem to be a response to this issue.
Even if they are able to complete the charge, many restaurants find that there’s a reputational cost. When Alex Tewfik opened Mish Mish, a Mediterranean restaurant in Philadelphia, he didn’t initially implement a cancellation fee. People cancelled all the time, or just wouldn’t show up.
The restaurant implemented a $30 per person fee. “But that comes with its own host of problems,” Tewfik said. “People leave us shitty reviews without even coming to the restaurant, because they get mad that they’re charged.”
Coltivare, an Italian restaurant in Houston, also charges a $25 fee, but when guests reach out to complain, the restaurant offers a $25 gift card. The hope is that this helps assuage guests’ frustration, and brings their business back.
Committing to a minimum spend assures that guests will show
Companies have also popped up over the last five years to try to smooth the friction between high-end clients and the restaurants who want their business. One such company is Dorsia, a members-only platform that offers access to “impossible reservations, tables and invite-only cultural moments around the globe.”
When The Joyce, a high-end steakhouse in Miami Beach opened, it had already opened reservations up to Dorsia members months earlier. The partnership has brought them a base of diners who often pre-commit to a specific minimum spend, and rarely — if ever — fail to show.
“The Joyce calls ‘no shows’ to make sure everyone is OK,” partner Jeff Lagowitz wrote in an email. “We can’t just assume they blew us off.”
The easiest way to prevent cancelled and blown off reservations, of course, is to stop taking them altogether. Natalie and Michael Hekmat, the owners of Voodoo Vin, a Persian restaurant and wine bar in Los Angeles, were cooking for regulars for nearly two years. The guests fould reserve a table, show up as promised, and it wasn’t a problem. After an increase in exposure started causing more curiosity — as well as last minute cancellations or parties who wouldn’t show up at all — the restaurant took action by simply cooking and spinning records until they sold out.
Last night, the dining room was full.
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