SA restaurants charging booking deposits and cancellation fees for no-shows and last-minute cancellations
As restaurants struggle to stay afloat, many are implementing drastic measures to hold no-show customers accountable.
SA Business
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Rising numbers of no-shows and last-minute cancellations are forcing more SA restaurants to charge cancellation fees or non-refundable deposits – sometimes worth hundreds of dollars – for lost bookings.
Restaurant owners and industry bodies say the practice, which is commonplace overseas and interstate, is needed to cover rising costs and hold diners accountable for late cancellations or changes not caused by illness or emergencies.
Operators are also reporting some diners book tables at multiple eateries on the same night, before making a late decision.
Acclaimed Adelaide venue, Restaurant Botanic, requires a full payment of their $245 “Garden Trail” set degustation with each reservation. However, bookings can be transferred or moved to another date.
Executive chef Justin James said increasing numbers of no-shows post-Covid-19 had “really hurt” the industry.
“Our restaurant is an experience. It’s not just about filling your bellies but going on a journey of flavours that is focused on time and place,” he said.
“If you are committed to coming to our restaurant you can now prepay just as you would seeing a concert, movie, or any kind of arts performance. What we would like everyone to understand is this: if you book, go. If you can’t, commit to a cancellation policy, if not, the restaurant you love may not be around for much longer.”
Eleven restaurant co-owner Themis Chryssidis said on busy weekend nights, their customer numbers can fluctuate by up to 20 per cent because of cancellations, which can be partially offset by walk-ins and late bookings.
“We try to be as flexible and as accommodating as we can. Under no circumstances do I want to charge someone when it’s unwarranted or unnecessary,” said Mr Chryssidis.
“But there’s only so much we can carry as a business as well. When you have a table of 12 book and only six rock up and you’ve lost a large portion of a big table for the night, financially it’s tough.”
Minor alternations to reservations were overlooked, said Mr Chryssidis, but changes less than two days in advance may be subject to a charge of $50 per person.
“If one person doesn’t make it, that’s fine, we wear that cost. But if the table drops significantly, we negotiate with the person (and there could be a charge),” he said.
Australian Hotels Association SA chief executive Ian Horne said it was becoming “increasingly common” for businesses to charge a full or partial deposit to recoup some of their losses from no-shows and cancellations.
“Operators schedule full rosters and stock kitchens with consumables in anticipation of a high customer participation, so the expense is incurred before the event,” he said.
“Cancellations... are a severe penalty on an industry that has suffered so much disruption and losses over the last two years.
“While for some customers the cancellation is unavoidable, no doubt others simply change their mind. It’s these cases that are unfair on the business and the staff.”
Oliver Brown, who co-owns East End restaurant Yiasou George and Prospect Road eatery Anchovy Bandit, said since the pandemic started, their venues have implemented charges ranging from $15 to $50 per person for no-shows and cancellations made with less than 24 hours notice.
“Primary costs are 70 per cent of a meal so if you had 10 people cancel and it’s $100 a head meal, it probably would have cost $70 per person to get that food to the plate,” he said.
“So it can be a huge thorn in the side if numbers drop significantly.
“I would promote all venues to do it so there’s a bit of an industry standard and people are held accountable for the bookings they make.”
Restaurant and Catering Association chief executive Belinda Clarke said “premium dining venues”, more so than regular restaurants and cafes, were using the practice.
“While it certainly isn’t the norm across the board, I think most consumers are used to it and aren’t as shocked as they were pre-Covid,” she said.
Ms Clarke encouraged diners to help struggling businesses battling staff shortages and rising costs by giving them as much notice as possible for cancellations.
“Obviously we thank people for doing the responsible thing and staying home keeping staff and other members of the public safe but if it’s possible to alert the venue ahead of time, and I stress if possible, it would really help those venues who are struggling to keep their doors open,” she said.
PENFOLDS JOINS FORCES WITH CBD RESTAURANT FOR ONE-NIGHT-ONLY DINNER
Wine lovers are in a for a special treat when iconic SA label Penfolds hosts a rare dinner away from its Magill Estate home this month.
The global wine brand will showcase eight of its finest drops at a unique event at CBD restaurant Eleven, alongside co-owners Callum Hann and Themis Chryssidis.
The $300-a-head dinner on June 21 features five courses which will be complemented by various Penfolds wines including their 2016 and 2018 St Henri Shiraz.
Mr Chryssidis said Penfolds rarely held events outside of their home base.
“It’s one of the very first times they’ve done this at another venue in SA,” he said.
“They want people to drink their wines at dinner, they don’t just want them to end up in people’s cellars for 30 years. This is a part of their plan moving forward.”
Plenty of tickets are available for the dinner, which is a sign of the times, according to Mr Chryssidis.
“People aren’t 100 per cent confident they will be able to make it to a reservation so they leave it until closer to the date to make the booking to reduce the risk of paying a cancellation fee," he said.
“I see it from their perspective but it does make it hard to manage a business especially when you’re dealing with fresh produce and very low staffing levels. There is no perfect solution so let’s just work together.”
TICKETS: elevenadl.com.au/penfolds-eleven
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