Restaurant deposits could be introduced to stop diners from failing to show up

BAD-MANNERED no-show customers are crippling South Australian restaurants and putting honest diners in a position where they may have to pay dining deposits.

Food Awards 2015

BAD-MANNERED no-show customers are crippling South Australian restaurants and putting honest diners in a position where they may have to pay dining deposits.

Restaurateurs say no-shows can cost them thousands of dollars in wasted food, staff and lost revenue, and are even being urged to “name and shame” the no-shows.

Sarah Cavaiuolo, manager of new city restaurant Blackwood, and Orana, said credit card details were taken for all bookings and, from today, deposits would be taken for tables of eight or more as “a prevention of no-shows”.

The Advertiser Chef of the Year, Paul Baker, fears the policy could eventually become more common.

He has drawn considerable Facebook support after bemoaning a no-show table of 12 at the Botanic Gardens Restaurant, despite a confirmation call to the party the same morning.

“We turned people away that night, which is a shame,” he said yesterday.

“It’s like inviting a bunch of people home, shopping and cooking, then no one turns up.

“Some people might not understand about food waste and rostering people when you are expecting to be busy.”

The restaurant takes deposits for larger groups, allowing 24-hour cancellation.

In Sydney, Brisbane and Melbourne upfront payments for smaller groups is common, and, online booking service, Dimmi, has started banning serial offenders.

Restaurant & Catering chief Sally Neville believes deposits are fair.

“I recently made a midweek booking at Blackwood and they wanted credit card details for a table of four,” she said. “I hadn’t come across that for such a small number before. They are forging the way and it will be interesting to see how much push-back they get.”

Chef/owner of Adelaide’s popular Peel St restaurant, Jordan Theodoros, said they have been “stung many times”.

“It’s awkward to ask for deposits for tables of two,” he said, fearing too many rules might alienate diners.

Salopian Inn chef/owner Karena Armstrong said “it’s a slippery slope”.

“You have to be careful with your customers and that’s a balancing act with looking after your business,” she said

Replies to Mr Baker’s Facebook message, many from the food industry, called for “naming and shaming” on social media, but the chef doesn’t believe that’s “constructive” either.

Kangkong chef Matthew Miles replied, reporting a no-show of 25 people for an engagement-party dinner which caused his restaurant to turn away at least eight tables.

No-shows and very last-minute cancellations “hurt”, especially in small restaurants such as the new Olfactory Inn at Strathalbyn, says its owner/chef Simon Burr, who recently shopped and prepped for a table of 12 that didn’t arrive, leaving his restaurant half empty.

The Dimmi booking site has installed an upfront payment facility, applied at the discretion of each restaurant.

“It just doesn’t make sense that there’s no obligation between a customer making a booking and a restaurant owner,” says Dimmi CEO Stevan Premutico.

He says the booking-pays service comes at a critical time for the industry, with many restaurants running at break-even level. Customer no-shows are eating into profits, he says.

“Restaurants need to stop being a charity and start being a business. No-shows are crippling and we need to collectively take a stance.”

Mr Premutico says dining deposits have become the norm at restaurants interstate, where many also only offer set menus to groups of six or more.

Queensland restaurateur, Tanja Malone, of Fortitude Valley Italian restaurant Bucci has signed up for the deposits plan.

“We purchase food, we purchase drinks, we put staff on, we expect you, we turn away other guests, we still have to pay rent, pay the council for the licenses, pay the electricity,” she said.

with Anooska Tucker-Evans

Diners have broken circle of trust

Analysis — Simon Wilkinson

DINERS who are miffed at the idea of paying a deposit for a table need to think hard before they blame the restaurant owners.

After all it isn’t the owners who have trashed the mutual trust that has always been implicit in taking a booking with no financial guarantee.

For a customer not to show up, no matter what numbers are involved, is more than bad manners.

It is a breach of contract with major financial implications for a small business where the margins are already wafer thin.

For an establishment such as the Botanic Gardens Restaurant, to miss out on a booked table of 12 people would likely mean that all the investment and effort that goes into that night’s service will result in zero profit. When you book an airline seat or a hotel room, payment is usually expected in full, and even an early cancellation can result in heavy penalties.

By comparison, the hospitality industry has always been far more reasonable with its customers, understanding that their circumstances can change on the day.

Those days are over and we only have ourselves to blame.