Coronavirus: Restaurants have no reservations about charging no-shows

In an industry under the pandemic’s shadow, the ‘no-show’ is one ­element of restaurant woes that persists.

Bondi Trattoria co-owner Alasdair France is in the process of setting up cancellation fees at his casual Sydney restaurant for the first time. Picture: Jane Dempster

On Saturday night, a table of six booked for dinner at Italian institution Beppi’s in Sydney and then performed what the industry calls a “no-show”. Under COVID-19 ­restrictions, 60 per cent of the small business’s anticipated revenue for the evening disappeared in a puff of smoke.

“No call to cancel, (their) phone just goes to message bank,” tweeted restaurant operator Marc Polese. “Disgraceful behaviour.”

Surprisingly, in an environment of overwhelming support for an industry under the pandemic’s shadow, the “no-show” is one ­element of restaurant woes that persists. Amid industry outrage that this could still happen despite restricted diner numbers around the country, there’s growing belief that a reservations system that largely relies on good faith may soon be a thing of the past.

The new normal for a restaurant booking may well require mandatory deposits or cancellation fee policies, once the preserve of the very top end of town.

“This is a time of great need to be educating our guests,” said Bondi Trattoria co-owner Alasdair France, who is in the process of setting up cancellation fees at his casual Sydney restaurant for the first time.

“It’s an exceptional time to be running a business in any industry. There are some things we can ­continue to do, some that we can’t.”

No-shows have always been an aspect of the restaurant industry, Mr France said. “Cancellations will always happen, but it’s not difficult to call a restaurant.”

He notes for a deposit system to work, a reservations system “needs to talk to the point-of-sale system”, which is not always the case.

Others are taking direct action. A slew of Perth restaurants, including Le Rebelle, Bivouac and Sauma, all restricted to a maximum seating of 20 at any given time, last week mandated fees of $20-$25 a person at time of online-only booking. Others in other states have pivoted to 100 per cent “prepaid minimum spend” (Embla, Melbourne) or “tickets” (Kazuki’s, Melbourne). A meeting of 30 Bendigo hospitality businesses last week heard 70 per cent were considering a reservations deposit to reduce no-shows. All over the country operators, restricted to less than a quarter usual capacity, are implementing deposits, pre-authorisation or minimum-spend policies to try to make every post a winner.

In Adelaide, at Leigh Street Wine Room, a pre-purchased ­ticket called “100 Your Way” is mandatory and each person can spend it how they like, on the night. It will remain while limited numbers are maintained.

“The main challenge for venues is what to call their offering and how to market it to guests in a positive light,” says Owen Parry of restaurant reservations system Obee. “Now is a good time for the industry to change and we’re seeing many venues proactively doing so.

“One of the biggest fears … is losing a booking, or missing out on a booking, so it’s going to require brave moves from operators, wide industry uptake and clear communication to guests to take hold and stick around beyond the next few weeks.”

In the past, a lot of restaurants took credit card details as security against a booking, Mr Parry said. “This helped mitigate, but not eliminate, the no-shows.”

Dimmi founder (now of me & u) Stevan Premutico said: “We must do it together as an industry and make it the industry norm. When we book a hotel, it is expected. Let’s do same for the industry that needs it most.”