Reducing the cost of no-shows – practical steps for bars and restaurants

Darcy MacMillan, Solicitor

No-shows can be costly, particularly for small businesses.  With costs continuing to rise across the leisure and hospitality industry, every table counts. Bars and restaurants can take the following practical steps to reduce the risk of losses caused by cancelled bookings:

• Non-refundable deposits: consider taking a non-refundable deposit to reserve tables during busy periods or for large groups. This can deter casual cancellations and no-shows while reducing the potential loss if a booking is not honoured.
• Grace period: limiting the hold time for a booked table (e.g. to 15 minutes) which, once passed, releases the table to other customers. This encourages customers to be on time and frees up tables to customers who are waiting.
• Booking reminders: send booking reminders using SMS, email or app notifications to remind customers of their upcoming reservations and request confirmation from them of their intention to come.
• Waitlist: having a digital waitlist can be a useful tool in connection with a grace period, where a table can be released and filled quickly.
• Booking incentives: offering a complimentary drink or a discount during quieter hours can encourage attendance from customers and drive sales at a time where it might not have otherwise had bookings.

Taking action now can enable bars and restaurants to manage the risk and plan for the future. Businesses are encouraged to ensure that any measures they implement are aligned with their terms and conditions, especially in relation to deposits and cancellation fees which should be clearly communicated to customers and reflect a reasonable and proportionate estimate of loss.

Our leisure and hospitality team work closely with bars and restaurants offering commercial and practical advice to help to mitigate the challenges facing the sector. For more information please contact us at [email protected] or 0161 832 3434.