Is it OK to charge no-show fees when a party size changes last minute?

group at restaurant
Charging a no-show fee for a change in party size could have negative consequences. / Photo: Shutterstock

Question:

We have a $20 per person no-show fee on our reservation system. We are a small place so are pretty strict about enforcing it. Most people don’t complain. But how about a large party (8-top) that becomes a smaller party (5-top?) at the last minute?

– Owner

Answer:

I am all for no-show fees when judiciously applied.

Before the days of electronic reservation systems, many guests had bad behavior when it came to making reservations. They used practices like holding tables at multiple restaurants to give their date options. Others kept a reservation just in case they wanted to go to a hot place at a prime time. Some still do. Better systems and disincentives for bad behavior such as no-show fees have definitely helped minimize these practices.

I know it is frustrating to have a smaller party than anticipated show up. You could have seated an extra 4-top and likely held the 8-top empty for a while waiting for your guests. However, I think it would be penny-wise and pound-foolish to charge the no-show fee on the missing guests. The $60 in easy revenue could be grossly overshadowed by a loss of goodwill and future business.

Rather, create a good experience with the guests who did show, and remind the host of the party, who made the reservation, to call or adjust the reservation in the future to avoid charges. With a little effort, guests can be trained to be more responsible or even delightful.

More on no-show policies here.

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