A high no show rate can break a restaurant.
When Toronto restaurant owner Darcy MacDonell experienced 97 cancellations and no shows in a mere 24 hours, he took his frustration to social media. Urging people to #RespectTheRestaurant, he posted a graphic that pleaded with diners to honor their reservations with a #StopNoShows awareness initiative.
The campaign spread like wildfire across the country and around the world. The reason? No shows are an industry plague.
But no shows don’t have to be a thorn in your side! There are tried and true strategies restaurant owners use to reduce them at their restaurants.
In this article, we’ll break down the impact of no shows and provide strategies to help you minimize them at your restaurant.
If you run a restaurant that takes reservations, you’ve most certainly come up against no shows.
But what are they?
No shows are the diners who half-heartedly make a reservation but don’t honor it for whatever reason. Maybe something comes up that prevents them from coming, maybe they decide to change their plans at the last minute, or maybe they completely forget they had a reservation. No matter why they don’t come, no shows cost restaurants precious revenue.
But how quickly can these no shows add up?
Let’s say you have 100 seats in your restaurant and 25% of your average nightly volume comes from reservations. The average check size sits around $30, which means even if 10% of those restaurant reservations cancelled or were no shows, it could cost you $75 per night. This means over $500 a week!
It gets worse.
The generally accepted no-show reservation rate in the industry actually hovers around 20%. In the above scenario, it’s more likely that you’re losing out on $150/night – over $1,000 a week!
With numbers like that, you can see why MacDonell tried to start the #StopNoShow movement.
With 20% of reservations resulting in no shows, it may seem tempting to become a restaurant that does just walk-in seating and say goodbye to the risk. But there’s a reason more restaurants aren’t doing this – reservations can bring in huge profit for your business!
Because reservations can be so profitable, restaurant owners are getting creative with their tactics to prevent no shows. Here are some methods that are proving effective.
Taking restaurant reservations over the phone and marking them by hand in a date book was once the only accepted way of keeping track of your diners. But most people don’t do anything by hand anymore.
And for good reason.
When you use an automated system, you get added benefits like access to real-time reservation numbers, eliminating human error and reducing the workload on staff. Let them focus on serving your guests instead of taking reservations over the phone!
Many restaurants partner with a third-party reservations system that integrate with their website – or even their restaurant POS! Systems like TouchBistro Reservations have all the features required to manage reservations without your front of house or management team having to lift a finger. Customers can make a reservation online, through a mobile app, by email or text.
Choose a system that:
This might seem counterintuitive, but one way to combat a no show is to make it simple for guests to cancel ahead of time. If they’ve made a reservation through your online system, it’s easy to cancel it without having to make a phone call.
If guests choose to pick up the phone, make it easy for them to reach you by ensuring you answer your phone or have a voice mailbox that allows them to leave a message. Another method for diners to cancel is through a system that allows diners to SMS directly with your restaurant. When you make cancelling hassle-free, people are more likely to take the time to do it instead of simply not turning up.
Giving diners a simple way to cancel if they can’t make it also gives you the chance to free up the table! Some reservation systems will automatically put the table back up as “available” to book through your online reservations. When people can cancel ahead of time, other diners have the chance to snatch that coveted seat and you can better prepare for your tables that shift.
Another way to streamline the reservation process for your guests is to offer a grace period that holds their table in case they are a little late. When you provide a little flexibility, those diners who may be stuck in traffic or held up at work will know they can still make their reservation if they get a move on. This is better than giving up and becoming another no show statistic.
Be sure to add this grace period – 15 minutes is reasonable – to your reservation system, confirmation email, or reminder call so diners are aware that it exists! You may even choose to extend it if the guest calls or texts in advance to let you know they’ll be late. Having open communication is key!
Most restaurant owners grit their teeth when a no show fails to arrive and leave it at that. But why not turn your no shows into an opportunity to invite a diner back?
With TouchBistro Reservations, you can easily pull reports on your no shows, as well as guest profile info, which they filled in when they set up the reservation in the first place. Use these to decide whether how and when you want to get in touch (i.e. reach out on the phone or set up automatic emails) that let them know you’d love to have them back. Send a message like, “We missed you at dinner last night. Would love to see you sometime soon!” You can even include a link right to your reservation page.
When you communicate to no shows that you noticed their absence and explain why it matters, they’ll feel special and might come back at a later time!
Some third-party systems, like TouchBistro Reservations, automatically send reminders by SMS or email. This is helpful for busy restaurant owners because it provides a layer of assurance that guests will arrive as planned. This helps you and your guest stay on top of reservations – no forgotten dinner plans!
If you don’t use an automated system – or if you want to leave a personal touch to be sure they get the message – consider calling your guests 24 hours ahead to remind them of their reservation. You can use this opportunity to begin their guest experience on a high note by asking if there’s anything special you can do for them and letting them know you’re eager to serve them.
Restaurants that experience frequent no shows have begun to take a credit card number with every reservation, similar to hotels. If a guest fails to arrive, they may even charge a cancellation fee. If people expect a charge if they don’t show, they are more likely to make it there on time – or cancel with enough notice.
Platforms like TouchBistro Reservations come with the option to collect credit card information, and the credit card only gets charged when there’s a no show. If your no show rate is high, you could set up this option on a trial basis, no commitment. If this strategy reduces your no show rate without negatively impacting your sales, you can keep using it. If not, just remove the option.
To turn this possible charge into a way to drive traffic back to your restaurant, you could convert any cancellation fees into a gift card for the guest’s next visit to your restaurant, so they aren’t completely penalized and no bridges are burned with a potential customer.
A Vancouver restaurant owner began charging $10 for every reservation after tracking a 50 to 60% no-show rate at his establishment.
“The $10 is basically to hold your seat and secure that you are coming in. It’s not much but it gives you a sense of responsibility,” Jefferson Alvarez, co-owner of Cacao, told CBC News. If you choose to follow suit, explain to your customers that the deposit goes toward their restaurant bill, so they lose nothing if they show up for their reservation.
If you want to take this a step further, as some high-end restaurants with expensive tasting menus do, you could require prepayment when the reservation is made. It makes for a cashless experience for the guest and ensures you don’t purchase ingredients or book staff you don’t need.
Some reservation systems automatically send an email to guests letting them know their no show was noticed.
You can also keep your own records through reservation reports and, when a frequent no show tries to make a reservation, reach out to them personally. Let the guest know you’re aware they’ve booked before but haven’t made it out and give them some incentive to show up this time. Or, if you have a policy for what happens after a certain number of no-shows, you may choose to refuse to save a table for them – just make sure you explain the policy to them.
An inexpensive way to encourage your guests to arrive for their reservations is to give them the kind of experience they won’t forget! Thank guests for honoring their commitment to their reservation and provide the kind of warm hospitality that ensures they’ll never be a no show.
Some busy restaurants try to combat the no show problem by overbooking tables. While hedging your bets may work some of the time, when you overbook and have to turn away someone with a reservation or make them wait for their table, you’re running the risk of alienating a loyal customer.
If you end up somehow overbooked, make sure diners with a reservation aren’t waiting – and if they do, offer them a free appetizer or a discount on their meal to show them you take their time as seriously as they do yours.
Can you prevent no shows entirely?
Unfortunately, no. Life is full of ups, downs and unpredictable events. But if you employ even a few of these tactics, you’ll show your customers that honoring reservations matter.