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Restaurateurs insure against no-shows

More and more restaurants in Germany are forced to introduce compensation for booked tables that remain empty

Like, if we want, we'll come; if we change our minds, we'll have a picnic in nature, go swimming in the pool, or spontaneously grab a bite at the pizzeria around the corner, or even have a fasting day today. In Germany, such non-commitment rarely threatens customers with financial consequences.

Let's swap roles. Imagine that a couple of hours before going to a restaurant where you have long booked a table for a romantic rendezvous or a business dinner, the manager calls you and says that he just decided to seat other guests there, for example, regulars who dropped in spontaneously?

Who risks being blacklisted

As Deutsche Welle notes, in recent years, losses of German restaurants due to booked tables that remained empty have increased significantly, so many establishments are beginning to think about introducing clear reservation rules and sanctions for late cancellation or no-show without notice. The spread of online reservation systems greatly simplifies the task, as these systems allow documenting the order and obtaining all necessary contact and payment data in advance – unlike the usual phone booking. Particularly negligent customers are easier to identify and blacklist in such systems, for example, after three such cases.

Small prestigious restaurants, with or without stars, that offer customers multi-course menus suffer the most from this. They plan the purchase of expensive, fresh, and perishable products in advance, as well as schedule work shifts based on the expected number of customers. As a rule, people rarely drop in for dinner at such establishments just passing by on the street. Many of them are located in corners far from busy and crowded places.

Therefore, it is almost impossible to spontaneously fill tables that suddenly become empty in such restaurants. In a month, the losses of an average-sized such establishment can equal the monthly salary of one employee.

Experience of American restaurateurs

The situation is also worsened by two trends in customer behavior. Many book tables for more seats than needed. For example, for four people, but they come as two, to have more space. Others book tables at several restaurants in advance, so that depending on their mood and appetite, they can choose one a couple of hours before going out. They do not cancel the reservations at the others. So to speak, the downside of the agony of choice.

The number of restaurants in Germany awarded Michelin stars has increased by a hundred in recent years – to three hundred establishments. Many of them, in conditions of heightened competition, still prefer not to enter into conflicts with customers over missed reservations, so as not to lose them forever.

However, more and more owners of such establishments are talking about the need to adopt the American experience, where during ordering, customers provide credit card numbers, from which a penalty is charged in case of no-show, for example, the average bill per person at that establishment. In some European countries, such as neighboring France, such rules have also ceased to be unusual. Another option is partial prepayment.

German experts consider a sum of 30 euros for cancellation less than two hours before quite acceptable, but there will be no general rules, as each establishment has the right to decide such issues independently. At the same time, fines should not be seen as a manifestation of greed. It is solely about compensating for the costs of additional staff and wasted products.

Of course, things are simpler in establishments located in busy places, where tables that become empty are easier to fill. In addition, restaurants are increasingly using the airlines' trick, that is, overbooking. In popular establishments, overbooking can reach 20 percent, which on average corresponds to the average share of unused reservations. However, such places usually have small separate rooms for force majeure, in case all guests do come or regulars drop in spontaneously.

First come, first served

Restaurants that do not want to fine customers for no-shows for image or other reasons create reservation departments or services that not only send written order confirmations by email but also make a reminder call the day before, giving an additional opportunity to cancel the order on time. Experience shows that such systems can significantly reduce the share of unused reservations – more than twofold.

A more radical method is a complete refusal to reserve seats. First come, first served. Such places usually have bar counters where customers can wait – have an aperitif and order appetizers.