Thoughts on restaurants requiring deposits?

[Ares]

Jesus, this just seems too focused. What if a patron says(through internet) I am coming. And if he doesn't show, his social ?identity is hashtagged negative? And if he does it again, we simply chop his fucking head off? How many times will one say he is coming and not come?

I FEEL THREAT-ENDED!

 

[BearFanJohn]

I have no issue paying a deposit for a reservation-as long as it is applied to my final bill.

 

[DC]

Aside from vacation, the last time I dined in a restaurant was when my lady and I went to see the movie tropic thunder... so my input is probably completely invalid.

But, were I faced with a non refundable deposit I quite honestly would pass.

My reason for doing so would be based on past experiences of making reservations, arriving on time, and still having to wait.
Sometimes the wait was long enough that I left- i make a reservation to save time and if I don't get seated, I will absolutely leave.


In all honesty, even if it included a guarantee that I would be seated on time or my meal would be 50% off, I still think I would pass.

I know it isnt what you are looking for, but that is honestly how I personally would react.

First of all, thank you for all the replies. I really appreciate all the feedback/ideas.

Secondly, AT, you haven't been out since Tropic Thunder! Holy shit! Side note: I really like that movie. I expect that reaction. Restaurant guests, including myself, are so oblivious to other tables/guests around them or waiting for their table that this could spark some anger. Luckily for us, we space out our tables pretty good and give the guest ample time to finish. In fact, we have little signs made up indicating how long their "Turn time" is. Started it with COVID and plan on keeping it all the time. I do at least one table touch a night asking guests to leave. Never a problem.

 

[DC]

OP what we need is like a reverse DoorDash app for restaurants like yours.

Guest makes a reservation, gr8.

But in order to keep it, they need to log on to the app and confirm their intention to use said reservation 30 minutes before, and at that point the app puts a small hold on their card.

App tracks GPS on primary guest, and if they are not en route to your restaurant it alerts you so you can have staff call them.... maybe they're running late, maybe the app is malfunctioning, etc.

If they do not show, they incur a monetary penalty, and you can rate them as a guest, so someone constantly telling you to **** off, maybe you just don't allow them to make reservations any longer.

For good guests that you've previously known to be reliable, you could offer them perks thru the app at your own discretion.... discounts, free drinks, free appetizer, free desert.... and combine it with your changing menu to push certain money maker dishes out of your kitchen.... first one is free, then they order it every time.

I wouldn't personally be offended by what the OP proposes, but I don't know that it would efficiently solve the problem.

Thank you. This is going to definitely be a tech battle moving forward. My problem is we are high volume and I worry about having to pay too much attention to it. My big play is to create a loyalty card of sorts in the next couple of years. It works wonders in fast casual, but I've never really seen it applied to upscale places. Encourage more loyalty is undoubtedly the first step.

 

[DC]

Depending on your clientele I would say it’s just part of doing business. I would prob make it a temporary thing assuming your state has a 25% covid capacity. You piss off some @25% cap you won’t even miss that customer. For me I wouldn’t like it. But right now cause of covid it’s the right time to try things that people would normally find unacceptable before. Like sitting outside in a tent in 10 degree weather breathing propane heater fumes would normally be a FU I’m not going there. But now just to get the f out of the house it’s something I would put up with.

You're right, we do have momentum and the guest on our side right now. People don't want their favorite places to go out of business and will do more than normal to support it. Especially that last part. GUILTY. LOL

Why get greedy with it? If its 40 customers a night, $10-15$ each while keeping your resources seems enough. yeah maybe $50 drops the no-shows to zero, but is also a deterrent. $15 and maybe you get to a middle ground. People can still cancel if their party doesn't materialize without feeling punished...like there is a number in there where you just lost a customer for life. Avoid that in certain locations. Every situation is different of course. 15$ might be right for some, $50 for the highest end, and $5 for others.
Its a competitive environment and each restaurant can figure out what is best for them. It would be better if lots did this so it was normal and you don't get excluded.
I would lean toward a slap on the wrist that doesn't prevent them from enjoying their next meal with you.

Or even make it a coupon type deal...where you charge $25 for the no-show...but they get $15 back off their bill if they do it right the next time. (my final answer there ain't bad)

$50 may be too high. I am even thinking a per cover. Maybe $10/head. Slap on the wrist is the idea. Def not a money maker.

 

[Ares]

Thank you. This is going to definitely be a tech battle moving forward. My problem is we are high volume and I worry about having to pay too much attention to it. My big play is to create a loyalty card of sorts in the next couple of years. It works wonders in fast casual, but I've never really seen it applied to upscale places. Encourage more loyalty is undoubtedly the first step.

Just make sure your carrot tastes like a carrot, and your stick feels like a stick.

The stick is usually easy.... knowing what stings is easy.

But I find loyalty programs across the board tend to be a bit abstract with the carrot.

"If you eat a minimum of 3 Tuesdays a month with us, we will give you a 5% discount on your next appetizer under 8$"

 

[Chief Walking Stick]

@DC im not sure what type of restaurant you own, I've kinda picked up tidbits over the years.

But, if you're a high demand/high end joint... you should absolutely require a deposit that is applied to the final bill. People paying for high quality food aren't going to worry about a $30-$50 hold on their CCD for a reservation.

Obviously places like Chilis and TGIF attract a lower end clientele more likely to flake and or not be able to afford a $50 hold.

 

[DC]

Hmm. An interesting theory. As a consumer, I wouldn't be a fan, but I would totally understand it from the business side. Especially during COVID, when I'm assuming you aren't operating at full capacity. Seating is limited already.

If I'm just taking my wife out for a nice steak dinner somewhere and they wanted a deposit for the two of us, I would pass (although most people around here don't take reservations for small parties). Now if I had a large party of say 6+ people, I would be more understanding and open to it. What do you charge for the deposit though? I think that depends on how fancy of a joint you have. $5 - $10/head seems reasonable though. Can you offer an incentive for the deposit? Say 5% off their bill? I know you said profit margins are slim already so maybe that's not possible. Idk where I'm going with this.

TL;DR: Assuming you have a nice fancy restaurant, white cloth type of joint, I'd be understanding of it for large groups, but probably wouldn't like it.

I appreciate that. It's definitely another step/layer the guest would have to complete and that would be annoying to some. Especially the older guests who already don't want to make reservations online. We are pushing that hard as we continue to try and automate as much as possible with wage/labor increases.

My thought is that on large parties it would work great, 50$ but they get something in return maybe like an additional free app or something cheap for you to provide, small parties I would tend to fall on the side of doing a text confirmation 30 minutes before or they lose the reservation.

It is easy to fill 2-4 person tables if you are already a busy restaurant but those 6 tops plus can mess up an entire evening in planning/table adjusting/server planning, only to have it all just fall apart. Making large parties have at least some financial commitment to you as you have one to them seems reasonable to me.

Good idea on the free app. Absolutely spot on about the 6+ parties. Maybe that's where I should focus.

 

[DC]

Just make sure your carrot tastes like a carrot, and your stick feels like a stick.

The stick is usually easy.... knowing what stings is easy.

But I find loyalty programs across the board tend to be a bit abstract with the carrot.

"If you eat a minimum of 3 Tuesdays a month with us, we will give you a 5% discount on your next appetizer under 8$"

Definitely. Thinking points right now. Every dollar you spend you get one point. At 500 points you get a free lunch for two, etc. Keep it simple is the key. 100% agree.

 

[DC]

No, I don't like the deposit idea. Not sure folks are ready for that.

But I think the answer is more simple. Like others have hinted at... require people text, call, or app, to confirm or cancel their reservations 30 minutes prior to the reservation, or they lose it.

Most people know they are going to show or not 30mins prior to the reservation, and it'd be easy enough for them to confirm that.


And now there's computers! So you could also just keep a costumer list... if they they no-call-no-show, they can't make reservations anymore.

It's not tracked well or scientific, but I have put notes on a guests profile indicating when they have no-showed twice. More of a just "be prepared." Banning them would be fantastic. "Do you realize how big of a jerk you are?" I'd love it.

 

[DC]

@DC im not sure what type of restaurant you own, I've kinda picked up tidbits over the years.

But, if you're a high demand/high end joint... you should absolutely require a deposit that is applied to the final bill. People paying for high quality food aren't going to worry about a $30-$50 hold on their CCD for a reservation.

Obviously places like Chilis and TGIF attract a lower end clientele more likely to flake and or not be able to afford a $50 hold.

Plus, I feel like it adds more to the exclusivity of the place. "Wow, these ******* are serious. Babe, put your damn Pepsi down and get me ma credit card doohickey."

 

[Sculpt]

It's not tracked well or scientific, but I have put notes on a guests profile indicating when they have no-showed twice. More of a just "be prepared." Banning them would be fantastic. "Do you realize how big of a jerk you are?" I'd love it.

Well, you know, not banning them from your restaurant (if they no-call/no-show a reservation), just not allowing them to make a reservation for 1 year or never again. That's fitting and reasonable.

So you do have a computer system that has a guest profile... So when people call to make a reservation, they can be entered into the system: first/last name, phone, (and maybe address). Have the phone host tell the reservation maker, "if you're not able to make your reservation, please call us 30mins prior to maintain your reservation privileges." Ah, worded just right.

And obviously, when people call to make a reservation, if they've made a reservation before, a record of a no-call/no-show would come up (obviously no-shows have to be entered). And if it's been within the last year (or whatever time frame), then tell them, you had a no-call/no-show on (this date), and your reservation privileges will not be restored until (this date).

I'm sure this system is way less costly then the cost of repeat no-shows. And way more tolerable than a deposit.