How to Reduce No-Shows
No-shows — customers who make reservations and then never show up -- is a growing problem for restaurants. This course will give you some tactics for reducing the number of no-shows at your operation.
National Restaurant Association How-To Series, October 2000

Section 1: Handling Reservations
Section 2: Ensuring Customer Compliance
Section 3: What to do When Customers Fail to Show

Section 1: Handling Reservations
By taking extra time to explain your reservation policy, the consequences of missing a reservation and why you take their reservation seriously, you can reduce no-shows.

• Start by asking customers to cancel within 24 hours of the reservation if they are unable to make it. This lets diners know that you take their reservation seriously.

• Educate customers about the cost of no-shows so they'll understand why you are so strict about confirming reservations.

• Enter all pertinent information about the guest on a notecard or in your restaurant's computer to help you minimize mistakes. Important guest information could include, but not be limited to: time, size of party, dietary needs, dishes ordered on prior visits, whether the reservation is for a special occasion, type of special occasion, whether the guest is a regular or frequent no-show, and other special requests. Distribute this information to staff members so they know about the party's needs.

• Call customers to confirm reservations the day before the reservation. This helps jog the memory of diners who sometimes forget their reservation.

• Plan your reservations carefully so you don't overbook. Estimate that each party will take between 1½ to 2 hours for dinner.

• Place one person in charge of reservations for especially busy times, such as holidays and special events. This centralizes all information about the big event.

• Consider hiring a full-time reservation specialist. Some restaurant operators find this expense outweighs the cost of frequent no-shows.

Section 2: Ensuring Customer Compliance
Sometimes restaurants need to do more than explain the importance of honoring reservations to guests. This section will offer methods to ensure that guests will show up at your restaurant.

• Require deposits or credit-card numbers when diners make reservations. Be sure to inform diners of your policy so that they understand that they will forfeit the deposit or be charged a set amount if they do not show up for their reservation. Parties that fail to show then lose their deposit or receive a penalty on their credit card. Make sure to take the name and expiration date on the credit card. In exchange, give the party a confirmation number, just as hotels and airlines do. However, know that this tactic may drive some potential customers away. If you do require a deposit on a reservation, be sure to seat guests promptly when they arrive or you could lose valuable repeat business.

• Ask for deposits or credit-card numbers for reservations only on special occasions, such as holidays, or for parties of six or more. You can also sell advance "tickets" to special occasions such as New Year's Eve. Allow patrons to sell the tickets back to you if they contact you within a reasonable time period.

• Apply the no-show charge to a gift certificate so that customers will be encouraged to try your at a later date.

• Send no-shows who lost their deposit or were charged on their credit card a letter reiterating your policy and the fact that they made the reservation knowing the no-show policy.

• Create a "call-ahead" or "wait-list" system as an alternative to taking reservations. Customers can call about 20 minutes before they want to be seated to leave their names. If there is a wait for a table, your reservation specialist can tell them about it.

Now that you have created a system to cover expenses when guests fail to show, you need to know what to do when customers actually are no-shows.

Section 3: What to do When Customers Fail to Show
No-shows cost restaurants money, but there are ways to minimize your losses.

• Keep a waiting list of potential customers to call at the last minute when guests do call to cancel or fail to show.

• Hold tables for only 15 minutes before declaring the party a no-show. If guests call to say they will be late, hold their table for 30 minutes.

• Treat regular guests special by not requiring them to leave deposits or credit cards. Be sure to work your dining room so you can identify frequent diners. Or, create a frequent-diner club to eliminate any confusion.

• Call no-shows the morning after to find out why they didn't arrive. Explaining how no-shows affect your business could make them more responsible guests the next time.

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