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Book a table and don't turn up: What is the legal situation?

Restaurateurs often face the problem of empty but booked tables. Similarly, guests sometimes find that the table they booked is occupied. This occurs, for instance, when the restaurant double-books a table to offset the impact of no-shows. Is this permitted?

Glenn Wichmann
Glenn Wichmann - The 38-year-old has been working for METRO as a Gastro Consultant for two years and is responsible for the entire northern German region. He knows his way around because he is not only a business graduate, but also a trained chef and barista. In a catering career spanning around 20 years, he has been kitchen director of the "Speisenwerft bei Tim Mälzer" and worked as a chef in Tim Mälzer's restaurant "Bullerei".
Book a table - no show is a no go

What´s it all about?

  • Are table bookings legally binding?
  • How do restaurateurs incentivise guests to book tables?
  • What are the advantages of booking online?
  • How can losses from no-shows be reduced?
Content:

From a legal perspective, a table booking initiates a contract. ‘First of all, this simply means that the guest and restaurateur are indicating a serious interest in a future hospitality contract,’ explains Glenn Wichmann, Gastro Consultant at METRO. The restaurateur commits to keeping the table free at the agreed time, while the guest commits to arriving on time. If a guest does not turn up, the restaurateur can, under certain conditions, demand compensation for the loss of profit and any costs already incurred. Glenn emphasises: ‘If guests don’t turn up and the booked table remains unoccupied, the restaurant incurs a financial loss that is often hard to recover.’ However, the loss is often difficult to prove because guests typically do not pre-order specific dishes with their booking.

What does ‘no-show’ mean?

The term ‘no-show’ originally comes from the aviation industry. Airlines use this term to describe passengers who fail to take their booked flight without cancelling it. The term has since been extended to other sectors, including the hotel and hospitality industry. To minimise financial losses due to a no-show, many hotels require a deposit or a credit card hold. Most hotels also charge a cancellation fee for no-shows. Air passengers usually have to provide their credit card details when booking and receive no refund or a partial refund, depending on the booking terms. Some restaurants also charge a no-show fee.

Create incentives for table reservations

To reduce no-shows, Glenn recommends creating awareness that no-shows are detrimental to the catering business. He is sure that guests do not intend to harm the business. He also recommends creating positive incentives rather than penalising no-shows with charges. One option is to offer guests who book a table early small perks such as a discount or a free drink. "Such measures increase the likelihood that guests will honour their reservation and visit the restaurant on time. And they can improve the guest experience in the long term," Glenn knows from experience. A personal call to confirm the reservation or enquire about special requests can also increase commitment.

Book a restaurant online

Digital applications help to reduce no-shows, Glenn is certain: "They not only make booking easier, but can also send automatic reminders and cancellation links." This makes it easier for guests to manage their reservation and, if necessary, cancel in good time. In addition, systems such as DISH's online reservation system can collect data on reservation behaviour, which helps restaurateurs to respond better to repeat no-shows.

Reduce losses due to no shows

Fixed time slots for reservations or rules on when reserved tables become free can help to optimise planning. Restaurants should clearly communicate that tables will be passed on after a certain waiting time. Glenn adds: "Communicating clear guidelines and introducing waiting times for late guests can increase planning security for restaurants and at the same time increase customer satisfaction."

By focusing on positive incentives and using digital tools, restaurateurs can increase the reliability of their guests and get the problem of no-shows under control more effectively. "It's about finding a balance between flexibility and commitment in order to do justice to both the guests and the restaurant," summarises Glenn.

DISH Reservation

METRO Gastro Consulting

Further articles