How to reduce no-shows in your restaurants
No-shows are an issue in all restaurants, creating a range of financial and logistical problems. Our all-in-one restaurant management software, TheFork Manager, is equipped with effective tools to tackle no-shows that have already helped partner restaurants achieve an impressive no-show rate of 0.8%.
Understanding the reasons why no-shows happen is the key to effectively preventing them. Some customers forget their reservations without reminders, especially when made well in advance. Others may not show up due to genuinely unforeseen circumstances, such as personal emergencies, or sudden work commitments that prevent them from cancelling. Some customers will just simply change their minds and not inform you.
Unfulfilled reservations can also result from poor communication between restaurants and customers. If reminders are not sent promptly or booking details are unclear, customers can easily be misinformed and become no-shows.
Additionally, restaurants without a clear reservation and cancellation policy are likely to suffer from no-shows. Without any consequences for failing to honour scheduled appointments, customers may not take their bookings seriously.
The consequences of no-shows for restaurateurs
Restaurateurs face potential revenue losses when reserved tables sit empty. Losing out on both the expected income from booking customers and the chance for walk-ins to fill those empty spots can result in revenue losses between 5% and 20%**. This problem affects every type of restaurant, from independent neighbourhood favourites to large groups and national chains.
No-shows in restaurants also create logistical problems, including challenges in stock management. Unfulfilled reservations often lead to substantial food waste. As a restaurant owner, you have to plan your stocks and food supplies based on the expected number of customers, and when they don’t show up, it results in additional costs and lost revenue.
But that’s not all: no-shows can cause disorganisation within restaurants, impacting both staff and facility management. Restaurateurs frequently anticipate the number of expected guests and plan staff rotas accordingly. When no-shows happen, it can lead to overstaffing, with more personnel on-site than needed to handle customer footfall that never materialises. This overstaffing becomes a significant cost for restaurateurs, who are obliged to pay additional staff, once again cutting into profit margins.
How to reduce no shows with TheFork Manager
TheFork Manager is an all-in-one management tool specifically designed to help you:
- Centralise reservations
- Maximise occupancy rates
- Communicate with clients
- Increase customer loyalty
TheFork Manager can also help restaurateurs cut no-show rates to as little as 0.8% with a series of effective tools.
1. Activate the credit card guarantee
Requesting a credit card guarantee is a simple and effective way to reduce unfulfilled bookings. When customers make a payment in advance or provide their bank details upfront, they are more likely to honour their reservations as they know they will be charged if they fail to do so.
With TheFork Manager, you have all the tools to customise this feature according to your business needs. You can decide how much to charge, how many people the credit card guarantee applies to, and set the cancellation period before any charges are incurred. Activating a credit card guarantee decreases no-shows by 65% and has an added benefit for restaurateurs – you will be compensated even if the customer is a no-show.
2. Send reservation reminders for free
With TheFork Manager, restaurateurs can send automatic reservation reminders via email and/or text message to reduce the number of no-shows. You can send a communication a few days before the reservation date. The costs are completely covered by TheFork and will not be billed to you!
3. Allow your customers to cancel reservations easily
Having a quick cancellation process can help you reduce the number of no-shows at your restaurant. When you send confirmation and automatic reservation reminders with TheFork Manager, your customers can easily cancel their booking with just one click if they can’t make it.
4. Implement a Waiting List
With TheFork Manager, you can create a waiting list for customers without reservations. In this way, if a reserved table goes unfulfilled, you can assign it to a customer on the waiting list and maximise your occupancy rate while minimising revenue losses.
5. Identify Customer Reliability
With TheFork Manager, you can assign customers a reliability score based on their previous bookings. The index — represented by a green, orange, or red dot — will help you see if a customer is likely to be a no-show. If the reliability index is low, you can take precautionary measures, like sending reminders or calling them to curb unfulfilled reservations.
Ready to reduce no-shows in your restaurant? Ask our team of experts for advice and assistance implementing TheFork Manager's various tools.
*Data observed on TheFork reservations made with a bank card imprint in France in September 2022.
**TheFork 2022 Article, link