A New Type Of Charge When Dining Out

[pictonguy]

I would NEVER agree to a cancellation fee when making a reservation. I just wouldn't make the reservation, and tell them I'll dine someplace else -- forever.

I do understand that there are people who cancel reservations on a whim, just as those same people RSVP to parties and don't show up. But, sometimes things happen, and you have to cancel.

If I RSVP to a party, and can't come, I will call the host, and tell them I can't come, and why. It's rude to just not show up. Likewise, if I must cancel a dinner reservation, I would call the restaurant and tell them as far in advance as possible so they can give my table to another customer. That is just common courtesy.

CD

The problem arises when someone makes a reservation for 6 and up then don't call to cancel and it's a busy Saturday night when you've been booked for a week and it's 8:00 and walkins are pretty much not going to happen and now you have a table or more because it could have easily been a table of 10 that didn't show up and you aren't a big seated restaurant where that might represent 25% or more of your total seating for that turn. If someone has never been in the business it's difficult to understand.

There is a trend where a host will make reservation a few weeks ahead at multiple restaurants because that's what you have to do to ensure your actually able to dine out, then over the course you get your guests preferences then at the last moment a decision is made for that one restaurant and the other 2 or 3 are shit out of luck. Yeah, not good.

 

[dragnlaw]

I agree with you pictonguy - and it's not just in the restaurant business.
If you read the article jennyema posted, you will see the restaurant was a family style seating. All at the same table - with a fixed menu. You make a reservation ($125.00 per person) and ingredients are purchased for set amount of people.
This kind of place does not have walk-ins - or at least not someone willing to pay $125. and not be able to choose their plate! I don't think 48 hours is unforgiveable.
On the other hand, illness and unforeseen incidents do happen. Which is understandable to ask for proof under the alloted cancellation time.
Of course, in the case of death - perhaps you should carry in the corpse and ask for a doggy bag.
Actually for me... this is not a problem -can't afford a $125.00 meal in the first place.

 

[caseydog]

The problem arises when someone makes a reservation for 6 and up then don't call to cancel and it's a busy Saturday night when you've been booked for a week and it's 8:00 and walkins are pretty much not going to happen and now you have a table or more because it could have easily been a table of 10 that didn't show up and you aren't a big seated restaurant where that might represent 25% or more of your total seating for that turn. If someone has never been in the business it's difficult to understand.

There is a trend where a host will make reservation a few weeks ahead at multiple restaurants because that's what you have to do to ensure your actually able to dine out, then over the course you get your guests preferences then at the last moment a decision is made for that one restaurant and the other 2 or 3 are shit out of luck. Yeah, not good.

Do you require your customers to agree to cancellation fee? Is it $250? Is there a time element involved (example: cancelations inside 24 hours)?

CD

 

[dragnlaw]

casey, he never said he did, merely explaining why some do. IMHO

What would you tell a customer who wanted you to photo his car collection. You fly there with your equipment, hire a car to travel to the estate. Be told at the door, "never mind - changed my mind"

 

[taxlady]

Do you require your customers to agree to che ancellation fee? Is it $250? Is there a time element involved (example: cancelations inside 24 hours)?

,

The $250 was what the customer was going to pay for the two meals. I dunno, some discount off the full price of the meals would sound more reasonable to me in a case like this where the person had to be in the hospital with no warning.

I just had another look at the article. The customer who cancelled had travel insurance. I wonder why they didn't get the travel insurance to pay for that cancellation fee, since it was out of the customer's control.

 

[pictonguy]

Do you require your customers to agree to cancellation fee? Is it $250? Is there a time element involved (example: cancelations inside 24 hours)?

CD

We inform people that book a table with 6 or more that there will be a cancellation fee of 30.00 per person if not given at least a 24 hour notice and doesn't apply to any party with less than 6. We have yet to actually charge this fee to anyone that attempts to cancel even within the 24 hours.

It's the no-shows that restauranteurs are trying to discourage where your holding a table of 6 or 10 or whatever and after a while you've figured out they aren't going to show up, late is a common occurrence and we do accommodate for that within reason but more often than not we have people we're turning away at the door because we're fully booked, it's frustrating and very disrespectful. At least have the courage to call and cancel, but they don't.

 

[caseydog]

casey, he never said he did, merely explaining why some do.

Um... that's why I asked.

CD

 

[caseydog]

We inform people that book a table with 6 or more that there will be a cancellation fee of 30.00 per person if not given at least a 24 hour notice and doesn't apply to any party with less than 6. We have yet to actually charge this fee to anyone that attempts to cancel even within the 24 hours.

It's the no-shows that restauranteurs are trying to discourage where your holding a table of 6 or 10 or whatever and after a while you've figured out they aren't going to show up, late is a common occurrence and we do accommodate for that within reason but more often than not we have people we're turning away at the door because we're fully booked, it's frustrating and very disrespectful. At least have the courage to call and cancel, but they don't.

Your policy sounds reasonable.

And, as I mentioned before, I also find people who no-show to be rude.

CD

 

[caseydog]

What would you tell a customer who wanted you to photo his car collection. You fly there with your equipment, hire a car to travel to the estate. Be told at the door, "never mind - changed my mind"

I don't work for individual car collectors, unless I know them very well. I avoid car dealers like the plague. I work mostly for magazines and classic car auction companies.

I have showed up to places, once way up in Wyoming, to find the cars in pieces, or just not there. The Auction companies pay me, even though I didn't photograph the cars.

My type of business is based on establishing long-term relationships. Therefore, I take good care of my customers, and they take good care of me.

CD

 

[Aunt Bea]

Has anyone ever been charged a cancellation fee for being a no show or breaking the average dinner reservation?

I can understand and would expect a fee for canceling a wedding reception or some other significant event that would normally come with a formal agreement.

IMO referencing a cancellation fee for the average dinner reservation is petty and unenforceable.

It just gets things off to a bad start in the same way that some restaurants advertise small charges for certain salad dressings, extra butter, take out container charges, etc…

 

[dragnlaw]

Well, I agree with pictonguy. People who make reservations and are no-shows have absolutely no respect for the industry and the peoples. Yes, of course, there will always be circumstances happen.

casey, you avoid Dealers like the plague and have a good relationship with the others. And this was your policy from day one? or something you learned and built upon. You can't say you haven't lost a deal somewhere along the line. So you too have a policy so as not to get burnt.

Many Professionals here have a "no-show" charge. They vary from about $50.00 to over $100.00. I have no idea how they go about collecting it as many medicals are covered by insurance. We don't have to put a deposit down.
I tell professionals I cannot see them on Fridays or Mondays. Especially dentals on Fridays - they always say "Call of if you have a problem from this" - Yeah, right - Call who? Office is closed - not driving and phoning around looking for an emergency clinic.
As to Monday visits - who do you call on Sunday when something has gone wrong and you can't go?
My other policy is (in winter) to also state should the weather be really bad don't expect me to risk myself (or my car).

 

[medtran49]

Has anyone ever been charged a cancellation fee for being a no show or breaking the average dinner reservation?

I can understand and would expect a fee for canceling a wedding reception or some other significant event that would normally come with a formal agreement.

IMO referencing a cancellation fee for the average dinner reservation is petty and unenforceable.

It just gets things off to a bad start in the same way that some restaurants advertise small charges for certain salad dressings, extra butter, take out container charges, etc…

The only time we've had to cancel something with less than 24 hour notice was a doctor appointment with Craig's GP. He was in the ER from early the evening before and was admitted in the wee hours of the day of his appointment. The doctor does have a $50 no show/less than 24 hours cancellation fee that has to be paid before your next appointment per signage in the office. I called as soon as the office opened to tell them he was admitted and the fee was never mentioned or charged. This GP does not make hospital visits as the hospital has staff doctors that act as your GP, so he got paid nothing until Craig saw him 2 weeks later.

 

[msmofet]

My eye doctor charges a service fee for using credit/debit cards.

 

[Aunt Bea]

My eye doctor charges a service fee for using credit/debit cards.

That seems to be more common in this area too.

There are also several entertainment and sports venues that no longer accept cash.

I still accept cash!

 

[jennyema]

We regularly agree to cancellation charges when it’s just us two. They are always imposed at good restaurants where there are only one or two seatings and at good restaurants where there are multi course prix fixe menus. And now sometimes just at regular higher end places.

We know about it, agree to it, and cancel if we must.

Then there are very high end places that make you pay for the whole dinner in advance. We have done that, too.

 

[caseydog]

casey, you avoid Dealers like the plague and have a good relationship with the others. And this was your policy from day one? or something you learned and built upon. You can't say you haven't lost a deal somewhere along the line. So you too have a policy so as not to get burnt.

If I do a job, and the customer stiffs me on the invoice, my only recourse is to sue them. If the invoice is small, it's not worth it. I just don't do business with them again. That is VERY rare, and usually involves a car dealer. An Aston Martin Dealer stiffed me, and in talking to other people in the industry, I found out that he had stiffed a lot of people. Live and learn.

As for my auction company customers, that accounted for about 80-percent of my business for the last 15-plus years, they know how flaky wealthy car collectors can be, and aren't at all surprised when I call them from someplace in America and tell them that one or more of the cars I was sent to photograph isn't there, or that it is in a restoration shop in 100 pieces. They know it's not my fault, and also know how hard it is to find photographers who classic and exotic cars like I do. That's why they will fly me all over, pay for my hotels and rental cars, and a pretty substantial fee instead of just hiring a local photographer who may be good, but knows nothing about classic an exotic cars. Basically, they need me as much as I need their business. That's what I meant about "long-term relationships" being important.

Basically, comparing my business to a retail or restaurant business is comparing apples to oranges. I love to cook for people, but there is no way I'd even think about opening a restaurant.

CD

 

[caseydog]

We regularly agree to cancellation charges when it’s just us two. They are always imposed at good restaurants where there are only one or two seatings and at good restaurants where there are multi course prix fixe menus. And now sometimes just at regular higher end places.

We know about it, agree to it, and cancel if we must.

Then there are very high end places that make you pay for the whole dinner in advance. We have done that, too.

With homes in Boston and on Cape Cod, I'm guessing a $250 cancelation fee is not going hurt you? Sounds like you go to some pretty exclusive restaurants, too.

However, for many people, a $50 cancellation fee does hurt. That's a week's worth of gas for their car. What was supposed to be a special anniversary dinner at a nice restaurant, has turned into caring for a sick kid, and getting dinked for fifty bucks.

Also, if one cancels because they just changed their mind, and decided to do something else, that's one thing. If they cancelled because their kid came down with the flu, that's another thing entirely.

Owning any business involves risks. Profits are not guaranteed. It seems to me that any business plan for opening restaurant needs to figure in cancelations and no-shows.

CD

 

[dragnlaw]

Basically, comparing my business to a retail or restaurant business is comparing apples to oranges. I love to cook for people, but there is no way I'd even think about opening a restaurant.

CD

I hear you and understand. So you are compensated and paid whether or not the car is there. Wouldn't you call that the same for a restauranter but in reverse? He's not paid if the customer doesn't turn up.

When friends come over for a meal they'd often always say I should open a restaurant. I cook for pleasure and know for sure I couldn't take the pressure of cooking on demand. Would be the shortest lived restaurant in history.
I go to someone house and they'll suddenly say - oh stay for a meal - and 15-30 minutes later a linner would be on the table. And beautifully presented.
I can't do that! They get a P&J sandwich.

 

[caseydog]

I hear you and understand. So you are compensated and paid whether or not the car is there. Wouldn't you call that the same for a restauranter but in reverse? He's not paid if the customer doesn't turn up.

He also didn't pay airfare to fly across the country, and pay to stay in a hotel, and pay for a rental car to get to somebody's house to cook dinner for them, only to find out they aren't home.

Like I said, it's apples and oranges.

CD

 

[dragnlaw]

Edit to add
But you did pay the rent/tax on your building. You were expecting to earn on the photo's, which you don't if the customer didn't turn up.

LOL - guess the cows will be coming home soon!