Here at Access, we help businesses successfully reduce the number of no-shows in their business. In this article, our sector specialists reveal their top 8 ways for preventing no-shows, as well as some tips for mitigating the damage of those that do occur.
Read on to find out how your teams can handle no-shows effectively.
Why do no-shows happen?
The key to combatting no-shows is to understand why they happen in the first place.
In the UK alone, one in seven customers fails to show up without informing the venue, and their reasons range from traffic delays and changes of plans (19%), to emergencies, and sometimes an intentional disregard for the reservation (13%). Other commonly reported explanations are customers being put off by the weather (14%) or simply forgetting about their booking (16%).
But what's surprising in this study, is that 70% of consumers understand that no-shows have an impact on a restaurant’s financial health, yet they still seem not to be motivated enough to update the venue about their change of plans.
The impact of no-shows
Before we provide you with strategies to tackle no-shows, let's talk about their consequences and how they impact your business.
The biggest impact on a restaurant of a no-show is lost revenue. In a recent study conducted in 2023, it was reported that no-shows cost the average restaurant £1,325 in just two months - a number, that can come to a devastating sum over the course of a year.
But the negative impact of no-shows extends beyond financial losses.
A fully booked restaurant means that you're thoroughly staffed, and your employees are ready to accommodate the expected number of covers, leaving you potentially with too many staff on shift.
Your back-of-house might have already started planning their food orders and supplies, so if a substantial number of guests never appear, you're left with excess food and potential waste.
And while the impact might feel devastating, the good news is, there’s plenty you can do about it.
Tried and best ways to tackle restaurant no-shows
Check out these top tips directly from our sector specialist teams on how you can reduce no-shows in your venues.
1. Send friendly reminders
Good, friendly communications are an integral part of the engagement process. Did you know that 13% of customers who didn't show up for their booking blame the venue for not reminding them?
Sending reminder texts to customers 24-48 hours before the visit, where they simply reply YES or NO to confirm their booking, is a friendly way of engaging with bookers and reminding them that they have made the reservation and you’re expecting them to turn up.
Giving diners the option to cancel at this time can help minimise restaurant no-shows (Access Collins automatically sends reminders, and you can access, review, and edit your automated booking communications).
2. Request a deposit
Thinking about ways to tackle restaurant no-shows begs the question: should you implement a restaurant deposit policy?
A small deposit per person, taken off the total of a customer’s bill, or kept if the party doesn’t turn up, can be a deterrent to some. To avoid disgruntled customers, the best approach is to be upfront about why you have policies in place and how they ultimately benefit the booker.
If you’re worried about this method putting your guests off, try testing this strategy on weekends or busy periods only or for larger group bookings.
3. Charge a no-show and last-minute cancellation fee
If taking a deposit is not a strategy you're ready to introduce, consider requesting credit card information from guests during the booking process to cement a reservation and remind customers that their booking is binding.
A card authentication system is a secure, mobile-friendly way to secure a reservation, with a one-click redeem button to pull the authenticated money from the customer’s account for an unexplained ‘no-show’ or late cancellation.
Your cancellation policy should include a time frame in which your guests can still cancel free of charge and clearly state the fees applied for no-shows. Consider allowing some flexibility for emergencies or other reasons for needing to cancel.
4. Utilise Reserve with Google
Another useful tool for reducing no-shows in your restaurant is Reserve with Google.
Why do we love Reserve with Google? Because it automatically sends reminders to guests about their upcoming reservations and delivers them via email, SMS and calendar notifications on top of your automated emails. Your diners no longer need to rely on a booking confirmation email that got lost in their inbox. Reserve with Google ensures that guests have multiple reminders about their reservations, which can help those guests who keep forgetting about their bookings.
In addition to facilitating reservations, Reserve with Google can take deposits and pre-payments at the point of booking, adding an extra layer of security and reducing the likelihood of no-shows.
5. Consider ticketing
Ticketing your events or special nights, similar to paying upfront for flights, football matches, and theatre, is another effective approach to combatting restaurant no-shows.
Non-refundable ticketing can be particularly advantageous for special events or popular dates and times, like match days or holidays when your restaurant or pub experiences high demand and increased foot traffic. Ticket purchases in advance not only encourage diners to honour their reservation (or lose their money should they decide to bail), but it can also help minimise the number of undecided guests - such as that 13% of diners who book a few venues for the same time and spontaneously choose which one to dine in.
6. Build loyalty with your guests
Customers who feel like they have a connection with you and your venue are more likely to honour their booking.
Building loyalty with your diners not only helps generate a regular revenue stream but can also help combat no-shows, especially among those of 18 to 34 years, who stay spontaneous in their trips out and are more likely to change plans at the last minute. You might want to consider instead how to reengage these guests to build a longer-lasting relationship, such as by offering an alternative booking date.
Loyalty schemes can help to foster and deepen the relationship between the customer and your business and therefore decrease the likelihood of guests not turning up.
7. Make cancellations simple
Cancelling a reservation should be as easy as it is to make one in the first place. By providing guests with a smooth experience when cancelling, you not only demonstrate respect for their time but ultimately protect yourself - gaining time to fill the potential empty tables.
One of the easiest ways to simplify cancellation is by using an online booking system which allows guests to cancel their booking through a link on their confirmation email. Make sure that your guests can easily find the link to cancel and that it's accessible 24/7.
You may also want to introduce a last-minute cancellation fee. You’ll need to communicate your cancellation policy on your website, and booking platform and include it in your reservation confirmation emails, so your guests understand the consequences of no-shows or late cancellations.
8. Invest in an intuitive reservations system
No-shows are a continual problem for restaurants, costing the sector as much as £18 billion a year. An online reservation system can help to simplify the booking process and automate processes to significantly reduce the number of no-shows you get.
Online restaurant reservation systems can play an integral role in the entire booking process, from collecting information and payment details to prompting further engagement to build up genuine excitement.
With the right tools, a restaurant or pub can even allow customers to pre-order from a set menu once they have their reservation details. This not only helps the kitchen to better manage stock but builds anticipation for the mouth-watering food the diner will be eating, which in turn helps cement that crucial relationship between reservation and restaurant.
An online booking system makes it easier for restaurants, pubs, bars, and other hospitality venues to manage reservations and comes with several advantages, as well as disadvantages, which we covered in this article: Advantages and Disadvantages of Online Reservation Systems.
How to handle no-shows that have already occurred?
No-shows might be inevitable in the restaurant industry and implementing the tips above and leveraging an intuitive booking system can go a long way in preventing them. However, if you still encounter a no-show, what should you do to protect your business?
Advertise last-minute availability
Take advantage of your CRM and social media channels to announce last-minute openings to fill empty tables and minimise revenue loss due to no-shows or cancellations. If you have a restaurant app or online booking system, send push notifications to users who have opted in to receive notifications.
Use a virtual waitlist
Fill the no-show tables more quickly with a virtual waitlist.
A virtual waitline, such as Collins LiveWait, effectively helps minimise the impact of no-shows and last-minute cancellations. Guests, who opted for alerts, receive a notification when a table becomes available with an accurate up-to-the-minute update on their wait time and can remove themselves from the virtual queue, all without any manual actions from your staff.
Follow up
Even when the customer doesn't show up, you can still try to get them back with a follow-up communication.
Get in touch with the customer through a follow-up communication and send a light-hearted message like, “We missed you at dinner last night and would love to see you sometime soon!''. You can even include a link to your reservation page to make it easier for them to schedule their next visit.
Track your frequent no-shows
Track and monitor guests who frequently cancel their reservations or cause financial harm to your business.
By analysing reservation history, you'll be able to understand which guests are more likely to bail based on how many times they haven't honoured their reservation. You can keep a simple record of guest no-shows (in Excel, for example) or utilise your booking system- by filtering and labelling regular offenders.
Although blacklisting customers should be a last resort, it can protect your business and resources. You probably don't want to ban your guests, but knowing what to expect can be helpful.
Ready to make no-shows a problem of the past?
In this article, we've looked at some of the practical ways you can start reducing no-shows in your venues.
Take action by staying proactive, establishing a clear cancellation policy, prompting re-confirmation, holding credit card details or securing deposits and tracking repetitive offenders. In addition, invest in a robust booking system to not only ensure that covers are maximised throughout the whole evening, but to gain insights into data and save hundreds of hours for your staff.
We have decades of experience delivering management solutions and providing support to restaurants. If you’re interested in taking the next step in tackling no-shows, then get in touch with our team to discuss how an online booking system can help you manage bookings more easily and simplify the process for your guests.
