How to reduce restaurant no-shows

No-shows are a growing challenge in hospitality, for both full-service and quick-service restaurants, leaving tables empty in times when every seat counts. It’s not just the revenue loss that stings – it’s the wider impact on operations, staff, and the ability to meet guest expectations. When it comes to tackling restaurant no-shows, having the right strategies in place can make all the difference.

This guide will cover:

• Why no-shows are a problem for restaurants
• Proven strategies to reduce no-shows
• How to create a restaurant cancellation policy
• Optimising operations to reduce no-show impact
• How Dojo can help
• FAQs

The ghosting epidemic: Why no-shows are a problem for restaurants

Financial challenges

Restaurant no-shows are an obvious hit to your bottom line. Every empty seat in your restaurant, cafe or bar represents lost revenue, which is especially challenging for small businesses during peak times when demand is at its highest.

When multiplied over weeks or months, it’s easy to see how the numbers add up. In fact, recent data shows the rate of no-shows has doubled, jumping from 6% in September 2022 to 12% in 2023 [1]. 

That’s led to an estimated £17.59 billion in lost potential sales each year¹. On top of that, research from Barclaycard Payments found that every restaurant no-show costs businesses an average of £89 per customer [2] – no small amount when margins are already tight.

Operational challenges

Behind the scenes, no-shows restaurant reservations create a range of operational challenges. Staff schedules and inventory are carefully planned based on expected reservations, so when diners fail to show up, it can disrupt the flow of service. 

Prepared food may go to waste, while underutilised staff can impact both team morale and overall efficiency.

Customer experience challenges

When a restaurant reservation no-show takes up a booking that could have gone to another customer, it’s not just the business that suffers – it can frustrate loyal diners too. People turned away during busy periods could leave disappointed, or worse, they might not come back at all.

Practical fixes for no-show woes: Proven strategies to reduce no-shows

Deposits and late cancellation fees

One of the most effective ways to tackle no-shows is by securing reservations with deposits or charging late cancellation fees. A no-show fee restaurant policy can ensure you keep up your table turnover without much extra stress. 

In fact, 42% of restaurants already use deposits to reduce no-shows [3]. High-profile examples like Restaurant Gordon Ramsay, which charges a £150 cancellation fee, highlight how these policies can work even at the premium end of the market [4].

Set reminders to confirm bookings

Automated texts and email reminders are an easy way to keep no-show restaurant reservations in check. A quick nudge helps diners remember their reservation and gives them the chance to cancel or reschedule if plans change.

Prepaid experiences

Prepaid menus and ticketed events are a great way to guarantee attendance while creating a sense of exclusivity. By asking diners to pay upfront, you not only secure their commitment but also lock in revenue regardless of restaurant no-shows.

Plenty of restaurants are already thriving with this model – in fact, venues have generated over £7 million in ticket revenue [5]. It’s a proven strategy that works well for special events, seasonal menus, or high-demand services and can mitigate issues caused by restaurant reservation no-shows.

Use a waiting list system

Tools like Dojo Bookings let diners join a virtual queue remotely, get real-time updates, and be notified when a table is ready – a simple way to fill last-minute gaps and keep tables full while enhancing the customer experience.

Make cancellations easier

Streamline your cancellation process by offering online tools or mobile apps that let diners cancel or reschedule their booking with just a few clicks. Adding a direct cancellation link to confirmation emails or texts makes the process even more user-friendly. The easier it is to cancel, the more likely guests are to update their plans, reducing instances of no-show restaurant bookings.

Educate diners on the impact of no-shows

Use your website, booking confirmations, or reminders to explain how no-show in restaurants affects your business – from lost revenue to wasted resources. This transparency can help diners understand the stakes and encourage them to either show up or cancel in advance.

Protect your tables, protect your profits: How to create a restaurant cancellation policy

• A clear cancellation policy can help manage no-show restaurant reservations and set expectations for your customers. Make sure it’s communicated at the time of booking, whether online, over the phone, or in person, and keep the wording simple and clear.
• Include key details like cancellation deadlines (e.g. 24 or 48 hours), fees for late cancellations or no-show restaurant bookings, and any deposit or refund terms
• Display it on your website, booking platforms, and in confirmation emails so customers know what to expect.
• It’s also worth building in some flexibility for emergencies or special circumstances to maintain goodwill while protecting your business.

The strategic approach: Optimising operations to reduce restaurant no-show impact

Overbook strategically

Carefully overbooking during peak times can help offset the impact of restaurant reservation no-show events, but it’s important to balance the risks. Analyse your no-show rates and patterns to avoid overloading your team or disappointing diners if everyone shows up. With the right data, overbooking can be a valuable tool to maintain full tables and steady revenue.

Track guest behaviour to reduce restaurant no-shows

Keeping an eye on guest behaviour and demand trends can make a big difference in managing no-show in restaurants. Spot repeat offenders and consider applying stricter rules, like deposits or extra confirmations, to hold them accountable. 

Demand forecasting can also help you identify seasonal patterns or busy periods, so you can plan ahead with strategies like overbooking or focusing on prepaid reservations to keep your tables full.

Sources

[1]Zonal, "No-shows in hospitality double from 6% to 12% in 2023", Zonal Blog, 2023.

[2]Rob Knight, "One in 20 diners have walked out of a restaurant without paying, according to a study", The Independent, 27 February 2018.

[3]Zonal, "7 Sobering Stats on No-Shows in Pubs and Restaurants", Zonal Blog, 2023.

[4]Gordon Ramsay Restaurants, "Terms and Conditions", Gordon Ramsay Restaurants, 2023.

[5]James Hansen, "Salt Bae’s Nusr-Et London Hits £7 Million in Revenue", Eater London, December 2022.