Reservation no-shows prove costly for restaurants after coronavirus shutdown

Patrons failing to turn up for reservations has become a costly challenge for restaurants since coronavirus restrictions were eased forcing some businesses to change how they operate.

Ben Siderowitz The Corner House Bondi

Ben Siderowitz, owner of Bondi restaurant The Corner Shop, has pivoted his restaurant to a pre-paid model to adapt to changing coronavirus restrictions. Source: Supplied

Eased coronavirus restrictions have allowed Australian restaurants to open their doors once again, but reduced patronage limits have created another challenge for business owners.

With current restrictions only allowing as many as 10 dine-in customers, no shows have become a costly issue.

Sydney cocktail bar owner Aref Jaroudy experienced first hand the financial burden caused by customers failing to show.

Mr Jaroudy runs Low 302 in the inner-city suburb of Surry Hills and couldn’t wait to open his doors when the NSW government eased restrictions.
Aref Jaroudy Low 32
Owner of Surry Hills restaurant Low 32, Aref Laroudy, took to Facebook after a reservation no-show proved costly. Source: Supplied
But he was immediately disheartened when a group of four didn’t show for a reservation.

“Any no-show puts a hole in the turnover of that night, so financially it makes it very difficult,” Mr Jaroudy said.

“So if we've got 10 people, four don't turn up for a sitting, that's 40 per cent of the trade that we've lost.”

The Low 32 owner took to Facebook to share his frustrations in a passionate post calling out the offending customer.

"You have single-handedly set the worst of precedents for our entire industry at this most difficult time," the Facebook post said.

The post went viral and caught the attention of restaurant owners around the country.

Mr Jaroudy said no-shows affect more than just the people running the restaurant.

“It is very disappointing for the staff so there's a morale thing there as well,” Mr Jaroudy said.

“They've done everything to come back in, get the place going, set up the menu, set up the floor and figure it all out.

“I have now been forced to ask bookings to leave a deposit when making a reservation which was something we wanted to avoid.”

New Rules

Restaurant and Catering Australia chief executive Wes Lambert said many restaurants have taken the step of asking for a deposit from customers when they make a booking.

“So pre-COVID, it was very common to make multiple bookings on a Thursday, Friday or Saturday night and then make your mind up as the night got closer,” he said.

“Until the restrictions are eased on a council, state and federal level, it is very important that consumer behaviour is altered just a bit. 

“We all have to feel a bit of pain and that pain is don't make a booking that you're not going to turn up for.

"We have told our member basis, as well as the industry in total, that it is okay to charge a booking fee for no shows. It's very common in many industries, and those seats are in high demand and low supply."
Luke Mangan
Celebrity chef Luke Mangan's Luke's Kitchen restaurant has reopened only offering patrons a pre-paid set menu in response to social distancing restrictions Source: Getty Images
Celebrity chef Luke Mangan has taken a different approach when reopening his Luke’s Kitchen restaurant in the Sydney suburb of Waterloo. 

The restaurant offers only a set-menu which must be pre-paid by customers before their reservation.

He said the coronavirus shutdown has given the restaurant industry an opportunity to shake-up its traditional business model.

“Basically our hospitality industry has a clean sheet of paper and we can do some changes,” Mr Mangan said.

“You book and pay before a flight, you book and pay a hotel room and why can't that happen in a restaurant?"
Further relief is headed the restaurant industry’s way in coming weeks with states and territories to further ease restrictions allowing businesses to open their doors to more customers.

From Saturday 30 May, restaurants in Canberra will be able to seat up to 20 people, while from 1 June 50 people will be able to dine-in at NSW venues, 20 in Victoria and as many as 80 at restaurants in South Australia.

In Queensland, 12 June will be the day when restrictions are eased allowing for 20 people to dine-in at urban restaurants and 50 people at restaurants in the state’s regions. 

Currently cafés, pubs and restaurants in Western Australia are allowed to seat up to 20, while in Tasmania they are limited to 10 people.

Positive Change

At the Bondi restaurant The Corner House, owner Ben Siderowitz says taking payments in advance has helped him create a more immersive and intimate experience for customers.
Ben Siderowitz The Corner House Bondi
Ben Siderowitz, owner of Bondi restaurant The Corner House, has been forced to completely change how his venue operates as result of coronavirus restrictions Source: Supplied
"We, unfortunately, had to shut down, so a lot of places pivoted to takeaway and delivery, it just wasn't viable for us to do that,” he said. 

"Essentially we have flipped the model of a restaurant. A normal restaurant they'd come in, they'd order off the menu, and away you go.

“what we're doing is actually taking the booking and the payment in advance and then we're getting the staff and then we're getting the stock."

Mr Siderowitz said the intimate pre-paid experience has been so popular that diners are booking in a return visit while they're still at the table. 

"They get to come in and they don't have to make any decisions on what to order or where to sit, everything is organised for them and I think part of them appreciates that so they can just come in and enjoy the experience,” he said.

"It's been incredible, so much so that I can't tell you how many people have booked other dates while they're still here enjoying their first experience."

People in Australia must stay at least 1.5 metres away from others. Check your state’s restrictions on gathering limits. Testing for coronavirus is now widely available across Australia.

If you are experiencing cold or flu symptoms, arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.

The federal government's coronavirus tracing app COVIDSafe is available for download from your phone's app store.

SBS is committed to informing Australia’s diverse communities about the latest COVID-19 developments. News and information is available in 63 languages at sbs.com.au/coronavirus.


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By Charlotte Lam, Nick Houghton


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Reservation no-shows prove costly for restaurants after coronavirus shutdown | SBS News