more restaurants are charging no-show fees. some cost as much as dinner

no-shows are a “massive” problem for restaurants, with as many as one in five diners in big cities failing to turn up for their reservations. the ripple effect can have devastating effects on an already struggling industry , and, as a new study by mandoe media shows, restaurants are fighting back by charging fees for missed reservations — and sometimes they cost as much as dinner.

the one-michelin-star kaiseki yu-zen hashimoto in toronto charges $350 per person — the cost of an eight-course dinner — for no-shows and same-day cancellations. the restaurant is temporarily closed for renovations and hasn’t responded to the national post’s request for comment. however, given that kaiseki yu-zen hashimoto serves only three tables a night and has one seating per table, the impact no-shows could have on revenue, staffing and food waste is clear.

no-shows are a growing trend in the hospitality industry. research by zonal and cga found that the number of u.k. bar, pub and restaurant no-shows doubled in 2023. restaurants were hardest hit, with more than a quarter (27 per cent) of patrons missing their reservations, costing the industry 17.59 billion pounds ($31 billion) per year, not including staff costs and the value of wasted food. in the u.s., an opentable report found that roughly the same number of americans (28 per cent) skipped out on a reservation in 2021.

“have you ever had a 20 top no show on a friday night in a 50 seat restaurant? it’s devastating for the numbers,” reddit user cassius wright commented on a thread about restaurant owners charging for no-shows in february.

according to the mandoe report, 95 per cent of the world’s top restaurants charge fees for missed reservations. while charging for cancellations and no-shows at michelin-starred restaurants has long been the status quo, independent spots are starting to do the same as the trend grows. the number of restaurants on resy that charged at least one cancellation fee more than quadrupled from 2019 to 2024, the wall street journal reports .

erica hall, a general manager and co-owner of chino grande in brooklyn, told the new york times that she noticed an increase in no-shows after the government relaxed pandemic restrictions in early 2022. as a countermeasure, chino grande started charging $20 per person for missed reservations, and no-shows dropped by 90 per cent. “late cancellations still happen regularly, but people tend to call or email to let us know” so they don’t get charged, hall said — “which is great.”

cancellation fees can sometimes apply well in advance of the booking. for example, at ultraviolet by paul pairet , a 10-seat, secret-location restaurant in shanghai, dinners start at roughly $900 per person with a 50 per cent deposit. if you cancel a regular booked date within 30 days, it costs 25 per cent of the deposit; within 15 days, 50 per cent and within seven days, 100 per cent.

as paul foster, owner of salt in stratford-upon-avon, told mandoe, no-shows and late cancellations are “dead money,” saying, “with that table being open, food has been ordered, prep has begun and staff have been scheduled.”

lindsay brennan of montreal restaurants tinc set and alma agrees with no-show fees, telling the gazette last september that charging penalties weeds out unserious diners. “when someone reserves and is aware there’s a cancellation fee, they think twice about reserving, and you really get to target people who are truly interested in your restaurant.”

no-show and cancellation fees may make sense for restaurants, but prospective diners aren’t always happy to pay them. in february, a $250 cancellation fee at table restaurant in boston sparked debate and resulted in chef-owner jen royle “ getting bombarded with death threats .”