Britain's restaurants and pubs are experiencing a flood of reservations for the coming weeks and months, after lockdown. This could soon also be the case in Germany, Austria and Switzerland. And guests who do not show up despite reservations could be subject to a no-show fee.
According to the current plan of the British government, restaurants and pubs in England will be allowed to open their outdoor seating on 12 April. From 17 May, indoor visits will also be allowed again. After this announcement, pubs and restaurants in the UK can hardly save themselves from reservation requests. Within a very short time, tens of thousands of reservations have been received.
According to the Daily Mail, restaurant and pub operators are enjoying up to twice as many seat reservations as when they reopened in July last year.
The reason for this, he said, is that people are craving social contact: "Demand has just exploded. People are desperate to meet their friends," Clive Watson, managing director of the City Pub Group, which owns 48 pubs, told the PA news agency. And he adds: "It's getting packed."
Some diners are disappointed because they didn't get a table at their favourite restaurant until some time in the distant future. For example, Twitter user Eastendanni: "It's great that all the pub gardens are opening, but everywhere I've looked the next bookings are for the end of May. Can't wait until we can just walk into pubs without booking."
Not all restaurant operators are happy
While some British pubs are experiencing a rush of bookings, many others are left in the dark. They will not be able to reopen until probably 17 May. The reason: they have no outdoor areas. Only restaurants with outdoor seating are allowed to reopen in April.
Kate Nicholls, chief executive of the UK Hospitality Association, said last week: "There will be no real reopening for much of the sector in April. Nearly 60% of hospitality businesses have no outdoor areas many that do have them only have small spaces."
Reservations could also increase rapidly in Germany, Austria, and Switzerland
So far, the booking rush in German-speaking countries has not materialised. The reason for this, according to the GastroSuisse association, is that there is still no planning certainty for restaurant openings: "Neither the businesses nor the guests can foresee the end of the industry lockdown. Reservations are therefore difficult.
However, it is by no means out of the question that there could also be a rush of guests in Swiss restaurants: "According to various surveys, a large part of the population is in favour of opening up the gastronomy sector. This suggests that the population is looking forward to visiting a restaurant in the hopefully near future. Accordingly, it is possible that the demand for reservations will increase as soon as an end to the industry lockdown is certain," admits Daniela Kimmich, media spokesperson at GastroSuisse, when asked by aleno.
The German Hotel and Restaurant Association DEHOGA sounds a similar note: "At the moment, it is unfortunately still completely unclear when and under what conditions our establishments will be able to open. Basically, we assume that after the long period of deprivation, people's yearning to travel and go out is great. This is also shown by a look at the experiences from the summer."
Despite many reservations, some tables could remain empty
Even with many reservations, turnover in the restaurants is still far from guaranteed. The main problem is the so-called "no shows", as they are called in the industry. In other words, guests who don't show up despite a reservation. Without canceling.
No-shows have become a massive problem for restaurants in recent years. "We often have the case that a guest reserves a table for the same day and time in several of our restaurants for the same number of guests. These people only want to choose one of the reserved restaurants at the last minute - depending on their mood. The tables in the other restaurants remain empty," Michel Péclard, founder of Pumpstation Gastro GmbH with 14 restaurants in Zurich and the surrounding area, tells aleno. A phenomenon that many other restaurant operators also report.
No-shows not only cause frustration, but also cost money: If a blocked table cannot be reassigned at short notice, the owner is left with the costs for staff and food. "If a larger group doesn't show up, there is considerable financial damage that you don't get compensated for," says Peter Stürtz, head of the Hirschgarten restaurant in the woods of Bad Homburg in the Frankfurter Neue Presse.
No-show fee for more fairness
With more reservations, there is also an increased risk that tables will remain empty because the demand from walk-in guests may decrease. The reason is that even after the lockdown it will be difficult to get into a restaurant as a guest without a reservation for the foreseeable future. This is because the Corona protection measures still apply, keeping minimum distances in restaurants. In other words: Fewer tables and thus fewer seats. In addition, restaurants will likely continue to be required to store contact data of their guests for possible contact tracing. Therefore, in many restaurants, nothing works without online reservations. An alternative could be that only guests with proof of a Corona vaccination are granted access to the restaurant.
With limited space, it is even more important for restaurants to ensure that tables are also fully occupied. Reservation systems that allow the charging of a no-show fee thus become virtually a must for catering establishments. Steffanie Heckel, press spokeswoman for the German Hotel and Restaurant Association DEHOGA, tells aleno: "Some restaurateurs had already asked for a deposit or credit card details last year or introduced cancellation fees." The reason is obvious: massive turnover losses due to no-shows are to be avoided. And must be avoided if the restaurant wants to make up for losses of the past months in the long run.
For Switzerland, too, it is to be expected that no-show fees will become established: "In Switzerland, restaurants have so far been rather reluctant to take concrete measures against no-shows. If the problem of no-shows continues to worsen, it can be assumed that a reservation fee will become more and more of an issue, especially in cities or in the upscale gastronomy sector," says the GastroSuisse representative.
Better safe than sorry. As a precaution, make sure that your reservation management system is set up to avoid no shows as much as possible. This means that email addresses are verified for online reservations and automatic reminders are sent to guests before the date. We also recommend that you have guests double confirm that they are coming up to a certain point before the reservation date.
Practical tips to avoid no-show
Better safe than sorry. As a precaution, make sure that your reservation management system is set up to avoid no shows as much as possible. This means that email addresses are verified for online reservations and automatic reminders are sent to guests before the date. We also recommend that you have guests double confirm that they are coming up to a certain point before the reservation date.
A quick tip on no-show fees: It is much cheaper for you as a restaurant operator if you can use your existing system for this. Not every reservation system offers this function. If you work with an acquirer on this list, with aleno the deposit of a credit card by the guest costs you only 0.10 GBP CHF and the charge of a credit card 0.23 GBP. If you have any questions, please contact us.
By the way: How no-shows can be effectively avoided and what else is important for restaurant operators to know after the lockdown, we have compiled in our new eBook.