‘Monumental shift’ in reservation no-shows stings eateries

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This article was published 07/06/2024 (483 days ago), so information in it may no longer be current.

At some local eateries, a reservation now requires a credit card.

Take one of the Fairmont Winnipeg’s fine-dining experiences: customers wanting to watch an animated chef projected on their tables “cook” — and eat a corresponding meal — must pay a $20 security deposit.

“The show won’t be nice if the room is empty,” noted Mikhael Almari, Fairmont Winnipeg’s food and beverage director.

The special dinner — which is called “Le petit chef” — is an outlier among the Fairmont Winnipeg’s food offerings. Normally, the hotel doesn’t ask for payment pre-restaurant visit.

But conversations about taking such credit card information or deposits in advance of meals are increasingly happening, according to the Manitoba Restaurant & Foodservices Association.

They come amid a post-COVID-19 pandemic spike in people not showing up for reservations, said Shaun Jeffrey, association executive director.

“We’ve seen a monumental shift,” Jeffrey said. “It’s not fair to our customers that are waiting to grab a seat on a busy evening to have empty tables because of this.”

He said the organization hasn’t clocked a large jump in restaurants asking for credit card information while booking reservations. However, it’s on entrepreneurs’ minds.

The Oval Room Brasserie in the Fort Garry Hotel and Corydon Avenue restaurant Passero are among the Winnipeg businesses asking for credit card numbers upon reservation.

In the Oval Room Brasserie’s case, authorization forms are emailed to groups containing at least seven customers and no-shows are charged, an employee confirmed.

“I’m not saying it’s right or wrong. I’m just saying it’s taking the industry in a different direction,” said Ray Louie, general manager of the Gates on Roblin.

Louie debated whether to charge such a cancellation fee in January, after 33 bookings were cancelled in one day.

Ultimately, he decided against the practice. He hasn’t had any no-show issues since posting on social media and speaking to media, Louie added.

However, he’s noticed more fine-dining restaurants asking for pre-payment or credit card numbers, especially around big events like Mother’s Day brunch.

Meanwhile, Louie believes the goodwill restaurants experienced during the pandemic — when consumers focused on shopping local — has dwindled.

Louie blames widespread tip fatigue and misconceptions about eateries’ profit margins.

“Restaurants carry the burden of the empty seats,” stated Kristjan Kristjansson, president of Brazen Hall.

“Restaurants carry the burden of the empty seats.”–Kristjan Kristjansson, president of Brazen Hall

The Pembina Highway hub doesn’t take credit card numbers prior to reservation but the debate has come up “many times,” Kristjansson said.

Brazen Hall’s business model aligns with fewer reservations and a casual atmosphere — usually, it limits pre-bookings to 25 per cent of its space and no more than 16 guests per group, with exceptions.

People who don’t show up to their reservations are flagged in the restaurant’s system, even though they haven’t given credit card information, Kristjansson said.

Patrons book through an online portal; if they don’t show up three times, they’re not getting another reservation.

As a customer, giving credit card information can be “a headache,” Kristjansson said. It can also be a deterrent.

“It’s very simple: (the debate is) really about the risk of loss of business.”

Restaurants industry-wide are facing challenges in staffing, training and obtaining financial support from banks. Insurance, taxes and operating costs have skyrocketed over the past few years, Kristjansson said.

“I am absolutely shocked at how resilient Manitoba businesses have been,” he said, adding eateries are extra-sensitive to losing customers.

The Fairmont Winnipeg made a special case for pre-payment — through a third party, so the hotel doesn’t see the credit card information — at “Le petit chef,” because the dinner is akin to a show, Almari said.

He underscored how people pay for seats at movie theatres ahead of time. The deposit didn’t stop people from attending “Le petit chef”: the dinner sold out consistently last winter and is returning in September.

Pre-payment is found in other corners of the hospitality industry, including hotels, car rentals and spas.

The Fairmont Winnipeg typically doesn’t experience no-shows, Almari continued. However, staff phone customers a day or two before their seating to confirm reservations.

Sometimes, people forget they’d made plans, Almari said.

Sometimes, people book seats at several restaurants, choosing one and not cancelling at the others, alleged Kristjansson and Christina Tennis, a server at Colosseo Ristorante Italiano on Corydon Avenue.

Colosseo began taking credit card numbers but has likely stopped; the practice didn’t seem to halt the no-shows, Tennis said.

“Why people don’t call or whatnot, it’s beyond me,” she commented, noting with frustration the time and staff needed to prepare for reservations.

Tennis has counted an uptick in no-shows since the COVID-19 pandemic. Kristjansson said he noticed it pre-pandemic, when large online groups like book clubs would reserve space and few people would come.

Almari has worked at the Fairmont Chateau Lake Louise (Alberta) and a Fairmont in Dubai. Both facilities asked for pre-payments for different restaurant experiences, like the popular afternoon tea at Lake Louise, he said.

gabrielle.piche@winnipegfreepress.com