Buzz
Pre-booking tables is becoming a favored trend, especially among young diners. It's also one of the top 5 commonly offered services by restaurants nowadays.
Advance table reservations bring numerous benefits to restaurants, notably deep customer care and silent revenue escalation. However, despite reaping many benefits from advance bookings, many restaurants still worry, 'Will there be last-minute cancellations?'
So, how can we minimize the risk of last-minute cancellations or no-shows without prior notice? Follow PasGo Team's comprehensive guide on 'Dealing with Customer Table Reservations and Cancellations' below!
1. Establishing Reliable Confirmations between Restaurant and Customers
Consider 'pre-booking' as a business commitment!
As such, both parties will need to have 'bindings.' Depending on the extent of influence of that business deal, restaurants flexibly confirm the level of trustworthiness between the two sides. This not only creates a 'binding' with customers regarding commitment to honor agreements but also demonstrates the professionalism of the restaurant in business.
It could be a formal written contract establishing the rights and obligations of each party. Or it could also be messages, dialogues about presenting and finalizing requests,... Typically, only loyal customers of the restaurant should be allowed to make pre-bookings via phone calls or messages, and this approach should only be applied when booking with a small scale (e.g., less than 10 people or less than 3 million VND,...)
2. Allocating Responsibilities into Specific Fees
Understanding 'pre-booking' as a business deal, the crucial thing is to ensure 'fair play.'
When establishing pre-booking agreements, whether through phone calls, text messages, or legal contract documents, both the restaurant and the customer should agree to allocate responsibilities into a specific fee, which is the deposit amount.
Typically, restaurants will require a deposit of about 10 - 20% of the total value of the event. This can be understood as compensation for the 'risk' to the restaurant in case of customer cancellations or no-shows. This amount will help the restaurant partially offset the cost of purchased food and other preparatory expenses if any.
In general, when bound by certain rights and 'losses,' customers will have to carefully consider the extent of damage before deciding to cancel their reservation or not show up.
Conversely, due to the nature of 'fair play,' you also need to understand that if, for any reason, the restaurant cannot serve the customers the banquet they have booked, the restaurant will also incur an equivalent fee as compensation for the customers.
3. 'Implicit Reminders' through phone calls, text messages
To ensure customers do not 'forget' the reservation date and time, or to dispel customers' intention to cancel their reservation, the restaurant needs to have a procedure for 'reminding' customers of their reservation. This procedure usually ranges from 1 - 2 times, depending on the scale of the reservation or the actual situation.
Typically, one to two days before the reservation time, restaurant staff will call customers to confirm their attendance. Making these calls helps customers remember that they have made a reservation and will be there at a specific date and time.
Additionally, calling to 'remind' customers of their reservation date is also an opportunity for your restaurant to demonstrate professional customer care by inquiring if customers have any additional requests, such as: needing a high chair, requiring a VAT invoice, etc.
For large party bookings, restaurants can also utilize SMS confirmation. Or add at least one more confirmation before the customer's arrival time, about 2 - 4 hours prior. All customers highly value such professional care services.
4. Accepting Delay within an Allowable Range
30 minutes is the time frame a restaurant can consider to hold a table for guests, allowing them to arrive late or before they decide to cancel their reservation.
Guests may encounter traffic jams, roadblocks, emergencies, or unexpected commitments,... Accepting this delay is seen as necessary support and goodwill, adding to the restaurant's customer care service. If a guest cancels the reservation, don't forget to suggest rescheduling to another time.
Canceling a reservation means the guest accepts losing the initial deposit. Create optimal services to attract guests back, or accept late arrivals if they have committed to coming. This is not only a smart managerial approach in customer care but also an effective restaurant business strategy to retain loyal customers and attract potential ones.
5. Always Have Contingency Plans Ready
Many restaurants accept advance bookings exceeding the restaurant's serving capacity, with the mindset of 'subtracting losses' from customers who cancel or no-show.
However, this is quite risky and requires careful consideration of the ability to serve, especially on weekends or holidays, to arrange suitable advance bookings.
Always have contingency plans ready in case of overload risks such as lack of tables, food ingredients, staff shortages,...
Conversely, also consider situations of low customer turnout, where implementing discount programs may be necessary to stimulate consumer demand.
In summary, any instances of customers making reservations and then canceling or not showing up without prior notice will result in losses for the restaurant, whether small or large. Apart from reducing revenue, it also affects the organization and operation of various departments within the restaurant, including both work activities and employee morale.
Therefore, as a manager or restaurant owner, it is crucial to implement measures to minimize the occurrence of customer cancellations or no-shows.
Wishing you success in your restaurant business,
Best regards,
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Reference: Hoteljob
