What do you think of restaurants taking a credit card to hold a reservation? —Emily S., St. Louis
As a former restaurant owner, I see this issue through a different lens. I understand the reasons why such a policy came about, so I’m likely more accepting than the average patron. At a bare minimum, it helps a restaurant owner gauge that evening’s business; more importantly, it forces the customer to be more responsible when making reservations, which is crucial to the restaurateur. People pay in advance for plane tickets and concerts, so why not a restaurant experience, especially since no shows force owners to cover losses by raising menu prices?
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The policy arose for two reasons: 1. to prevent guests from cancelling reservations at the last minute, and 2. to prevent them from making multiple reservations and just honoring one. The result was the same: a no-show for the restaurant, which (unless there are other guests waiting) translates to revenue that it will never recover. As the saying goes, “Empty tables don’t pay the rent.”
The mechanics of reservations with a credit card work like this: A guest makes a reservation and secures it with a credit card, which isn’t charged (a set fee) unless the party doesn’t show up or doesn’t cancel within the specified cancellation window. (Information on the card is usually encrypted, reducing the possibility of fraud.) As stated above, I take no issue with such a policy, but there are diners who do. Were they to spend an hour examining how much money restaurants lose to no-shows, they might acquiesce.
A corollary to the policy is requiring payment in advance for an entire prix fixe meal. But often, the beverage component has to be reconciled later, or there are incidental charges, creating two transactions instead of one, which is inconvenient for the patron. Some customers perceive this policy as a hindrance because, in many cases, if a reservation can’t be honored (for whatever reason), it is transferrable but not refundable.
When the dining room at Tempus first opened last fall, for example, it adopted this policy, offering three courses at a fixed price (with beverage pairings optional) to help streamline ordering and staffing. The restaurant has since dropped the policy and the coursed mandate. Guests now pick and choose from an a la carte menu.
At Bulrush, Rob Connoley’s innovative restaurant in Midtown, payment has been required in advance since its inception. But in a novel twist, the prices at Bulrush also include tax and gratuity, further streamlining the payment process. “It means you can leave your credit card at home,” Connoley told SLM when the restaurant opened in 2019. “Fewer steps and less paper for us, more convenience for the guest.” At Bulrush, full refunds for cancellations are available until 24 hours prior to the reservation time.
If innovative payment solutions will help keep a restaurant in business, then I’m all in.
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