Dubai: Restaurants charge up to Dh300 for no-show

Dubai - Restaurant owners told Khaleej Times it is common practice to take credit card details from customers once they have made bookings, in the event of a no-show.

Restaurants are cracking down on patrons who fail to show up after booking reservations by charging up to Dh300 per guest.

Restaurateurs in Dubai have said the pre-existing policy had to re-enforced as new Covid-19 restrictions limit capacity at outlets to 50 per cent, suspend brunches and close by 1am.

Restaurant owners told Khaleej Times it is common practice to take credit card details from customers once they have made bookings, in the event of a no-show. Nicolas Budzynski, global operations director of French restaurant LPM, said: “The practice is not new. We have had it in place since we opened in Dubai 11 years ago. It is also standard practice in cities like London, where our restaurants are originally from.”

However, the current regulations are forcing restaurants like LPM to strictly reinforce the policy as guests making last-minute cancellations or not turning up at all can affect restaurant reputation and revenue. Budzynski said LPM only takes credit card information from patrons who have made a booking for a table of four or above. Guests who do not turn up or make a last-minute cancellation may be fined a penalty of Dh200 per person.

Budzynski explained: “However, if the table is taken by other guests, we do not charge for it. We believe there is a much higher commitment when people provide their credit card details. The number of no-shows is relatively lesser. A no-show is different because they did not let us know that they will not be able to make it.”

Other restaurants in Dubai have also adopted a similar approach to ensure guest commitment. Japanese restaurant Zuma is asking for credit card details if the booking was for seven or more people. In that case, guests who did not turn up faced a charge of Dh300 per person or Dh120 for last-minute cancellations.

Peruvian venue Coya charged Dh100 per person for no shows and late cancellations if the group was just two or three guests and went up to Dh200 per person for larger groups. Fees were waived if the restaurant was notified at least 24 hours in advance. Greek diner Opa could expect to be charged Dh80 if they did not cancel by 3pm on the day of their booking. If they failed to show up at all that fee would be Dh120.

However, not all restaurants are adopting the fine for no-show approach. Naim Maadad, chief executive of Gates Hospitality, said: “Our approach has been to hold the table reservations for 30 minutes from the time of reservation and then have it released for other guests. However, for special occasions like Christmas, New Year Gala Dinner, high calibre celebrity chef events, we have the facility of pre-booking the table with an advance down payment well ahead of the event date.”

He said this has been found to be a viable method for exclusive event dates and successful for specific events only. “But unfortunately, this would not work for all days as it works well in othercountries and international markets” said Maadad.

Rebecca Da Silva, food and beverages director at il Passaggio, said: “Having worked in the industry for many years, I have seen the impact “no show reservations” can have on a business and recent studies have shown that this costs the industry millions per year.”

Pressure on business is more as revenue is less

Popular restaurants have seen high demand amid the pandemic, however, there is less inventory to sell, said Nicolas Budzynski, global operations director of French restaurant LPM. “October to January were great months as many ultra-luxury travellers coming to the UAE. Even after December 2020, people in Dubai stayed back,” he explained.

Budzynski also said unlike other restaurants, LPM did not sack staff amid the restrictions last year. “When the emirate reopened, business bounced back, and operators realised that the cost of termination and rehire is very high. We are one of the ofew high-end restaurants in Dubai that did not terminate our staff,” he added.

“Also, we respect the restrictions set by the government. What we request our patrols is to come on time and let us know when you don’t come. We ask them to respect the rules as the economic pressure is very high and we have jobs we need to secure,” said Budzynski.

Naim Maadad, chief executive of Gates Hospitality, said: “As the flight restrictions are still stringent and this makes it challenging for people to travel out with ease, this has made a positive impact on the food and beverage business. How the Q2 and Q3 business pans out will depend on how international travel restrictions ease out in the times ahead. Fingers crossed – all have sustained well till now and hopeful for the future too as the vaccination drive surges ahead.”

Rebecca Da Silva, food and beverages director at il Passaggio, added: “I also think it is our responsibility as hospitality professionals to help educate customers on how “no shows” affect business. I honestly believe customers just don’t know the effect it has on businesses and if they did, they would think twice about not showing for a reservation.”

dhanusha@khaleejtimes.com

• Dubai