The frustrating act of no-showing has far-reaching effects for the financial stability of restaurants. Aside from inhibiting the experiences of potential clients that would have shown up, no-shows can cut into profits faster than businesses realize. Given that the average profit margin of a restaurant is 3%-5%, a half dozen no-shows in a small restaurant could mean a 5% income loss. According to OpenTable, 28% of diners in America say they have not shown up for a reservation in the past year.
The reservation network had already made systems changes to aid businesses in handling no-shows by allowing customers to change and cancel their reservations online, but its new campaign will do even more.
The network announced its “Show Up for Restaurants” campaign to unveil two new features for restaurants, among other updates. The first will be a new “potential no-show” label for customers that only businesses will be able to see; data will be compiled from their reservation activity to constitute the label. The second is a new four strikes policy under which customers who no-show four times will be subsequently suspended. Other updates are reported to include: email and text reminders, prepaid experiences, availability alerts, customizable cancellation policies, and credit card holds.
These new functions will help restaurants both get ahead of potential no-show situations and limit their exposure to multiple-time offenders.
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