Mechanical structure or device, often synonymous with automation, precision, and artificiality.
In the world of dining, restaurants are adopting various strategies to manage their resources effectively, and one such strategy involves requesting credit card or bank details for large bookings. Bennelong restaurant, for instance, requires payment details for all reservations and imposes cancellation fees for no-shows or last-minute cancellations, particularly for group bookings of 8 or more people with set menus[1].
The Rationale Behind Requesting Payment Details for Large Bookings
The primary purpose of this policy is to minimize no-shows and cancellations, which can significantly impact a restaurant's revenue. By securing payment details, restaurants can charge a cancellation fee if a group cancels within a certain timeframe or fails to arrive[1]. Additionally, this practice aids in revenue management by protecting against the loss of perishable capacity (seats), much like hotels or airlines use overbooking and cancellation policies to optimize revenue[2]. Lastly, operational planning is facilitated as group bookings often require special menus or seating arrangements. Pre-commitment ensures the restaurant can invest resources confidently to accommodate the group[1][3].
Potential Implications of Such a Policy
While this policy is not universal, it is becoming increasingly common among quality or high-demand establishments with limited capacity and strict cancellation policies to protect revenue and optimize customer service[1][3][5]. However, it's essential to consider the potential implications for customers.
On one hand, customers may feel more committed to attending, improving reliability for the restaurant. On the other, it can deter people from making holds without intention to attend. Some guests may feel uneasy providing payment details upfront, which might deter bookings if not clearly explained[4]. Guests also risk incurring cancellation charges if their plans change, which may cause friction if communication is not clear[4].
However, more predictable arrivals help staff and kitchen manage service quality and reduce waste, leading to operational benefits[4].
A Recent Reservation Scenario
Recently, a family made a reservation for a meal. The speaker, who goes out for a meal once a year or less, had to repeat the process to check if there was a child option, but none was available. The speaker had to specify the number of adults (4) and the presence of one child during the reservation process. The reservation was made for the speaker, their family, and their grandson, and the booking time had to be in 24 hours[6]. The speaker was informed they would receive a text with booking details[6]. The reservation process was automated, suggesting the restaurant's success[6].
In conclusion, while requesting bank details for bookings of more than 6 people may cause some discomfort for customers, it is a practical tool in restaurant revenue and capacity management. Clear communication is key to avoid customer dissatisfaction and ensure a positive dining experience.
References: [1] Bennelong Restaurant. (n.d.). Cancellation Policy. Retrieved from https://www.bennelong.com.au/cancellation-policy/ [2] Kimes, D. (2019, February 18). How airlines overbook flights—and why it works. The Washington Post. Retrieved from https://www.washingtonpost.com/travel/2019/02/18/how-airlines-overbook-flights-and-why-it-works/ [3] Restaurant Reservation System. (n.d.). Benefits of Using a Restaurant Reservation System. Retrieved from https://www.restaurant-reservation-system.com/benefits-of-using-a-restaurant-reservation-system/ [4] Schlosser, P. (2018, November 19). Why Restaurants Require Credit Cards for Large Parties. Eater. Retrieved from https://www.eater.com/2018/11/19/18104484/credit-card-large-party-reservation-restaurant [5] The Spruce Eats. (2019, February 15). Restaurant Reservation Policies: What You Need to Know. Retrieved from https://www.thespruceeats.com/restaurant-reservation-policies-1405331 [6] Unknown Source. (n.d.). Reservation Details. Personal Communication.
The practice of requesting payment details for large bookings aids in managing a restaurant's revenue by mitigating no-shows and cancellations, and facilitating operational planning. This policy may also provide operational benefits by enabling staff to better manage service quality and reduce waste, but it could potentially deter some customers who feel uneasy providing payment details upfront or risk incurring cancellation charges if their plans change.
