Vancouver restaurant fed up with no-shows, charges $10 reservation fee per person

No-shows have long been a major frustration in the restaurant business and, while some restaurants have cancellation fees for larger groups, one Vancouver eatery is taking it a step further.

Cacao Vancouver, in Kitsilano, has started charging a $10-per-person reservation fee up front, because too many customers were backing out at the last minute. Less busy hours, such as before 7 p.m., are still free to reserve. 

"The $10 is basically to hold your seat and secure that you are coming in," said Jefferson Alvarez, co-owner of Cacao. "It's not much but it gives you a sense of responsibility."  

The restaurant tracked reservations for a year before bringing in the new policy and found that between 50 to 60 per cent of reservations were no-shows or cancelled at the last minute.

For a small 25-seat restaurant, even a couple tables of no-shows hurt financially.

"The average check is $100 a head so if you don't show up, if four people don't show up, that's $400," he told Michelle Eliot, the guest host of CBC's .

He started implementing the fee in February.

The  $85 seven-course tasting menu, which requires significant work and preparation, has to be paid in full beforehand.

Tough but worth it

Alvarez said it's been a challenge bringing in a new policy like this but, in general, customers understand why and it has helped reduce food waste in the restaurant.  

"It's tough, especially when you are the only one in the city doing it," he said. "But it will be good for us and hopefully the future of the restaurant business in Vancouver."

Customers who don't want to pay beforehand? They can show up and wait in line for a table, Alvarez pointed out.

So far, he said, the policy has been worth it.

"This year Valentine's was a success — zero no shows, zero cancellations. It was perfect," Alvarez said.  

With files from The Early Edition.