A third of restaurateurs say a deposit for reservations is a must

While there's clearly a need to manage the financial risks of no-shows, getting customers to pre-pay part of their visit at the time of booking continues to split opinion across the horeca sector in Belgium.

© Hitesh Dewasi / Unsplash

Many restaurateurs now see deposits as a necessary measure. More than a third (34%) consider them the only way to get customers to take a reservation seriously, according to a joint study conducted among 250 hospitality entrepreneurs in Belgium by the cash register and payment platform Lightspeed and the reservation software Zenchef.

These requests are becoming increasingly common, particularly in fine dining establishments. With deposits, managers hope to reduce no-shows and, therefore, revenue losses.

This method nonetheless remains a dilemma for Belgian hospitality industry players. And in practice, nine out of ten restaurateurs (90%) choose not to require a deposit for online reservations. For the simple reason that doing so risks discouraging customers, pushing them toward competitors, and reducing the number of people booking. More than one in two respondents (53%) believe that a deposit could completely deter potential customers.

Proving that the approach is more complex than it appears, the study also shows that 40% of respondents believe their customers are showing greater understanding. But, at the same time, almost as many (39%) believe this is not in line with the professional values of hospitality.

The Business Dilemma of Hospitality

“The hospitality industry faces a real challenge: finding a balance between hospitality and limiting financial risks,” says Emine Youssef, Regional Director for Benelux Hospitality at Lightspeed. “Each entrepreneur must chart their own course, based on the character of their establishment and its clientele.”

For a smaller group (20%), it's even a matter of principle: they find it unfair to ask for payment before any consumption. Especially since the deposit upon reservation is not an absolute guarantee against loss of income.

Conversely, technological options and transparent communication with target audiences would offer a compromise for the Belgian company, the study argues. Integrating these deposits into the booking process in an acceptable manner would be possible and would reduce risks without compromising trust or service quality.

Solutions to the problem of "table deserters" would even open up new opportunities: the automation of confirmations and reminders, for example, help minimize costly no-shows while promoting "more stable management and an improved customer experience," according to Lightspeed and Zenchef.

“In other sectors like cinemas or events, paying in advance is perfectly normal. With smart reservation solutions, restaurateurs can reduce no-shows while still providing a seamless customer experience,” says Edgar Rouwenhorst, Marketing Director at Zenchef. “It’s a win-win.”