Nov 30, 2024

Why fine dining restaurants and small seaters have gone the table reservation deposit route

A month or so ago, Chindi Varadarajulu — creative chef and partner at Chennai-based Pumpkin Tales and Zhouyu — received a table reservation for a group of 27 at her Asian restaurant. “It was for a weekday and we discussed the menu, and they pre-ordered their soups and appetisers as well,” says Chindi, adding that they received a reservation enquiry for an even larger group of 45 for the same day, but “we had to turn it down as the former group booked first”. When the day arrived, the whole group cancelled.

“Running a business is not glory, it’s hard work with a lot of overheads. When we take bookings for large groups, more chefs and staff are called in, dishes are prepped, etc. It’s upsetting when people don’t show up,” says Chindi, who has been vocal about the concept of table reservation deposits in India. In fact, she is one of the first to take steps in that direction in Chennai, a city that has not seen restaurants taking to the concept unlike Bengaluru (Farmlore, Homiga) and Mumbai (The Table, Circle Sixty Nine) that have several players charging diners a deposit to book a table.

The reservation desk at Zhouyu’s latest outlet on ECR | Photo Credit: Special Arrangement

“I don’t know why anyone hasn’t introduced it in Chennai; maybe they are nervous. But someone has to do it, and perhaps then they will follow,” says Chindi, who plans to charge larger groups for a deposit (that will be adjusted to their final bill) by early next year, and has tightened existing policies over the last few weeks. “Now, if you book a table with us, you receive a WhatsApp text and SMS with the booking details. A table for four or less people gets a 90-minute slot, and for groups of six and above, it is two hours. If you need more time, you can let us know. We request diners to be on time and if they are late by say 10 minutes, it gets reduced from their dining slot,” explains Chindi. “From movies to flights, everything gets cancelled if you are late. So, why not a restaurant reservation?” she asks.

The food at Naru Noodle Bar  | Photo Credit: Special Arrangement

Eyes on Bengaluru

“The idea is not to militarise dining, but to hold diners accountable for a reservation made,” says Kavan Kuttappa of Bengaluru’s infamously tough-to-reserve Naru Noodle Bar. He has had a prepaid system in place, ever since he launched the restaurant. “We started as a takeaway service in 2022, and ran that for six months before opening the restaurant the same year. As we were cooking during the lockdown we did not want to deal with people backing out at the last minute, and the concept stuck,” he says of the 20-seater restaurant where he charges diners a redeemable ₹1,000 deposit for individual counter seats. “It is a small space, and a few empty seats really impact revenue. This is unlike a 200-300 seater restaurant, and even one cancellation pinches. Any experience is ticketed nowadays, and this concept will catch on,” adds Kavan.

Diners are charged a redeemable ₹1,000 deposit per seat at Naru Noodle Bar                | Photo Credit: Special Arrangement

A sentiment common among most restaurateurs in the Garden City, that has a high percentage of restaurants that charge a table-reservation deposit. At Wine In Progress, the wine bar that was launched in April this year at Courtyard, founder Akhila Srinivas started charging diners a ₹1,000 deposit a month after they opened. “After the first few weeks, we had many no-shows, which is a big deal for a 14-seater bar. It is an entire day’s loss. As it gets controlled and smaller from our end, we had to ensure filling up the seats. We still have people who don’t show up, but the blow has lessened,” says Akhila, who also helms The Conservatory where several ticketed pop-ups and events are held.

“For a la carte pop-ups, we make a reservation against a fee of around ₹1,000-₹2,500 depending on what the offering is. For example, a burger shop would cost you less than a pop-up that has a range of small plates, and the idea is to get people to try more dishes. For a tasting menu with six to eight courses, it is above ₹3,000,” explains Akhila, “There are ovens running, lights on… these are all hidden costs for the customer but real for us. Larger spaces have the capacity to absorb these costs, but we may not have that luxury.”

Wine In Progress | Photo Credit: Prarthana Shetty

“In Bengaluru, traffic is an easy excuse for no-shows. We hear it all the time!” says Akhila, “We are located in the heart of the city, and people need to realise that the convenience of attending events or dining in these areas comes at a price,” she says, adding that diners in Mumbai understand this better, as taking local transport is commonplace. Unlike Bengaluru, “where everyone wants to come in cars”.

But how do these policies go down with diners? Shweta Ravi (name changed), a Bengaluru-based professional in the food industry, believes reservation deposits for restaurants “are fair”. “However, when it comes to bars, I’m not fully in favour yet, since they traditionally haven’t charged deposits. Another concern is that in group settings, often one person pays the deposit, so if others don’t show up, that person ends up absorbing the cost,” she says, adding that she makes a booking only if she is a 100% certain she can go. “I know people who let go of a reservation of ₹8,000 and it doesn’t matter to them. But I don’t think that is the majority.”

Diners at The Conservatory in Bengaluru | Photo Credit: Special Arrangement

Instilling customer habits

Sameer Seth, founder and CEO, Hunger Inc. Hospitality (The Bombay Canteen, O Pedro, Bombay Sweet Shop, Veronica’s, and Papa’s), charges only groups of eight or more a deposit of ₹5,000 at Mumbai’s The Bombay Canteen and O Pedro. “This is to ensure reservation commitment, and the amount is adjusted in the final bill,” he says. At Papa’s, which is a 12-seater chef’s counter, a full payment policy has been in place from day one. “When making a reservation, guests are required to pay the full amount upfront (₹5,600-plus tax for the vegetarian tasting menu, non-vegetarian tasting menu at ₹5,800-plus tax). We plan your menu with careful attention to your dietary preferences, so it is only fair that there is a level of commitment from guests,” adds Sameer.

Food at Bengaluru Oota Company | Photo Credit: Special Arrangement

But what happens when a diner cannot show up? While most establishments like WIP and Naru follow a strict no-refund policy, a few have made room for rescheduling. At Bengaluru Oota Company, founder Divya Prabhakar says she started charging a booking amount a year ago. “We launched in 2016, and with people having more options to dine at, a reservation policy became necessary as we buy fresh ingredients each morning and follow a strict zero-waste policy. Our reservation policy is client-friendly and flexible, and it is okay for a diner to cancel as long as it is not on the day of,” she says. Diners are charged a deposit of ₹1,000 per person that is redeemable, and this helps “us plan our shopping”. “If you cancel a day earlier, we issue a full refund. Our priority is to ensure that there’s no wastage.”

At Papa’s, diners get a full refund or can reschedule if they cancel 24 hours prior. “If there’s a genuine reason for a last-minute cancellation, we’re happy to offer an alternative date,” he says. “Cancellations or no-shows is a trend we’ve noticed in India. In many cities like New York, it’s practice to share your credit card details to guarantee a reservation, and we feel this helps ensure the right balance between guest convenience and business needs.”

A snapshot of Delhi’s 50-seater restaurant, Inja | Photo Credit: Special Arrangement

The cancelling squad

Five months after the Indo-Japanese restaurant opened its doors in the capital early this year, Panchali Mahendra, global CEO at Atelier House that helms Inja and 35 other restaurants, took the reservation deposit route. “We are a 50-seater restaurant located in a part of the city that you need to plan well in advance to visit. Initially, we were overbooked, and when someone cancelled, there was no waitlist. We can’t do walk-ins as our location is not a high footfall area,” says Panchali, who now charges a ₹1,000 deposit per head for groups of six or more. “We do this because people need to keep the sanctity of their word. If they can’t make it, we don’t issue refunds unless it is a bereavement, or emergency. But 90% of the time it’s because they’ve overbooked themselves,” says Panchali, admitting that initially, the concept did not go down well with diners “as we weren’t established yet, but I was just safeguarding myself and changed the policy to charge only larger groups.”

The food at Inja | Photo Credit: Special Arrangement

Despite such stringent policies that diners are aware of, cancellations are not uncommon. “We charge a ₹5,000 deposit for a table of four, and every week we have two no-shows,” says Kavan, who opens bookings for Naru every Monday for the week ahead. While he is aware booking in advance is not always possible, and a majority of diners at Naru are first-timers, Kavan feels charging a deposit is the only way forward for small seater establishments. “I know that older people can’t book online, but I suggest getting your children or family to do it. My parents would never be able to book at my restaurant!” laughs Kavan.

At Papa’s in Mumbai, diners get a full refund or can reschedule if they cancel 24 hours prior | Photo Credit: Special Arrangement

At WIP, “cancellations are rare, but they do happen,” says Akhila, who shares how people have paid even ₹4,500 and not show up. “Which is why we have a strict no-refund policy. Fortasting menus, the chef had been informed, food has been prepped, etc. If we have a waitlist, we pass on the reservation but don’t guarantee a refund. People have been insistent, but we cover our basis by having our terms laid out in advance,” she says, explaining that the trend is here to stay.

Panchali says with dining concepts changing across the country, a table deposit is a way of “safeguarding interest”. “Indians can pay abroad for a reservation, so why not here? The more restaurants open, more the no shows, and people will be compelled to take on the policy,” she says.

Groups of eight or more are charged a deposit of ₹5,000 at Mumbai’s The Bombay Canteen | Photo Credit: Special Arrangement

So how have diners responded to Chindi’s dining policies in Chennai? “99% of our customers have been cooperative. A few who come late do get angry and threaten us with bad reviews when we pass on their reservation to those waiting, but there’s nothing we can do about it. Even smaller groups who make a reservation and don’t show up end up dodging our calls. I think diners today feel very entitled, and don’t understand why we have to put such systems in place.”

But as Sameer says, in the end, it is a two-way process. “We put in a lot of effort to make your time with us memorable, and we ask for a little commitment in return to ensure our operations run smoothly. At the heart of it, we’re here to make your dining experience wonderful,” he concludes.

Published - November 29, 2024 03:10 pm IST