OpenTable Launches "Show Up for Restaurants" Initiative to Mitigate No-Shows and Bring Attention to Its Impact on Restaurants

Rhea-AI Summary

OpenTable, part of Booking Holdings (NASDAQ: BKNG), has launched the Show-Up for Restaurants initiative to address the impact of no-shows and late cancellations on restaurants. Over 80% of U.S. restaurants have reopened, with diner participation nearing 90% of pre-pandemic levels. The initiative aims to raise awareness about the financial losses restaurants face due to no-shows, which can significantly affect profits. OpenTable will implement a 'four strikes' policy for habitual no-show diners and introduce a new tool to label potential no-shows based on past behavior.

Positive

• 80% of U.S. restaurants have reopened and diner levels are nearing 90% of 2019.
• Introduction of 'Show-Up for Restaurants' initiative to mitigate no-shows.
• New tools provided to restaurants to identify potential no-shows and encourage attendance.

Negative

• 28% of Americans admit to not showing up for reservations in the past year, impacting restaurant revenues.

SAN FRANCISCO, June 17, 2021 /PRNewswire/ -- Dining is back, and people are eager to return to their favorite restaurants. According to OpenTable, the world's leading provider of online restaurant reservations and part of Bookings Holdings, Inc. (NASDAQ: BKNG), over 80% of their restaurants have reopened in the U.S., and diners at those restaurants are nearing 2019 levels (+90%).¹ At a time when restaurants are facing staff shortages and more financial pressure than ever, they count on every diner that made a reservation to show up. When they don't, restaurants could lose their entire profit margin for that shift.

To help, OpenTable today unveiled its Show-Up for Restaurants initiative to spotlight the impact of no-shows and late cancellations on restaurants and encourage diners to modify or cancel their reservation when plans change. From a "four strikes and you're out" no-show policy and blog and social content educating diners on the impact of ghosting a reservation, to a suite of tools that restaurants can use to combat no-shows, the initiative aims to curb this challenge as restaurants continue to recover.

"When a diner doesn't fulfill a reservation, it significantly impacts the restaurant's revenue," said Debby Soo, CEO of OpenTable. "At OpenTable, we believe we have a responsibility to help build awareness of this issue and leverage our technology in every way possible to reduce no-show rates."

No-Shows, By the Numbers
A staggering 28%² of Americans say they haven't shown up for a reservation in the past year. What many don't realize is that cancelling is better than simply not showing up. For example, at Philadelphia's Blackfish restaurant, if six people don't show up for one dinner, Blackfish loses 5% of its income - most of the restaurant's profit margin. This also doesn't include the impact on food and staffing costs, among other things, that no-shows have on restaurants since they make decisions based on reservations booked.³

Don't Ghost Your Reservation.
Diners played a major role in supporting restaurants this past year, from buying gift cards and merchandise, to donating to employee relief funds, and dining outdoors on even the coldest days. As restaurants recover, the best way to support restaurants is to show up by making and keeping a reservation. If plans do change, diners can also easily modify or cancel reservations through the OpenTable app or online by clicking on their reservation and selecting modify or cancel.

OpenTable Makes It Easier for Restaurants to Combat No-Shows
To help restaurants prevent no-shows, OpenTable will launch a new tool this summer that allows restaurants to label a diner as a potential no-show based on previous reservation activity. The tool allows restaurateurs to tag the diner with a new label, so they can be proactive about confirming attendance with the diner as their reservation approaches.

OpenTable's strict "four strikes and you're out" policy also suspends diners who don't show up for a reservation four times. This policy is in addition to a number of features that OpenTable offers to mitigate no-shows, such as email and SMS reminders, prepaid experiences, availability alerts, customizable cancellation policies, credit-card required reservations holds and more.

For more information about OpenTable's "Show Up for Restaurants" initiative and the impact of No-Shows, visit https://blog.opentable.com/2021/no-show-numbers/.

*OpenTable Q2 2021 Diner Survey Methodology:
OpenTable surveyed over 17,00 adults (aged 18+) across the U.S. and Canada between May 2-5, 2021.

**YouGov Survey Methodology:
OpenTable partnered with YouGov on April 19 - 20, 2021 to survey 1,326 adults (aged 18+) online within the U.S. The figures have been weighted and are representative of all U.S. adults (aged 18+).

About OpenTable
OpenTable, part of Booking Holdings Inc. (NASDAQ: BKNG), powers reservations for the hospitality industry. OpenTable's software seats more than 1 billion people per year and helps more than 60,000 restaurants, bars, wineries and other venues attract guests, manage capacity, improve operations and maximize revenue.

¹ Pulled from SOTI dashboard
² Full survey results from YouGov Survey is HERE; 28% stat is on slide 4.
³ OT no-show data and Blackfish example pulled from blog post.

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SOURCE OpenTable, Inc.

FAQ

What is the Show-Up for Restaurants initiative launched by OpenTable?

The Show-Up for Restaurants initiative aims to reduce no-shows and late cancellations affecting restaurant revenues.

How many restaurants have reopened in the U.S. according to OpenTable?

Over 80% of U.S. restaurants have reopened as reported by OpenTable.

What percentage of 2019 diner levels are restaurants reaching now?

Diners at reopened restaurants are nearing 90% of levels from 2019.

What policy does OpenTable implement for repeated no-show diners?

OpenTable has a 'four strikes and you're out' policy for diners who do not show up for reservations.

How does OpenTable plan to help restaurants combat no-shows?

OpenTable will introduce a tool to label diners as potential no-shows based on their reservation history.