Strategies of Reduce Customer’s No-show Probability at Restaurants

Kuo-Pin Li*, Shieh-Liang Chen, Wen-Hong Chiu and Wen-Cheng Lu
Additional contact information
Kuo-Pin Li*: Department of Business Administration, Asia University, Taichung, Taiwan
Shieh-Liang Chen: Department of Business Administration, Asia University, Taichung, Taiwan
Wen-Hong Chiu: Department of Business Administration, Asia University, Taichung, Taiwan
Wen-Cheng Lu: Department of Business Administration, Asia University, Taichung, Taiwan

The Journal of Social Sciences Research, 2019, vol. 5, issue 1, 145-152

Abstract: No-show reduction at restaurants can not only mitigate losses incurred when customers fail to honor a booking but also affect consumers’ reservation behaviors. This study analyzed the ability of restaurant booking policies to mitigate no-shows as well as the negative impacts. We summarize the results of the interview and suggest four mitigating No-Show policies for restaurants; they are Re-offering seats, Overbooking, Partial reservations, and No-show penalties. These four methods are also the most common mitigation No-Show policies for restaurants. A survey was conducted to understand the booking policies of the Taiwanese restaurant industry. The findings indicated that each sector of the restaurant industry possesses unique characteristics. This study shows that restaurant differentiation is important in setting booking policies. Reservation no-shows cause problems to wasted capacity and result in restaurants’ losses. Our goal is to solve the wasted capacity and mitigation no-show loss, and to offer recommendations on what restaurants should do. Study was found that the restaurant operators generally believed that it was effective to have no-show penalty. Only each restaurant still has its own operating factors that affect its execution ability; the study also found that restaurants of different sizes may have variant reservation policies

Keywords: No-show; reoffering- seats; Over-booking; Partial- reservations; No-show penalties. (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.arpgweb.com/pdf-files/jssr5(1)145-152.pdf (application/pdf)
https://www.arpgweb.com/journal/7/archive/01-2019/1/5 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arp:tjssrr:2019:p:145-152

Access Statistics for this article

The Journal of Social Sciences Research is currently edited by Dr. Paola Magnano

More articles in The Journal of Social Sciences Research from Academic Research Publishing Group Rahim Yar Khan 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ().