Sales & Revenue
Should Your Restaurant Require Reservation Deposits?
SevenRooms
7 min read
Sep 29, 2025
SevenRooms
7 min read
Sep 29, 2025
Being ghosted hurts. Especially when you’re a restaurant operator dealing with constant no-shows or last-minute cancellations. And with more than 20% of diners failing to show up for tables, it’s no wonder that restaurants have stopped holding reservations for free.
At the same time, guest behavior is changing. Our research shows that most diners are comfortable sharing information when booking a table, and three in four say they’re open to paying a reservation deposit. For operators, this means the reservation process is no longer just about holding a seat, it’s a chance to secure revenue, reduce risk and even encourage marketing opt-ins that strengthen guest relationships.
If you’re interested in charging reservation deposits but don’t know where to start, we’ll help you explore different approaches to introducing deposits and how to implement them without sacrificing experience.
Not long ago, free reservations were the norm. But as the dining landscape evolves, reservation deposits are becoming mainstream , and for good reason. They help restaurants alleviate revenue loss, reduce no-shows and combat emerging challenges like reservation hoarding, bots and reservation resale websites.
Restaurants that enact fairer, more reliable practices can help defend against casual diners who book ”just in case” reservations.
Every empty table during a prime dining hour represents lost revenue that can’t be recovered. A reservation deposit creates a financial commitment from guests, making it less likely they’ll abandon their booking.
Even in cases where they don’t show, you’re not left with a total loss because you’ve offset part of the cost of holding that table.
This is especially critical for high-demand restaurants, holidays or special events, where a single no-show can mean hundreds (or thousands) of dollars in missed revenue.
No-shows remain one of the biggest pain points for operators. Adding a deposit drastically reduces that number, because guests are more likely to honor their commitment when money is on the line.
Take inspiration from California wine country’s Long Meadow Ranch, which spans five properties. After experiencing an increase in no-shows after the pandemic, Farmstead began implementing reservation deposits through SevenRooms. Requiring prepayments allowed Farmstead to reduce no-show rates from 15% to 1%.
Reservation deposits don’t just protect revenue, they also help your team run a smoother operation. With fewer last-minute cancellations and more predictable bookings, managers can better forecast covers, allocate staff and prep inventory. This helps your team reduce food waste and increase staff retention.
There is no one-size-fits-all approach to reservation deposits. Here are several ways to go about them.
This approach involves charging a standard deposit, either per person or per party, to make a booking. You’ll need to secure payment details at the time of booking. The deposit can either be refunded when the party checks in or applied to the bill.
If you ask for deposits, you can also implement a fee-based policy to protect against no-shows and cancellations. This allows you to retain the deposit collected at booking if guests fail to show up or cancel outside your stated policy window (for example, less than 24 or 48 hours before their reservation). Make your deposit refund policy clear during the booking process to avoid angry calls from customers.
This approach may feel more fair to diners, since they’re only charged if they back out late, while still protecting your restaurant from last-minute losses.
It also creates flexibility for loyal guests who may need to reschedule, helping you balance guest satisfaction and revenue security.
Another option is to require meals to be prepaid in order to hold a table. This approach works best for special events and prix fixe or multi-course menus, such as a chef’s tasting menu. You can add on prepaid wine pairings to generate even more sales.
You may worry about guest pushback or fewer bookings when introducing deposits. But if implemented thoughtfully, the benefits outweigh the risks.
If you’re nervous about introducing a new policy, consider easing into the process. Start small, test and expand once you see what works.
Ed Christmas, managing partner at Bums on Seats, a UK-based sales and marketing agency, notes that flexible policies reduce no-shows while encouraging more bookings:
Proof in practice: The Island Quarter in Nottingham introduced card details for all bookings and deposits for large groups, generating £21,000 ($27,000 USD) in prepaid revenue within six months, and doubling prepaid reservations in one year.
Deposits don’t just protect against no-shows, they can also enhance the guest experience. By turning a deposit into a prepayment for something memorable, you transform a potential friction point into added value for both your guests and your bottom line.
With a reservations platform like SevenRooms, you can offer reservation upgrades and prepaid add-ons during booking, helping reduce no-shows and cancellations while boosting guest satisfaction and revenue. Below are some examples:
Reservations with prepayments for events or experiences not only reduce no-shows, they also lead to 35% higher spend compared to standard bookings.
The best reservations deposit policy is a transparent one. Avoid angry reviews from customers by clearly displaying your deposit policy. Make it an integral part of the booking process instead of hiding it in the fine print. Let guests know what they’ll be charged to hold a spot, and what the consequences are if they don’t show up or cancel at the last minute..
In your policy, clearly define and communicate the following:
These restaurants are masters at preventing revenue loss and reducing no-shows. Check out their deposit policies for inspiration.
All of these venues use SevenRooms’ direct booking reservations platform.
Duck & Waffle gives diners stunning views of London 24 hours a day from 40 stories up. To protect the business from no-shows, Duck & Waffle charges a £30 per person deposit that serves as a minimum spend and is applied to the final bill. This deposit isn’t refundable if the party becomes a no-show or cancels with less than 48 hours’ notice.
Machine Cocktail Bar is an elevated cocktail lounge in Chicago that gives guests immersive drink experiences in a stylish and intimate setting. At booking, the venue offers guests the opportunity to add a prepaid communal cocktail to their reservation, expertly paired with the menu, so guests can toast to the night ahead.
Housed in the dress circle of Sydney Harbour, Quay is an award-winning restaurant serving up innovative cuisine inspired by the natural beauty of Australia.
Card details are required to dine with the group, and each booking page asks readers to scroll through its cancellation policies before securing a seat. For example, reservations canceled within 48 hours of the arrival time, or fail to show, are charged a $200 per person fee.
Prime-time seatings enjoy a 2.5-hour dining experience to savor one of two set tasting menus created by Executive Chef Peter Gilmore. Guests can also convey dietary requirements at this time.
Ten years ago, asking a guest to put a deposit on a reservation might have been a tough sell, but today, guests are willing to pull out their credit cards for booking restaurants they love. Keeping your deposit policies transparent and creating a smooth booking process ensures that you consistently deliver an excellent guest experience while protecting your bottom line.
At SevenRooms, our flexible reservation platform makes it easy to implement, charge and refund reservation deposits and prepaid add-ons. Find out more and book a demo today.
Position the deposit as part of delivering a premium experience, not a barrier. SevenRooms research shows that three in four diners are open to paying a reservation deposit, especially when it secures access to special events, chef’s tables or limited-time menus. Make the policy clear, and highlight perks like priority seating, upgrades or exclusive menu access. Using a direct reservation system can also help ensure a smooth booking process.
Yes, it’s actually becoming more common for restaurants to require deposits to hold a reservation, and most see deposits as fair — especially when they’re applied toward the dining experience. Reservation deposits protect against no-shows, which cost restaurants valuable revenue and disrupt operations.
Many restaurants charge anywhere from $10 to $50 per person, or a flat percentage (e.g., 20 to 30%) of the expected spend for high-demand reservations. The average U.S. cancellation fee is $52, according to SevenRooms’ latest restaurant trends data. Choose a deposit amount that aligns with your concept, average check size and type of booking.
What is the ideal ratio for no-shows and cancellations? The global benchmark is 11% for cancellations and 3.5% for no-shows.
How much are restaurant cancellation fees? SevenRooms’ restaurant trends data found that average U.S. cancellation fees are $52. Check out our article on restaurant cancellation fees and deposits to learn more.
Use a tool to introduce deposits without friction and help you generate revenue. A reservations platform, like SevenRooms, makes it easy to collect secure online payments for deposits, regardless of the strategy you choose.
For even more transparency, send confirmation emails and/or text messages for each reservation, and include the policy details. Reminder emails leading up to the booking can help reduce no-shows and cancellations.
“Setting up [flexible] cancellation policies for larger groups helps ensure these parties will show up, while removing the policies for smaller groups eliminates friction in the process. We’ve seen adjustments like these result in a 30%–40% increase in bookings.”
