Restaurants that take reservations risk misallocating resources if a customer doesn’t show up. So is there a good way to place an appropriate cost on no-shows? Philly.com reports on one restaurant owner’s tactic and its drawbacks:
The owner of L.A. restaurant Red Medicine went to social media to Tweet the full names of no-shows Saturday.
Eater L.A. has an interview with Red Medicine owner Noah Ellis, who said he tweeted the names out of frustration.
“Either restaurants are forced to overbook and make the guests (that actually showed up) wait, or they do what we do, turn away guests for some prime-time slots because they’re booked, and then have empty tables,” he said.
Weighing in on the matter was Consumerist, which posits that the tactic may backfire, as some patrons may balk at making a reservation there, even if they intend to keep it.