Reserving table at your favourite eatery comes with a cost? Chennai-based restaurateurs respond

CHENNAI: Certain restaurants in major cities across India have started implementing a policy where they charge a deposit to reserve a table, which is later adjusted in the final bill. Although the practice of a table reservation deposit has not yet been implemented in Chennai, restaurateurs have varying responses regarding whether they levy a reservation fee.

As a restaurant owner, G Manikandan, founder of Goldman’s Steakhouse, believes that charging deposits to reserve a table will benefit the restaurant in predicting revenue, better planning staffing and inventory, and reducing financial losses from empty tables. “However, customers may express some frustration with this approach. Many will find the deposit system inconvenient, especially when large sums are required well in advance. Concerns may also arise regarding the handling of these deposits, such as whether restaurants are earning interest on the funds held. Additionally, the need for clear communication and transparency about refund policies is crucial to prevent customer dissatisfaction and confusion. Overall, I think that while reservation deposits can improve operational efficiency for restaurants, they need to be implemented thoughtfully to balance business needs with customer experience,” says Manikandan.

Kanishk Dhupad, founder and executive chef of Lazy Leopard, believes that in cities like Mumbai, where dining out is integral and options are abundant, it’s logical for restaurants to charge deposits for reservations. He explains, “It helps manage resources and fosters a sense of exclusivity that encourages guests to honour their plans.” In contrast, Dhupad notes that Chennai’s dining culture is still evolving, with reservation deposits being more common in bars and pubs. At Lazy Leopard, he observes, “Our patrons typically book well in advance to ensure an exceptional dining experience.” Dhupad reveals that their restaurant thrives with a high reservation rate, as around 70 per cent of guests book ahead due to consistently high demand.

“From the outset, we chose to prioritise reservations to ensure best service, and our customers have wholeheartedly supported that decision. They understand that securing a table can be challenging without a reservation, so they plan. This approach has proven successful for us. We haven’t encountered significant issues with last-minute cancellations, and our guests consistently honour their bookings. Therefore, we haven’t felt the need to implement deposit charges, as seen in some Mumbai restaurants. We aim to maintain this positive relationship with our customers, enabling us to operate smoothly without resorting to alternative methods,” Dhupad shares.

Manoj, the co-founder of Pandan Club and Beachville Coffee, views charging a deposit as a validation and commitment to a reservation. “I don’t see it as a penalty or a money-making strategy, but rather a commitment towards engagement. For smaller restaurants, it allows effective planning, as holding a reservation means potentially turning away other guests. The deposit also helps the restaurant staff to plan, knowing that diners are committed to arriving. Once paid, it’s akin to a movie ticket where a specific time is reserved.”

He emphasises that this approach reduces last-minute cancellations and prompts guests to cancel within a designated window, benefiting both parties. “This ensures the restaurant can manage resources and staff efficiently, ultimately enhancing the dining experience for everyone involved,” says Manoj.

Varun Pandit, director of Food and Beverage at Hyatt Regency Chennai, recommends implementing charges for advanced reservations, particularly for group bookings of 10 people and above. “There are two reasons to consider this. Firstly, by charging for the reservation, we ensure we don’t lose out on potential revenue if the restaurant is fully booked. It also encourages guests to honour their booking, minimising the risk of no-shows which can impact the restaurant’s operations.”

Varun elaborates on the operational benefits, stating, “Secondly, advanced reservations allow our chefs to prepare and plan effectively for the expected number of diners. This ensures a smoother dining experience for all guests.” However, he clarifies that smaller groups of 3 or 4 should not be subject to reservation charges.