Tackling no-shows in fine dining: insights into cancellation policies and consumer awareness campaigns

Abstract

This research aims to identify how fine dining restaurants can effectively implement reservation cancellation policies to address the issue of no-shows by applying equity theory, the dual entitlement principle, and social cognitive theory. Two experiments identified cancellation policy elements that influence restaurant evaluations and reservation behaviors. Findings revealed that cancellation policies negatively influence restaurant evaluations, and that policy strictness and awareness can attenuate this relationship via perceived fairness while enhancing the likelihood to book reservations and honor reservations. This research suggests that restaurants can benefit from implementing lenient cancellation policies and introducing awareness of the adverse impact of no-shows to customers.