Written by Corin Camenisch, Marketing and Growth Lead at SumUp
No-shows—when customers or patients fail to show up for appointments or reservations without canceling or any prior warning—have become an increasingly frustrating trend facing Irish businesses. This can have a negative impact on many businesses that serve the public, particularly for those in the cosmetology and hospitality industries, as well as in less obvious sectors like healthcare.
However, no-shows are especially costly for restaurant owners. They eat into profits, generate unnecessary food waste, and leave prospective diners frustrated when they are turned away. According to a study by the Restaurants Association of Ireland, the average restaurant in Ireland earned a net profit of only 0.8% in the first quarter of 2024. While operating on this tight margin, restaurants have had to simultaneously battle high costs to remain in business, with 34% of their revenue going towards cost of sales and 40% towards wages. Though the government has announced it will reduce the VAT for food-led hospitality businesses from 13.5% to 9%, this change will only come into effect with October’s budget, with many restaurants projected to close their doors until then.
Adding to these stressors, 76% of restaurants were impacted by no-shows, with 8% of bookings not being honoured. In an industry at the mercy of volatile costs and razor-thin margins, such numbers have a huge impact on the operation of a restaurant. When a customer fails to honor their reservation, it directly affects the restaurant’s cash flow. Additionally, these unannounced absences often force restaurants to adjust their pricing policies, which can negatively impact other customers.
To tackle the challenge of no-shows, there are a few practical steps business owners can take. One option is asking for payment upfront when a reservation or appointment is made. For larger bookings—like a GP appointment or a pedicure—requiring full prepayment online ensures the business is covered, even if someone doesn’t show up. While this guarantees revenue, it can be off-putting for some customers, which is why it’s not always a go-to solution. For smaller bookings, a credit card hold for a specific amount (charged only if a no-show happens) can help keep things in check. The key is not to make the hold too high, as that could turn customers away before they even book. Thanks to modern payment platforms, these advance payments are fast, secure, and can be processed via text, email, or even social media.
Oftentimes customers don’t realise the significant impact of skipping their nail appointment or a last-minute cancellation on a local restaurant has on a business. Behind every reservation, there are real people—chefs preparing meals, staff managing schedules, and owners trying to make ends meet. A simple, friendly reminder during the reservation process can make a world of difference. Explaining how timely cancellations help reduce food waste for example encourages more thoughtful behavior without making customers feel guilty.
It can also be helpful to let customers know that if they don’t show up within 15 minutes of their reservation time for example, their table may be given to someone else. For higher-cost appointments, informing customers that they must cancel at least 48 hours in advance or risk being charged can create a sense of urgency. However, oftentimes a quick call to confirm arrival can help ensure the reservation is honored.
Sometimes, customers forget they have even made a reservation, especially when it’s booked far in advance—something we can all be guilty of. Automated reminders via text or email provide a simple and effective solution to this issue. These reminders can be sent a few hours or days before the booking, politely reminding the customer of their plans and in turn minimising the risk of a no-show. Many booking platforms already offer this feature, making it easy for businesses to manage reservations. These reminders can also be personalised—such as providing parking details for a hygienist appointment—improving the overall customer experience.
If customers can no longer make their appointment or reservation, offering an easy way for them to cancel at any time—even outside of business hours—is a great way to reduce no-shows. Many Gen Z’ers, for instance, shy away from phone calls. Providing an accessible online form, a link within the confirmation email or even a text message makes the process much more convenient.
If all else fails, blacklisting a customer and preventing them from making future reservations can be highly effective. For example, a customer who misses three or more reservations without prior notice might warrant such a measure. It may seem harsh but some industry leaders, like TheFork, have already adopted this approach. Since October 2024, the platform has been removing accounts with more than four no-shows, sending a stringent message while protecting businesses. At the same time, rewarding loyal customers with perks such as providing complimentary drinks or desserts to those who consistently honor their reservations can help build stronger customer relationships. To maximise these efforts, it’s useful to gather a detailed overview of all reservations.
This data can be invaluable when managing reservations and improving operational efficiency. The adoption of advanced technology that collects and analyses this data can help business owners make smarter decisions. These systems can allow in-depth analysis of the businesses activity: identifying its most profitable days, determining its most popular dishes, and evaluating consumer trends. With this, business owners can accurately anticipate personnel needs, stock, and specific ingredients, allowing them to manage the preparation of certain dishes and avoid missing stock. Integrating customer and points management systems, like those offered by SumUp, streamlines sales, tracks reservations, sends reminders, and processes payments, making daily operations more efficient.
While it may not be the easiest time for businesses in Ireland, it’s essential to stay connected with your customers. By fostering open communication, staying proactive, and using the right tools, businesses can reduce losses and continue offering the service their customers value. Adapting and refining your processes based on customer feedback helps ensure you build lasting relationships, because these lasting relationships with customers who keep showing up are the foundation of a thriving community and local economy.