No-Show Cost Formula
Lost covers =
Bookings x No-show % x (1 - Recovery %)
Lost revenue = Lost covers x Average check
Lost margin = Lost revenue x Margin %
Recommended deposit = Average check x Margin %Caricamento...
Marketing & Sales
Quantify the margin lost to missed reservations each month and year, then size the per-guest deposit that protects you. Enter bookings, no-show rate, recovery rate, average check and margin.
Lost covers =
Bookings x No-show % x (1 - Recovery %)
Lost revenue = Lost covers x Average check
Lost margin = Lost revenue x Margin %
Recommended deposit = Average check x Margin %More than most owners think. A no-show is not just a lost cover, it is the lost margin on that cover at a time you could have sold the table to someone else. This calculator multiplies your booked covers by the no-show rate, removes the share you recover by reseating, then applies your average check and margin to express the loss in euros per month and per year. Seeing the annual figure is usually what turns no-shows from an annoyance into a policy decision.
The recovery rate is the share of no-show covers you manage to fill anyway, through walk-ins or a waiting list. If 30% of no-show tables get reseated, only 70% of the no-shows translate into real lost margin. A busy restaurant with a waiting list has a high recovery rate and a lower true cost; a destination venue with fixed bookings has a low recovery rate and a much higher exposure.
The recommended deposit per guest equals the average check multiplied by the margin %, i.e. the margin you actually lose per cover when someone fails to show. Setting the deposit to that figure means a no-show leaves you no worse off than a kept booking. You can set it lower as a deterrent or higher for high-demand services, but the margin-per-cover figure is the break-even reference point.
Charging the full average check overcompensates you, because you avoid the variable food and drink cost when a guest does not show. The margin per cover is the economically fair number: it makes you whole without profiting from the cancellation. Many restaurants set the deposit at the margin per cover precisely because it is defensible to customers.
A well-communicated, refundable-on-arrival deposit typically reduces casual no-shows far more than it reduces genuine bookings, especially for peak services, large parties and tasting menus. Use this calculator to weigh the annual margin lost to no-shows against any bookings you might deter, then size the deposit to the services where the loss is largest.