‘Not sustainable’: restaurateurs reeling over last-minute cancellations
Global News
The practice costs restaurants an average of $47,000 a year. Industry leaders say it's only getting worse, sparking renewed calls for laws that allow penalties for no shows.
Quebec restaurants are reeling over last-minute New Year’s Eve cancellations and no-shows.
The practice costs tens of thousands of dollars a year and industry leaders say it’s only getting worse, sparking renewed calls for the province to allow restaurants to charge penalties for clients who decline to appear.
On New Year’s Eve, restaurateur Constant Mentzas says he got more than 30 last-minute cancellations for his restaurant Garde-côte in Old Montreal. That is half of his restaurant’s capacity.
“I won’t lie, I’m a bit bitter,” Mentzas said.
It’s a bitter pill to swallow as he says he lost about $12,000 dollars that night. It’s the equivalent of a full payroll. He also lost a lot of the food he bought.
“It’s one of those days that you’re sure to make money: it’s Valentine’s Day, New Year’s Eve and Mother’s Day. When you loose one of those, it definitely hurts,” Mentzas says.
Mentzas says he sees last-minute cancellations happening more and more. Quebec’s Restaurant Association (ARQ) agrees. The association says the practice used to be a Montreal issue but it’s now happening across Quebec.
The ARQ says no-shows and last-minute cancellations cost restaurants an average of $47,000 every year and with thin profit margins of between 2 and 4 per cent, it can wreak financial havoc.