Quebec is taking steps to address the issue of restaurant no-shows by proposing new regulations that would allow restaurant owners to charge clients who fail to honor their reservations.
The Quebec government announced the changes to the Consumer Protection Act on Wednesday, with public consultations now open for 45 days. These new measures aim to curb the financial losses that restaurants face due to missed reservations.
Financial Impact of No-Shows
According to Quebec’s Office de la protection du consommateur (OPC), no-shows cost restaurants in the province an average of $49,000 annually, with some establishments losing up to $100,000 each year. The proposed rules would allow restaurants to charge clients up to $10 per person if they fail to show up for their reservations. However, there are specific conditions attached.
Conditions for Charging Fees
The new rules would apply to groups of five or more people, who would be required to cancel their reservation at least three hours in advance to avoid penalties. Restaurants would also need to inform customers about potential charges when making the reservation and send reminders between six and 48 hours before the booking.
If only one person from a group shows up, the remaining no-shows would not be charged. Additionally, the fee cannot be applied before the reservation time, and restaurants must provide an easy way for customers to cancel.
A Measure to Discourage Reservation Abuse
Quebec’s Junior Economy Minister, Christopher Skeete, explained that the goal of the new rules is not to compensate for lost revenues but to create a disincentive for people to misuse reservations. He pointed out that since the end of the pandemic, many people have been making multiple reservations for groups and later deciding which restaurant to attend, often forgetting to cancel.
Skeete emphasized that having a financial commitment would encourage people to act responsibly. When asked about the penalty amount, he said a higher charge might not strike the right balance between consumer interests and restaurant needs.
Restaurant Association Supports the Move
Martin Vézina, vice-president of public affairs for the Quebec Restaurant Association, welcomed the announcement as a “major step” for the industry. He noted that the new regulations would give restaurants the tools to impose penalties on no-shows.
However, the association plans to request changes to the proposed rules. Vézina suggested removing the minimum of five people required to charge a penalty, as smaller groups also face no-show issues. He also advocated for raising the penalty from $10 to $20 to better reflect the financial impact on restaurants.
Concerns from Some Restaurant Owners
While many in the industry support the new regulations, not all restaurant owners agree. David Ferguson, chef and owner of Restaurant Gus in Montreal, argued that restaurants are already imposing penalties for no-shows and that the new rules may not be necessary. Ferguson emphasized his restaurant’s focus on building personal relationships with customers, rather than relying on credit card reservations.
Despite differing opinions, the Quebec government believes that the new rules will help standardize penalties and protect both consumers and restaurant owners from potential abuse.
The new regulations are set to take effect on July 17, with further details to be provided as the consultation period progresses.
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