No-shows costing industry $75m a year: Dimmi

22 February, 2017 by
Danielle Bowling

According to Dimmi, no-show diners cost the restaurant industry $75 million a year, prompting the restaurant reservation website and its members to blacklist 38,000 diners over a 12 month period.

Dimmi has published insights from its 2017 No Show Report, stating partner restaurants have blacklisted 38,000 diners since February 2016.

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Last year Dimmi introduced a no-show product, allowing restaurants to blacklist customers who don't show up. As a result, it says it’s seen a 25 percent decrease in neglected bookings over the last 12 months. 

Diners are not blacklisted from the whole Dimmi system, just from the restaurant they ‘no-showed’ at, or all restaurants under one group, for example the Rockpool Dining Group. Blacklisting can be reversed by the restaurant if required, and the ban lasts for one year.

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Dimmi founder and CEO Stevan Premutico said the company aims to completely eradicate no-shows within its platform by 2020.

Erez Gordon, owner of Sydney’s Bishop Sessa restaurant, said consumers are often unaware of the impact no-shows have on a hospitality business’ bottom-line.

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“Restaurants are difficult businesses at the best of times and customers who renege on reservations are exacerbating already fragile situations. The difference between profit and devastating loss is, as it turns out, simply the manners of your customers,” he told Hospitality.