Why Reservation Fees Exist, Explained By A Restaurant Host

This major shift in the industry, especially in the post-pandemic years, certainly makes it seem as though these fees are here to stay. “[Profit] margins were never great in restaurants, but the pandemic really made things worse,” Imani explained. “People want the sure thing of a reservation, so many restaurants have taken the hint.”

We also reached out to financial consultant Michael Schmied, who agreed that cancellation fees might just be the new norm. “With the increasing unpredictability in customer behavior, especially in the postpandemic world, I foresee cancellation fees becoming more prevalent,” he explained.