Heated Exchange Over a $250 Restaurant Cancellation Fee (Boston: insurance, credit card)

[lrfox]

This story's pretty wild.

In short, a guy made reservations at Table in Boston which came with a $250 cancellation fee for cancelling within 48 hours. He was suddenly hospitalized and unable to make the reservation, so he was assessed the $250 fee. However, his credit card had travel insurance (many cards do) and reimbursed him the $250 feel. The restaurant owner, Jen Royle, then found him on Instagram and sent him a nasty DM saying that he "screwed" her staff and called him "pathetic." He shared screen shots on Twitter/X, they went viral, and things escalated from there.

I actually fully support cancellation fees attached to restaurant reservations. There's a financial impact on restaurants for no-shows, so it makes sense to weed out flakey customers by charging a deposit or implementing a fee. I also love travel insurance built into credit cards. It's save me on several occasions with flights and hotels when I've been in a pickle. So there's nothing wrong with the customer using it in this instance (it's exactly what it's for), and the owner is way out of line tracking him down and sending that message. I don't blame him for sharing it publicly either.

That said, I didn't realize that the credit card insurance apparently just issues a chargeback for something like a nonrefundable deposit. True insurance would refund the customer and eat the deposit amount. The restaurant owner could have legitimate beef with the credit card company over the chargeback, and I doubt the customer was aware that the restaurant was actually going to be charged. But going after the customer like that is always going to end up backfiring.

[msRB311]

A cancellation fee is one thing...but a $250 one? It's polite and good form to let them know if you need to cancel, but charging a fee seems obnoxious. Is the restaurant incapable of getting any walk ins if someone cancels or filling the spot with someoen else? Is it reservation only? Most restaurants operate fine on reservations and walk ins these days...not to mention take out but I'm guessing table doesn't get many take out orders.

I can see it being annoying if someone is a no show but it doesn't seem right to charge a no show $250! Things happen in life. A reservation at a restaurant shouldn't be that much of a commitment, my gosh.

My dentist charges $50 if someone cancels within less than 24 hours. I thought something about that seemed kind of rude as well. There's something about it that just seems tacky. I can get another dentist...just like someone else can go to another restaurant. These places need customer business more than customers need them. Not cool IMO.

[GrampaNurgle]

True beef is with charging $125 (+30/40/50/don't you dare hit custom %) for what looks like Costco sample station specials. Go to Europe and that will get you a Michelin-starred tasting menu with caviar, foie gras and truffles.

[bostongymjunkie]

If a business doesn't want to deal with credit cards, they are free to avoid them. But if you do, you accept their rules and fees. It's not the customer's fault for using those mechanisms. That will go on my list of places to avoid. If you can't muster up enough empathy to understand that unexpected emergencies arise, you need to be in a non-people-oriented business. And yes, cancellation fees are perfectly appropriate especially given the widespread selfishness that exists in society. But when someone can sufficiently prove that such an emergency arose, a little compassion and understanding might be in order.

[msRB311]

Originally Posted by bostongymjunkie

If a business doesn't want to deal with credit cards, they are free to avoid them. But if you do, you accept their rules and fees. It's not the customer's fault for using those mechanisms. That will go on my list of places to avoid. If you can't muster up enough empathy to understand that unexpected emergencies arise, you need to be in a non-people-oriented business.

I'd be weary about booking a dinner reservation at a place that required my credit card up front AND stated they would bill me $250 if I cancel without giving 2 days notice.

[bostongymjunkie]

Originally Posted by msRB311

I'd be weary about booking a dinner reservation at a place that required my credit card up front AND stated they would bill me $250 if I cancel without giving 2 days notice.

I'm sure they had a lot of people blowing off their reservations so I can't blame them on that end if they can get away with it and still attract business. Personally, I would never make such a reservation, but nobody expects an emergent hospitalization. There was no need for the nastiness in my opinion.

[AtkinsonDan]

Originally Posted by bostongymjunkie

If a business doesn't want to deal with credit cards, they are free to avoid them. But if you do, you accept their rules and fees. It's not the customer's fault for using those mechanisms. That will go on my list of places to avoid. If you can't muster up enough empathy to understand that unexpected emergencies arise, you need to be in a non-people-oriented business. And yes, cancellation fees are perfectly appropriate especially given the widespread selfishness that exists in society. But when someone can sufficiently prove that such an emergency arose, a little compassion and understanding might be in order.

My thoughts exactly.

[msRB311]

Originally Posted by bostongymjunkie

I'm sure they had a lot of people blowing off their reservations so I can't blame them on that end if they can get away with it and still attract business. Personally, I would never make such a reservation, but nobody expects an emergent hospitalization.

Well maybe they should ask themselves why so many people were just blowing them off...I'm sure all restaurants have had people blow them off at one point or another...but if it's happening that much ask yourself why. $250 for a reservation you didn't show up to because you couldnt make it is a lot of money. Maybe they forgot.

There are a lot of restaurants out there but these days you do need a reservation in most cases. It's actually aggravating that it's nearly impossible to walk in anywhere these days without one. If I make a reservation to go out to eat, I'm there.

[bostonguy1960]

I asked staff once or twice at my community health center if no shows are common...and yes they are. These are people who don't have the basic courtesy to cancel within 24 hours if possible. At times it isn't possible but at least call to cancel to give someone that day a sudden appointment possibility.

I have cancelled an hour before for a dental appointment because I have a cold and didn't want to pass it to a dentist who'd be in such close proximity. But at least I cancelled.

I think my health center mentioned something like no more than three or so no shows allowed until one can't book again?

Maybe that seems especially nasty as it's health related, but most places are a business and maybe can't afford constant cancellations.

[msRB311]

Originally Posted by bostonguy1960

I asked staff once or twice at my community health center if no shows are common...and yes they are. These are people who don't have the basic courtesy to cancel within 24 hours if possible. At times it isn't possible but at least call to cancel to give someone that day a sudden appointment possibility.

I have cancelled an hour before for a dental appointment because I have a cold and didn't want to pass it to a dentist who'd be in such close proximity. But at least I cancelled.

I think my health center mentioned something like no more than three or so no shows allowed until one can't book again?

Maybe that seems especially nasty as it's health related, but most places are a business and maybe can't afford constant cancellations.

L

that's a good point when it's a health related appt. If I cancel that morning because I'm sick you charge me $50. If I go in I can get everyone else there sick. Maybe sometimes the $50 is a threat? I'm guessing that if someone actually called that morning and said, I'm sick i can't come in, they wouldnt be charged $50.

I just have a hard time understanding charging someone $250 if they called to cancel a dinner reservation because they were sick, lol. It's almost funny. Im guessing in most cases the people charged are the ones who gave their cc info then didn't bother to call....but maybe they forgot, maybe an emergency came up...it seems crappy. In many cases perhaps someone wasn't even going to even order $250 worth of food.