I have never been a fan of penalties, especially when people are charged because they cancel under 72 /48 / 24 hours before (as opposed to a no-show). I've seen restaurants that penalise cancelling 96 hours (4 whole days!) before the date, which just makes them look absurd and petty. A waitlist is always a good idea, or otherwise the restaurant can let guests know that even if there are no reservations available they're welcome to show up and check if a table has been released. If your food and service are top quality, you'll never have to worry about empty tables.

This is a catch 22 situation, could be a genuine reason and booking amounts would be big too - ideally the TnC does have the cancellation policy, but a twist can be added for genuine cases of giving the rebate of the amount when they come at a latter date - it could be a good gesture while you protect your interest too

To safeguard revenue against last-minute cancellations, a restaurant could implement a deposit policy, where a small amount is charged at the time of booking, which can be non-refundable or partially refundable. Additionally, overbooking, similar to airline practices, can be considered, taking into account historical data on no-shows and cancellations. Lastly, offering special promotions or discounts for off-peak hours can help fill in the gaps left by cancellations, ensuring a steady flow of customers and revenue.

To safeguard your restaurant's revenue against last-minute cancellations, consider implementing the following strategies: 1. Reservation Policies 2. Flexible Booking Options 3. Overbooking Strategy 4. Loyalty Programs 5. Last-Minute Promotions 6. Waitlist Management 7. Engage Your Customers 8. Partnerships with Local Businesse 9. Improve Guest Experience 10. Utilize Technology By implementing these strategies, you can reduce the impact of last-minute cancellations and help ensure a steadier revenue stream for your restaurant.