As North End reservation feud makes headlines, here’s what to know about restaurant cancellation fees
A would-be patron at a high-end North End restaurant says he called from a hospital emergency room where he was being treated to cancel a dinner reservation with only six hours notice.
The restaurant, called Table, pointed to its cancellation policy, which says reservations canceled on the same day — as well as no-shows — will be charged the full amount of the planned meal — no exceptions.
In this case, the cancellation fee was $250, because the reservation was for two for a gourmet seven-course meal that goes for $125 each.
Table is not your typical restaurant. Dining there is akin to attending an event. Patrons sit down together at a communal table. Everyone gets served the same meal at the same time.
The online dispute that ensued over the $250 cancellation fee included a fiery exchange between the would-be patron and the restaurant owner that went viral.
Here are some things to know about restaurant cancellation fees:
Are restaurant cancellation fees legal?
Yes, so long as they don’t run afoul of the state consumer protection law, known as Chapter 93A, which prohibits businesses from engaging in unfair and deceptive practices when dealing with consumers, including at restaurants.
Does Chapter 93A say anything specific on cancellations?
Yes, it says businesses must disclose their cancellation policy “clearly and conspicuously” to allow potential customers to be aware of it before making a purchase.
What exactly does ‘clearly and conspicuously’ mean?
That’s a judgment call. If the policy is buried in a massive amount of fine print in terms that are legalistic and hard to understand it’s probably safe to deem it inadequately clear and conspicuous. But if the policy is stated in direct and concise language in large capital letters across the top of a restaurant’s website it’s probably sufficient. There’s a lot of gray area in between.
How does Table disclose its cancellation policy on its website?
It’s not disclosed on the restaurant’s landing page. But if you click on a box
marked “MAKE A RESERVATION” this comes up: “Please be aware of our 72-hour cancellation policy before booking.” That wording appears on your screen in a way that’s difficult to miss. On that same page you also get a box that says “REMINDER: HOW TABLE WORKS.” Click on that box and up comes concise information on price, seating, seating times, dress, payment and, at the bottom, in red lettering, cancellation policy.
Is the Table cancellation policy itself clear?
In red, capital letters it says “SAME DAY CANCELLATIONS AND NO-SHOWS WILL BE CHARGED FULL PRICE.” It also says would-be patrons who cancel within 72 hours, but not on the same day, must pay the full price as a cancellation fee, although those patrons will receive a $50 gift card.
Does it matter in terms of Chapter 93A exactly what the cancellation terms are so long as they are clearly and conspicuously disclosed?
The first question in such a dispute is how clearly and conspicuously are the terms disclosed. The next question, assuming the disclosure is adequate, is whether the cancellation terms are grossly unfair. And that prompts lots of questions: Does the restaurant actually profit by collecting a cancellation fee while saving on the cost of the food? Should the cancellation fee be commensurate with actual loss to the restaurant? Should it include some element of punishment as a disincentive for cancellation? Did the restaurant have a chance to fill those two seats after cancellation but chose not to? Does the reason the wouldbe patron canceled matter, even if the policy says “no exceptions”? There’s potentially a lot to consider when trying to determine whether a cancellation fee is “grossly unfair.”
Who gets to judge fairness in such cases?
The first judgments are often made by credit card companies. Table requires reservations to be booked with a credit card. If you get whacked with a cancellation fee you can dispute it by filing for a chargeback. You argue to your credit card company that you didn’t get what you paid for. Ordinarily, your credit card company will give you a provisional credit while it investigates. But you should expect the restaurant to respond by pointing to its cancellation policy. Which side the credit card company comes down on is often unpredictable.
Do I have an alternative to a credit card chargeback?
Chapter 93A allows consumers to sue businesses in court, most often in small claims court. There, you must argue your case before a clerkmagistrate, who is empowered to not only decide in your favor but also to award you triple damages.
You can also file a complaint with the state attorney general’s office, which can help you resolve disputes with businesses.