Restaurant deposit policy: what UK venues can charge for no-shows

TL;DR: A fair restaurant deposit policy tells guests before they book how much the deposit is, when it applies, and exactly when it is kept. The CMA says a genuine deposit can be kept in full if the circumstances are clear and narrow and it is not more than a small share of the price, and that charges should reflect real losses, taking into account any chance to re-book the table. The 14-day cooling-off period does not apply to restaurant bookings for a specific date.

Key takeaways

• A restaurant deposit policy must be clear before the guest books: the amount, when it applies, and exactly when it is kept or refunded.
• The CMA says a genuine deposit can be kept in full if the circumstances are clear and narrow, but it will not normally be more than a small percentage of the price.
• Charges for cancelling should reflect the business’s real losses, taking into account savings and the chance to re-book the table.
• The 14-day cancellation right under the Consumer Contracts Regulations does not apply to catering booked for a specific date.
• A card hold usually lasts only about 7 days for online payments, according to Stripe, so it cannot secure a booking weeks ahead on its own.

What is a restaurant deposit policy?

A restaurant deposit policy sets out when guests must pay part of their bill in advance to secure a table, how much they pay, and what happens to that money if they cancel, change their booking or do not turn up. A fair policy is clear before the guest books and keeps the deposit only when the venue genuinely loses out.

No-shows cost restaurants real money: food prepared, staff rostered and a table turned away from someone else. Restaurant deposits are the most direct way to reduce no-shows, because guests who have paid something are far more likely to turn up or to cancel in time. But a deposit is part of a contract with a consumer, so it has to be fair under UK consumer law.

This guide is not legal advice. It sets out what the Competition and Markets Authority (CMA) says in its unfair contract terms guidance, updated in July 2026, and how the rules apply to a typical restaurant deposit policy, checked on 14 October 2026.

Can UK restaurants charge deposits and no-show fees?

Yes. UK restaurants can ask for deposits or charge no-show fees, as long as the terms are fair and clear under the Consumer Rights Act 2015. The CMA says unfair terms are not binding on consumers. Terms are more likely to be fair when they are told to guests up front, are proportionate, and reflect the venue’s real losses.

The Consumer Rights Act 2015 says that unfair terms in a consumer contract are not binding on the consumer, and Trading Standards’ Business Companion notes that enforcers can take action to stop businesses using them. The test is fairness: whether a term tips the balance against the customer in a way that is not justified. A deposit policy that guests can read and understand before booking, with clear rules about when money is kept, is on much safer ground than a surprise charge.

There is also good news on cancellation rights. The Consumer Contracts Regulations 2013 give consumers a 14-day right to cancel many contracts made online or by phone, but regulation 28 says this does not apply to the supply of catering or services related to leisure activities if the contract provides for a specific date. A table booked for a set date and time falls into that exception.

How much can a restaurant deposit be?

The CMA does not set a number. It says a genuine deposit can be kept in full if it works as a binding reservation, the guest is told at the earliest opportunity that it is required, and the circumstances in which it is kept are clear and narrow. It adds that such a deposit will not normally be more than a small percentage of the price.

The CMA’s guidance says terms allowing a business to keep prepayments are more likely to be fair when the amount reflects the ordinary expenses the business faces when a customer cancels. It warns that a larger prepayment is more likely to be unfair because it may amount to a disguised penalty, and that a substantial prepayment that is entirely non-refundable whatever the circumstances is more likely to be unfair.

One simple approach is a modest amount per guest, taken off the final bill, for larger groups or busy services. Set the amount by asking what a no-show actually costs you: food prepared, extra staff, and the covers you turned away. A deposit that roughly matches that is easier to defend than one that matches the whole meal.

Booking	A deposit is more likely to be fair if	It is more likely to be unfair if
Standard table	Small, clear and only for no-shows or late cancellations	It is kept whatever happens, even with plenty of notice
Large group	Set in advance, tied to what you prepare and staff	It is the full bill, non-refundable from the moment of booking
Set menu or event	Reflects food bought and staff booked for that date	It is kept even when you re-sell every seat
Busy dates	Explained clearly at booking, with a cut-off for refunds	The rules are vague or left to the manager’s discretion

What should a no-show fee reflect?

A no-show fee or late cancellation charge should reflect the restaurant’s genuine loss, not punish the guest. The CMA says early termination charges should take into account any savings the business makes, its ability to reduce the loss, for example by finding another customer, and any benefit of being paid earlier.

That last point matters for restaurants. If a table for four cancels the day before on a Saturday and you fill it from the waitlist, your loss is small. If a party of twelve does not turn up for a set menu you have already prepared, your loss is much larger. A sliding scale, where the charge rises the closer the cancellation is to the booking, reflects that well. The CMA’s guidance cites a court case in which a table of cancellation charges rising in steps was praised for giving clarity and certainty.

The CMA also lists terms that are more likely to be unfair: a fixed arbitrary sum for any breach that is disproportionate to the likely loss, charges that let the business recover the same loss twice, and terms that give the business wide discretion to decide how much to charge. Keep the no-show fee fixed, clear and tied to the size of the booking and the notice given.

Do restaurants need to tell guests about deposits in advance?

Yes. The CMA’s guidance says a deposit is more likely to be fair when the business makes clear at the earliest opportunity that a deposit is required and the precise circumstances in which it would be non-refundable. Put your cancellation policy on the booking page, in the confirmation email and in the reminder, in plain words.

Hiding a deposit or no-show rule in small print, or adding it after the booking is made, makes it much harder to justify. The Consumer Rights Act requires written terms to be transparent, meaning in plain and intelligible language and legible, and the CMA’s guidance stresses presenting important terms prominently and clearly. For a restaurant, that means the guest should see the deposit and cancellation rules before they press Book.

A good booking flow shows the deposit amount, the cancellation cut-off and what happens on a no-show right next to the payment step, and repeats them in the confirmation. Guests then know where they stand, and you have a clear record if there is a dispute.

Can you hold a card instead of taking a deposit?

You can, but a card hold does not last long. Stripe’s documentation says an authorisation for an online card payment is usually valid for 7 days, after which the funds are released. A hold placed when someone books three weeks ahead will have expired by the night of the booking unless it is renewed or replaced.

That is why booking systems usually do one of two things: take a deposit as a real payment at the time of booking, or securely save the guest’s card details with their agreement and charge the no-show fee later, under the terms they accepted. Each has trade-offs. A deposit secures the money but adds friction at booking. Saving a card is smoother for guests, but a later charge can be disputed if the terms were not clear.

Whichever you use, make sure your booking system or payment provider handles the card details, so they never pass through your own hands or inboxes. Our comparison of restaurant booking software notes which systems include deposits and card holds.

What should your restaurant deposit policy say?

Your restaurant deposit policy should say when a deposit is needed, how much it is, how it is taken off the bill, the deadline for a full refund, what happens with late cancellations, no-shows and smaller groups, and how refunds are paid. Keep it short enough to read on a phone in under a minute.

Here is an example you can adapt. The amounts are illustrations only; set yours based on what a no-show really costs you.

• When we take a deposit: for bookings of 6 or more, and for all bookings on [busy dates].
• How much: [£10] per person, taken off your final bill.
• Full refund: if you cancel or reduce your numbers at least [48 hours] before your booking.
• Late cancellation: if you cancel with less than [48 hours] notice, we keep the deposit for the guests who cancel, unless we re-book the table.
• No-show: if you do not arrive within [30 minutes] of your booking without letting us know, we keep the deposit.
• If we cancel: we refund your deposit in full.
• Refunds: paid back to the card you used within [5 working days].

The line about refunding if you re-book the table, and the full refund if the restaurant cancels, both follow the CMA’s principles: charges should reflect real losses, and a term letting a business keep money when the customer cancels, without giving the customer equivalent compensation when the business cancels, is on the CMA’s grey list of terms that may be unfair.

Should the deposit come off the final bill?

Usually, yes. A deposit that is taken off the bill when the guest arrives costs them nothing extra, and it makes the deposit easy to explain: you are paying part of your meal in advance. A separate booking fee that is never refunded is harder to justify and more likely to put guests off.

Say so clearly at booking and on the bill. A line such as Deposit paid, £40, deducted, avoids awkward conversations at the end of the meal. If a group arrives with fewer people than booked, your cancellation policy should say whether the deposits for the missing guests are kept, and that should depend on how much notice you had and whether you could re-sell the seats.

How do you explain restaurant deposits to guests?

Explain restaurant deposits in one or two plain sentences at the point of booking, with the reason: deposits help you keep tables for guests who turn up and keep prices fair. Most guests accept a deposit when they understand it, see it come off the bill and know exactly how to get it back.

A short, friendly line works better than a wall of terms. For example: We ask for a £10 per person deposit for groups of six or more, taken off your bill on the night. Cancel up to 48 hours before for a full refund. Then link to the full cancellation policy for anyone who wants the detail. Repeat the key points in the confirmation email and the reminder, so nobody is surprised by a no-show fee.

Train staff to explain the policy the same way on the phone. When a guest asks for an exception, a consistent answer, and a manager who can make a goodwill call for genuine emergencies, keeps the policy fair and avoids arguments.

Do the same rules apply to private hire and events?

Yes, the same principles apply, but the amounts can be higher because your losses are higher. For private hire, set menus and events, you may buy food, book extra staff and turn away other bookings for that date. A deposit or cancellation charge that reflects those committed costs, on a clear sliding scale, is easier to justify.

Write a separate cancellation policy for private hire, agreed in writing when the booking is confirmed. Set out the deposit, when final numbers are due, the cancellation charges at each stage, and what happens if you cancel. The CMA’s guidance says charges should reflect the business’s real losses, savings and chances to re-sell, so a charge that rises as the date approaches is fairer than a single large non-refundable sum taken months in advance.

How else can you cut no-shows?

Restaurant deposits work best alongside other habits that cut no-shows: send an automatic reminder the day before, make cancelling easy so guests tell you instead of staying away, keep a waitlist to fill late gaps, and confirm large bookings by phone. Some guests who do not turn up simply forgot, and a reminder fixes that.

1. Send reminders by email or text the day before, with a one-tap cancel link.
2. Make cancelling easy online, so guests free the table instead of ignoring it.
3. Keep a waitlist for busy nights to re-fill cancelled tables quickly.
4. Confirm large groups a few days ahead, and ask for final numbers.
5. Use deposits selectively, for large groups and peak dates, rather than every table.
6. Track no-shows so you know whether your cancellation policy is working.

Our page on cutting no-shows explains how reminders, deposits and waitlists work together in a booking system.

What if a guest disputes the charge?

Explain the no-show fee politely, point to where it was shown when they booked and in their confirmation, and consider the circumstances. Genuine emergencies happen, and a goodwill refund often costs less than a bad review. If the guest disputes the card payment, your payment provider will ask for evidence of the terms they accepted.

Keep records of each booking: the time it was made, the terms shown, the confirmation and reminders sent, and any messages from the guest. A clear booking flow and good records make disputes rare and quick to settle. Never post about a guest publicly or share their details; reply to any review politely and take the conversation offline.

If an off-the-shelf tool does not fit how your business runs, we build booking systems and staff apps from Portsmouth. See web development and the Peperoncino booking system.

Frequently asked questions

Is it legal for a UK restaurant to charge a no-show fee?

Yes, if the fee was clearly agreed before booking and is fair. The CMA’s guidance says charges should reflect genuine losses, taking into account savings and the chance to re-book the table. A disproportionate fixed penalty is more likely to be unfair.

Do guests have 14 days to cancel a restaurant booking?

No. The Consumer Contracts Regulations say the 14-day cancellation right does not apply to catering or leisure services booked for a specific date. Your own cancellation policy sets the rules instead, as long as it is fair.

Can a restaurant keep the whole deposit?

The CMA says a genuine deposit can be kept in full if it works as a binding reservation, the guest was told clearly at the start, and the circumstances are clear and narrow. It also says such a deposit will not normally be more than a small percentage of the price.

How long can a restaurant hold a card?

Stripe says an authorisation on an online card payment is usually valid for 7 days. For bookings further ahead, restaurants usually take a deposit or save the card with the guest’s agreement and charge later under the stated terms.

Should every booking need a deposit?

Usually not. A common approach is to ask for deposits for larger groups, set menus and busy dates, and rely on reminders and easy cancellation for everyday tables. Asking every guest for a deposit can put off walk-in style bookings.

Want deposits handled automatically?

A fair restaurant deposit policy only works if it is shown clearly at booking and applied the same way every time. Our restaurant booking plugin takes bookings on your own website with reminders and clear terms, and our booking systems service sets up deposits and no-show rules that match how your restaurant works.