Restaurant Reservation Deposit Break-Even Calculator
Restaurants often require deposits for larger parties to guard against no-shows, but deposits can also deter some bookings. Enter your average check, no-show rate, and estimated booking deterrence to find the break-even party size for requiring a deposit.
About this calculator
Determine the minimum party size at which requiring a reservation deposit becomes worthwhile by weighing lost bookings against no-show revenue protection.
Frequently Asked Questions
Why would a deposit ever hurt revenue?
Some guests will book elsewhere rather than pay a deposit, so for small parties the lost bookings can outweigh the protection against no-shows.
How is the break-even party size calculated?
The calculator compares expected revenue with and without a deposit policy at increasing party sizes until the deposit policy produces equal or greater expected revenue.
Should I use actual historical no-show data?
Yes, using your own restaurant's no-show and deposit deterrence data instead of estimates will give a much more accurate break-even threshold.