The whole of the UK is seeing an increasing number of dine-and-dash incidents plaguing operators and hospitality venues. The most recent and highly publicised case of the Welsh ‘serial dine-and-dash couple’ is among too many. Of course, dine-and-dash has been around for as long as people have been exchanging money for food and drink, but so far, the consequences have not been too severe. But, as the hefty 20-month sentence may be one of the biggest wins for ‘honesty in hospitality’ in recent history, this should become a significant deterrent to others thanks to its national covering from the media.
Having worked with hospitality businesses for over two decades, from hotels to pub chains, sports venues, golf courses, big and small bars and restaurants, we’re often engaged in the conversation – how do operators best protect themselves from dine-and-dash? We’re seeing more and more big and small hospitality and leisure venues that offer catering calling us with dine-and-dash issues. In fact, one in three calls to the office is “inspired” by a customer walking out without paying their bill. This is detrimental to the industry, and things need to change.
So, what are the reasons behind dine-and-dash? You could blame it on the cost-of-living crisis. The squeeze on almost everyone is perhaps one of the reasons behind this type of theft. You could blame it on opportunism. We read a study some time ago that claimed that of the 2,000 participants, 1 in 20 have left a restaurant without paying in the past, which is quite a high percentage. You could also blame it on the need for more staffing. The same study revealed that 25% of the participants considered leaving without paying when it took too long for the bill to arrive. Blame can also be directed at the lack of policing. Fewer operators are reporting crimes due to the lack of evidence or interest from the authorities, and there is increased boldness of thieves due to a visible lack of police on the street.
Who does dine-and-dash affect the most? Sadly, the impact of dine-and-dash on operators goes beyond the lack of profits for businesses. Staff often bear the brunt of these incidents in more ways than one. Staffing morale and retention are hugely important in the current climate, yet if venues decide to recoup the losses of dine-and-dash through staff tips or even wages, who’s really losing out? Hospitality work is one of the toughest in terms of well-being and good mental health, and reprimanding staff emotionally and financially for failing to spot a thief can be significantly damaging.
Whatever reason you blame for dine-and-dash’s persistence and recent rise, temptation must be removed. We’ve always been advocates for keeping bar tabs. Securely holding bank cards allows you to check the card’s validity, and staff can upsell, build relationships, and increase profits. There is very little chance of customers being tempted to walk out without paying if their card is securely stored behind the bar.
Many operators now prefer payment upfront, which is fine, and using an App at the table or pre-payment at the bar has its advantages. However, according to VISA, by adopting this policy, operators forego the 30%+ increase in the average tab value, which goes straight to the bottom line.
In our experience, building relationships with customers is integral to increasing return business and the ability to upsell while they run a tab. Venues that allow customers to run a tab will see an increase in turnover compared to venues that don’t. Plus, the option to run a secure tab gives honest customers (the majority) the added reassurance that their card is kept professionally, while staff can focus on customer service.
Our Top Tips on Dine-and-Dash
Don’t give chase: Pursuing individuals who appear to have walked out without paying may be tempting. If they are already off the premises, don’t try to stop them, even if they may have forgotten to pay (which does happen!). The risk of confrontation or even violence is just not worth it.
Report the incident to the authorities: We always recommend that a report is made to the police. Sadly, they may not always be able to take action, especially if there is limited information about the individuals who left without paying, but an incident report can build a case against the perps, which, as we’ve seen recently, can result in the culprits being punished and some insurance companies may cover the loss with an incident report.
CCTV: It’s beneficial to have CCTV inside and outside the premises. Any dine-and-dash incidents can be captured, and the footage can be used to identify the individuals who left without paying. However, do keep track of relevant privacy laws.
Remove Temptation: Removing temptation for dine-and-dash is critical. We’re big fans of keeping tabs on where customers’ cards are securely kept behind the bar (ideally, in a CardsSafe unit). Securely holding bank cards allows you to check their validity, upsell, and build relationships. There is very little chance of customers being tempted to walk out without paying if their card is stored behind the bar.
Staff training: Operators should have a clear policy on handling dine-and-dash situations and what steps to take if they occur. Training all full and part-time staff will increase communication and the ability to spot potential offenders and reassure staff that it isn’t their fault if an incident occurs.
The bottom line? Remove temptation and impede dine-and-dash from the outset.
