Why restaurants stopped charging for no-shows

We're talking no-shows and cancellations, but we're still feeling optimistic. Plus: Congratulations are in order for the operators named to Restaurant Business' list of Top 100 Independents. Before you head out the door for Thanksgiving, pull up a chair for the latest edition of The Prep. 

On the menu:

💠 California's Prop 32 is rejected
💠 A look at Chipotle's latest investment
💠 Why restaurants stopped charging for no-shows
💠 The best new cocktail bars

What’s on our radar: Prop 32 results. After two weeks of ballot counting, the proposition, which would have raised California’s minimum hourly wage to $18, has been rejected by voters.

What's got our attention: Brassica, the six-unit fast-casual Mediterranean brand that recently announced a minority investment from Chipotle's venture fund. Restaurant Business gives us an inside look.

What we’re reading: Recipes for Connection: Inspiring Social Connection One Bite at a Time, a guide from the Office of the U.S. Surgeon General that explores how simply spending time together (ideally over food) can do wonders to combat the loneliness epidemic.

What we’re sipping: Low-calorie, low-sugar wines. "Winemakers are betting on younger, health-conscious drinkers who still want the ritual of enjoying a glass or two during the week," according to the Wall Street Journal.

Plus: How private equity giant Blackstone became a major restaurant industry player.

The current state of cancelations

A no-show or late cancellation can throw off a restaurant's schedule for the evening. Restaurants had thought of fees as a way to discourage such behavior. But are restaurants actually charging them? It seems the answer is no. In the name of hospitality, many restaurants are forgiving diners, writes Andrea Strong on Eater. "We haven't enforced it," John McDonald, the owner of Cha Cha Tang, in New York City and Lure Fishbar, with locations in Chicago and NYC, said. "I am not trying to make a successful business by charging people for cancellations … You're playing a numbers game; it's bad form to cancel or no-show, but it's not worth risking ruining a relationship with a guest who can then talk trash about your restaurant." (Eater) 

20%

Number of restaurant reservation that are canceled, according to Resy and OpenTable. (Cash App)

The glass is half full at independent restaurants

A new survey from Touch Bistro of 600 independent restaurant representatives found optimism is high despite ongoing struggles like food costs and staffing challenges. More than half of those surveyed said they were somewhat optimistic about the future of their business, and 38% said they were very optimistic. Many of these restaurants had plans to expand in some way. Nearly half planned to get into catering or private events, and 40% planned on opening multiple new locations, the survey found. “We thought this was the most positive outlook that we’ve seen for the industry,” Jackie Prange, VP of marketing at TouchBistro, tells Food On Demand. (TouchBistro)

“The restaurant industry is increasingly going towards a model of food as fuel.”

-Andrew Charles, analyst at TD Cowen (🎧Marketplace)

💠 Punch's list of the best new cocktail bars 

💠 Sushi restaurant temporarily shuts down after Keith Lee review

💠 Delta plans to serve Shake Shack cheeseburgers on some flights

Thank you for reading The Prep.

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