Reservation Fraud Is Real, and These New York Lawmakers Are Looking to Make It a Criminal Offense

Gone are the days of simply slipping the maître d' a crisp $20 to ensure a table at the hottest restaurant around. Instead, getting a restaurant reservation has not only become a competitive (and downright bloody) sport — it's also become a lucrative one, with people snatching up tables and reselling their spots on third-party sites like Appointment Trader and Cita, making it harder for actual diners to dig into a meal they've long been looking for. But, one New York State assemblymember and senator are teaming up to fight reservation fraud, and make it easier for you to get into whatever restaurant you please, sans middle man. 

On Tuesday, Assemblymember Alex Bores, State Senator Nathalia Fernandez, and the New York State Restaurant Association announced the advancement of the Restaurant Reservation Anti-Piracy Act, which aims to ensure third-party food service reservation apps actually obtain consent from restaurants before they can market and make seating reservations on their behalf. 

“New Yorkers are contending with the reality of our current economic landscape and increased cost of living. So, when consumers have the ability to dine out, they shouldn’t have to contend with malicious software or unethical practices marking up reservations," Bores shared about the bill in a statement provided to Food & Wine. "Currently, restaurants have no recourse to protect their diners or themselves against these third-party apps. This legislation reins in the black market that has emerged and protects consumers and restaurants." 

The bill's purpose statement is simple: "Require online third-party food service reservation apps obtain consent from a food service establishment prior to such app marketing or making a seating reservation at such food service establishment." If enacted, it will add a new section, 391-wm to the general business law of New York State, which will prohibit the third-party restaurant reservation services from "listing, advertising, promoting, or selling reservations for a food service establishment." If passed, those caught violating the rule will be "subject to a civil penalty" of up to $1,000 per violation. 

"Violations by third-party restaurant reservation services under this section shall accrue on a daily basis for each day and for each food service establishment with respect to which a violation of this section or any rule promulgated pursuant to this section was committed," the bill, which is now with the state's Consumer Affairs Committee, reads. And, any person charged fees by a third-party service can bring a civil action in any court to recover the cost. 

“Technology continues to advance, and our laws need to keep pace," Sen. Fernandez said. "Bad actors are using AI to their advantage and developing bots and tools that swoop up high-demand reservations to sell them at a profit. This is unfair to the consumer and restaurants." 

According to Fernandez, the issue was brought directly to them by the New York State Restaurant Association, whose president and CEO, Melissa Fleischut, shared, her thanks to the lawmakers for introducing the act, adding, “Restaurant owners and their staffs work hard to create special dining experiences. For some, their dedication to excellence has produced high-demand tables and full houses night after night. Now, bad actors have taken advantage of their hard work by profiting off sought-after reservations. These tables are hard enough to secure." 

And it's not just about reselling a seat. According to the trio, these apps are also increasing no-show reservations due to bots, causing restaurants to lose profits or be forced to turn away actual clients due to double bookings, with no way for the restaurants to recoup booking fees.  

"It's bad for business," Eric Ripert, chef and co-owner of Le Bernardin, told The New Yorker. "Every day, we spend hours trying to track down the bots and the fake reservations," he says, "If you have tables that are no-shows, the profit of the night is done."

There are other ways to get those coveted seats without screwing over restaurants in the process. As Caroline Hatchett previously wrote for F&W, you can try to snag your table by calling the restaurant to know when exactly they drop their reservations for the following weeks and months so you can be first in line. You can also show up in person to book a table. Michael Stillman, CEO of Quality Branded hospitality group, shared with F&W,  “We try to save room for people who are popping in. That’s an advantage of not shopping online.”

And, as Lacey Irby, owner of Chicago’s Dear Margaret, added, it's a good idea to keep notifications on for last-minute cancellations too. “People book months out and then cancel the day before, day of, and moments before they’re supposed to show up.” Irby suggested asking the restaurant to add you to any waitlists, just in case. 

Finally, you can always plan well in advance and use this story as a reminder to make that reservation ASAP.