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June 21, 2024

eatOS Staff

New York Bill Outlaws Black Market for Restaurant Reservations

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NY Cracks Down on Reservation Resellers

In June, a bill was passed in New York that forbade the sale of reservations obtained via automated systems on Internet forums. We are awaiting the signature of Governor Kathy Hochul on the Restaurant Reservation Anti-Piracy Act.


Defying Predatory Software

According to a press release, if she signs it, New York will spearhead national efforts to combat the "trend of predatory software flooding the online restaurant reservation marketplace." Given that it already has what are arguably the most fierce reservation wars in the country, New York is well-positioned to be the first.


The Struggle for Prime Reservations

Are you trying to get three people into Carbone on a Friday night at six o'clock? Never even bother. The emergence of reservation platforms in New York, such as Resy, Opentable, Tock, and SevenRooms, has turned the competition for available slots into a reality show. People naturally devised methods to game systems. In these forums, a lot of reservations are made by bots, so it was never really a war to wait until midnight for a restaurant to open for business for the month.


Creating a Culture of Exclusivity

The bill's supporters claim that it has created a culture in which the wealthy and destitute must pay hundreds of dollars simply to obtain a reservation, and that's before the expensive meal bills at restaurants. 


Eater revealed in 2022 that finance bros created a closed online group chat on the encrypted messaging app Telegram called #FreeRezy, which included members of the Chainsmokers band as users. #FreeRezy was eventually discovered, but other groups have since taken its place. At the time, #FreeRezy told Eater, "The benefit to someone in the group is you don't have to plan a month." 


"People in their twenties lead hectic lives." Restaurants have also been left in the dark by untrustworthy reservations and a wave of cancellations from untrustworthy patrons. Many restaurants now charge no-show fees in its place.


Legitimate Reasons for the Black Market

The black market may have grown for a few acceptable reasons: Following a positive COVID test, users on the Reddit group R/FoodNYC tried to hawk their nonrefundable, $1500 fine dining reservations during the omicron wave. The subReddit has continued to be used as a platform for reservation transfers in the years that have passed.


R/FoodNYC is primarily about discussions about food in New York, such as what to eat after the theater, so this was not its intended use. Eater receives a warning from a group moderator that anyone who upcharges on their non-refundable reservation trades risks being removed from the group.


Legislative Support and Industry Backing

Applauded by the New York State Restaurant Association is bill S.9365/A.10215. "New Yorkers should not have to pay shady middlemen just for the right to a dinner reservation," Assemblymember Alex Bores backed it as well. We are making sure that families won't have to pay a $250, $500, or even $1,000 cover charge to celebrate a graduation, anniversary, or birthday thanks to this legislation. 


We also shield workers from missing tips and restaurants from an increase in cancellations. genuinely win-win-win OpenTable and Resy are joining the chorus of supporters, which makes sense because it increases the relevance of their respective platforms in particular. The bill is "a significant step forward to protect restaurants and diners from reservation fraud," according to Pablo Rivero, CEO of Resy.


Looking Ahead

If enacted, this legislation may serve as a template for other states facing comparable challenges. It is a big step toward guaranteeing equitable access to reservations for dining and shielding customers and the restaurant business from dishonest business practices. A testament to New York's dedication to preserving the integrity of its thriving dining scene is the Restaurant Reservation Anti-Piracy Act.


As evidence of its dedication to maintaining justice and openness in the restaurant business, New York has established a precedent in the fight against reservation fraud. In addition to safeguarding customers, this law creates a more reliable and long-lasting atmosphere that is conducive to restaurant success. This legislation could have a nationwide effect, changing reservation procedures and ensuring that everyone has a safe and enjoyable dining experience as other states take notice and may even implement comparable legislation.


Disclaimer: This article is informative and not for promotional purposes. Moreover, the content belongs to the owner and there are no affiliations or marketing motives behind it.



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About eatOS

Since 2017, eatOS has championed "Restaurants Made Simple" through its integrated ecosystem of products. This AI-driven restaurant management technology, tailored for boutique eateries and large-scale chains, boasts an advanced Point of Sale, intuitive kitchen interfaces, table-side ordering and payment solutions, self-service kiosks, and an expansive online ordering and delivery platform. We're redefining the dining landscape, ensuring efficiency, and elevating guest experiences.

 

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