The Fair Trade Commission has raised the ceiling for no-show penalties at reservation-based fine dining restaurants to 40 percent of the preordered menu price. This marks an increase from the previous 10 percent limit, reflecting the food service industry's typical cost ratios. Guidelines for the wedding industry have also been revised upward.
On December 18, 2025, the Fair Trade Commission (FTC) announced that the ceiling for no-show penalties at reservation-based fine dining restaurants will rise to 40 percent of the preordered menu price, up from the previous 10 percent maximum. This applies to upscale establishments like omakase restaurants, allowing them to charge up to 40 percent for missed reservations. The FTC revised the guidelines considering that cost ratios in the food service industry typically hover around 30 percent.
For general walk-in restaurants, penalties may now be set at up to 20 percent of the total charged amount. These changes aim to compensate operators for losses due to cancellations.
The watchdog also updated penalty guidelines for the wedding industry. Wedding venue operators can now impose up to 70 percent of the total cost for cancellations on the day of the event, 50 percent for those made one to nine days prior, and 40 percent for cancellations 10 to 29 days before. Conversely, if venues cancel, they must reimburse 70 percent of the total cost if the cancellation occurs 29 days or less prior to the wedding, and 35 percent if earlier.
These revisions promote fair transactions between consumers and businesses, with the FTC emphasizing adjustments based on industry-specific characteristics. Fine dining and wedding sectors anticipate greater operational stability from these updates.
