In 2015, San Francisco’s Lazy Bear restaurant and a variety of other restaurants around the country started using a reservation system in which diners pay for their meal in advance. No refunds are possible, though diners can give their tickets to others. Previously, these restaurants used traditional reservations, in which diners suffered no loss if they canceled, even at the last minute. How does this new system affect restaurants’ risks? What are some of the potential costs of this new system?