New Jersey lawmakers want to ban some restaurant reservation trading ahead of World Cup

Exclusive restaurants can see their reservations snatched up within minutes of going live, and those coveted seats can end up on resale websites and bidding apps, often without the restaurant’s knowledge.

Now, New Jersey lawmakers are taking aim at underground restaurant reservations.

“New Jersey is home to many world-class restaurants who offer incredible food and hospitality to our residents and tourists. When companies begin to offer a marketplace for these reservations to be sold without the consent of a restaurant, it can potentially cause disruptions in business operations,” said Sen. Kristin Corrado (R-Passaic), who is sponsoring legislation to address the problem.

Corrado said she wants to tackle the issue before millions of people flock to New Jersey for the World Cup next summer and people begin paying eye-popping amounts for fine-dining reservations. During the Super Bowl in New Orleans, a four-person Saturday night reservation at a fancy restaurant in the French Quarter went for $2,138 on a third-party website.

Websites like Resy and OpenTable, both free platforms, already have agreements with thousands of restaurants. Other sites like Appointment Trader offer “user-to-user reservation exchanges” — paying top dollar to ensure entry to buzzing restaurants. Previously, the site was limited to hotspots like New York and Los Angeles, but it has since expanded into New Jersey.

For a reservation at popular Montclair restaurant Pasta Ramen, the suggested bid for a Thursday night reservation in July is $465. At Razza in Jersey City, the suggested offer tops $100. And Nobu in Atlantic City is more than $300.

Corrado’s bill would prohibit third-party reservation services to promote or sell reservations without a written agreement with the food establishment. Violations would carry civil penalties of up to $1,000 for each restaurant promoted, and accrue daily.

New York’s governor recently signed a similar bill, which took effect in February. Illinois and Louisiana lawmakers also introduced legislation barring the practice.

New Jersey’s bill, introduced earlier this month, does not yet have an Assembly companion. It awaits a hearing in the Senate Commerce Committee.