The practice, known as pre-authorization, is commonly seen at bars and counter-service spots. But at Novo Brazil’s Mission Valley location, guests were asked to hand over a card while seated at a table - before menus were opened or drinks poured. A diner who visited with a nationally known restaurant consultant described the moment as "insulting," saying it sent an immediate message of distrust.
"I went to Novo Brazil and took a very well known restaurant consultant that was in town to dinner. They had us swipe our credit card before we even ordered food," wrote the diner. "This was while sitting at a table. I felt that was so insulting and we almost walked out. Basically the first experience he got from Novo Brazil was 'we don’t trust you'! Isn’t that f'd up!? I’ve never had that happen before. Yes sitting at the bar but not at a table for dinner. There were 6 of us."
Novo Brazil has not publicly addressed the policy, but similar pre-authorization tactics have quietly been adopted by other San Diego restaurants, including dining establishments at the brand new Gaylord Pacific Resort. The practice is particularly popular for those restaurants using the Toast POS system. While often described as a fraud-prevention tool, the move may also be a response to a rising number of dine-and-dash incidents plaguing local establishments.
In April, multiple San Diego restaurants - including 356 BBQ in Mission Valley and Surfing Crab in Escondido - posted security footage of guests allegedly leaving without paying tabs ranging from $150 to more than $200. Industry workers have shared similar stories online, describing how some patrons tag-team tables or leave expired cards to avoid paying.
"A lot of scammers will order lobster towers, then someone ducks out for a smoke or bathroom break - and never comes back," one downtown bartender told the San Diego Reader in April. "We’re just expected to smile through it. But it’s theft, plain and simple."
Under California law, walking out without paying for food or drink with intent to defraud is a criminal offense. While businesses are encouraged to report incidents, many find little relief in pursuing charges after the fact - leading some to take proactive steps like credit card pre-authorization to protect against loss.
Typically, this process involves placing a hold on funds at the beginning of service - much like what happens at gas stations or hotels. Some POS platforms, including Toast, offer features that automatically verify cards and close out tabs, offering restaurants an added layer of security if a customer walks out.
Critics argue the policy creates a cold, transactional dynamic that undercuts the welcoming experience expected at full-service restaurants. Still, others see it as a necessary adaptation in a time of increased risk and razor-thin margins.
As part of our reporting, SanDiegoVille reached out to both Novo Brazil and Toast for comment. Novo Brazil responded to our inquiry, explaining that the policy is consistent across all their locations.
"As we operate as both bar and restaurant, requesting a card pre-authorization is a standard practice at all Novo locations," explained Hugo Thomaz, Director of Operations of Novo Brazil Brewing Company. "Our locations are large (300–950 people) and receive multiple big reservations and events at the same time. Pre-authorizing cards helps us efficiently manage tabs, particularly during busier periods, and is a common approach among similar establishments in San Diego."
Thomaz also shared a link to Toast's blog explaining how pre-authorization works and addressing misconceptions about the practice: Toast Blog – What is Preauthorization.
At a time when trust between diners and establishments feels more fragile than ever, San Diego restaurants must walk a fine line - balancing hospitality with the need to safeguard their bottom line. Whether credit card pre-authorization becomes the new industry standard or remains a controversial exception remains to be seen.
Originally published on May 18, 2025.
