Maybe for a single event. But if the owner lives and dies by the profit on any given day, then they are up for a big wake up call.
Seems rather unlikely for a Michelin star restaurant that sold out the event, again it's about why they should refund them rather than if they could. I doubt it is going to damage their reputation either.
I mean what's the point in taking advanced payment for an event if you accept cancellations (of a whole group) for all sorts of reasons - this was one person in a party of 6 whose dad had been in an accident and was in hospital... maybe another party has someone who is ill and can't make it - should they get a refund for the entire party too?
The refund of the two tickets seemed reasonable tbh... the other 4 people who booked to attend the NYE event could have attempted to invite other friends too.
That £660 also wasn't lost. They could have just fitted them in another day when there is spare capacity going.
Yes it was, they sold out that event and previously had people on a waiting list - if they couldn't sell on the seats (which they did try to do) then they are taking a hit of £660, and that hit would have been from their profit for that night as the food, staff etc.. had already been booked.
That the party might have come back another night doesn't change that either - coming back another night might just have meant that some other people couldn't get a booking there that might have otherwise.