Will Paying for Reservations be a Restaurant Revolution?

OpenTable, the industry-leading restaurant reservation website, is testing a feature that would allow customers to pay extra money for in-demand reservations. The reservation fee will be split between OpenTable and the restaurant owner. Payed reservations could end up being a serious source of revenue for operators. Typical reservation costs at one of the restaurants OpenTable is testing the program at are in the $100-$200 range on weekends.

The viability of charging for reservations rests, of course, on whether customers will actually pay extra to get a coveted weekend spot. The reservation site Resy has been having success with a business model that includes reservation fees on weekends. There is also a black market for highly desirable reservations in New York City, so it seems as though there is a market for selling reservations. With OpenTable now stepping into the reservation fee market, the tide could swing to this model becoming the standard for in-demand restaurant booking.

Read the full article here: High-Demand Restaurants Poised to Benefit from Reservation Revolution

Link: http://restaurant-hospitality.com/how/high-demand-restaurants-poised-profit-reservation-revolution

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