Why Is There An OpenTable?
Offering
reservations to about 31,000 upscale restaurants around the world, having 15
million users per month, and with revenue of over $190 million last year,
OpenTable has been the best restaurant-reservation app in the marketplace for
quite some time now dating back to its inception in 1998. OpenTable allows
users to search for restaurants, wherever they may be, and make reservations
for the date, time, and size of their party with a click of a button. No more
phone calls to the restaurant to see if they’re busy. To make it even more
enticing, OpenTable offers the user points for using their system. As a user
makes more reservations, they accumulate more points, and these points can then
add up to dollars off their future meals. It’s a pretty sweet deal for anyone
who loves restaurants.
On the other side of the table, the restaurant receives an electronic reservation management system to replace the old-fashioned paper system and allows the restaurant to manage reports and keep track of guests and tables. Not to mention, the advertising they’re receiving for being on OpenTable. The catch, while this experience is free for the user, the restaurant pays OpenTable a fee for the service and advertising.
On the other side of the table, the restaurant receives an electronic reservation management system to replace the old-fashioned paper system and allows the restaurant to manage reports and keep track of guests and tables. Not to mention, the advertising they’re receiving for being on OpenTable. The catch, while this experience is free for the user, the restaurant pays OpenTable a fee for the service and advertising.
So All The Tables Are Taken?
While it’s
great to be on top, the new order is staying on top. OpenTable has been the
best at what it does and when you’re the best, others have to play by your
rules or take their chances without you. Let’s just say that the fees
restaurants pay OpenTable, they’re pretty pricey. OpenTable charges $1,295 just
for their software, a monthly fee of $199, an additional $99 to be featured in
OpenTable’s dining guide, $.25 per reservation booked on the restaurant’s
website, $1 per reservation booked through OpenTable or one of its partners,
and restaurants pay up to $10 just to give users the points we love to collect.3
When you add all these fees and charges up, some restaurants begin to question
if it’s worth it. Welcome competition.
SeatMe is similar to OpenTable, but focuses more on putting the restaurant back in control versus the reservation system. SeatMe’s secret sauce is that they’re easier to use, more powerful, and have no pesky cover fees. SeatMe provides 24/7 access to the manager wherever they may be and a seamless system for users, which includes automatic wait lists; all things OpenTable doesn’t have. What gives SeatMe a good kick in their service is that they already have Yelp dining in. Yelp gives SeatMe great exposure and credibility and is a strong backing system with their 139 million visitors monthly on average. Did I mention they offer all of their services for only $99 a month.
Eveve provides very comparable capabilities and features to restaurants and users. They’re similar to OpenTable in the services they offer, but similar to SeatMe in their pricing model and no cover fees. Eveve believes their strength is in their pricing, which offers savings from 60 - 90% compared to OpenTable. They aren’t wrong to highlight this strength either. Eveve has already gained traction in the market; they average 770 users monthly and already are being used by every 3 out of 10 restaurants.
SeatMe is similar to OpenTable, but focuses more on putting the restaurant back in control versus the reservation system. SeatMe’s secret sauce is that they’re easier to use, more powerful, and have no pesky cover fees. SeatMe provides 24/7 access to the manager wherever they may be and a seamless system for users, which includes automatic wait lists; all things OpenTable doesn’t have. What gives SeatMe a good kick in their service is that they already have Yelp dining in. Yelp gives SeatMe great exposure and credibility and is a strong backing system with their 139 million visitors monthly on average. Did I mention they offer all of their services for only $99 a month.
Eveve provides very comparable capabilities and features to restaurants and users. They’re similar to OpenTable in the services they offer, but similar to SeatMe in their pricing model and no cover fees. Eveve believes their strength is in their pricing, which offers savings from 60 - 90% compared to OpenTable. They aren’t wrong to highlight this strength either. Eveve has already gained traction in the market; they average 770 users monthly and already are being used by every 3 out of 10 restaurants.
Dessert Anyone?
The tab is
still out on what the future will hold for these restaurant-reservation system
companies. OpenTable has a large portion of the market due to its user-base and
advertising reach, but with large fees, will restaurants continue to fall in line
with their prices or continue to give companies like SeatMe and Eveve greater
shares in this industry. I guess it will depend on how well restaurants can
fill their seats.
References:
1. http://en.wikipedia.org/wiki/OpenTable
2. http://techcrunch.com/tag/opentable/
3. http://blogs.houstonpress.com/eating/2014/05/as_fees_become_problematic_res.php
4. http://www.opentable.com/start/home
5. https://www.seatme.yelp.com/
6. http://www.eveve.com/
References:
1. http://en.wikipedia.org/wiki/OpenTable
2. http://techcrunch.com/tag/opentable/
3. http://blogs.houstonpress.com/eating/2014/05/as_fees_become_problematic_res.php
4. http://www.opentable.com/start/home
5. https://www.seatme.yelp.com/
6. http://www.eveve.com/
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