It was only a matter of time before someone figured out a way to make money in the restaurant business without owning or working in one, another disruptive technology changing the way we live. opentable (opentable.com) is to the restaurant industry what uber is to the taxi business. Both are involved, but neither is committed to the assets, Uber does not own taxis, and OpenTable does not own restaurants. opentable is an example of a technology we can use to enhance our search for dining experiences. For example, let’s say you’ve forgotten your loved one’s birthday and now you’re terrified to make amends by going out to dinner, but it’s 4 p.m. m. on a Saturday…what are the chances of getting a table reservation that late? you have two options first, login to killer rezzy (killerrezzy.com) and select a reservation time available at the best restaurants in town… (the only problem here is that you will have to pay killer rezzy a fee of $10 -25 to get that table) or second, you can head to a different bunch of hot restaurants that don’t take reservations and take the opportunity to queue up with the hordes. the act of traveling to a restaurant and finding that there is a 2 hour wait for a table is a risk that many people are not willing to take. in this situation you have to put a price on the value of the relationship; at this point, maybe the $20 worth of killer rezzy is well spent keeping the peace. what about restaurants in these situations, what is best for them? Making reservations isn’t as cumbersome as it used to be with the help of technology and apps like OpenTable, where you can book a table with just three clicks on your smartphone. So why do some restaurants stick with no reservation policies and others stick with the status quo? the simple reason boils down to money; Obviously, both camps feel they are maximizing revenue with their adopted reservation policy. restaurants are in business to make money and are doing what is best for them to achieve their goals, regardless of consumer perception.
This study looks at the economic side of reservations, the money spent on average by restaurant patrons. Specifically, this research paper looks at the spending patterns of restaurant patrons who have made reservations in advance and those who “walk in” taking advantage of the opportunity to get a table. there is no way to compare spending between restaurants that take reservations and those that don’t, because each establishment has a unique price, plus many other factors that affect it, such as staff (increased sales or not), atmosphere, and type of cuisine What an individual customer can spend at “Restaurant A” and “Restaurant B” is determined by factors too numerous for any agreed-upon comparison analysis. What this study does is look at restaurants that accept both reservations and walk-ins and compare spending using the average guest check as a measurement tool (table sales divided by the number of guests at the table equals the average spending per guest). another measurement calculation is done using revpash (revenue per available seat hour). By dividing the revenue for a given period by the available seating hours in that same period, management can assess the dining room’s performance. note: revpash is not used in this study, just the average (average) guest check, revpash looks at total sales volume at specific times from all sources (walk-ins and bookings). an increase in average guest checks would contribute to positive revpash as long as volume remained constant or increased.
You are reading: Reservation books for restaurants 2016
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comparing the two types of restaurant customers was the strategy; the first is the person who planned ahead by reserving a table, perhaps for a special occasion, a business dinner, or just because it’s Saturday. The second person in this study is the one who has decided at the last minute that she would risk walking into a restaurant without a reservation. the goal was to determine which of the two customer groups spends more per person (average guest check). the speculative theory was that those who planned ahead are the ones who are prepared to “drop some money” on the experience, on last minute visits. With this knowledge, a restaurant owner can decide which reservation policy is best for them with respect to revenue management, as both options require a commitment of resources. Restaurants that want to make reservations need to invest in technology (ie reservation software) or phone systems to handle customer requests; restaurants that don’t take reservations just need a pen and paper for waiting lists…maybe a pa (microphone) to call tables when they’re ready.
An interesting recent personal observation was at a fairly new and popular restaurant that did not take reservations. had empty tables in prime time (7-8pm) on a Saturday night, which made me wonder if people wouldn’t bother to take a chance and show up at a table because they didn’t want the hassle of waiting. it was after the whole weekend after valentine’s day and it was very cold (−14 °c). perhaps those dining out preferred the comfort of having a reservation (for convenience) at a restaurant of similar cuisine to one they knew didn’t have a table.
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