In the battle for restaurant reservations, it’s diners vs. bots
Oct 31, 2023
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Struggling to get a dinner reservation? Bots are snatching them up instantly, leading to a less fun restaurant experience. The podcast explores the issue of bots stealing reservations, along with solutions like Dorsha. They also discuss the evolution of reservation systems and the potential for a marketplace for fine dining.
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Quick takeaways
Bots are snatching up restaurant reservations, leading to the rise of reservation resale sites and causing losses for both diners and restaurants.
The high demand for fine dining experiences, driven by the desire for novelty and prestige, has fueled the use of bots to secure reservations and resell them at exorbitant prices.
Deep dives
The Challenge of Booking Restaurant Reservations
Restaurant reservations are becoming increasingly difficult to secure, with bots used to snatch up reservations as soon as they are posted. This trend, similar to snagging in-demand concert tickets, has led to the rise of reservation resale sites, where users can buy and sell reservations. Some sites have made millions in revenue from this practice. However, this situation is detrimental to both diners and restaurants. Empty tables and bounced credit cards result in losses for establishments. In response, some services require a minimum spend to book reservations, ensuring paying customers are guaranteed. The industry may see a shift toward these models to combat the issue and maintain their bottom line.
The Growing Demand for Restaurant Reservations
The increasing difficulty in booking restaurant reservations is a reflection of the elevated status that fine dining experiences hold in people's lives, particularly in urban areas. Fine dining has become a popular and sought-after experience, with a sense of novelty and excitement attached after the pandemic. The desire to be in the right place and the prestige associated with dining at renowned establishments adds to the demand for reservations. This high demand has given rise to the practice of using bots to snatch up reservations and resell them for profit. People are willing to pay exorbitant prices just to secure a reservation at an in-demand restaurant.
Steps Taken to Address Reservation Challenges
Restaurants are taking measures to combat the challenges posed by bots and ensure that reservations are made by genuine customers. One initiative is requiring a minimum spend to book reservations, with the amount going toward the final bill. This approach helps restaurant owners avoid empty tables due to no-shows and verifies that valid credit cards are used during booking. Additionally, platforms like American Express offer exclusive dining access to cardholders, creating a divide among reservation apps and attracting consumers who align with a certain lifestyle or status. The demand for fine dining experiences and willingness to spend significantly on them present opportunities for companies to cater to this desire and create marketplaces to drive demand to different restaurants.
Struggling to get a dinner reservation? It’s because someone — or something — already booked them. Restaurant slots are getting snatched up instantly by bots with the people operating those bots looking to turn a profit on reservation resale sites. The result: the restaurant industry is a lot less fun for the rest of us. Plus: The auto workers strike comes to an end and Magic Johnson makes the billionaires’ club.
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