Nikonomics - The Economics of Small Business 210 - Outrageous Membership Platform Success! 99% Margins and Zero Ads with Tarek Arafat
Jul 28, 2025
Tarek Arafat, co-founder of Table One, shares his journey in creating a successful membership platform that secures sought-after restaurant reservations in NYC. Discover how he tackled the scalping epidemic, turning a personal need into a booming business with nearly 99% margins and zero paid ads. Tarek reveals the pivotal moment when being featured in The New Yorker skyrocketed their growth and discusses the challenges of overcoming early setbacks. He also explores innovative investment strategies and the powerful impact of community involvement in their success.
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Reservation Scalping Problem
- Table One solves the problem of high-demand restaurant reservations being scalped and resold at inflated prices.
- Existing reservation platforms focus on restaurants, leaving consumers vulnerable to bots and scalpers.
Reservation Scalper Success Story
- A Brown University student made $75,000 a year scalping restaurant reservations.
- New York State passed legislation to prohibit third-party reservation reselling due to this growing issue.
How Table One Protects Diners
- Table One pushes users to book directly on platforms like Resy and OpenTable.
- This ensures the restaurant gets accurate diner data and helps regain fair access for consumers.