And Now, the Uber of Restaurant Reservations

By Scott Reitz Tue., Oct. 28 2014 at 6:00 AM

Lori Bandi

How diners get access to plates like this charcuterie board at Lucia could be changing in the future.

Since Lucia first opened, the Oak Cliff Italian restaurant has been honing its reputation as Dallas' toughest reservation. Diners who want the opportunity to twirl a forkful of David Uygur's cacio e pepe have to call the restaurant a month in advance to book a table. Prime slots are consistently gobbled up fast, and if you wait too long your hot Friday night date might become a tepid Tuesday reservation at 5:45 -- dating, grandparents-style.

But according to The New York Times, Lucia is actually being charitable with its monthly old-school telephone reservation system. Urged by apps like Uber, which raise and lower prices dynamically based on customer demand, restaurants in New York City and San Francisco have begun tapping ways to turn all of that pent up demand into cash money. Now, if you want a previously impossible reservation at Peter Luger Steakhouse, Killer Rezzy, an online booking service based in New York, is all too happy to charge you $25 to make your dining dreams a reality.

It's not hard to imagine that reservation charge climbing for traditionally busy occasions like Valentine's Day or New Years Eve or Mothers Day. Just look at Uber prices on the same days.

Aside from booking fees, there are other ways restaurant owners have found to monetize excess demand for tables. Grant Achatz's Next in Chicago sells non-refundable tickets to every meal, preventing pensive diners from canceling reservations. Others charge a fee to make a reservation, then credit the fee back to the final bill, incentivizing diners to show up when they say they're going to.

It's the no-shows that push these restaurants to protect their profits as their real estate and food costs continue to climb. According to the Times, no-shows make up 5 to 10 percent of all reservations, and those tables stay empty unless other diners walk in to take them. By making sure customers make good on their reservations, restaurateurs can protect their bottom line.

As these practices evolve, it's not a stretch to envision a smart phone app that displays open reservations (and fees) within proximity of a diner. Or how about an app that lets diners bid on last-second open reservations? Those tables at Lucia could cost you a pretty penny, you may be able to get a deal if your dining time is flexible.

Personally, I'm just sad my selfish practice of booking two restaurants for the same time, and then choosing the one that suits my mood that evening, might no longer be financially prudent. Don't judge: I always call and cancel the other reservation as soon as I can. You do too, right?

We Recommend

LWait

What about OpenTable? Your reservation is tied to your profile and if you get too many strikes (not showing up for your reservation) your account is in jeopardy and if you are a good patron you get rewarded. I think OpenTable relies on the restaurant using their software for booking tables though? But anyways, I'd prefer to see it like an AirBnB model.. diners and restaurants could review each other of sorts. If you are late for your reservation, no-show or cancel last minute, your reputation would be visible to other restaurants.

I realize it is a capitalistic society that we live in but to pay extra for a reservation seems a little much. I've worked in high end restaurants before where a deposit style reservation fee was charged (usually less than $30) that was then credited towards your final bill, and to be honest I don't know if it really made a difference, people still no-showed. I think there are other business models that restaurants could employ if they are truly worried about reservation turn over.

There are a handful of restaurants in DFW that I wouldn't mind paying a small reservation fee as long as it would be credited back to me on my bill. However at the end of the day I appreciate a good restaurant that doesn't take reservations unless it is a larger party that would take planning (moving tables together and such). If your restaurant is that good, then people would gamble with showing up to test their luck or better yet show up earlier (the bane of most good restaurants is being able to fill an entire evening with turn-overs). Not to mention the money you make on people who order a cocktail from the bar while they wait. If your restaurant pretty much only books reservations ("a month in advance") wouldn't less people be likely to walk-in and then you could find yourself in a pickle when your reservations don't show and you have empty tables?

Just thoughts and ramblings...

furrytrout12

Twinwillow - they changed the promo code for first time users.

With this new promo code - qycp5 - first time users ride free (up to $30)

See what I did there?

Twinwillow

Speaking of Uber, they have a little known promo code for first time users. After downloading their app, use their promo code 419jnm to get your first ride free up to $30.00.

I used that promo code my first time and saved $30.00 on an UberX ride out to DFW Airport.