OpenTable

OpenTable. It is an online restaurant reservation service and a subsidiary of Booking Holdings. The platform connects diners with restaurants, allowing users to book tables via its website and mobile applications while providing restaurants with management software. Founded in the late 1990s, it has grown into a major player in the global dining and technology sector, operating in numerous countries and integrating with other services like Google Maps and Apple Maps.

History

The company was founded in 1998 by entrepreneur Chuck Templeton in San Francisco, California, initially conceived after a frustrating experience trying to book a dinner reservation. Early investors included Impact Venture Capital and Integral Capital Partners. It launched its first online reservation in 1999 at Acquerello in San Francisco. A significant early partnership was with Microsoft to integrate with its MSN network. The company went public on the NASDAQ in 2009 under the ticker symbol OPEN. In 2014, it was acquired by Priceline Group (later renamed Booking Holdings) for approximately $2.6 billion. Major expansions included the 2011 acquisition of its European competitor Toptable and the 2017 purchase of restaurant tech company Venga.

Services

For diners, the primary service is free online and mobile reservations at participating establishments, accessible via its own platforms and integrations with partners like Google Search and Facebook. Users can browse menus, read reviews, and accumulate dining points through its OpenTable Rewards loyalty program. For restaurants, it provides the OpenTable Guest Center, a comprehensive software suite for managing reservations, floor plans, and waitlists. This includes the OpenTable Connect platform, which syncs reservations from multiple sources, and marketing tools like customized email campaigns. The service also offers detailed analytics and reporting on customer behavior and restaurant performance.

Business model

The company operates on a mixed revenue model, primarily charging restaurants subscription fees for its software and a fee per seated guest generated through its network. Subscription tiers vary based on the restaurant's size and location, such as the number of covers or terminals required. The per-cover fee, often around $1, is incurred for reservations made directly through the OpenTable network. It also generates revenue from its premium services and software modules, such as advanced analytics packages. As part of Booking Holdings, its financials contribute to the broader portfolio of travel technology companies like Booking.com, Kayak, and Agoda.

Technology and features

The platform's core is a real-time reservation system that interfaces directly with a restaurant's own point of sale systems. Its mobile applications for iOS and Android utilize GPS for location-based restaurant discovery. Key technological features include a robust API that allows for integration with third-party systems, dynamic table management algorithms, and a two-way sync with calendars like Google Calendar. The introduction of features like reserved seating for specific tables and integration with contactless payment systems evolved its offerings. Its data analytics tools help restaurants with demand forecasting and customer relationship management.

Impact and reception

OpenTable is widely credited with popularizing and digitizing the restaurant reservation process, significantly influencing the hospitality industry. It has faced criticism and legal challenges, including a 2010 class-action lawsuit in California over its pricing practices and alleged anti-competitive contracts with restaurants. Competitors include Resy, acquired by American Express, and international services like Quandoo in Europe. The COVID-19 pandemic dramatically affected its business, leading to the rapid adoption of new features for outdoor dining and contact tracing. It has received industry awards and maintains a dominant market position in North America and the United Kingdom.

Category:American companies established in 1998 Category:Booking Holdings Category:Online food ordering services