What does this mean for online restaurant reservations?
OpenTable is now facing some steep competition. Resy, a restaurant reservation site that launched in 2014, acquired its small-but-fierce competitor Reserve, the company announced on Monday after the news leaked on Friday.
Resy, the largest private restaurant reservation service in the U.S., says it now connects consumers to 4,000 restaurants across the country, and it presents some real advantages to restaurant owners when compared to some of its competition: As the Times story reporting the aquisition points out, OpenTable charges restaurants a flat rate and an additional rate based on the number of reservations it makes for them, while Reserve and Resy only charge restaurants a single flat rate. (OpenTable is estimated to be used by 50,000 restaurants around the world.)
“Like Resy, the Reserve team has engaged with an impressive roster of restaurants in the name of progress," said Resy co-founder and CEO Ben Leventhal. "Resy will continue to build a platform that empowers good restaurants to be great and great restaurants to be amazing. By systematically dismantling the stale, inadequate, overpriced hospitality technology stack of the past, we are carving out a bright future for the industry.”
While the company is still smaller than OpenTable, some of the most high-profile restaurant operators in the country use Resy, including Danny Meyer’s Union Square Hospitality Group, David Chang’s momofuku group, and top eateries like Lilia in New York and n/naka in Los Angeles.
According to a press release, the majority of Reserve’s employees will join Resy, including CEO Greg Hong, who "will stay on during the transition period."
Currently, Resy works with 10,000 network restaurants around the world (in 160 cities and 11 countries), seating over 1.4 million diners a week, per their estimate. The service also claims a no-show rate of 4.8%, which is impressive for an online service.