Online restaurant reservation site OpenTable has hit a milestone today, seating one million diners via its mobile apps. And the site says that based on an estimation of a $50 average check per diner, OpenTable believes that diners using its mobile applications have generated more than $50 million in revenue for its restaurant partners.
OpenTable allows diners to find and book reservations at more than 11,000 different restaurants in multiple countries via mobile applications for the iPhone, Palm, Blackberry and Android. Other smartphone users can book reservations through OpenTable’s mobile-optimized Web site.
This year OpenTable filed for a healthy IPO, despite recessionary conditions in the markets. OpenTable is a solid internet company that has a viable business model. On the restaurant side, OpenTable delivers reservation management software to establishments through a Web browser and collects monthly subscription revenues, similar in theory to the offerings that software companies like Salesforce sell to clients.
I love me some OpenTable
Well executed idea. I’ve used it couple of times and it’s been a breeze. Good work OpenTable team. Wish the stock went down a bit, so I can get in.
People using Open Table dine alone?
Nevermind, didn’t see they actually estimate $50 per diner
not per diner, per check
i stand corrected. it IS per diner… hmmm
“OpenTable believes that diners using its mobile applications have generated more than $50 million in revenue for its restaurant partners.”
Correlation does not equal causation.
exactly, all of those people (or say 90% to be fair) were going to have dinner some place, the fact that they used open table was nice, but an extra $50 mil was most definitely not added to the economy
Frankly, a real analysis would probably show open table’s fees took money out of the economy
who said anything about being added to the economy? of course it’s not adding to the economy. opentable isn’t claiming to bring people out to eat who can’t afford to eat out or don’t want to spend $50 on dinner. they are claiming to bring in an extra 50 mil of revenue to THOSE restaurants, as opposed to restaurants who are not on opentable and may have not gotten than meal from that mobile traveler.
“generated more than $50 million…”
did it really generate that revenue? or did it just make it easier to make a reservation?
A great study would be to look at the revenue of restaurants pre and post open table registration.
This app is great! They did an excellent job from web to mobile.
I live in Dubai! And was so thrilled to see that OpenTable has started including listings for Dubai! So far it’s covering only the 5-star upper-premium segment… let’s hope more restaurateurs in Dubai see the value of such services!
Hi all, does anyone know how much Open Table pays for affiliate referrals? (e.g., if Citysearch sends Open Table a customer, how much does City Search get paid?) I *think* that Open Table charges restaurants $1 per reservation but I would love for someone to validate that info as well. Thanks, Brett