Eating Out? Outwit the Bots.The Wall Street Journal 20 Jul 2024
THE MESSAGE “Do Not Buy Reservations”—encircled in red with a slash through the center on social media, or simply voiced aloud with increasing exasperation—is a frequent refrain these days from the owners of Raoul’s Restaurant in
New York City. They say one of the biggest problems restaurateurs grapple with now is an illicit economy that makes scoring a table at a hot restaurant a competitive and expensive task.
Reservations at popular restaurants around the country are often snapped up by “bots” within nanoseconds of their release online. The reservation will then be listed on a virtual marketplace like Appointment Trader, often for hundreds of dollars—sometimes even upward of $1,000. Buyers are provided with the reservation details, including the name under which the reservation was made and confirmation information. The virtual market collects a percentage of each sale.
Alice Wozniak, the manager at Raoul’s charged with spotting bot reservations, says these services can preclude the average diner from getting in the door. What’s more, unsold reservations translate to no-shows, which cause the restaurant to lose revenue and servers to lose tips. And then there is the disconnect with the clientele:
When a reservation is traded, the restaurant loses valuable information, such as a diner’s preferences and allergies. All the while, these third parties profit from the reservations, while the restaurant does not.
The Bot Bill
In early June, the New York State Legislature passed the
Restaurant Reservation Anti-Piracy Act, the first of its kind in the U.S., which states that third-party reservation services cannot “advertise, promote or sell reservations” without a written agreement with a restaurant. Violators can be fined up to $1,000 per instance. The bill has drawn support from restaurants and from reservation sites such as Resy and OpenTable.
Jonas Frey, founder of Appointment Trader—which buys and sells reservations secured by “bots, concierges, hustlers and other mercenaries,” as per its website—says the bill is “against everything the free market in the U.S. stands for.” He considers what Appointment Trader does no different from greasing the palm of a concierge or maître d’.
Frey insists that sites such as Appointment Trader “did not create this problem.” He blames the restaurants themselves, and credit card companies such as American Express—which owns the reservation site Resy and is in the process of acquiring the reservation site Tock—for holding reservations for cardholders and shutting out diners who are not. This week, OpenTable also announced a partnership with Visa that will “unlock premier dining reservations for Visa premium cardholders,” a press release stated. Frey said of Appointment Trader, “The platform was created precisely because these systems make it hard or next-to-impossible to get desirable reservations.” Cita Marketplace, another site that buys and sells reservations, proudly proclaims in its tagline, “Our tables are so good, American Express tried to shut us down.” A spokesperson for American Express said, “Tables at some Resy restaurants are available to eligible American Express Card Members through the Global Access Dining benefit, but you do not need to be an American Express Card Member to book reservations on Resy.” American Express did not comment on attempting to shut Cita down.
The Restaurant Reservation Anti-Piracy Act currently sits on Gov. Kathy Hochul’s desk along with 805 other bills awaiting signature. (Gov. Hochul’s office declined to comment on her position.) Meanwhile, restaurants around the country and reservation sites are instituting tactics to battle bots. “A lot of cities are watching to see what’s going to happen in New York and then see if it makes sense to try and get something passed in their respective states,” said OpenTable CEO Debby Soo.
How Restaurants Spot the Bots
Telltale signs of bot-made reservations include inactive phone numbers, invalid email addresses, emails with a string of numbers, unresponsiveness to follow-up emails or texts, and multiple bookings by the same account. Many restaurants say if they identify a reservation as a bot they will cancel it.
“Ninety-nine percent of the time, if it seems like a bot reservation, it is,” said Alex Meyer, chef/owner of Boia De in Miami. “I think only once so far we got it wrong, and the person emailed and said, ‘Hey! Why was my reservation canceled?’ We apologized, reinstated it and they got a little bonus when they came in, for that inconvenience. If it’s a bot, we don’t hear back when it’s canceled.”
How Restaurants Stop the Bots
Some restaurants, like Raoul’s, are instituting a $50 fee per guest for no-shows. Others, like New York’s Semma, take it a step further with a nonrefundable $50 deposit per person, collected upon making the reservation, which is then applied as a credit toward the final bill.
“I don’t want to charge a deposit, but the buying and selling of reservations has disoriented the relationship between the consumer and the brand,” said Semma proprietor Roni Mazumdar. “The people who are buying a reservation to jump on the bandwagon and show they got into a hot restaurant will move on to the next hot thing. They are not the people who are going to show up on a rainy Tuesday night.”
Small restaurants such as Washington, D.C.’s minibar rely on ticketing systems to discourage thirdparty reservation sales. Such systems require a full, prepaid investment, like a sporting event or concert. “The fact that someone has ponied up $800 for two seats indicates they are a real person who is interested in dining at our restaurant,” said Alex Torres, minibar’s general manager. “If someone calls up to cancel, and we have a reasonable amount of time to fill their seat, we will always refund, though the verbiage on our cancellation policy says otherwise.”
Aimee Olexy, proprietor of Talula’s Table in Kennett Square, Penn., avoids the bot issue by maintaining reservations the old-school way. “We release reservations one year out from the numerical date, and every morning at 7 a.m. we open our phone lines, and a human person is answering the phone and booking on a first-come, first-serve basis.” Olexy does turn to technology, to post on Instagram, when seats open last-minute. Still, takers must call to book those seats.
Reservation sites are working on new initiatives to combat the problem. On the Resy website, a statement announces a “dedicated task force” committed to “deactivating rogue accounts, canceling suspicious reservations, blocking bot traffic,” along with “other technical measures.” OpenTable’s Soo said their initiatives include a process that flags fake credit card numbers and verifies diner profiles.
Frey of Appointment Trader said it has systems in place to encourage sales and minimize no-shows. “We prioritize a concierge or someone actually working in a restaurant to get you a reservation,” he said. He added that Appointment Trader differentiates “good bots from bad bots.” He explained, “If you are a bot operator and you upload 20 reservations and you don’t sell at least five of those 20, your vendor account is blocked. If you don’t sell at least 10, you are in a warning state.”
Appointment Trader also offers partnerships with restaurants, where the site and the restaurant would split a portion of the reservation sale. Restaurateurs aren’t necessarily convinced. “That doesn’t really solve the problem,” said Rob Mosher, partner at Monteverde in Chicago. “We are trying to charge a fair price for the services we are providing to people, and it adds an extra layer of financial transaction. We’d much rather our diners order a great bottle of wine instead of having to pay for a reservation.”
Niki Nakayama, chef/owner of n/ naka in Los Angeles, said charging for reservations also inflates the customer’s expectations: “We have set a certain price point that is in line with what we feel we can provide. People should not have to pay a price on top of that.” Taking reservations out of the control of the restaurant presents an additional frustration level for the consumer, too. “We should be the ones who control it,” Nakayama said. “The bot market discourages people from wanting to visit, because they feel they can’t get a reservation. They become upset they can’t get in, and the restaurants get blamed for it.”
How Diners Can Beat the Bots
As restaurants, reservation sites and reservation-sale marketplaces battle it out, diners remain caught in the middle. But restaurateurs say there are still ways that diners can grab hard-to-get reservations without resorting to buying them.
Members-only app Dorsia, for example, requires a minimum spend from the consumer at the restaurant rather than charging a fee for a reservation. “Dorsia is good for restaurants, as it transfers that extra money diners are willing to spend from the third-party sellers sitting on their couch to the restaurants doing the actual work,” said Meyer of Boia De. “This also means more tips for employees and more revenue for higher wages. At the end of the day, though, we want guests to join us for dinner without having to buy their way in, or be a member of an exclusive club.”
Meyer is a firm believer in the “human factor,” where “diners can have an advantage over a bot in that they are a person with a personality. If people are human, nice, generous and gracious, we will do our best to give them what they ask for if they call, email or just show up.”
Mosher of Chicago’s Monteverde agrees. “Don’t forget that most restaurants hold back a portion of reservations that are not made available online,” he said. “We will offer those to our guests who come into the restaurant, stop at the host stand and ask for a reservation. We like to say yes to that person because they have made the extra effort to come in.” He further emphasized the power of building relationships in-person: “Ask for the maître’d’s card. Get to know the staff and the management.” He also suggested that diners make a reservation in person on their way out, after they have already dined. “If someone has had a good experience and they say, ‘I’d like to come back in two weeks,’ we want to be able to say yes to that person. It really goes back to getting away from the digital aspect and going back to the old-school way of doing things.”
OpenTable’s Soo recommended following the restaurant’s lead: “If it is using a certain type of system for the reservation, secure the reservation in that way and don’t contribute to the market. If diners stop the activity, it will stop giving these third parties oxygen to keep going.”
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