Guaranteed Restaurant Reservations: Access Bets and High Demand

The Changing Landscape of Restaurant Reservations

Securing a table at popular restaurants has become significantly more challenging recently. The days of easily booking a reservation through platforms like Resy are fading, with lengthy wait times now commonplace in major cities such as New York and Los Angeles.

This shift is partly due to restaurants increasingly relying on reservations to stabilize income following the pandemic. Furthermore, the influence of social media platforms like TikTok and Instagram has transformed dining into a prominent cultural activity. Obtaining access to a trendy establishment now carries a certain social prestige.

Introducing Access: A Subscription-Based Solution

Evan Felcher and Mattia Ros, former college tennis rivals who later connected in New York City through their finance careers, identified a need for a more reliable reservation system. Their shared passion for the city’s culinary scene inspired them to develop a solution.

Their answer is Access, a subscription-based application designed to provide guaranteed reservations at highly sought-after restaurants, initially launching in NYC. This concept is likely to spark discussion regarding the impact of wealth on the restaurant industry.

Access Subscription Details and Industry Context

Restaurants are facing tighter margins due to ongoing inflation, prompting them to explore diverse revenue streams. Access addresses this by offering subscription fees starting at $1,788 per year for reserved tables.

The app’s base tier provides up to two reservations monthly, alongside a concierge service and personalized recommendations. According to Felcher, Access aims to “redefine the booking experience” by granting members exclusive access to coveted reservations.

This model echoes the emergence of a gray market for restaurant bookings post-pandemic. Platforms like Appointment Trader facilitate the resale of reservations at premium locations, often utilizing automated bots to bypass legitimate booking systems like OpenTable.

Legislation in New York aims to prohibit this “reservation piracy,” but it has yet to be signed into law by Governor Kathy Hochul.

How Access Differs from Existing Marketplaces

Felcher distinguishes Access from third-party marketplaces, positioning it as a benefit for both diners and restaurants. He emphasizes that it allows restaurants to maintain greater control over their booking inventory and provides a new income source.

A portion of the subscription revenue is directly allocated to restaurant partners. Restaurants also gain access to valuable customer data, which can be used to enhance the dining experience.

Access seamlessly transmits this data to front-of-house staff, fostering a more personalized service.

The Mechanics of Access and Potential Concerns

The reservation process within Access is driven by a “customer satisfaction” algorithm. This system considers restaurant availability across the platform to fulfill subscriber requests.

However, challenges may arise when a restaurant gains sudden popularity, leading to high demand for reservations. Subscribers to the $3,588-per-year tier receive priority booking and exclusive access to hospitality events.

Access also employs a credit-based system, where the “cost” of a reservation varies based on restaurant popularity, party size, and time of day. Subscribers can purchase additional credits as needed, with limited monthly rollover.

Felcher asserts that Access provides a “seamless, stress-free booking experience” for members while enabling venues to monetize their in-demand reservations.

Comparison to Existing Exclusive Dining Platforms

Platforms like Dorsia already offer pre-paid minimum spends for guaranteed reservations at similar restaurants. Access differentiates itself by eliminating waitlists, the need for personal connections, and rigid minimum spending requirements.

Currently in beta, Access is limiting memberships to 3,000 individuals, requiring applicants to complete a questionnaire. The platform has already generated $50,000 in revenue, with projections reaching $1 million by next year.

Investment and Future Expansion

Access has secured a $500,000 pre-seed investment from Initium Management and the family office of former Goldman Sachs partner Ron Marks.

Marks highlighted the “ancillary add-on” and expansion potential of the business. Access is exploring personalized restaurant services, similar to Blackbird, and expanding into nightlife venues.

The company is also launching a corporate program to facilitate private dining, bar buyouts, and access to exclusive events.

Marks believes Access will address the issue of reservation bots and improve the overall dining experience for both patrons and restaurants.

Addressing Concerns About Exclusivity

A key challenge for Access will be overcoming the perception of being an exclusive service for the wealthy. Critics have labeled it part of a “booming industry of advantages” that may disadvantage less affluent diners.

However, similar models exist, such as LineLeap, which allows users to pay to skip lines, and credit card companies offering exclusive restaurant access.

Felcher argues that Access bridges a gap between sought-after venues and enthusiastic diners, providing a convenient solution for those seeking high-quality dining experiences.

“Access makes it frictionless for people to land these experiences on a recurring basis without having to know the chef,” he stated.

Ultimately, Access offers a premium service for those willing to pay for guaranteed access and a streamlined booking experience.