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Is OpenTable Effective for restaurant owners?

by Sohee Lacey » Tue Feb 23, 2010 10:03 pm

I'm looking into purchasing an OpenTable system for Sake Blue and wanted to see what other restaurant owners thought of the system. We're getting a high volume of reservations and we're trying to see what we can do to make our operations more efficient in terms of seating, table turnover, and reduce walk-in customers' wait time. The old paper and pencil method worked out great until we've been getting a bit busier than usual (grateful for that ofcourse!). Since we have hibachi grills that are shared by several parties, our seating system is trickier since we have to think about # of chefs working that night and making sure that each "party" at the grill hasn't waited too long for the grill to fill up before we "close" the grill.

Any thoughts on this system (or other reservation systems) would be greatly appreciated!
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Re: Is OpenTable Effective for restaurant owners?

by Paul Mick » Tue Feb 23, 2010 11:40 pm

I don't know much about Open Table (I've only used it a few times, but I've liked it so far), but congratulations on the fact that your business is apparently booming. You all definitely deserve it.
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Re: Is OpenTable Effective for restaurant owners?

by Sohee Lacey » Tue Feb 23, 2010 11:51 pm

Paul Mick wrote:I don't know much about Open Table (I've only used it a few times, but I've liked it so far), but congratulations on the fact that your business is apparently booming. You all definitely deserve it.


Thanks Paul! We just need to make sure people aren't waiting too long but we've been running into issues in the past few weekends. We're definitely going to figure it out though :) I've noticed that OpenTable isn't that popular here in Louisville but I have friends in other states that only use it because so many restaurants offer it (i.e. san francisco).
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Re: Is OpenTable Effective for restaurant owners?

by GaryF » Wed Feb 24, 2010 4:47 am

Sohee, I can't speak as an owner but I use it everyday where I work. I find it really helps in the structuring of reservations for a busy evening. You'll be surprised how many reservations come though on Open Table- I know it is a considerable upfront cost, but it seems worth it to me.
I'll be interested to hear what owners think.
Congrats on the booming business, you certainly deserve it.
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Re: Is OpenTable Effective for restaurant owners?

by Brad Keeton » Wed Feb 24, 2010 12:06 pm

Locally, if a restaurant uses OpenTable, I always use their system for reservations. Not only does it make the process very easy, but also it's much easier to change reservation times or numbers if need be.

Also, by using the system diners get points (anywhere from 100 to 1000 depending on the restaurant), which can be exchanged for gift certificates. I'm currently set for a $50 gift certificate by doing nothing more than making reservations (and showing up, of course).

I also use it quite a bit when traveling. The reviews and recommendations are generally pretty good; at least as good as what I see on Urban Spoon, etc., and in larger metro areas, it makes it very easy to find restaurants in certain neighborhoods. You can also search by type of food.
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Re: Is OpenTable Effective for restaurant owners?

by Allison Williams » Wed Feb 24, 2010 12:37 pm

Hello Sohee,

I just wanted to respond to your post about OpenTable. I worked with Open Table briefly and we were using it mainly for seating organization and we received some online reservations but that is also in part because not very many people know what Open Table is. I was at the restaurant for about a year and was just starting to delve into the marketing aspects of Open Table which at that time I did not know it had so many capabilities and realized we were not using it to its full potential, but I was offered a job in Memphis with my previous company and never got into the depths of what it had to offer. I would still highly reccomend it and when initiating it get as much training as possible. Not only can it be a great patron tracking tool but can be organized as such that you can send upcoming events, specials, etc via email on a daily/weekly/monthly basis though the patron can choose how often they get information. You can track visits and learn your customer dining patterns, you can use it to garner repeat business with attention to retention, you can use it to develop a customer database and follow up with those who may have visited once, you can use it for surveys to track patron's needs and expectations as well as following customer satisfaction. It can also be used as a tool for FOH/BOH training and team building so that your staff is always aware of what customers might be wanting, thinking or expecting when they visit and you can best meet their needs for repeat business. There are also endless reporting capabilities and an extensive Excel program that can be utilized in many ways including not only email marketing but direct mail marketing as well. One thing a restaurant cannot rely on is only using Open Table via internet. The internet is the easy way to track because a guest has to sign up via email to make reservations but when a guest calls for reservation or walks in you need to train your staff to always ask for their information to log in manually. Basically you must build your database from the inside and not rely only on the internet alone. There are many ways to do that without imposing on the customer for all of their " contact information".

Anyhow, I think it is a wonderful marketing tool. When I was in Memphis one restaurant who I noticed utilized Open Table to its maximum potential also built an incredible amount of business in a short time within an up and coming district in Downtown Memphis. I did not know the owner personally but it would be good to try and contact them to see how Open Table has worked for them and in what ways they utilized the tools to positively benefit their business. The name of the restaurant is Spindini which was launched by Chef Judd Grisanti. Here is their website. http://www.spindinimemphis.com/home.html

This is just my opinion about Open Table but I hope this helps! Good luck!
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Re: Is OpenTable Effective for restaurant owners?

by Kyle L » Wed Feb 24, 2010 1:11 pm

I'm not able to speak as an owner, but have used Open Table in Louisville for several years with no problem. Generally, I use it for on-line reservations or check other locations in the Louisville/Lexington Area I may be traveling. But, I do find it's a great help to have and placing a restaurant name on the list would surely increase business.
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Re: Is OpenTable Effective for restaurant owners?

by BradJ » Wed Feb 24, 2010 1:35 pm

Online reservations account for a substantial number of our reservations. Last year we switched from Open Table to Blue Skies HMS. I think you will find that while most are more familiar with Open Table, any online system will be beneficial to you. We decided to change due to the fees associated with OT (i.e. a charge for each person reserved). I encourage you to research all available options before deciding. http://www.blueskieshms.com
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Re: Is OpenTable Effective for restaurant owners?

by Bill Veneman » Wed Feb 24, 2010 1:44 pm

As a customer, I love Open Table. It's very user friendly, and when I get in a rush, it saves me the inevitable hold time when calling for a reservation.
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Re: Is OpenTable Effective for restaurant owners?

by Amy A » Wed Feb 24, 2010 1:58 pm

I wish EVERY restaurant used it. I make almost all of my reservations with this using my iPhone app. If we are out and want to eat, 95% of this time that app is how we determine what restaurant gets our business that evening.
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Re: Is OpenTable Effective for restaurant owners?

by Sohee Lacey » Wed Feb 24, 2010 2:32 pm

Allison Williams wrote:Hello Sohee,

I just wanted to respond to your post about OpenTable. I worked with Open Table briefly and we were using it mainly for seating organization and we received some online reservations but that is also in part because not very many people know what Open Table is. I was at the restaurant for about a year and was just starting to delve into the marketing aspects of Open Table which at that time I did not know it had so many capabilities and realized we were not using it to its full potential, but I was offered a job in Memphis with my previous company and never got into the depths of what it had to offer. I would still highly reccomend it and when initiating it get as much training as possible. Not only can it be a great patron tracking tool but can be organized as such that you can send upcoming events, specials, etc via email on a daily/weekly/monthly basis though the patron can choose how often they get information. You can track visits and learn your customer dining patterns, you can use it to garner repeat business with attention to retention, you can use it to develop a customer database and follow up with those who may have visited once, you can use it for surveys to track patron's needs and expectations as well as following customer satisfaction. It can also be used as a tool for FOH/BOH training and team building so that your staff is always aware of what customers might be wanting, thinking or expecting when they visit and you can best meet their needs for repeat business. There are also endless reporting capabilities and an extensive Excel program that can be utilized in many ways including not only email marketing but direct mail marketing as well. One thing a restaurant cannot rely on is only using Open Table via internet. The internet is the easy way to track because a guest has to sign up via email to make reservations but when a guest calls for reservation or walks in you need to train your staff to always ask for their information to log in manually. Basically you must build your database from the inside and not rely only on the internet alone. There are many ways to do that without imposing on the customer for all of their " contact information".

Anyhow, I think it is a wonderful marketing tool. When I was in Memphis one restaurant who I noticed utilized Open Table to its maximum potential also built an incredible amount of business in a short time within an up and coming district in Downtown Memphis. I did not know the owner personally but it would be good to try and contact them to see how Open Table has worked for them and in what ways they utilized the tools to positively benefit their business. The name of the restaurant is Spindini which was launched by Chef Judd Grisanti. Here is their website. http://www.spindinimemphis.com/home.html

This is just my opinion about Open Table but I hope this helps! Good luck!


Hi Allison! Thanks so much for taking the time to share your thoughts with me. I did know that OpenTable did have a internet/email-based marketing tool but didn't know if their programs were as as good as their main business of online reservations and customer tracking. This is great to know. It's definitely a pricey system to purchase so I absolutely need to know if it's a worthwhile investment. We've used "Constant Contact" before but it would be nice if everything was connected so that we don't need to input information from one system to another.

I'm interested to see how the OpenTable system will connect with our POS system (I hope it's compatible because we use an obscure system). I really agree with you regarding building our database from inside out - my team and I always try to remember customers' names and preferences and customers naturally appreciate it when we do. The opentable rep will be coming in tomorrow to meet with me. I'm going to ask her tons of questions! Thanks again for your thoughts!
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Re: Is OpenTable Effective for restaurant owners?

by Sohee Lacey » Wed Feb 24, 2010 2:34 pm

Amy A wrote:I wish EVERY restaurant used it. I make almost all of my reservations with this using my iPhone app. If we are out and want to eat, 95% of this time that app is how we determine what restaurant gets our business that evening.


I think online reservations is the future for restaurants. It's already prevalent in other parts of the country. Based on the other feedback I've received, it looks like it's a solid system.
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Re: Is OpenTable Effective for restaurant owners?

by Brad Keeton » Wed Feb 24, 2010 2:52 pm

Sohee Lacey wrote: I think online reservations is the future for restaurants. It's already prevalent in other parts of the country. Based on the other feedback I've received, it looks like it's a solid system.


It's pretty prevalent here already, with 26 Louisville restaurants using it, including most of the better places in town.
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Re: Is OpenTable Effective for restaurant owners?

by Mark R. » Wed Feb 24, 2010 4:18 pm

BradJ wrote:Online reservations account for a substantial number of our reservations. Last year we switched from Open Table to Blue Skies HMS. I think you will find that while most are more familiar with Open Table, any online system will be beneficial to you. We decided to change due to the fees associated with OT (i.e. a charge for each person reserved). I encourage you to research all available options before deciding. http://www.blueskieshms.com

Brad,
Did you guys compare the percentage of reservations made online before and after your conversion? My guess would be it went down. From a consumer's standpoint I don't like how Blue Skies operates and someone has to go to your website to access it thus you are not getting any new patrons because of it. I personally think you're missing a big opportunity not having a reservation service that also promotes your business. Many people when they travel use Opentable prior to visiting the city and since you are not there you miss that opportunity. It would be interesting if you have any figures based on your conversion other than just the upfront cost.
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Re: Is OpenTable Effective for restaurant owners?

by Brad Keeton » Wed Feb 24, 2010 4:20 pm

Mark R. wrote:
BradJ wrote:Online reservations account for a substantial number of our reservations. Last year we switched from Open Table to Blue Skies HMS. I think you will find that while most are more familiar with Open Table, any online system will be beneficial to you. We decided to change due to the fees associated with OT (i.e. a charge for each person reserved). I encourage you to research all available options before deciding. http://www.blueskieshms.com

Brad,
Did you guys compare the percentage of reservations made online before and after your conversion? My guess would be it went down. From a consumer's standpoint I don't like how Blue Skies operates and someone has to go to your website to access it thus you are not getting any new patrons because of it. I personally think you're missing a big opportunity not having a reservation service that also promotes your business. Many people when they travel use Opentable prior to visiting the city and since you are not there you miss that opportunity. It would be interesting if you have any figures based on your conversion other than just the upfront cost.


Agree with Mark on this. Blue Skies might be the cheaper option, but it's not as user friendly, and doesn't provide the same perks (reward points) and options (sort by type of food, seach all restaurants with a certain time available, sort be neighborhood, etc.)
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