Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Markets in everything: Restaurant table reservations
Rich Harris (Citywire)
Posted: 18 November 2010 08:26:48(UTC)
#1

Joined: 08/06/2010(UTC)
Posts: 126

Here's an interesting idea. Yesterday my colleague Chris used these forums to vent his spleen over <a href="http://www.citywire.co.uk/money/restaurants-take-note-you-re-not-up-to-scratch/b449920">restaurants adding a service charge to his bill</a>, and I share his frustrations - but there's one area where we're not charged but should be: reservations.

Economics blogger Seamus McCauley (<a href="http://www.virtualeconomics.co.uk/">virtualeconomics.co.uk</a> - always worth a read) <a href="http://www.virtualeconomics.co.uk/2010/11/eating-opentables-lunch.html">points out</a> that restaurants have historically given away a valuable commodity (tables) for free, robbing themselves of revenue and creating a situation where people can fail to show up without penalty.

In his words: "This was a wearisomely inefficient customer experience, and more to the point the economic surplus the restaurants created by giving potentially valuable reservations away was simply handed over to whoever happened to ring them up first (in other words a combination of people in the know, people with good PAs and lucky idiots - almost pure social waste)."

McCauley suggests restaurants start charging for reservations, but goes further - there should be a secondary market allowing people to sell their reservations via online auction, he says.

On the face of it this all makes perfect sense, and restaurants which typically find themselves overbooked could experiment with it without putting themselves at a disadvantage - so if the idea proved successful it could quickly spread.

But it would make the experience of restaurant booking similar to that of booking planes and hotels - you have to book far in advance to get the best deal and even then you feel anxious that you could have done better. Or worse, you'd have to deal with the restaurant equivalent of ticket touts.

So I'm in two minds. Curious to know what Citywire readers think. And has it been tried before?
John Lacy
Posted: 18 November 2010 10:13:04(UTC)
#2

Joined: 14/05/2008(UTC)
Posts: 38

As most restaurants provide a sloppy and over-priced service I'd say they get what they deserve.

The higher the price the more arrogant and disdainful the staff become.
Dennis .
Posted: 18 November 2010 10:50:04(UTC)
#3

Joined: 26/12/2007(UTC)
Posts: 1,018

I was once in an upmarket restaurant in Oxford and asked for the Moules Marinieres (which were on the menu), the waiter said that they were not available at this time of year as they "go down deep and can't be caught". I replied in a loud voice "what a load of bull***, I was under the impression that Mussels spend their entire life attached to a rock and how did they manage to drag that around the sea bed?". The waiter for my table was changed.
bushwhacker
Posted: 18 November 2010 10:54:39(UTC)
#4

Joined: 18/06/2010(UTC)
Posts: 2

I guess the first popular restaurant to charge to reserve will be first to go out of business.! It may work if the reservation fee is refundable against the final bill.

This "novel" idea is only for restaurants that are always over booked with clients who do not arrive! But then giving out credit card details over the phone for your reservation is not exactly safe! So booking would also need to be on line, using Paypal or similar. As for allowing these reservations to be sold on to third parties that is quite absurd. That would only create a speculative market and - " Table for 4 booked at the RITZ- February 14th 2011. Reservation available - bids from £100" E-Bay auction!! Just imagine!! Are there really so few good restaurants in the UK?

On the point or service charges, nobody is compelled to pay, if the service was so poor or the food that bad. In the US 10% would be considered a mean tip, so in the UK you are lucky. .
Long Gone Expat
Posted: 18 November 2010 11:29:22(UTC)
#5

Joined: 09/06/2010(UTC)
Posts: 31

"In the US 10% would be considered a mean tip, so in the UK you are lucky."

Not really as the cost of eating out in the US is less because they barely if at all pay their waiting staff and the cost of food is lower. In UK we have minimum wages etc to contend with.

Thats also why service tends to be better in the US as its a case of "you reap what you sow". If you want to make money give good service and be nice to the customers. We dont have a lot of that in the UK as we dont do service industries well. We all think we can go to Uni and then get a fat salaried job. We dont generally have professional waiters like say the Italians and Portuguese do, and it shows. Ours are college kids or mums earning pin money and getting out in the evenings.
Grumpy Old Man
Posted: 18 November 2010 13:24:01(UTC)
#6

Joined: 09/05/2010(UTC)
Posts: 19

Restaurants are often overpriced and over rated.Good God,this chap Seamus McCauley must be an overpaid economist,living in the rarified atmosphere of the wealthy, if he thinks this is a good idea.
My wife and I rarely go out to eat because in our experience it is very difficult to find value for money in restaurants.....and that goes for hotels in the U.K. as well.If these wretched businesses wish to charge for reservations there will be even more catering establishments going under than there are now.
Pat Murphy
Posted: 19 November 2010 09:35:27(UTC)
#7

Joined: 20/03/2008(UTC)
Posts: 22

Was this article penned on April 1 but writer forgot to release it from his d(r)aft message box...what next..markets in train ticket reservations, car service reservations, dentist appointments, doctor appointments....could build a whole new " Service" sector in the UK...that will undoubtedly help counter the effects of recesssion
+ Reply to discussion

Markets

Other markets