Not so long ago, you didn't have to make a late-night dash to Resy to book a table at the hottest new restaurant. To be honest, we didn't realize how good we were at the time. Hour-long lines out the door are now the norm, not the exception, in major cities from New York to Los Angeles.
One reason is that restaurants are increasingly relying on reservations for more predictable revenue post-pandemic. The rise of TikTok and Instagram has elevated dining to a cultural event. Walking into a trendy spot gives you the same social clout as getting tickets to a blockbuster Broadway show.
Evan Felcher and Mattia Roth were tired of the stress, waiting lists, and hassles that come with modern diets. How two friends who met as tennis rivals in college are offered a guaranteed reservation at their destination's restaurant after reuniting in New York over jobs in the finance industry (and professing love for the city's foodie scene) I started brainstorming about it.
Their solution, a subscription-based app called Access, could spark a debate about the growing influence of the wealthy over the restaurant industry. Restaurant profit margins, which were never healthy to begin with, have only become thinner after years of severe inflation, forcing restaurateurs to explore a wide range of alternative sources of income.
Access charges an annual subscription fee of $1,788 or more for reserved tables at top restaurants, but starts only in New York City. The app's cheapest plan includes a free “guest plan” for a limited time, as well as up to two reservations per month, a “concierge service” and carefully selected recommended plans.
“Access is designed to redefine the reservation experience, giving our members exclusive access to the reservations they covet,” Felcher said in an interview with TechCrunch.
The concept of Access is reminiscent of the gray market for restaurant reservations introduced after the pandemic. Sites like Appointment Trader allow sellers to list two-tops in prime locations like Carbone for $200 plus a pop. Restaurants have no control over sales, which are often driven by bots that grab reservations from legitimate platforms like OpenTable faster than humans.
A bill passed by the New York State Assembly would ban what critics call “reservation piracy” in the state. However, Gov. Kathy Hochul has not yet signed it.
Felcher contrasted Access with third-party reservation marketplaces, touting Access not only as a perk for diners, but also as a way for restaurants to have more control over their reservation inventory. It's also a source of income for cash-strapped venues, he says. A portion of Access' membership fee revenue is donated directly to our restaurant partners.
Access app. Currently only on iOS. Image credit: Access
“Restaurants capture high-touch customer data,” he said. “Access can pass through seamlessly.” [this] To our front desk staff… We work directly with leading restaurants and hospitality groups to pre-reserve tables exclusively for our customer base each night. ”
However, the process is somewhat opaque.
Felcher said Access's “customer satisfaction” algorithm ensures subscribers get reservations by taking into account inventory across the platform's restaurant partners. But what if, for example, a restaurant suddenly exploded on TikTok and all subscribers wanted a table there in the same week?
Customers with Access's annual $3,588 membership will be given priority as they can book early and have the “best-in-class” access to hospitality-focused events hosted by Access. You can. Here's what Felcher has to say.[Our] Internal mechanism effectively guarantees customers [secure] We provide all reservations promised across our various subscription tiers. ”
In another move that may anger diners, Access has adopted a credit-based system that dynamically “prices” reservations. The number of credits a table “costs” on the app depends on the restaurant's popularity, party size, day of the week, and time of day. Only a certain percentage of your credits will roll over each month. Subscribers to more expensive plans can purchase credits a la carte.
“Members will enjoy a seamless and stress-free booking experience, while venues will be able to take back control and monetize their high-demand booking inventory,” Felcher said.
All of this may seem like a tough sell until you consider that members of competing platform Dorsia are paying a guaranteed minimum spend of $500 upfront at some of the same restaurants in Access. yeah. “With Access, there are no waiting lists, no awkward friend favors, and no strict predetermined spending minimums, which really undermine the essence of true hospitality.” '' Felcher said.
Access is in beta. The platform limits membership to 3,000 people and requires prospective members to apply by filling out a survey. But Access has already generated $50,000 in revenue, and Felcher expects the app to reach $1 million by the end of next year.
Access also secured a $500,000 pre-seed investment from PE firm Intium Management and the family office of former Goldman Sachs partner Ron Marks.
Marks said he was attracted to Access's “ancillary add-ons” and expansion potential for the business. In addition to pop-up events for members, Access is exploring more personalized restaurant service, similar to reservations startup Blackbird, and plans to grow into nightlife venues such as lounges. The company is also launching a corporate program where teams can arrange access to private dining rooms, bar buyouts and ticketed sports, arts, entertainment and fashion events.
Different subscription plans for Access. Image credit: Access
“We knew right away that this new company would solve the problem of reservations for restaurants, while also benefiting our venues,” Marks said in a statement. “The market is ripe for disruptive technology apps like Access to help eliminate or reduce the prevalence of destructive booking bots.”
The challenge for Access will be to overcome the perception that it's just an app for wealthy people to avoid waiting. CNN's Nathaniel Meyersohn called it “a lucrative industry booming.” Advantages come at the expense of worse experiences for disadvantaged patrons, and raise concerns about service quality and fairness for those who don't want to spend big bucks.
To be honest, Access's business isn't that radical. Startups like LineLeap allow users to pay to skip lines at bars, clubs, and concerts. Elsewhere, credit card companies such as AmEx have commandeered restaurant reservation apps and gated out some tables on the back of high annual fees.
Felcher argued that access can actually bridge the real gap between high-profile, popular venues and loyal diners.
“At the end of the day, everyone has to eat. In markets like New York City, city residents and tourists expect the highest level of service and experience for leisure and business,” he said. said. “Access makes it easy for people to have these experiences on a regular basis without knowing the chef.”
In other words, there is no friction for those who can afford it.