Are you ready to pay extra for premium seating in restaurants? This app thinks so
Tablz uses 3D maps and surge pricing to help restaurants borrow a page out of the airline industry’s playbook. Will customers bite?
That cool seat by the window in your favorite restaurant might soon cost extra.
That cool seat by the window in your favorite restaurant might soon cost extra.
Restaurants are taking a page from the airline industry—for better or worse—and selling premium seating in their dining rooms for an extra $5 to $100, depending on the time of day, the day of the week, or the table’s location.
A growing number of well-known eateries, including the Japanese cuisine brand Roka Akor, Alexander’s Steakhouse in the Bay Area, and Plank Seafood in Omaha are now using a service called Tablz that lets guests view a 3D map of restaurants and pay extra to reserve popular tables. The prices will vary and surge with demand. A seat with a view of the kitchen might be free on Monday or Sunday night, but on Friday at 7 p.m., it could cost you $75. The app, Tablz, takes a 30% cut.
“The restaurant financial model is broken,” says Tablz founder Frazer Nagy. “You can upgrade your hotel room, your car rental, seats at a basketball game, seats on an airplane. Every other industry has figured out pricing through upgrades, except restaurants.”
But modeling tactics after the airline industry is risky. Airlines use surge pricing based on increased demand, they overbook to make up for no-shows, and they add extra fees for everything from leg room to luggage—and consumers hate it. The airline industry has long trailed behind other industries when it comes to making people happy. Only last year, when some airlines eliminated extra fees and offered simplified ticketing processes, did customer satisfaction increase.