The Intensifying Restaurant Reservation Wars: DoorDash, Resy, and OpenTable Compete for Market Share

The restaurant reservation sector is experiencing renewed competition, often referred to as the "reservation wars," as major players vie for a limited pool of diners. This resurgence is marked by significant acquisitions and partnerships among key companies, including DoorDash, Resy, and OpenTable. In June 2023, DoorDash announced its acquisition of SevenRooms for $1.2 billion, a platform that emphasizes direct bookings through restaurant websites. This move follows a partnership between UberEats and Booking Holdings' OpenTable, which aims to integrate reservations into Uber's app. Additionally, American Express, which owns Resy, acquired Tock for $400 million, further intensifying the competition.

CNBC

OpenTable, founded in 1998, remains the dominant player with approximately 60,000 restaurant listings. In contrast, Resy, which launched in 2014, has carved out a niche by offering a simpler pricing model and appealing to high-demand urban markets. Resy currently lists about 25,000 venues, bolstered by its integration with Tock's 5,000 establishments. Despite its smaller size, Resy is perceived as having a "cool factor," particularly in cities like New York.

CNBC

The competition is further complicated by partnerships with credit card companies. American Express offers its Platinum cardholders exclusive access to reservations at Resy restaurants, along with a $400 annual dining credit. OpenTable has similarly attracted high-profile restaurants through incentives provided by Visa and Chase, which offer exclusive reservations to their premium cardholders. OpenTable CEO Debby Soo emphasized the importance of these partnerships, stating, "Credit card companies are looking for a perk to differentiate their cards, especially for their premium cardholders."

CNBC

The competitive landscape is shifting as DoorDash, which holds a 67% share of the U.S. food delivery market, enters the reservation space. The company has experience in battling for market share, having previously competed against UberEats and Grubhub in food delivery. As DoorDash seeks to expand its influence in the restaurant reservation market, it faces the challenge of competing against established players like OpenTable, which has been actively recapturing top-tier restaurants, including those with Michelin stars.

CNBC

Despite the excitement surrounding these developments, some industry observers express concerns about the implications of such consolidation. Critics argue that the focus on high-demand restaurants may marginalize smaller establishments that lack the resources to compete for visibility on these platforms. The reliance on credit card partnerships could also create barriers for diners who do not hold premium cards, potentially limiting access to sought-after reservations.

CNBC

• "It's three very large, very ambitious, very well-resourced companies all vying for the same exact piece of real estate, which is high-demand restaurants." — Ben Leventhal, Founder of Resy and Eater

CNBC

• "Credit card companies are looking for a perk to differentiate their cards, especially for their premium cardholders." — Debby Soo, CEO of OpenTable

CNBC

The ongoing evolution of the restaurant reservation market highlights the complexities of competition, consumer preferences, and the role of technology in shaping dining experiences. As these companies continue to innovate and adapt, the outcome of the reservation wars remains to be seen.

CNBC