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A Slump in Snooty
Restaurants Makes It Easier to Pull Strings
By KATY MCLAUGHLIN
Staff Reporter of
THE WALL STREET JOURNAL
THE HIGH-END restaurant business is in a slump, and that
presents exclusive eateries with a new challenge: how to get you in the
door without giving the impression they actually want you.
The industry's growth rate is at its lowest level since
1991, with a paltry 1.4% gain projected for this year, according to the
National Restaurant Association. As a result, even the nation's snobbiest
eateries are rolling out some tactics that give mere mortals a shot at a
table without waiting weeks. Top restaurants from MK in Chicago to San
Francisco's Frascati just started offering reservations on Web sites such
as Dinnerbroker.com,
which lets users book tables at fancy restaurants online. Some are also
installing software such as Opentable that allows them to track customer
behavior -- right down to how much they tip -- in order to reward repeat
customers with choice service.
![[Photo]](http://online.wsj.com/public/resources/images/pj_rest-spago06182002203135.jpg) Spago, Beverly
Hills
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Even restaurants that have private reservation numbers for
VIPs are now reaching out to the merely affluent. Balthazar, for example,
a trendy New York bistro where getting a Saturday night table can be
tough, is a member of Hot Plates, an American Express program launched
last year that arranges for top restaurants in New York, San Francisco and
Los Angeles to hold at least one table a night for the exclusive use of
platinum-card holders. (It's an haute cuisine spinoff of Amex's
longstanding Fine Dining program, which deals in somewhat less-trendy
spots.)
This means that while a supplicant at, say, Balthazar is
trying to sweet-talk the reservationist, a credit-card concierge may be on
the other phone -- booking a table for a cardholder. (Of course, the odds
still favor those in possession of Balthazar's secret number. Hint: It's
(212) 625-8665.)
For restaurants, these backdoor booking methods solve
several problems at once. The average cost to a restaurant of taking
reservations by phone is about $4; by contrast, Internet reservations cost
about $1 per reservation. It also helps restaurants quickly fill the
typical 12% of reservations that cancel.
Some restaurateurs are so enthusiastic about this and other
new reservation techniques that they have made Internet booking mandatory
during special promotions. For instance, the only way to book a table
during the opening week of Blue Smoke, the New York barbecue spot that
celebrity chef Danny Meyer opened in March, was on Opentable.com, the Web site that goes
with the customer-tracking restaurant software. (Mr. Meyer is an investor
in the site.)
Some diners actually choose to go the online route even if
they are lucky enough to have private numbers, such as (206) 382-3555 for
the Metropolitan Grill in Seattle. Cindy Kurman, a Chicago-based
public-relations agent for restaurateurs, made reservations at some of New
York's most exclusive spots a few days in advance of a recent visit to the
city. But she didn't personally call the chefs she knows. Instead, she
booked her tables on Opentable.com.
"I do everything on the Internet," Ms. Kurman says. "I even
found my husband on the Internet."
Booking sites such as foodline.com, savvydiner.com and dinnerbroker.com, are
gaining momentum as the industry looks for ways to cut costs. Opentable
says its bookings have tripled in the past six months. Foodline.com, which
filed for bankruptcy protection two years ago amid the dot-com bust,
actually managed to relaunch last year with new funding, providing one
measure of the optimism in the market for Web reservations.
For diners, in fact, the Web sites are the next-best thing
to standing at the shoulder of the maitre d'. Most of the sites operate in
real time, which means that the moment a table opens up (say, because of a
cancellation), it becomes available on the Web site. Chefs and owners say
it's best to check the sites around 5 p.m., because that's the time of day
when restaurants often release tables that were being held in reserve.
Opentable and Foodline, in turn, have given restaurants a
way to get in on the Holy Grail of marketing: tracking customer behavior.
The companies offer restaurants software that lets them track their guests
-- how often they dine, for example -- and even rate them on such factors
as whether they show up for their reservations on time. As a result, when
guests with high scores phone in for their next reservation, they can be
rewarded with special treatment such as getting first shot on a busy
weekend evening.
The burgeoning credit-card concierge ventures are simply
another way the restaurants are trying to fill tables with big spenders.
In addition to the American Express programs, Visa card members who hold
Infinite and Signature cards can book tables free through
dinnerbroker.com, which otherwise charges a fee for booking. Diner's Club
says it's developing its own program.
Repeat customers are the bedrock of the business, says
Tracey Nierporent of Nobu. Of course, he concedes, there are some
exceptions. "Let's face it," he says, "Brad Pitt gets a table whenever he
wants."
Their Number's Up
Fancy restaurants are quietly offering more backÐdoor
ways to book tables, in an effort to keep the room filled while preserving
the feel of exclusivity. Here's the dish on private VIP numbers and other
tricks:
| EATERY |
VIP TRICK |
INTERNET
RESERVATIONS |
CREDIT-CARD
CONCIERGE |
| The Metropolitan Grill, Seattle |
Call the unlisted
reservation line, which is (206) 382-3555. |
Savvydiner.com |
AMEX Platinum Fine
Dining |
| Le Cirque, New York |
The unlisted reservation
number is (212) 303-7703; unlike many eateries, you can book as far
in advance as December. |
No |
AMEX Platinum Fine
Dining |
| Balthazar and Pastis, both in New
York |
The unlisted reservation
line for both places: (212) 625-8665. |
No |
AMEX Platinum Hot Plates
|
| db Bistro moderne, New York |
Maitre d' Erica Cantley
holds the power: (212) 382-3366. If that doesn't work, just walk in.
No-shows are common so you can often get a table within a half-hour.
|
Opentable.com |
AMEX Platinum Fine
Dining |
| Daniel, New York |
Chef Daniel Boulud,
says: Ask to speak with him. One executive also points out that
opening a "house account" (aka: giving them your creditÐcard number)
boosts name recognition among the staff. |
No |
AMEX Platinum Fine
Dining |
| Spago, Beverly Hills, Calif. |
Ask to speak with Tracey
Spillane, general manager. It also pays to ask if you can introduce
yourself to celebrity chef Wolfgang Puck (of frozen smokedÐsalmon
pizza fame) -- he works the room. |
Opentable.com;
dinnerbroker.com |
Visa Infinite and Visa
Signature Concierge |
| Chez Panisse, Berkeley, Calif. |
Ask to speak with the
general manager, Gilbert Pilgram. To reserve, call exactly 30 days
before you want to dine (the place doesn't take reservations further
in advance) -- and make the call at 9 a.m. (it'll book up fast). |
No |
No |
| Tru, Chicago |
Go through a hotel
concierge -- Tru, like many top-drawer spots, reserves one table a
night for concierge referrals. |
Opentable.com |
No |
| Union Square Cafe, New York |
Owner Danny Meyer says:
Eat at the bar near the maitre d' station and slip him your card.
|
Opentable.com |
AMEX Platinum Fine
Dining |
| The Inn at Little Washington,
Washington, Va. |
Guests of the hotel are
guaranteed a reservation. |
No |
No
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