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Transcript of OpenTable
How The System Works?
OpenTable History & Market Growth
Future Visions & Goals
Table of Contents What's OpenTable? OpenTable Features OpenTable Revenue OpenTable Success Some may argue that there are better ways to make reservations that don't take visitors away from restaurant's websites.
Restaurant owners like the OpenTable software and diners have enormous range of dining choices.
OpenTable History & Market Growth Leading Supplier of reservation, table management, and guest management.
World's most popular website for making restaurant reservation online.
Reservations can be made at more than 15,000 restaurants.
Challenges Specify your dining date, desired time and party size to view available tables at nerby restaurants
Website, Hardware & Software
How The System Works? OpenTable allows restaurants to build diner databases for improved guest recognition and targeted e-mail marketing
The website connects to the thousands of computerized reservation systems at OpenTable restaurants.
Reservations are recorded in restaurant's electronic reservation book.
Restaurants subscribe to the OneTable ERB software.
ERB software is installed on a touch-screen computer system.
ERB software provides a real-time map of the restaurant floor an enables the restaurant to retain meal patterns for all parties, serving a (CRM) system.
The software is upgraded periodically
The Company incorporated in San Francisco as Easyeats.com 1999
The name was changed to OpenTable.com OpenTable's initial strategy of paying online restaurant reviewers for links to its website and targeting national chains for fast expansions got the company into 50 cities
It was spending $1 million a month and bringin only $100,000 in revenue. OpenTable History & Market Growth Investors felt that there was a viable business.
They made a number of mangement changes:
- Installing ivestor and broad member Thomas Layton a OpenTable (CEO).
- Layton cut staff, shut downmarketing efforts and got the company out of all but four cities: Chicago, NYC, San Francisco and Washington DC
- The company retooled its hardware and software to create the user-friendly ERB.
- Deployed a a door-to-door sales force to solicit subscriptions from high-end restaurants.
- The management changes have worked.
OpenTable has implemented the same strategy across the country
In 11 years the company staated 100 million diners
Continue Mr Layton stepped down from his possition as CEO and remains a boared memeber
He was replaced by Jeffery Jordan - former president of PayPal Market Growth
2007 2009 Jordan chose an aggressive strategygoing ahead with public offering (IPO) despite a terrible economy and worse financial markets.
On the first day OpenTable's shares climbed 59%. The share price at the end of Aug 2009 was 27.65%, well above the $17 IPO price OpenTable revenue comes from two sources:
OpenTable is an e-commerce company, customers don't buy software and istall it o their computers but instead go online and get the software functionality through subscription.
OpenTable doesnt sell goods but instead enable diners to make reservation
A monthly subscription fee of $199 for software and hardwear
A $1 transaction fee for each restaurant guest seated through online reservation
The online reservation is free for diners
OpenTable revenue steams from fees instead of advertising
More than 50% of OpenTable's revenue comes from B2B subscriptions
In Dec 31, 2007 and 2008 revenues were $41.1 millions and $55.8 millions
Jan 2006 - Dec 2008 OpenTable revenue grew 43%
Restaurant owners and staff members find the software easy to use.
Restaurants want cost-effective ways to attract guests and manage their reservations, while diers want convenient ways to find available restaurants
Viral Marketing OpenTable encourages diners in viral marketing.
When an indivisual makes a reservation the site "suggests" that they send e-vites to their diner companions directly
The e-vites include a link back to the OneTable site.
The OpenTable link appears on the restaurant's website, linking directly to the reservation page.
What's OpenTable? OpenTable does have competitors
Future Visions and Goals Goals
Future Visions International expansion to countries where there are a large number of online consumers and reservation-taking.
OpenTable believes the localized versions of its software will compete against competitive software offerings, enabling them to expand
Thanks a lot, OpenTable has been able to improve its efficiency even as diners are staying home Jasmin Abou-Auda