- What is OpenTable, and how does OpenTable work?
- How does OpenTable make money?
- Restaurant Management Services (Subscription Fees)
- Restaurant Reservation Services
- OpenTable’s Subsidiaries, Acquisitions, and Exits
- OpenTable’s profit and revenue
- What is the OpenTable business and revenue model?
- OpenTable’s funding and valuation
How does OpenTable make money if it’s free to use? Here is a full, in-depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the OpenTable business model, their year-over-year revenue, and how OpenTable works.
What is OpenTable, and how does OpenTable work?
OpenTable, a subsidiary of Booking Holdings Inc, is a platform for finding and booking restaurant reservations online.
How OpenTable works is: Users do not need to create an account to search for and filter through restaurants by location, restaurant, or cuisine on OpenTable. But if users want to book a reservation through the platform, they’ll need to signup for a free account.
Founded in 1998 by Chuck Templeton, OpenTable later went on to become acquired by Booking Holdings for $2.6 billion on Jun 13, 2014. Since that time, OpenTable’s software seats over 1 billion people per year and has more than 60,000 restaurants on its platform.
Some of OpenTable’s competitors include Yelp, Bookatable, Resy, and other online restaurant reservation services.
How does OpenTable make money?
According to an OpenTable Press Report, they have more than 60,000 restaurants on their platform and seat over 1 billion people per year. So how does OpenTable make money off of all these restaurants and reservations?
Below is a breakdown of how much money OpenTable makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 2 ways of how OpenTable makes money (in 2021):
OpenTable has a revenue model that makes money in two (2) ways – subscription fees and restaurant reservation services.
#1. Restaurant Management Services (Subscription Fees)
OpenTable makes the bulk of its money through subscription services for restaurants on the platform.
They offer restaurant management tools to help over 60,000 restaurants and businesses alike on its platform with reservations, marketing, takeout orders, POS integration, automated email campaigns, and more depending on the plan chosen.
OpenTable offers three (3) tiers for its restaurant management services: Basic, Core, and Pro. The OpenTable Costs are as follows:
- Basic: $29 per month
- Core: $249 per month
- Pro: $449 per month
Note: OpenTable has over 60,000 restaurants on its platform.
#2. Restaurant Reservation Services
The other way OpenTable makes money is through the fees they charge to restaurants for diners seated through OpenTable’s online reservation service.
How it works is: Every time a customer books a reservation or orders through OpenTable as well as the restaurants’ website, OpenTable will charge the restaurant a service fee and/or a cover fee depending on the subscription plan that the restaurant chose.
- Takeout and Experiences: 2% service fee
- Reservations through resturants website: $0.25/cover or $49 flat fee
Note: OpenTable’s software seats over 1 billion people per year.
OpenTable’s Subsidiaries, Acquisitions, and Exits
Aside from OpenTable being acquired by Booking Holdings for $2.6 billion, OpenTable has had its own fair share of acquisitions as well. To date, OpenTable has made a total of 9 acquisitions.
OpenTable’s profit and revenue
OpenTable’s last reported revenue was $190 million back in 2013 before being acquired by Booking Holdings’ in 2014. Since the acquisition, Booking Holdings’ has not reported any of OpenTable’s revenue publicly.
Note: Because Booking Holdings Inc., parent company to OpenTable, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Booking Holdings’ publicly released financial reports, including annual reports, through Booking Holdings’ investor section on their website.
What is the OpenTable business and revenue model?
OpenTable makes money through a few revenue models that they combine within their company, they are:
- Subscription business model
- Fee-for-service (FFS) business model
- Mergers & acquisitions (M&A) business model
OpenTable’s funding and valuation
According to OpenTable’s Crunchbase profile, OpenTable has raised $48 million over 3 rounds.
OpenTable was acquired by Booking Holdings for $2.6 billion on Jun 13, 2014.