Why New York's hottest reservations will stay impossible to score

If Gov. Kathy Hochul signs the bill that passed earlier this month into law, websites would require permission from restaurants to offer bookings. It is ostensibly targeted at curbing bots, which are used by scalpers to scoop up spots for sale to diners willing to pay for entry into establishments that are hyped as the places to see and be seen. The practice has been blamed for exacerbating a mania over reservations for the city’s hard-to-get-into restaurants and skewing the playing field toward the wealthier set.

The prospective law won’t affect platforms like Resy, Sevenrooms and OpenTable, which partner with restaurants directly by charging a monthly fee. But services like Appointment Trader and Cita may no longer be able to advertise the city’s hottest tables.

Appointment Trader Founder Jonas Frey rejects the idea that his website contributed to a scarcity of reservations in New York City. Instead, he believes his platform took off because of the lack of available tables. The platform has sold over $6 million in reservations over the past year, according to its website.

While the bill probably won’t help diners score reservations more easily, it’s likely to be appreciated by restaurants. Sevenrooms’ Montaniel said the legislation would be especially welcome in New York, where cancellation rates are higher than anywhere else in the U.S.

That’s why Amy Zhou, executive director of operations for Gracious Hospitality — which includes Côté and Coqodaq — worked with the New York State Restaurant Association to get the legislation passed.

Zhou estimates that on a busy night, Côté will serve around 400 customers its table side grilled beef. Meanwhile, it will lose as many as 100 reservations to bot-driven cancellations and no shows. Lost revenue is at least $10,000 on nights when the no show rate is high, based on an average spend of $100 to $150 per customer.

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The selling of restaurant reservations has become a real topic here in NYC. We will keep you updated on the pending legislation.