A significant number of California’s eateries necessitate making a reservation for evening meals. For the most sought-after tables within the state, illegal online platforms have complicated matters further—making both access and costs tougher for patrons. Websites such as Appointment Trader offer high-demand restaurant bookings nationwide, encompassing even some of California’s premier dining spots. the French Laundry or Funke in Beverly Hills, even House of Prime Rib In San Francisco, now California is stepping alongside numerous other states in efforts to regulate the industry.
In December, Governor Kathy Hochul of New York enacted the Restaurant Reservation Anti-Piracy Act as law , becoming the first state to prohibit third-party websites from benefiting from the gamification of reservation systems such as OpenTable, Resy, Tock, and SevenRooms. In February, California also adopted similar legislation with the introduction of Assembly Bill 1245 On Wednesday, February 26, a new rule was proposed to "prevent third-party reservation services from facilitating unapproved bookings, thereby eliminating a exploitative market environment that takes advantage of consumers and disadvantages smaller enterprises," as stated previously. press release From Assemblymember Catherine Stefani (D-San Francisco), who is proposing the legislation. Other states, like Illinois Nevada and Florida are likewise pursuing their own actions to stop businesses from selling restaurant reservations.
Here’s a closer look at these so-called reservation resale sites and the legislation being proposed:
How do these external websites obtain reservations initially?
A number of independent online markets employ advanced technologies to swiftly acquire booking spots. As soon as restaurants make their reservations available through systems like Resy or OpenTable, automated tools immediately grab these openings, frequently focusing on popular eateries known for having limited availability. This essentially monopolizes certain timeslots. These sites subsequently offer the reserved seats for purchase on their respective platforms. Essentially, this practice mirrors the approach used when reselling concert tickets at inflated prices above what was initially charged.
Customers can additionally look for particular reservations at a restaurant and “provide financial 'incentives,'” according to the details provided. San Francisco Chronicle The article discusses an Appointment Trading system for securing reservations. This process might be similar to offering a reward. In this setup, the person requesting the appointment can obtain a reservation from someone who already secured one, or others may attempt to secure the reservation themselves with the aim of earning a payment.
However, there’s also a simpler approach without high technology. like this enterprising gentlemen In 2024, someone was cited for generating $70,000 through fake booking schemes involving fabricated numbers and email addresses to secure reservations, which were then resold to third parties.
Hold on a moment. What amount are individuals paying for reservations?
Restaurant prices vary based on timing and location. You'll notice a significant distinction between reservations made for weekends versus those scheduled for weekdays.
Seeking a reservation for a party of six at House of Prime Rib on Friday, March 21st would set you back around $250 based on recent checks across booking platforms. In contrast, dining at The French Laundry could vary significantly; reservations start from approximately $120 for a Friday evening spot on March 14th—provided they're available with little lead time—and soar up to an astounding $2,540 for securing a confirmed table for four on Monday, March 17th. As noted by one ticket reseller. New York Post mentions they impose a cost ranging from $500 to $1,000 and have collaborated with both Justin and Hailey Bieber as well as the NBA to reserve tables.
Why does this pose an issue for eateries?
As Chicago Reports indicate that third-party reservation resellers harm restaurants in several ways. For example, these platforms use bots to make bookings, causing restaurants to seem fully occupied from potential diners' perspectives. As a result, genuine customers may not manage to secure a table and might refrain from visiting spontaneously because they believe all spots are reserved. Furthermore, when reservations made through such channels go unutilized, restaurants face an issue of no-shows, thereby impacting their profitability negatively. San Francisco Chronicle notes in a tale about reservation no-shows, this leads to wasted employee time and spoils perishable supplies.
However, what do external websites think about this matter?
Jonas Frey, the creator ofAppointment Trader, draws parallels between his venture andStubHub—a platform for reselling sports and concert tickets—and believes that his enterprise is unjustly singled out by these proposed laws. According to him, the firm proactively combats piracy by expelling members who fail to sell at least half of their bookings, emphasizing that the site does not employ bots.
In his interview with Chicago Frey highlights the businesses backing these bills—especially Resy and Tock, which receive support from American Express—mentioning that these credit card firms provide premium reservation services potentially jeopardized by platforms like Appointment Trader. He also notes that no public advocacy groups have endorsed these initiatives.
I'm still unclear why using platforms like these is such a significant matter.
Although platforms such as Appointment Trader claim they can self-regulate the market, the reality is that this often leads to regular consumers being disadvantaged, and businesses that didn’t opt into these practices suffering harm. With reservations going to whoever offers the most money, only affluent individuals—like celebrities such as Justin Bieber or entities like the NBA—are capable of consistently securing bookings through payments. As stated in the press release from Stefani’s office: "This has fostered a dining environment where exclusively those willing to cover additional costs can obtain sought-after tableings at trendy eateries, thereby denying countless people and families the chance to merely reserve spots after restaurants make them available."
Even more problematic, individuals interested in dining at the restaurant but unwilling to pay an additional fee for booking a table end up missing their chance. Consequently, restaurants may find themselves with empty seats even when they haven't agreed to sell reservations.
If this legislation becomes law, would it be possible to enforce it?
Stefani told the San Francisco Chronicle Enforcement will rely on complaints, with penalties reaching up to $1,000 for each violation.
Has something similar occurred in the past?
One could argue that this practice is a more high-tech version of line-sitting The primary distinction lies in how people Who offer their services for line-standing? must be physically present. When a bot takes over the workload, you can be omnipresent simultaneously.
— Additional contribution by Brenna Houck.
