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  • gere33982 gere33982 Mar 31, 2011 7:17 AM Flag

    Are there realy only 35,000 restaurants taking reservations in US?

    35,000 seems like a lot to me. Here in Florida, I can't even think of one in the town where I live, and a lot of restaurant users are retirees, many of whom don't use the Internet.

    In fact I just got on the Open Table web site to see what it was about and the nearest restaurant was 40 miles away.

    From what I can see the restaurants being promoted are mostly located in large cities and include a lot of pricey Italian restaurants and Brazilian steakhouses.

    Probably the real point is that it is more to do with referrals than reservations--a kind of Yellow Pages of restaurants that gets people into restaurants that they might not otherwise know about. The service is much more valuable to restaurants than to diners.

    Of course in the long run you are going to pay for the service in the form of padded restaurant bills, but then this is not a service for the poor.

    Can the company expand to China and add another million restaurants to the roster? Unlikely, because the US is the only country where diners are so wedded to the car. In other counties people are much more likely to walk to the restaurant or dine close to home.

    It looks to me that the stock has to come to earth, but I suppose they may be able to use the high stock price to make acquisitions of businesses that actually make money.

    Probably it comes down to whether management can really execute and make money out of this, or whether there just isn't the demand.