First Class Reservations
As the restaurant industry adapts to an ever-evolving marketplace, many establishments are now prioritizing high-spending customers by offering them exclusive access to prime reservation spots — for a price.
For example, Resy (AXP) offers a program providing diners exclusive reservations to 650 trendy restaurants across major US cities. But it’s only available to customers with select American Express cards — including the Platinum Card, which carries a nearly $700 annual fee.
This trend emerged as a way for restaurants to both reward patrons and maximize revenue. By offering the most sought-after reservations to the biggest spenders, these businesses can attract the customers who are more likely to indulge in more expensive menu items and services. But it may make it harder for the average diner to land a seat at the table.
Exclusivity Economy
The trend toward preferential treatment for big spenders is not unique to the restaurant industry. It reflects a larger societal shift toward what some have called “the exclusivity economy.”
Companies across various sectors, including dining, travel, and even health, increasingly offer premium experiences and services to customers willing to pay more for the luxury.
This approach focuses on attracting the “right” customers who can afford to spend more, rather than filling seats or selling products in an effort to maximize profits while cultivating a sense of prestige and exclusivity around their brand.
Table Wars
This trend is great for restaurants, big spenders, and servers getting 20% gratuity on a $1,000 bill. But for the average inflation-squeezed consumer, it’s likely worrisome. In addition to joining reservation programs, some restaurants are even charging reservation fees and requiring diners to prepay for meals.
If catering to high-income customers becomes an industry-wide norm, the general public may find it more difficult to secure reservations at their favorite spots. Some industry insiders express concerns about forcing diners to pay for access in place of what should be a democratic process, likening it to Disney Parks’ (DIS) much-maligned FastPass system.
For foodies out there, this may mean it’s harder to eat at Yelp’s (YELP) 100 best US restaurants. But remember: there’s no shortage of great restaurants out there, and many of the most-hyped establishments were once holes-in-the-wall. All the more reason to track down a cool new dive to patronize.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23050901