Written by Attorney Connor Graham and Attorney Neil T. O’Donnell

In society’s ongoing quest to app-ify everything, restaurants began accepting reservation requests through online apps. Today, that process is becoming more trouble than it’s worth.

Reservation Apps Compete for Exclusive Access

Reservation apps have begun seeking seat-exclusivity deals with restaurants. The goal is to lock table reservations to the app company’s top customers.

That practice has evidently become so prevalent that there is now a secondary market seeking to get around the principal reservation apps, such as OpenTable and Resy. Add in credit card perks and membership agreements, and reservations have become a complex web for restaurants to manage.

Restaurants Are Already Facing Significant Financial Pressures

Americans spend nearly $1.5 trillion eating out. Despite that lofty figure, restaurant businesses continue to struggle.

According to the National Restaurant Association, roughly 42% of restaurant operators reported losses in 2025. The outlook remains challenging in 2026, with stressors including uneven traffic and rising costs.

According to the Association, cost increases are attributable to cattle inventory remaining at a multi-decade low, persistent poultry disease risk, and tariffs. Menu price increases are practically certain, and a majority of restaurants are seeking to renegotiate contracts with suppliers or find alternative suppliers altogether.

Reservation Platforms Add Another Layer of Complexity

It’s not just the app companies contributing to operating costs. Restaurants also pay swipe fees on transactions, and swipe fees in the United States are among the highest in industrialized nations.

However, the app-reservation sector has become a noticeable influence on the restaurant market.

Marco Shalma, founder and editor-in-chief of We Eat Here, a newsletter focusing on the New York City dining scene, put it simply:

“Owning the reservation layer means owning the customer relationship. And that is extremely valuable... whoever controls the reservations can influence discovery, traffic and demand patterns across entire cities.”

For restaurants, that means reservation technology is no longer simply a convenient way for customers to book a table. The platform through which a reservation is made can increasingly affect how diners discover restaurants and how available tables are distributed.

Restaurants Must Manage an Increasing Number of Platforms

Unfortunately, it is often up to restaurants to manage reservations booked across several different apps.

DoorDash, which recently entered the business with its purchase of SevenRooms, has pitched a service that would pool reservations across apps. One would imagine that service would not be free.

Sometimes the Simplest Option Is Still the Best

The CEO of New York City restaurant Gramercy Tavern suggests a novel idea: call the restaurant directly.

Pointing to the New York City restaurant market, he says that approximately 10% to 15% of reservations cancel or result in no-shows. Restaurants want to fill those gaps, so it may still be worth simply picking up the phone.

Stay Informed With O’Donnell Law Offices

Technology continues to reshape how businesses and consumers interact, often creating new complications along the way. O’Donnell Law Offices continues to follow developing legal, business, and consumer issues affecting individuals and communities throughout Pennsylvania and beyond.

If you have questions about a legal matter, contact O’Donnell Law Offices today. Consultations are always free, and there is never a cost unless we win.