My startup is working on an Opentable competitor (beta this fall, very excited). The article points out the most important part of the online reservation business..."restaurants are really paying $515 to gain 197 new customers [average]".
They're charging for the wrong thing (big software/hardware cost upfront, and price per reservation), and not focusing on the real value that they provide which is generating new customers. The software should be almost free upfront and easy to use. The focus of the business should be generating new customers and helping restaurants better monetize and market to the diners that use the system.
They do charge per reservation and a monthly fee. The "big" purchase up front is well-known in the restaurant industry as POS equipment is quite pricey, so they may not mind the initial investment. The higher barrier to entry for OT may also help keep up quality. Do you have a particular insight into the restaurant industry that would suggest otherwise?
They're charging for the wrong thing (big software/hardware cost upfront, and price per reservation), and not focusing on the real value that they provide which is generating new customers. The software should be almost free upfront and easy to use. The focus of the business should be generating new customers and helping restaurants better monetize and market to the diners that use the system.