photo credit: David Boyle in DC
Several years ago when the dot-com bust was occurring, there were many unqualified and unproven business models. But out of those businesses came innovation, experience and yes – cheap eats. Scott Lutwak, the CEO of Restaurant.com, tried to create a virtual portal for restaurants, but after years of laggard results. He came to venture capitalists to pitch an idea, why not give customers good dining deals, instead of, trying to focus on a directory-type site (subscription-based).
Not long after, Restaurant.com bought CitySpree at a bankruptcy auction for less than $500,000 and refocused on selling gift certificates. They now had the ability to sell a $25 gift certificate for only $10; the company would keep all the revenues ($10), and restaurants could benefit by filling their tables (There are stipulations that cause the minimum bill to be $35, etc).
Now, the three parties: restuarant.com, customers, and restaurants themselves, are benefiting greatly from the new internet business. Particularly restaurants gain from getting new eat-in customers; gaining awareness, increasing revenues, and filling tables. Once a lackluster business model, moves to become a pioneer of dining.
How to Find a Deal
You can find these gift certificates on ebay’s gift certificate page. But you can also search by type of restaurant at the website; www.restaurant.com.
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