Let’sEat aims to solve the problems restaurants face with Groupon and Living Social. On a Friday night, when a restaurant has a line out the door and no reservations left, the last thing they want is for someone with a Groupon to be filling their seats. Why would they want to take a low margin on tables they could be charging full price for? Also, with their current pricing model, restaurants only earn a quarter of the value of the product they give away making it difficult for the restaurants to retain any profit.
Let’sEat allows restaurants to post specific times to our site when they typically experience low volume and need to increase traffic. If the consumer reserves these tables through our site they receive a 30% discount off of their total check. In order to make the reservation, Let’sEat charges the consumer a small fee of only $5.