Monday, September 19, 2011

Savored.com's Better Business Model

In essence, Savored is a newly relaunched website (formerly VillageVines.com) that offers 30% off at participating restaurants, in exchange for a $10 reservation fee from patrons. Savored partners with highly-rated restaurants in 10 different cities, and each day, these restaurants contact Savored to report their availability. Then, in a style similar to OpenTable, patrons choose when they would like to dine. The best part? Drinks are included in the 30% discount.

Savored.com offers a win-win situation both for patrons and restaurant owners. Patrons enjoy not only a discount, but also the discreet system--there are no print-out coupons involved. Restaurants, on the other hand, benefit from filling empty tables and keeping 100% of the profits.

Whereas a website like Groupon can potentially harm a business by flooding them with unprofitable customers, Savored has altered this business model and created a profitable opportunity for each restaurant involved.

This article describes the successful model more in depth:
http://allthingsd.com/20110621/savored-is-a-groupon-competitor-that-feeds-off-merchants-fears-about-groupon/

Savored.com

2 comments:

zrozen said...

This is such a great idea! As great as groupon is with restaurants, it's always such a hassle to print out and bring the coupon and the waiters/management always seem annoyed with this. I can't wait to sign up and check out the restaurants they're offering - a nice and affordable way to expand the palate!

Daniel Mochon said...

This is really interesting. I think that over time we will be seeing more and more sites like this one, which present businesses with terms that aren't as unfavorable as those given by Groupon.