Sorry, rich New Yorkers — there's no more legal black market for restaurant reservations
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- New legislation in New York intends to crackdown on the black market for restaurant reservations.
- The law will restrict third-party agents from selling reservations to the highest bidders.
- New York's Gov. Kathy Hochul says it gives everyone "a chance to get a seat at the dinner table."
For the last few years, New York's dining scene hasn't exactly been a democracy.
From Reddit users scalping coveted restaurant spots for $1,500 to third-party agents using AI bots to hoard reservations and sell them to the highest bidders, eating out in New York evolved into a gamified legal black market where the biggest spenders stood a better chance at winning a seat at the table.
Now, a new law, signed by New York Gov. Kathy Hochul on Thursday, seeks to democratize New York's renowned dining culture.
Legislation S.9365A/A.10215A prohibits "third-party restaurant reservation services from arranging unauthorized reservations," per the governor's website.
It intends to crack down on the "predatory marketplace" that requires diners to either pay extra before they set foot in a restaurant or make it "inaccessible" for those who refuse.
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"New York is home to some of the best restaurants in the world, and whether you're returning to your favorite local spot or trying out the latest in fine dining, you deserve a fair system," Gov. Hochul said.
New York State Restaurant Association President and CEO Melissa Fleischut, echoed Gov. Hochul and said AI bots stockpiling reservations have "wreaked havoc" on New York restaurants by increasing "no-show" rates.
"Food and beverage orders, employee schedules, and many other aspects of a restaurant rely on accurately predicting how many customers will show on a given night," Fleischut said.
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The bill doesn't impact legitimate reservation platforms like SevenRooms and Resy, which work directly with restaurants.
Not everyone is convinced legislation S.9365A/A.10215A will protect both businesses and consumers.
Speaking to Bloomberg, Jonas Frey, who founded the Appointment Trader website, said New York's dining scene will still favor the rich who can splurge on concierge services or book via prepay sellers.
"If Appointment Trader were to shut down tomorrow in New York City, no one that doesn't have a relationship or doesn't want to prepay $1,000 would be able to go to Carbone or 4 Charles Prime Rib or Tatiana for that matter," Frey, whose website will be impacted by the new law, said.