The Australian Business Review, 6 December 2022
A world-first intelligent restaurant booking system invented by veteran Sydney restaurateur and proprietor Peter Petroulas has just been awarded a US patent, valuing his start up business WizButler at $275 million.
Intellectual property solutions firm based in Germany, IntraCom Group, completed the patent valuation.
Instead of managing a fixed number of restaurant tables, as all current Australian booking systems do, WizButler is a never-been-done-before technology solution which manages a restaurant’s space.
The algorithm not only dynamically reallocates tables in real time, it can dynamically reallocate every booking to optimise space on the dining floor, creating “dancing tables”; the term for the software that Petroulas coined.
The technology can also autonomously take 50 per cent more bookings online in real time during a busy service than any other booking system.
Mathematicians from MIT, Cornell University and technology companies like Apple, Amazon and Oracle have been aware of the inefficiencies of existing systems (where new booking requests can be rejected when the tables are only 60 per cent full) for the last 20 years but have failed to find a solution.
“The issue was that all prior attempts to solve the problem fell into the trap of trying to improve the existing process with more mathematical search algorithms, while still allocating bookings to a fixed pool of tables and table combinations,” said Petroulas.
“I was inspired by the ‘think different’ approach of Apple founder Steve Jobs. Instead of continuing attempts to find a better mathematical search algorithm, I reimagined the problem.
“I’m proud to say that WizButler is a technology solution which successfully manages a restaurant’s space, rather than a fixed pool of restaurant tables. Not only is it a better solution, but it is a realistic and practical solution to the restaurant booking allocation conundrum that the previous 2D systems could not solve.”
Without knowing what future booking requests might be, the system automatically unseats and re-seats all bookings each time a new booking request is received, so each time a new allocation is made, it is made with full knowledge of all booking requests. This process allows VIPs to be seated at their favourite tables, or to re-allocate bookings to the best available tables.
“By taking this realistic approach it also introduced the ability for a restaurant to let diners and patrons to personalise their experiences by doing things like being able to select a special space, like a space that offered a water view in the restaurant as well as extended durations, dynamic menus and bespoke services,” said Petroulas.
“All operators know that the only time they have an opportunity to make money is on their busiest days. By using WizButler, they can get 50 per cent more customers online and in real-time during their busy services.”
WizButler’s “dancing tables” mean venues can autonomously adjust their capacity, which allows them to introduce a proper ‘yield management system’ to the restaurant environment – the first time a booking system has ever been able to do so.
The system can allow the venue to charge a customer an extra $10 per person for a table with a window view, or to allocate a person selecting a three-course menu to a window table, while a person selecting a one course menu is allocated to the best available table. Discounts can also be applied by the venue to customers allocated at the back of the room, next to the kitchen.
“WizButler’s space management system is completely configurable and can be customised to a restaurant’s style of operation, whether it be a cafe, bar, casual dining or formal restaurant, including the level of automation and personalisation they wish to adopt. Plus, as a final act WizButler draws dynamically changing floor plans and table layouts so staff know how to set up and rearrange the tables for the bookings taken,” said Petroulas.
“It’s evident that this is genuinely disruptive technology and that space management and dynamic allocation will form the basis and framework of a new era in hospitality booking systems and the existing 2D systems will struggle to remain relevant. It’s therefore not unrealistic for the current valuation of the patent at $275 million.”
Petroulas previously managed the awarded GPO Grand Group of restaurants and bars in Sydney’s 1 Martin Place, which included the highly respected venues of Prime Steak Restaurant, Intermezzo Italian Restaurant, Postales Spanish Restaurant, GPO Cheese and Wine Room, Sosumi Sushi Train and Crystal Boudoir Cabaret. Petroulas closed the precinct in June 2020 after 18 years as a result of the COVID-19 pandemic.
Petroulas has said his product is suited to every hospitality business – from cafes, bars and casual dining restaurants.
“All types of venues can benefit from the completely automated processes to reduce costs, while fine dining restaurants can use it to increase personalisation and improve service.
“All types of venues can achieve a 50% increase in customer numbers and revenue during a busy service,” said Petroulas.
Two well-known Melbourne restaurants 8 at Trinity and Left Bank have been more than impressed with WizButler’s booking capabilities.
“We’ve been using the [WizButler] system since 2019 and it allocates all our booking requests, including waitlists, while introducing extra tables and removing or rearranging tables, to maximise the bookings taken,” said Director of 8 at Trinity Natalie Johnson.
“This is a lot more than what could be done manually. It also allows our staff to focus on what matters most, ensuring the customer has amazing food and an amazing experience.”
Director of Left Bank Melbourne, Stan Delimitrou, who has been using the system for the last year, said: “We rely on WizButler to make our booking allocations. On a busy Saturday night at one booking interval, say 7pm, WizButler has increased the bookings taken from 220 people to 300 people, plus the WizButler mobile seating app helps us seat all 300 people within 15 minutes.
“There’s never been a time where a technology like this was more needed by restaurants as they continue to face the headwinds of rising costs, increasing interest rates, labour shortages and customers who have less disposable income and are adverse to increasing prices.”
This article was developed in collaboration with WizButler, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.