Nightclubs in Chile are getting more profitable, thanks to Minneapolis-based startup
BookBottles.
The company got started in 2011, when founder Parag Shah was chatting with some friends who were nightclub promoters. They began talking about the challenges of bottle service, a VIP-level reservation where club-goers can book a table and buy liquor by the bottle rather than by the drink. A significant revenue driver for clubs, the service varies widely even in nightlife hotspots like New York and Las Vegas.
Shah tested out the reservation services of several clubs in big cities, booking tables online and by phone, and found that over 75 percent of the clubs didn't even contact him to make the reservations, and some got back to him after the reservation date.
"Considering how much customers are willing to spend on bottle service, the terrible customer service was just baffling to me," he says. "This wasn't just a big opportunity; it seemed like it could go global."
After forming a team and creating software that made it easy for club owners to streamline their bottle service offerings, Shah's business partner went to Startup Chile and received funding for expansion into South America.
Success there is translating into more international opportunity, with BookBottles opening in Mexico within the next couple weeks. In another recent win, the company partnered with Apple to create device packages so the app can be used on Apple products like the iPhone and iPad.
"People don't understand how big this market is, and the nuances of bottle service," says Shah. "We're fortunate in that we're getting into this growing, huge industry, and seeing that our application can be modified for different industries like casinos and restaurants. We're very excited about where we can go from here."
Source: Parag Shah, BookBottles
Writer: Elizabeth Millard