First Table raises NZD $12 million for global growth

First Table has raised NZD $12 million to support the restaurant booking platform's next phase of growth.

The round included existing investors Altered Capital, Invest South, Mainland Angels and Snowball Effect shareholders, alongside new investors K1W1 and Icehouse Ventures.

First Table offers diners 50% off their food bill when they book an off-peak table. Restaurants do not pay to list on the platform, while diners pay a booking fee.

Part of the funding will be used to strengthen First Table's position in New Zealand by deepening ties with restaurant partners and expanding how diners and venues use the service.

International growth is also part of the plan. The UK is its strongest overseas market, with bookings up more than 150% year on year, and London is now its busiest city.

Founded in Queenstown in 2014, First Table says it has seated more than five million diners. It now operates in more than 65 cities across New Zealand, Australia, the UK and Ireland, connecting more than 3.9 million diners with more than 5,000 restaurants.

The business has grown during a difficult period for consumer spending and hospitality trading, with bookings tripling over the past two years despite pressure on household budgets in New Zealand, Australia and the UK.

Alex Cappy, Chief Executive Officer of First Table, said the raise would deepen the company's domestic presence while supporting further expansion abroad.

"New Zealand is where First Table started, and a big part of this raise is about going deeper here," said Alex Cappy, Chief Executive Officer of First Table.

"That means bringing more value to our restaurant partners and diners, and creating more opportunities for the hospitality industry to thrive."

Cappy also pointed to demand outside New Zealand, particularly in Europe.

"The First Table model travels. 50% off your food bill is appealing no matter where in the world you are," Cappy said.

"We've been seeing phenomenal growth internationally, so we know there's a huge opportunity for us to take the business further around the world, and Europe is of particular interest to us."

Business model

Unlike many restaurant booking services, First Table does not charge venues listing fees. Its model is built around filling quieter early tables that might otherwise stay empty, giving restaurants extra covers while offering diners a lower-cost meal.

Cappy said the model has become more relevant as hospitality operators manage weaker demand and consumers look for ways to keep discretionary spending under control.

"An empty table at 5.30pm is revenue a restaurant never gets back," Cappy said.

"We help turn those empty seats into paying customers, and the diner gets a meal they might not have booked otherwise. Everyone wins."

First Table said diners are still seeking social occasions even as they watch their spending more closely.

"People are being cautious with how they spend their money right now, but we know they still want to go out and connect over a meal, and the benefit that we offer at First Table is really appealing," Cappy said.

"Equally, it has been a tough time for hospitality, and First Table gives restaurants another way to get diners through the door and build a buzz during usually quiet times."

First Table said it is the top restaurant booking app on both the App Store and Google Play in New Zealand.