Have you considered going with a simple online reservation system like open table? I don't think the bidding component of the model you've tested today will work...but, with open table you can set it up so that a credit card is required to hold a reservation (common practice at many restaurants). At least that lets you know that people are serious about keeping their reservation. Keep a few tables available for walk-ins and go to a primarily reservation-only system on busy nights. Open table is cool too b/c it prompts patrons to leave reviews, but only people who've actually made and kept their reservation can review your establishment. Consider building a deck/outdoor patio area for dining this summer, maybe time to build yourself some sweet new digs out in the back 40 and expand upstairs to more dining space? I think you could keep the charm and the quality if you do things thoughfully and slowly.
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