TheFork Türkiye

What did it do?

TheFork was a French-born online restaurant booking platform acquired by TripAdvisor in 2014. It launched in Turkey in 2015; users booked tables through a Turkish-language website and mobile app, collecting points with each booking and earning discounts on later meals. It listed restaurants in cities and holiday areas such as Antalya, İzmir, Ankara, Bursa, Bodrum and Çeşme.

Why did it shut down?

In May 2017 TheFork told users in an email that it was halting its Turkish operation, but gave no reason. An industry writer for Gurme Ajanda argued that the problem was not specific to TheFork and that the online restaurant booking business in Turkey was structurally challenged. According to the writer, booking was not a habit at restaurants that were not busy, while at busy restaurants the good tables were kept for regulars. Operational issues such as restaurants' reluctance to pay commission and the question of who would confirm a booking also strained the model. The fact that the same article cited other local booking sites that had closed earlier supports the view that the market suffered from a general lack of need.

The story

TheFork was one of the best-known platforms taking restaurant booking digital in Europe. TripAdvisor, which bought the French-born company for $140 million in 2014, brought it to Turkey in 2015. Users booked tables through a Turkish-language site and app, collecting points with every booking and earning discounts on later meals. The platform listed restaurants in eleven cities and areas, including Antalya, İzmir, Ankara, Bursa, Bodrum, Çeşme and Marmaris.

According to an article in Gurme Ajanda, a Turkish food and dining publication, TheFork had arrived in Turkey with an ambitious entrance. Two years later, however, in May 2017, an email went out to its members. The company said the decision had been a difficult one and that the Turkish-language site and mobile app would very soon cease operating. It added that memberships would not be deleted and that accumulated points could be used in other countries. According to Webrazzi, the Turkish tech news site, after this exit TheFork carried on in ten countries, including France, Italy, Spain and Brazil.

The company gave no reason. The commentary written for Gurme Ajanda, however, looked for the problem beyond a single company. According to the writer, people in Turkey who made bookings did not use online systems, and people who used online services did not book restaurants. Reserving a table at restaurants that were not busy was not a habit in the first place; some restaurants worked by phone, others with different software, and they kept their distance from the commission model. The writer also recalled local examples that had closed earlier, such as restoranonline.com and Rezztoran.com.

TheFork Türkiye's short life remained an example showing that a global brand and a strong parent company cannot single-handedly create demand in a market where user behaviour has not formed. Zomato's closure of its Turkey office in the same period showed how tough the restaurant discovery and booking space was for foreign players.

Lessons for founders

• Before taking a habit that works in other countries into a new market, test whether that habit exists there.
• In a two-sided marketplace, if businesses will not accept the commission, user growth will not come either.
• A string of local players closing in the same space is the market telling you something.

Sources

1. TheFork decides to halt its operations in Turkey (Webrazzi, 2017-05-16)
2. TripAdvisor's Restaurant Booking Venture The Fork Pulls Out of Turkey (Uzakrota, 2017-05-21)
3. This market will eat you alive, baby... (Gurme Ajanda, 2017)
4. Zomato is closing its Turkey office [Rumour] (Webrazzi, 2017-05-22)

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