How would you go about validating the need for an app to split the bill when people go out to restaurants or bars?

Introduction

Validating the need for a bill-splitting app for restaurants and bars requires a comprehensive approach to product success metrics. To address this challenge effectively, I'll follow a structured framework that covers core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context (5 minutes)

The bill-splitting app is a mobile application designed to simplify the process of dividing expenses among friends or colleagues when dining out or socializing at bars. Key stakeholders include:

1. Users (diners/drinkers)
2. Restaurant/bar owners
3. Payment processors
4. App developers

The user flow typically involves:

1. Creating a group or event
2. Adding items and their costs
3. Assigning items to individuals or splitting equally
4. Calculating individual totals
5. Facilitating payments

This app aligns with the company's strategy of simplifying financial transactions and enhancing social experiences. Competitors like Splitwise and Tab exist, but our focus is on real-time, in-venue splitting with potential integration with restaurant POS systems.

The product is in the early growth stage, having moved beyond initial launch but not yet reached maturity.