Bartab.com is a new Facebook application that allows users to send friends $1 drink coupons for participating bars and restaurants using a free application on various smart phones.

When the drink-giver buys a $1 drink coupon, the drink-receiver can spend that $1 at the participating establishment on a select drink.

Participants can receive up to one drink coupon per hour, while each establishment has a set number of coupons that can be redeemed at their establishment each month.

Every time a drink is purchased, received or redeemed, a notice goes on Facebook showing the bar and drink that was exchanged.

Bartab.com is up and running in 15 different markets and over 600 locations are now participating.  At least 160 bars and restaurants in San Francisco, the East Bay, South Bay and North Bay currently have redeemable coupons.

Consumers are taking advantage of the lower prices for drinks, which in turn is helping bar owners associated with Bartab.com find new customers.

“In the first week of being what Bartab calls ‘live’ with the company we had 8 new customers that have never been to Gallaghers before,” said Rob Jewel, co-owner of Gallaghers Dublin Pub.

The application’s connection with Facebook has also been a helpful tool for the promotion of associated bars.

“We had 25 more likes on our Facebook page the same week as we signed up for bartab,” said Gallaghers Dublin Pub co-owner Sunshine Gallagher.

Nick Stewart, Bartab’s director of business development, explained that along with this advertising on Facebook, Bartab also provides new customers beyond the initial coupon purchase.

“74 percent of consumers that walk into the bar using Bartab stay for at least one more drink, if not more,” stated Stewart.

Stewart said he was a student at University of Arizona when he and three friends came up with this platform as a project for an entrepreneurship class.

After college Stewart carried the idea forward and was soon acquired by Webtab.com.

Bartab is Webtab’s first product to launch, but Stewart said there will be many more to come.

Webtab chief executive officer Steve Johnson believes that his company won’t just stop at providing such a service to bars and consumers based solely around drinks.

“Why not be able to buy your friends appetizers, coffee, or dinner?” he proposed.