A Resy Founder Expands His Loyalty Program for Restaurants (2024)

Food|A Resy Founder Expands His Loyalty Program for Restaurants

https://www.nytimes.com/2023/10/04/dining/blackbird-resy-founder-ben-leventhal.html

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Ben Leventhal says Blackbird will give many independent restaurants the means to identify and reward regulars for the first time.

A Resy Founder Expands His Loyalty Program for Restaurants (1)

Ben Leventhal helped found the popular restaurant-news site Eater and the innovative restaurant-reservation service Resy. So a lot of attention has focused on his latest project — Blackbird, the first loyalty platform for independent restaurants — since it began operating in New York City in April.

Blackbird Labs announced Wednesday that its pilot program has been a success, that it is expanding to San Francisco and Los Angeles, and that it has raised $24 million through a16z, the Silicon Valley venture capital firm also known as Andreessen Horowitz. That’s on top of $11 million in seed money raised last year in an effort led by the Union Square Ventures fund. American Express, which acquired Resy in 2019, is also becoming a major investor in Blackbird.

Like all rewards programs, Blackbird is designed to entice customers into becoming regulars. It arrives amid a sweeping post-Covid self-evaluation by independent restaurants about how to survive high labor costs, new price plateaus and the relentless march of national chains.

In an interview on Tuesday, Mr. Leventhal said that despite a two-decade-long spike in Americans’ fascination with restaurants, chefs and food in general, “the average restaurant is doing the same or worse, and connectivity between restaurants and guests has eroded.” Home delivery via third-party apps like DoorDash spiked during the pandemic, restaurants began using social media to communicate with diners, and many no longer have a direct reservations line or even a phone number. Blackbird is the first app that enables restaurants and members to text back and forth, in real time.

Aiming to recreate what it calls an “old school maître d’ mind-set,” Blackbird tags diners who sign up (at no cost), then tracks their visits, identifies repeat customers and rewards them with perks such as free co*cktails, extra desserts and birthday discounts. And unlike those maitre d’s, whose favor could be purchased with fame, looks or cash, Blackbird is interested only in your swipes.

About 20 restaurants in Manhattan and Brooklyn already have Blackbird readers at the entrance. Most are relatively new arrivals with a high cool factor, like the cozy Vietnamese restaurant Di An Di, in Greenpoint, Brooklyn; the high-end Principe, in SoHo; and the fast-growing local chain Upside Pizza. For independent restaurants like these, direct marketing to diners has always been a challenge.

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A Resy Founder Expands His Loyalty Program for Restaurants (2024)

FAQs

Does Resy have rewards for restaurants? ›

Earn 100,000 Membership Rewards® points after you spend $8,000 on purchases on your new Card in your first 6 months of Card Membership. Earn 10X points at restaurants worldwide on up to $25,000 in eligible purchases on your new Card during your first 6 months of Card Membership.

What is restaurant loyalty program? ›

Customer loyalty programs are a great way for restaurants to keep their customers coming back, and keep them happy. Guests can sign up for a restaurant's loyalty program, and the more times they visit, or the more money they spend, the more perks they get, from free appetizers or drinks to coupons or merch.

Who is the owner of Resy? ›

Resy is an American online restaurant-reservation service company founded in 2014 by Gary Vaynerchuk, Ben Leventhal, and Michael Montero.

What benefit do retailers and restaurants receive from customer loyalty programs? ›

A loyalty program lets your restaurant build a stronger relationship with guests and encourages them to dine with you more often. Guests who sign up for a restaurant loyalty program earn freebies, points, or other incentives every time they spend.

What is the point of Resy? ›

For Diners: Resy is a consumer-facing reservation platform that powers dining across the globe.

Do reward systems work for restaurants? ›

Increases sales and restaurant revenue

When you have a loyalty program set in place, your guests will be encouraged to earn rewards at a faster pace so they can redeem them. About 64% of loyalty program members spend more money each transaction to maximize point earnings.

How to make a loyalty program for a restaurant? ›

11 Tips for Creating a Restaurant Reward Program That Boosts Guest Loyalty
  1. Make Sure You Have the Tech to Support Your Program.
  2. Keep Things Simple.
  3. Create a Customer-Facing App.
  4. Offer Enticing Rewards & Perks.
  5. Educate Staff on Your Reward Program.
  6. Collect and Implement Guest Feedback.

How do you get a loyalty program? ›

10 Ways to Create a Customer Loyalty Program
  1. Offer Freebies to Repeat Customers. ...
  2. Provide Customer Discounts Or Cash Back. ...
  3. Offer Premium Membership Programs. ...
  4. Give Gifts for Referrals. ...
  5. Hold Contests. ...
  6. Send Email Promotions. ...
  7. Hold Customer Appreciation Events. ...
  8. Spread the Word With Social Media.

What is a loyalty reward program? ›

Loyalty programs are offered by retailers and other corporations as a way to attract and retain customers. Loyalty programs offer rewards, discounts, or other special incentives and are designed as a reward for a customer's repeat business.

Is Resy closing down? ›

Restaurant booking platform Resy is to shut down its UK operations by the end of this summer. The hospitality technology company said it was shifting to focus on the US and Canadian markets and would wind down in the UK by 31 August 2024.

Did OpenTable buy Resy? ›

Resy, the upstart that took on OpenTable and became the largest privately held reservation service in the country, reaching 4,000 restaurants in over 200 cities, has been acquired by American Express.

What is the difference between OpenTable and Resy? ›

Some think of resy.com as the 'new OpenTable' but they approach reservation fees in a different way. Unlike OpenTable, Resy pitches itself as having no per-cover fees for access to its booking platform.

How do loyalty programs work? ›

A customer loyalty program (or rewards program) is a customer retention strategy businesses use to entice customers to continue buying from them. These programs typically consist of discounts, free offers, or other perks consumers earn for repeat purchases.

How do loyalty programs affect customer retention? ›

Loyalty programs entice customers to keep making purchases at your company, boosting CLV. As CLV increases, so does revenue. Loyalty programs focus on customer retention, but they can help you generate leads and acquire new customers as well.

How do loyalty programs affect customers? ›

A study by McKinsey, for example, found that customers who are members of a loyalty program are 59% more likely to choose a brand over a competitor and 43% more likely to buy weekly. In fact, the study found that customers who are members of a loyalty program are 62% more likely to spend more on the brand.

Are Resy and OpenTable the same? ›

Some think of resy.com as the 'new OpenTable' but they approach reservation fees in a different way. Unlike OpenTable, Resy pitches itself as having no per-cover fees for access to its booking platform.

Do restaurants rate customers on Resy? ›

Resy ratings are a closed- loop system, meaning only restaurants can see the review and individual star rating. After each visit, guests receive an email from Resy asking them to rate their experience on a 5-star scale.

What are the advantages of the restaurants offering table reservation? ›

A reservation system helps businesses optimize restaurant seating layouts, so that they can accommodate more customers and give guests more accurate wait times. If the wait becomes longer than anticipated, the host can adjust expectations and offer a complimentary snack or beverage.

How does dining rewards work? ›

How do dining rewards programs work? Dining rewards programs all work in a similar way. You create an account and link eligible credit or debit cards to your account. Then, when you use the linked card at an eligible restaurant, you'll earn rewards through the program based on how much you spend.

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