The company's Founder and CEO, Ben Leventhal, pointed out the challenges faced by the restaurant industry, including rising food costs and operational expenses. Blackbird aims to address these issues by creating new revenue streams and cultivating loyal customers who return regularly.
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GLOBlackbird Labs, a technology company in the hospitality sector, has secured $24 million in a Series A funding round led by Andreessen Horowitz. This round also featured participation from QED, Union Square Ventures, Shine, Variant, and others, along with support from restaurant groups such as Quality Branded, Rustic Canyon Group, Soulva, and Brooks Reitz. This funding brings Blackbird’s total raised capital to $35 million and will be used to expand its operations.
The company’s Founder and CEO, Ben Leventhal, pointed out the challenges faced by the restaurant industry, including rising food costs and operational expenses. Blackbird aims to address these issues by creating new revenue streams and cultivating loyal customers who return regularly.
During the COVID-19 pandemic, Leventhal observed how restaurants adapted by diversifying their offerings, such as selling non-food items like pancake mix, to engage with customers. This inspired the concept for Blackbird, which focuses on helping restaurants both expand their reach and reward their patrons.
Blackbird achieves this by allowing restaurant operators to identify and greet diners by name and learn their personal preferences, such as seating preferences and food preferences. This information enables restaurants to provide personalized service and reward ongoing patronage with perks.
Blackbird’s technology involves diners using their phones to tap a proprietary NFC reader to create a membership. Members can level up with each visit, unlocking benefits like off-menu items and a direct message concierge. Diners also earn virtual currency during each visit, which can be spent on items or accumulated for membership rewards.
The virtual currency has a web3 component and is technically a cryptocurrency. Blackbird partnered with Privy, a crypto wallet management startup, to provide users with embedded wallets for managing balances alongside their Blackbird membership.
On the backend, Blackbird collects various data on behalf of restaurants, including dining history, birthdays, and addresses, to enable targeted promotions. Restaurants can also use Blackbird to message top-tier members with access to a dedicated support line and notifications about available reservations.
Blackbird also allows restaurants to sell paid memberships to guests, creating an additional revenue stream. Leventhal emphasized that the goal is not to create exclusive dining clubs but to offer diners at restaurants of all sizes, especially small independent establishments, an additional way to support the venues they love.
While convincing diners to use Blackbird may be a challenge, the company has already gained traction. Since its launch, Blackbird has onboarded around 80 restaurants, with 22 actively using the platform. The company plans to introduce a referral program and experiment with its cryptocurrency in the future.
Overall, Blackbird aims to provide restaurants with a comprehensive loyalty platform, enhancing customer engagement, rewarding loyal patrons, and generating new revenue streams.
Source: Blackbird Labs
