Ben Leventhal, founder of Blackbird Labs and co-founder of Eater and Resy, dives into his journey from blogging about NYC restaurants to launching impactful ventures. He shares how Eater became a significant voice in dining and the challenges faced while co-founding Resy. Discover how they pivoted their initial model to enhance restaurant profitability through innovative reservation solutions and partnerships, including a notable acquisition by American Express. Leventhal's insights highlight the dynamic relationship between technology and the culinary world.
Ben Leventhal transitioned from blogging about restaurants to revolutionizing the industry with the launch of Eater, influencing dining trends significantly.
The creation and evolution of Resy highlighted the importance of adapting business models based on feedback from industry stakeholders, leading to its successful growth.
Ben's subsequent venture, Blackbird, aims to unify restaurant loyalty programs, enhancing customer engagement and providing a personalized dining experience.
Deep dives
The Founding of Eater
Ben Leventhal's journey in the restaurant industry began with his passion for food and writing, which led him to create a niche blog about New York City restaurants. This blog, initially called 'She Loves New York,' garnered a cult following and eventually evolved into Eater, a platform that reported on restaurant trends with a unique voice. Eater quickly gained popularity, focusing on the story behind restaurants and skipping traditional reviews. This innovative approach resonated with readers and positioned Eater as a significant player in food media.
The Launch of Resi
After stepping away from Eater, Ben identified a gap in the restaurant reservation market and co-founded Resi, aiming to simplify the dining experience. Initially, Resi adopted a surge pricing model where diners could pay a premium for difficult-to-book tables, similar to ride-sharing services. However, the original concept faced challenges, leading to a shift based on feedback from restaurant owners who desired more comprehensive reservation and table management solutions. This pivot proved vital for Resi, aligning its offerings more closely with the needs of the restaurants it served.
Expanding Resi's Offerings
As Resi evolved, it moved beyond its initial model to include a reservation system that allowed restaurants to manage bookings directly from their websites. This meant restaurants could avoid per-cover fees associated with competitors like OpenTable, making it a more attractive option. By introducing a flat monthly fee for services, Resi allowed restaurants to maximize their revenue without the burden of variable costs based on customer volume. This model not only facilitated successful restaurant partnerships but also laid the groundwork for Resi’s growth throughout various markets.
Acquisition by American Express
In 2019, American Express acquired Resi for approximately $200 million, strategically positioning it within the financial giant's portfolio. The acquisition occurred just before the onset of the COVID-19 pandemic, which drastically impacted the restaurant industry. Post-acquisition, Ben and his team moved quickly to support their restaurant partners during the crisis, implementing measures such as waiving fees. This proactive approach not only demonstrated their commitment to the restaurant community but also solidified Resi’s reputation as a crucial ally during trying times.
The Launch of Blackbird
After leaving Resi, Ben leveraged his experience to create Blackbird, a loyalty program that aims to unify the restaurant industry under a single rewards system. Blackbird offers diners the chance to earn points at restaurants that can be utilized like currency, thereby enhancing customer retention and engagement. The platform facilitates a more personalized experience, allowing restaurants to track customer preferences across multiple locations. Ben envisions Blackbird as a transformative solution for the restaurant industry, establishing a new realm of customer loyalty and connection.
When Ben Leventhal first started blogging about New York City’s restaurant scene in the early 2000s, he was doing it as a hobby. But as the website Eater gained weight and spread to other cities, it became a snarkily influential voice in the dining world. Recognizing that many restaurants struggle to survive, Ben then co-founded Resy, a booking app that squeezed more value into seats by charging diners higher rates for a hot table. When this business model flopped, Resy made a rapid pivot that eventually paid off, with an acquisition by American Express for $200 million in 2019.
This episode was researched and produced by Sam Paulson with music composed by Ramtin Arablouei. It was edited by Neva Grant. Our engineers were Robert Rodriguez and James Willetts.
