Blackbird Raises $50M to Transform Restaurant Loyalty Programs with Blockchain
A New Era for Dining Rewards
Blackbird Labs, a pioneering blockchain-based payment and loyalty platform for restaurants, has secured $50 million in fresh funding. The startup, founded by industry veteran Ben Leventhal (co-founder of Resy and Eater), aims to redefine how restaurants engage with customers through its innovative Flynet payment service and new Blackbird Club rewards program.
Key Funding Details
- Lead Investor: Spark Capital
- Notable Participants: Coinbase Ventures, Amex Ventures, Andreessen Horowitz (returning investors from 2023’s $24M Series A)
- Total Raised: $85M to date
- Current Valuation: Undisclosed (PitchBook reported $124M valuation in 2023)
Strategic Expansion Plans
With 1,000 restaurants already onboarded, Blackbird will use the funds to:
- Launch Blackbird Club - a cross-restaurant loyalty points system
- Expand beyond current markets (NYC, San Francisco, and Charleston, SC)
- Enhance its blockchain-based payment infrastructure
“Charleston punches above its class as a restaurant city,” Leventhal noted, explaining why the Southern city serves as an important test market.
Why Blockchain for Restaurant Loyalty?
While compe*****s like Punchh and Toast use traditional financial systems, Blackbird leverages Coinbase’s Base blockchain for:
- Customer Data Ownership: Diners maintain control of their profiles
- Reduced Fees: Currently saving restaurants 3-4% on payment processing
- Future Equity: Plans for restaurant partners to become shareholders
“There are opportunities that only being on-chain enables,” Leventhal emphasized, while acknowledging blockchain isn’t strictly necessary for the core functionality.
Addressing Restaurant Industry Challenges
The funding comes at a critical time for the restaurant sector, where:
- Average profitability has plummeted from 20% (early 2000s) to under 5%
- Tech platforms increasingly eat into thin margins
- Consumer price sensitivity continues to rise
“There’s a disconnect between consumer love for restaurants and industry profitability,” Leventhal observed, positioning Blackbird as a solution to this imbalance.
Investor Perspective
Arianna Simpson of Andreessen Horowitz highlighted the platform’s unique value: “Blackbird creates a network owned by restaurants and diners themselves—something only blockchains enable.”
With its combination of payments, loyalty, and blockchain technology, Blackbird is poised to reshape how restaurants build lasting customer relationships in an increasingly competitive digital landscape.
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