Since the COVID-19 pandemic, full-service restaurants have been facing challenges in bringing customers back to their tables. Rising costs, shrinking margins, and a preference for fast-food or delivery have led to the closure of more independent restaurants than new ones opening. Ben Leventhal, co-founder of Eater and Resy, is working on a loyalty app called Blackbird to help reverse this trend. Blackbird is unique as it utilizes crypto, with users earning a cryptocurrency called $FLY when they check into a restaurant in the app.
Leventhal hopes that restaurants will accept $FLY as a form of payment, creating a network effect where money circulates among restaurants. Blackbird recently announced a payment processing system called Blackbird Pay, allowing diners to pay for their meal directly within the app using a credit card or crypto. This streamlined system has been praised by crypto evangelists as a step towards mainstream adoption of crypto in everyday life. However, restaurants have been hesitant to adopt the crypto aspect of the app, making it difficult for diners to spend the points they have earned.
Despite the rocky rollout of the crypto aspect of Blackbird, Leventhal has shifted focus towards a more holistic vision for the company. He believes that leading with crypto may not be the right approach and is exploring other ways to make Blackbird successful. The current state of Blackbird exemplifies both the promise of crypto and the challenges it faces in public life. Leventhal acknowledges the need for flexibility and adaptation in order to overcome obstacles and achieve success.
The pandemic has forced restaurants to adapt to changing consumer habits, with many turning to technology to enhance the dining experience. Blackbird aims to connect restaurants with their customers in a more meaningful way, utilizing crypto as a tool to incentivize loyalty. While the adoption of crypto in the app has been slow, Leventhal remains optimistic about the future of Blackbird and its potential to revolutionize the restaurant industry.
In conclusion, Blackbird represents a bold experiment in using crypto to transform the dining experience and support struggling restaurants. While the rollout has faced challenges, Leventhal’s vision for the company remains strong. By focusing on creating a more connected network of restaurants and customers, Blackbird has the potential to reshape the way we dine out in the post-pandemic era. As the company continues to evolve, it will be interesting to see how it navigates the complexities of mainstream crypto adoption and establishes itself as a leader in the restaurant industry.
