From Eater to Blackbird: Ben Leventhal on Restaurants, Loyalty, and Rebuilding Payments

Most restaurants are currently facing challenges related to cost reduction and increasing customer attendance. A significant concern is the projected trillion dollars in sales flowing through payment systems by 2025, which restaurants do not control. This highlights the need for a shift in ownership dynamics within payment networks in the restaurant industry.

Ben Leventhal, founder of Eater, Rezzy, and Blackbird, expresses his lifelong passion for restaurants and the emotional connections people have with dining experiences. Although he has never worked in a restaurant kitchen, he acknowledges the stress and complexity of kitchen work, likening it to a performance. Blackbird is leveraging cryptocurrency as part of its technology strategy to innovate within the industry, allowing for consumer ownership of identity and data, contrasting with traditional systems dominated by large companies. The long-term goal is to decentralize the payments network, giving restaurants more control over payment systems. Currently, Blackbird has about 1,000 restaurants in its network, with aspirations to grow to around 100,000.

When engaging with restaurants, the focus is primarily on loyalty and payments rather than cryptocurrency. Restaurant owners are mainly concerned with reducing costs and increasing customer traffic. Younger restaurateurs in urban areas tend to be more knowledgeable about crypto and are often more innovative, while many are cautious and prefer to wait for technology to stabilize before adopting new solutions. The importance of demonstrating clear value and solving problems with minimal friction is emphasized, especially in competition with large chains. Continuous progress, even if incremental, is crucial for success.

Blackbird's go-to-market strategy encompasses all meal periods and aims to provide value across various types of establishments, from high-end restaurants to local coffee shops. Understanding customer behavior in relation to restaurants is key to creating a product that addresses diverse use cases. The company prioritizes being "restaurant first," focusing on collaboration and long-term economic benefits for the industry.

With plans to expand into major urban centers and eventually suburban areas, the speaker believes the U.S. is experiencing a "golden age of restaurants," with excellent dining options available in every city. While a passion for restaurants is essential, one does not need to be a foodie to work at Blackbird; the company assesses candidates' passion during interviews. In a lightning round, the speaker shares that the worst advice received as a founder was to "slow down," underscoring the need for speed in a startup environment.

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