Restaurant tech veteran Ben Leventhal is back with another ambitious venture aimed at transforming how eateries build customer loyalty. His latest startup, Blackbird Labs, has just secured $50 million in funding to expand its blockchain-based payments and loyalty platform tailored for restaurants.
The round was led by Spark Capital, with backing from Coinbase Ventures, Amex Ventures, and Andreessen Horowitz (a16z)—all of whom participated in Blackbird’s previous $24 million Series A in 2023. With this fresh capital, the startup is now valued north of $124 million, according to PitchBook estimates, though the company hasn’t confirmed a specific figure. To date, Blackbird has raised a total of $85 million.
A Smarter, More Rewarding Way to Dine
Blackbird isn’t just another loyalty app. It’s merging loyalty, payments, and blockchain into one seamless ecosystem. Now operating in 1,000 restaurants across New York, San Francisco, and Charleston, Blackbird is preparing to launch its latest offering—Blackbird Club. This new feature allows diners to earn and redeem points across multiple restaurants, aiming to boost repeat visits and streamline the dining experience.
Why Charleston? Leventhal calls it a “great restaurant city for its size” and the company’s “test market,” akin to how Meta treats New Zealand—a strategic choice for trying new features before scaling.
Strategic Partners with Long-Term Synergy
The inclusion of Coinbase and Amex as investors isn’t coincidental. Amex previously acquired Resy, the restaurant reservation platform Leventhal co-founded and sold in 2019. While there’s no formal integration yet between Blackbird and Resy, Leventhal hinted, “It’s fair to say we will,” suggesting synergies may lie ahead.
Blackbird’s Flynet payment system operates as a Layer 3 protocol built on Coinbase’s BASE blockchain, allowing diners to pay via the Blackbird app and redeem loyalty rewards instantly. While blockchain might not be essential for loyalty and payments, Leventhal believes it unlocks unique advantages in data ownership and customer engagement.
“Consumers will continue to own their profiles,” he said. “We’re building a system where each restaurant customer can eventually become a shareholder in Blackbird itself.”
Standing Out in a Crowded Market
Blackbird enters a competitive arena filled with platforms like Punchh, Toast, and Lightspeed—all offering traditional loyalty and payment solutions. However, Leventhal argues that blockchain gives Blackbird a crucial edge. While Visa operates on similar transaction principles, the decentralized nature of blockchain opens new avenues for restaurant-diner relationships.
For instance, by storing profiles and transaction data on-chain, Blackbird offers both diners and restaurants more control, transparency, and equity in the process. This model aligns with the vision laid out by a16z crypto partner Arianna Simpson, who said the goal is a network “owned by restaurants and diners themselves—something only blockchains can enable.”
Simpson also highlighted a major incentive for restaurants: lower processing fees. Blackbird already helps its partners save 3-4% per transaction, a meaningful boost in an industry plagued by razor-thin margins.
Solving the Industry’s Profitability Problem
The restaurant sector has become more popular but less profitable. Leventhal points to data from the National Restaurant Association, showing that average restaurant profitability is now below 5%, compared to about 20% in the early 2000s.
This drop comes despite booming consumer interest driven by platforms like Instagram and TikTok, where viral food content fuels foot traffic to trendy spots. But with tighter margins and higher costs, many restaurants struggle to convert that attention into lasting profitability.
“There’s a disconnect between the love consumers have for restaurants and the financial reality of running one,” said Leventhal.
He sees Blackbird as a solution to that disconnect—empowering restaurants with tools to drive direct relationships, reduce reliance on third-party platforms, and retain more of their hard-earned revenue.
