American Express and Tock: A Strategic Move Towards Integrated Payment Leadership in the Restaurant Industry

Once again, Steven Johnson, the Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, is bringing you the latest insights from the intersection of foodservice, technology, and consumer behavior. Today, we're diving into the strategic move by American Express to acquire Tock, a reservation, table, and event management technology provider.

The Acquisition

American Express announced an agreement to acquire Tock from Squarespace on June 21, 2024. This acquisition, worth $400 million in cash, is a significant step towards enhancing American Express's dining platform and expanding its suite of digital tools for restaurants. Tock's innovative technology is set to integrate seamlessly with American Express’s existing services, offering a more robust and comprehensive solution for both diners and restaurant operators.

Why Tock?

Tock, launched in Chicago in 2014 and acquired by Squarespace in 2021, provides reservation, table management, and event ticketing tools to approximately 7,000 restaurants, wineries, and other bookable venues. By adding Tock's network of restaurants and its innovative suite of products, American Express aims to deliver unforgettable experiences for diners and access to highly sought-after reservations. Tock's system has been praised for its ability to reduce no-shows by allowing pre-paid reservations, a feature that significantly benefits restaurant operators.

The Strategy

American Express has been offering unique dining benefits, exclusive access, and special experiences to its Card Members for years through Resy and Global Dining Access by Resy. With the acquisition of Tock, American Express can connect even more premium customers with exciting restaurants, while providing merchants and restaurants more technology to help their businesses thrive.

In 2023, restaurants were one of American Express's largest Card Member spending categories within Travel and Entertainment, with $100 billion in volume. The company aims to offer restaurants the tools to deliver more personalized hospitality, facilitate pre-paid experiences like tasting menus, and provide more convenient ways for customers to pay the bill. This strategic move aligns with the broader trend of integrating technology to enhance customer experience and operational efficiency.

The Impact

This strategic move by American Express is a clear indication of the growing importance of integrated payment platforms in the restaurant industry. As the Grocerant Guru®, I've observed that managing various payment and reservation systems simultaneously can lead to lost revenue, wasted time, and frustrated customers. Integrated reservation systems with secure payment solutions can be a game-changer for restaurants.

By acquiring Tock, American Express is positioning itself as a leader in this space, offering a comprehensive solution that not only simplifies operations for restaurants but also enhances the dining experience for customers. This is a win-win situation that could potentially reshape the landscape of the restaurant industry. According to industry reports, integrated systems like Tock can increase table turnover by up to 20%, reduce no-show rates by 25%, and boost overall revenue by an estimated 15%.

For international corporate presentations, regional chain presentations, educational forums, or keynotes, contact Steven Johnson, the Grocerant Guru®, at Tacoma, WA-based Foodservice Solutions®. His extensive experience as a multi-unit restaurant operator, consultant, brand/product positioning expert, and public speaker will leave success clues for all. For more information, visit GrocerantGuru.com, FoodserviceSolutions.US, or call 1-253-759-7869.