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.

BP and VISA Team-Up Rivels Restaurant Rewards

 

Chain restaurants loyalty programs continue to gain popularity, drive sales, garnering new brand aficionados not to be out done there is one convenience store who’s new partnership will garner as must attention as any restaurant program and just might be the best food focused loyalty program in the U.S. according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Now take a look how BP is teaming with the First National Bank of Omaha (FNBA) and Visa to launch the new BPme Rewards Signature Visa credit card, a modern take on the traditional fuel card will drive new electricity into the BP brand and garner incremental revenue and foodservice attention.

BP seeks to improve customer benefits by combining the power of BPme Rewards with traditional credit card advantages, such as cash back rewards and flexible redemption options.

So, the BPme Rewards Signature Visa is an enhanced credit card offer built upon the existing BPme Rewards loyalty program. The BPme app makes it easy for users to pay, view receipts, track rewards and more through their mobile phone.

Lisa Blalock, vice president of marketing for BP, stated, "We put our customers at the heart of everything we do, this new BPme Rewards Visa gives the best rewards to our most loyal customers," … "We have enhanced the rewards, provided more choice in the way our customers can redeem and made it simple to save money on all fuel and convenience store purchases at BP and Amoco."

According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, smaller footprint, developing brands, fresh flowers, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable according to Johnson. 

Now, in case you did not know the BPme Rewards Visa can be used anywhere Visa is accepted. This provides cardholders with greater spending power and opportunities to earn rewards, the company said.

Benefits available at BP and Amoco c-stores include:

·         An automatic 15 cents off every gallon of BP and Amoco fuel purchases;

·         Five percent cash back on non-fuel purchases at BP and Amoco stores, including c-store and car wash purchases; and,

·         A special introductory offer of 30 cents off every gallon on BP and Amoco fuel purchases in the first 60 days after account opening.

Additionally, rewards available on other purchases include:

·         Three percent cash back on grocery purchases;

·         Three percent cash back on dining purchases, including restaurants, take-out and food delivery services; and,

·         One percent cash back on all other qualifying purchases.

Cardholders can redeem rewards their way, choosing from options such as cash back, account statement credit, gift cards from major retailers and travel experiences.

This might be the best part, there is no annual fee for the BPme Rewards Signature Visa, which has unlimited rewards potential, according to BP.

Jerry J. O'Flanagan, FNBO executive vice president, partner customer segment, stated, "We are honored to have the opportunity to work with such a well-known and highly regarded global brand as BP, and are confident their customers will find this new card to be of exceptional value," said.

More information on the new BPme Rewards Signature Visa is available at BPmeVisa.com/Launch.

Chicago-based BP's U.S. retail presence spans 7,300 sites in 35 states, including BP, ARCO/ampm, Amoco and Thorntons. BP has different retail models across the United States, ranging from company-owned retail stores, strategic partnerships, brand licensing, wholesale, business-to-business, dealer owned and franchise owned.

Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter