By Lea Mira, RTN staff writer - 6.24.2024
American Express has announced an agreement to acquire Tock, a restaurants reservations, table, and event management technology provider, from Squarespace for $400 million. In a concurrent announcement, the credit card company also revealed plans to acquire Rooam, a mobile payment, ordering, and integrations technology company, for an undisclosed sum.
The acquisition of Tock positions American Express as a major player in the restaurant reservations industry. This move follows the company’s 2019 acquisition of Resy, a former competitor of Tock. Resy was acquired from its former CEO, Ben Leventhal, who has since left to start his own digital loyalty startup, Blackbird Labs.
Nick Kokonas, co-founder of Tock and founder of the Chicago fine-dining restaurant Alinea, will be stepping down from his role at Tock, which was acquired by Squarespace in 2021. Tock currently offers reservations, table management, and event booking services for 7,000 foodservice venues across the United States. These services will now be integrated into Resy’s portfolio under the American Express dining platform.
With these acquisitions, American Express aims to expand its suite of digital tools for restaurants and merchants. The company also seeks to enhance the experiences and tools available to American Express cardholders. Howard Grosfield, president of U.S. consumer services for American Express, stated that the company 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. The acquisition of Tock will enable American Express to connect more premium customers with exciting restaurants while providing merchants and restaurants with technology to help their businesses thrive.
Grosfield emphasized that American Express will offer restaurants tools to deliver more personalized hospitality, facilitate prepaid experiences like tasting menus, and provide more convenient ways for customers to pay their bills. This aligns with the company’s broader strategy to enhance its dining-related services, especially given that American Express cardholders spent $100 billion in restaurants in 2023.
Matthew Tucker, head of Tock, expressed appreciation for American Express’ recognition of Tock’s exceptional products, experienced team, and first-rate customer base. He looks forward to working together to broaden American Express’ world-class dining program and continue innovating on behalf of their customers.
The acquisition of Rooam will add new merchant tools to the Resy dashboard, allowing Resy operator customers to incorporate personalized marketing and loyalty features. This will make American Express’ dining platform more of an end-to-end technology suite.
Both transactions are subject to customary closing conditions, including regulatory approval, before they become official. The purchase of Tock in an all-cash deal is another indication that American Express is continuing its pursuit of the market for dining-related services.
Tock was launched independently in 2014 by Nick Kokonas and has since become known for its ability to offer prepaid reservations and deposits, attracting tasting-menu restaurants like Alinea. The platform charges a flat monthly fee to its customers, which include restaurants, bars, and other venues. It helps manage dining room traffic, organizes and advertises pop-up events, and takes deposits. Customers can download the Tock app to browse restaurants and make bookings.
Through the acquisition, American Express plans to offer its card members access to exclusive dining experiences within the restaurant app’s network. For example, Resy is brokering access to Misipasta, a pop-up restaurant by Michelin-starred chef Missy Robinson on Governors Island in New York City, with privileged access for American Express cardholders.
Tock’s network includes about 7,000 restaurants, wineries, and other venues, while Resy’s network encompasses approximately 20,000 eateries worldwide. Matt Tucker noted that American Express would be able to offer Tock and its customers access to a broader network of diners, adding significant value to their restaurant partners.
The dining reservation industry is led by OpenTable, which boasts a network of over 55,000 restaurants, bars, and other venues. American Express’ acquisition of Tock and Rooam is part of its strategy to compete more effectively in this space.
Rooam, a platform for contactless payments used in bars, restaurants, stadiums, and other venues, will further enhance American Express’ restaurant technology offerings. The company did not disclose the financial details of the Rooam acquisition. These strategic acquisitions underscore American Express’ commitment to expanding its presence in the dining and hospitality technology sectors, providing enhanced tools and experiences for both merchants and cardholders.
