Blackbird, the high-tech restaurant loyalty company created by the founder of Eater and Resy, is launching a new way for restaurants to process payments and reward customers.
Last week, Blackbird unveiled Flynet, which it calls a “purpose-built transactions network for the restaurant industry.”
Flynet is built atop the blockchain, which is essentially a digital database of transactions. Blackbird said that giving restaurants this alternative network for loyalty and payments will allow them to keep costs down and control more of their data.
Blackbird, founded in 2022 by Ben Leventhal, is a mobile app that consumers can use to check in and earn points and other perks at a variety of local restaurants. They can also use the app to pay and split the bill.
Restaurants in the network get access to customer profiles that allow them to offer personalized rewards and a more VIP-like experience. The idea is to help local restaurants attract more customers and grow their business.
Flynet builds on that strategy in a few ways. Because it cuts out traditional payment processors, it can charge restaurants a lower fee on transactions—currently 2%, which is about 1.5% lower than the standard.
Operators also get to keep all of the data on Flynet transactions, giving them more insight into their customers.
And it makes payment more seamless. Customers will even have the option to pay with their Blackbird loyalty points, or $FLY.
[Read more: Why Blackbird wants to put mom-and-pops on the blockchain.]
And that's not the only thing they can do with their points. Because it is based on the blockchain, $FLY is more like a cryptocurrency than traditional loyalty points, which have no value outside of a given rewards program.
$FLY, on the other hand, can be used at any restaurant that uses Blackbird. It can also be exchanged for USD in some cases. Currently one $FLY is equal to a penny, but Blackbird said that rate will change over time.
Customers can earn $FLY when they make “contributions to the restaurant economy,” such as paying their bill or sharing their contact information with the restaurant. When they reach certain thresholds of $FLY, they’ll get access to exclusive perks from restaurants and even $FLY buybacks from Blackbird.
The amount of $FLY a customer has accumulated or spent also acts as a measure of their value within the Blackbird network.
Restaurants also earn $FLY, which they can then issue to customers or sell back to Blackbird for USD. In the future, restaurants will be able to pay their Blackbird fees with $FLY if they so choose.
Employees can also earn $FLY by taking useful actions, like adding a customers’ preferences to their profile.
The idea is that the circulation of $FLY will incentivize customers to engage more with restaurants and spur growth across the entire Blackbird ecosystem.
In the future, $FLY could potentially be used at other businesses outside of restaurants due to the open architecture of the blockchain, the company said. The company is encouraging developers to build new programs on the network using the data and payment infrastructure it provides.
Blackbird is currently live at more than 500 restaurants in New York, San Francisco and Charleston, South Carolina. Last year, it distributed more than 242 million in $FLY to more than 107,000 digital wallets.
The New York-based company is backed by a $24 million investment from Andreesen Horowitz, Amex Ventures and other investors.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.