American Express has bought the restaurant booking platform Tock for $400 million in an all-cash deal that furthers its hold on the dining and hospitality market.
Tock was previously owned by website-design platform Squarespace, which bought the company for around the same price back in 2021.
Bars, restaurants, and other customers play a flat monthly fee to use Tock, which takes deposits, helps manage dining room traffic, and organizes and advertises pop-up events. Restaurant-goers may download the Tock app to find dining spots and make reservations.
This acquisition, which was unveiled on Friday, will expand the credit card giant’s reach into the restaurant industry and build upon its 2019 purchase of online restaurant reservation platform Resy. Resy helps AmEx cardholders get special access to some restaurants, including exclusive reservations, early notifications or cash back on certain booking bookings made through the platform.
AmEx is also buying Rooam, a contactless payments platform used by restaurants, bars, music venues and other businesses, for an undisclosed sum.
Restaurants were a growing spending category for American Express cardholders, reaching a “high-water mark” of $100 billion in transactions during 2023, Howard Grosfield, president of the U.S. consumer services division, told the Times in an interview on Friday.
“The passion and interest in dining and dining-related experiences just continues to grow,” Grosfield said.
So far this year, AmEx shares have spiked 23%, compared with a near 15% jump for the benchmark S&P 500 index as of Thursday’s close.
Through the acquisition of Tock, AmEx said it can give its card members the perk of access to hot dining experiences within the restaurant app’s network, along with limited foodie offers.
For example, Resy is brokering access this summer to Misipasta, a pop-up restaurant by the Michelin-starred chef Missy Robinson on Governors Island in NYC, and AmEx cardholders will have privileged access to tables.
Matt Tucker, the head of Tock, said the credit card giant “will be able to offer Tock and its customers access to a broader network of diners,” in a statement to the Times. “This is an important value-add to our restaurant partners.”
The buyout of Tock will add another 7,000 restaurants, wineries, and other hospitality businesses to American Express’s network, allowing restaurant’s to better target the company’s premium customers with spending deals and promotions.
