In December, Tock will be celebrating its 10th anniversary. The reservation platform has come a long way since it was first created in-house for Alinea, a three-star Michelin restaurant in Chicago. At the time, Alinea was considered to be the best restaurant in the country, but even it wasn’t immune to the problem of “no shows.”
“In the restaurant industry, the no-show rate can be as high as 25 percent,” says Matt Tucker, Head of Tock. “For a restaurant like Alinea, a no-show rate that high can be catastrophic for profits. So, when OpenTable and other online reservation platforms were unable or unwilling to hold no-show guests responsible for their actions, Alinea created a reservation system where guests had to prepay for their reservation. Alinea was able to reduce its no-show rate to less than two percent.”
When Alinea realized how effective their in-house software was, they recognized the potential for helping the fine dining industry as a whole and decided to turn it into its own company. In 2014, Tock was officially born.
“Tock took off in the fine dining category, but it’s a relatively limited space,” Tucker explains. “There are about 500,000 restaurants in the United States but only about 500 have that Michelin Star, James Beard or similar accreditation that puts them at the top of the industry. So, Tock has been innovating throughout the years to move beyond fine dining. It’s recently found a well-suited niche within the hotel industry.”
Expanding Beyond Fine Dining
While Tock can certainly help hotel restaurants with reservations, it’s found that hotels often feature additional services that benefit from reservations. For example, Easter egg rolls on the lawn, movie night on the roof, art installations in the lobby, rooftop yoga, brunch buffets, fire pit gatherings, afternoon tea, cabana rentals, and more.
“Most hoteliers realize now that their job is no longer to just sell rooms,” Tucker says. “They have to be more creative with how they generate revenue, and they also realize that they’re part of a great community that wants to come in and regularly interact with them. With Tock, they’re able to advertise their events/experiences not just to the guests who happen to be staying on property but also to the locals who are looking for new and interesting things to do nearby.”
Another added value for Tock’s hotel customers is its concierge program which interfaces directly with local fine dining establishments. While it doesn’t give hoteliers access to more tables or more exclusive tables at restaurants, it does allow them to add specific guest notes that will ultimately translate into a higher standard of service and a better dining experience for their guests.
American Express Acquisition: A New Chapter
In mid-June, American Express announced its intention to purchase Tock for $400M from Squarespace. Both parties expect the deal to close by the end of the year, but it’s currently under review by the Department of Justice.
Tucker, for his part, is very excited about the transaction.
“Squarespace, Tock’s current owner, is a website building company. They’re wonderful but their core business is very different from Tock. However, American Express has been involved with the travel industry for a very long time,” he says. “And its cardholders are always looking for different experiences. So, it just makes sense to partner with a company like American Express that can help grow our product offering.”
