American Express Builds Lifestyle Ecosystem Via Resy, Tock

Key Quotes

"Our job is to think about how to really build a brand around what is a piece of plastic, now a piece of metal, and all of the form factors that we have, and really think about being more of a lifestyle provider. And that, of course, comes with financial services and powerful backing, but it comes with thinking about where consumers are spending today and where we think they're going to spend tomorrow, and building benefits, creating the right sort of partnerships and proprietary technology and offerings to ensure that we're there to incentivize, complement, and empower the lifestyle choices of our base."

Hannah Kelly explains that American Express aims to be more than just a financial service provider. Kelly highlights their strategy of evolving into a lifestyle provider by anticipating consumer spending trends and developing partnerships, technology, and offerings that align with and support those choices. This approach emphasizes building a brand around the customer's lifestyle rather than just the product itself.

"So we are, we are a SaaS business. So both Resy and Tock are SaaS businesses, meaning that we sell the Resy operating system and Tock sells its Tock operating system to hospitality providers. And there's a monthly fee that goes apart of that. So we get revenue from those pieces. But when we think about the broader business model, it's the actual spend that we're seeing come through under the umbrella of American Express, which is we're seeing card members continue to spend in dining. We hope to continue to capture more than our fair share of that spend."

Hannah Kelly clarifies the revenue model for Resy and Tock, identifying them as Software as a Service (SaaS) businesses that generate income through monthly fees from hospitality providers for their operating systems. Kelly further explains that the broader business model also captures revenue from the actual spending by American Express card members within the dining sector, aiming to secure a significant portion of this spend. This dual approach combines subscription revenue with transaction-based revenue facilitated by the platform.

"The core of Resy is, yes, we have an awesome brand, but that brand is really backed by the restaurants and venues on our platform. And we have the privilege of getting to help amplify and tell their stories. And that's through edits, that's through events, that's through experiences. If you think about just the very premise of a restaurant and of a meal, those are micro experiences each and every day. You're going to lunch, you're going to dinner with a friend. That is an opportunity for theater. That is an opportunity for service. That is an opportunity for human interaction and to be transported to potential different countries through a different cuisine type."

Hannah Kelly emphasizes that Resy's brand strength is derived from its restaurant and venue partners, and the company's role is to amplify their narratives. Kelly describes dining experiences as "micro experiences" that offer opportunities for theater, service, and human connection, allowing individuals to be transported through cuisine. This perspective positions Resy not just as a reservation platform but as a facilitator of rich, multi-sensory experiences.

"So part of why I started Fiametta is because I started learning about lab-grown diamonds, which are a new development that started to pop up, which is essentially chemically exactly the same to a natural diamond without some of the human and environmental concerns with natural diamonds. And when I started learning about them, I was really interested in this material to buy things for myself. I really believed in it. But what I was finding is there weren't a lot of brands that were design-focused or brand-focused the way the brands that I liked to shop from in natural diamonds were."

Merrill Hollander explains her motivation for founding Fiametta, stemming from her discovery of lab-grown diamonds. Hollander highlights that these diamonds are chemically identical to natural diamonds but avoid the human and environmental concerns associated with their extraction. Hollander identified a market gap: a lack of design-focused and brand-oriented companies offering lab-grown diamonds that appealed to consumers accustomed to the branding of natural diamond retailers.

"Yeah, I think the, so the underlying message of the brand and what we're, what I try to do or have be the common thread through everything is this idea of non-tradition. So jewelry is such a traditional industry in so many ways. It's been around for such a long time and, you know, there is this idea of this is just the way that things are done. And in particular, one way that that comes up is with natural diamonds versus lab diamonds. You know, natural diamonds kind of being the traditional or older way of thinking. And I think, you know, being someone coming into this industry without that experience growing up around that gives me the ability to look at things with a fresher lens."

Merrill Hollander articulates Fiametta's core brand message as "non-tradition," challenging the established norms within the jewelry industry. Hollander notes that the industry often adheres to traditional practices, such as the preference for natural diamonds over lab-grown ones. By entering the industry without prior traditional experience, Hollander believes she can offer a fresh perspective and approach to jewelry design and branding.