JPMorgan buys group of restaurant critics behind Zagat guide

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JPMorgan Chase has agreed to acquire the owner of restaurant review guide Zagat, as America’s largest bank seeks to earn a larger share of the payments consumers make at restaurants.

The U.S. bank said it acquired The Infatuation, which in just over a decade has grown from a New York-focused ‘where to eat’ blog to a restaurant and bar media and event empire, for an undisclosed sum.

Hospitality-focused businesses struggled during the pandemic, with many consumers still avoiding restaurants and large gatherings over fears over the rapidly spreading Delta variant.

Once the deal is done, JPMorgan will likely integrate the media content generated by The Infatuation’s multiple platforms into its existing consumer products, which are already tied to restaurants and other venues.

The Chase brand launched last year a catering center with access to more than 4,000 restaurants in partnership with the reservation platform Tock. Holders of the bank’s Sapphire Reserve and Preferred credit cards also have access to offers with restaurants and bars.

“The agreement aims to accelerate the company’s investment in foodservice and further demonstrates JPMorgan Chase’s commitment to meeting customers where they are with exceptional benefits, useful content and unique experiences, at great cost. scale, “JPMorgan said in a statement.

Banks are fighting for some of the credit card spending that has rebounded as consumers loosen their purse strings after months of Covid restrictions. The move could also bolster customer allegiance, as traditional perks like cash backs, airline miles and loyalty points become increasingly expensive for banks.

Reward rates hit new highs last year as lenders tried to get consumers to charge more on their credit cards after pandemic stimulus programs depressed loan demand. But, the cost of the rewards had grown so high that they threatened to exceed what lenders earn on the interchange fees for base cards, analysts said.

JPMorgan’s deal is comparable to American Express’ 2019 decision to acquire Resy, the digital restaurant reservation platform. Amex, which is known for its premium credit cards with exclusive benefits, recently launched an exclusive catering program for cardholders through Resy.

The Infatuation, which was launched in 2009 by Chris Stang and Andrew Steinthal, has millions of monthly users on its platforms and is particularly popular among millennials. About three years ago, he acquired Zagat from Google, which acquired the burgundy colored guides for $ 151 million in 2011 from founders Tim and Nina Zagat.

In addition to its restaurant reviews, which cover more than 50 U.S. and foreign cities, The Infatuation hosts live food events, including a Bi-Coastal Food Festival.

The Infatuation will continue to operate as a separate business with its separate management team. Stang will remain its managing director.

“This partnership with JPMorgan Chase provides us with an incredible opportunity to engage with more people around the world and to continue The Infatuation’s mission to provide the most useful and trusted dining and travel recommendations,” said Stang said.