Magic Raises $10M To Bring AI-Based Personalization To Hospitality
Magic, a New York company building AI for real-world experiences, has closed a $10 million seed round to help restaurants and service operators deliver personal service at scale. The round was led by Lerer Hippeau with participation from Bling Capital, Floodgate, and strategic investors Major Food Group and VCR Group.
After operating in stealth, Magic is launching its flagship product, Loyalist-an AI-driven, agentic CRM already in use at top restaurants like Major Food Group, Momofuku, Le Bernardin, COTE, and Daniel Boulud's The Dinex Group.
What Loyalist Does
- Unifies reservation, POS, private events, and social data into a live CRM.
- Supports marketing, reputation management, and one-to-one guest engagement.
- Surfaces preferences (seating zones, favorite desserts, special invites) so teams can act in the moment.
The platform now manages tens of millions of guest interactions per year, representing over $2 billion in guest spend, and has grown revenue more than 10x in the last year.
Why Operators Should Care
- Make every touchpoint feel personal without slowing down service.
- Give hosts, servers, and managers context at a glance-what to offer, where to seat, who to greet.
- Bring consistency across locations and shifts with data that updates in real time.
- Turn regulars into advocates while improving average check, frequency, and event bookings.
Funding and What Comes Next
Magic will use the funding to expand its team and build AI solutions for hotels, retail, real estate, and wellness. The goal: help front-line teams create memorable experiences while keeping the human connection front and center.
What Leaders Are Saying
Maggie Tang, Founder and CEO, Magic: "Every aspect of our digital lives has been personalized by AI from how we shop to consume content, but when you walk into a restaurant, hotel, a retail store, the experiences still feel generic. The next chapter of AI will happen beyond the chat window - in the real world."
Mario Carbone, Chef and Co-Founder, Major Food Group: "One of the things that makes our restaurants special is our deeply personal relationships with our top regulars and friends. Loyalist allows us to scale that personal relationship with every guest who dines with us."
David Rodolitz, Co-Owner and CEO, VCR Group: "Loyalist is building technology that actually understands the human side of our industry, helping operators connect, anticipate, and engage in ways that feel personal at scale."
Ben Lerer, Managing Partner, Lerer Hippeau: "Hospitality experiences are supposed to feel magical - marked by great service, energy, special offerings - but anyone who's worked in the industry knows how hard it is to make magic every day... Now, she's using AI to take the friction out of the work so the human side can shine."
Maggie Tang, Founder and CEO, Magic: "The more digital our lives become, the more we crave authentic human connection. Magic is about giving people superpowers to create experiences that make people feel like they truly belong."
How To Put This To Work In Your Operation
- Map your data: reservations, POS, events, and guest notes. Identify what you trust and what's missing.
- Define your "personal moments" playbook: seating preferences, greetings, surprise-and-delight, and invite logic.
- Pilot at one or two locations; measure impact on repeat visits, spend, and private events.
- Train staff on reading guest context quickly and acting on it during service.
- Set clear data policies: consent, privacy, and opt-outs for guests.
Investors and Industry Ties
- Lead: Lerer Hippeau
- Participants: Bling Capital, Floodgate
- Strategic: Major Food Group, VCR Group
Want To Skill Up Your Team On AI
If you're planning an AI rollout across restaurants, hotels, or events, explore curated options by role at Complete AI Training.
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