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We have been fortunate to support Tony Smith, John Moody, Morgan Harris and the entire Restaurant365 team over the last 4+ years and are excited to announce that we are growing our partnership as we lead the company’s current $175M fundraise. Since our initial 2019 investment, we have been privileged to partner with the Restaurant365 team through rapid growth, numerous product launches, several transformative acquisitions, a devastating pandemic and various market cycles. Through it all, Tony and his team have remained customer obsessed and laser focused on delivering an ever-improving product to their customers, who rely on Restaurant365 to operate and grow their businesses.
Tackling Complex Challenges in the Restaurant Industry
Running a successful restaurant is no small feat. The industry is inherently complex and rife with challenges. Restaurants must adapt to constantly shifting customer preferences, stringent health regulations, as well as rising food and labor costs. High employee turnover rates further complicate labor management, while fluctuating order volumes make inventory forecasting and optimization an uphill battle. Moreover, today's digital-savvy consumers and employees expect streamlined experiences, adding another layer of complexity to satisfying stakeholders.
Managing inventory, scheduling staff, ensuring quality customer service, and keeping up with financial accounting require masterful coordination. A fragmented landscape of software point solutions has made it difficult to efficiently manage restaurant operations and make data driven decisions.
All these fundamental pain points inspired Tony to embark on the now 13+ year long journey to build a new kind of operating system for restaurants.
A History of Relentless Innovation
We believe Restaurant365’s product evolution has been nothing short of remarkable. In 2011, Tony started from first principles to build a restaurant-specific accounting engine himself. The core thesis remains intact – restaurants are nuanced and complex businesses that warrant specific and sophisticated tooling to meet their complex needs.
Over the years, Restaurant365 has continued to set its sights on ever loftier ambitions. In 2016, they released their inventory and recipes modules to move beyond financial accounting and deeper into operations. The scheduling module soon followed in 2017 as the product expanded into people management.
In 2021, Restaurant365 made its first strategic acquisition by joining forces with Compeat and Ctuit to create the leading restaurant enterprise management software. The more recent acquisition of ExpandShare in April 2024 adds a proprietary learning management platform specifically built for restaurants to the growing product arsenal and further strengthens Restaurant365’s Workforce offering.
A potent combination of homegrown development and acquisitions has resulted in a uniquely holistic platform. Restaurant365’s suite consolidates essential functions like accounting, inventory management, payroll, and employee scheduling into a unified system. The extensive and growing suite of integrated tools empowers operators to improve decision-making, streamline workflows, and reduce operational costs.
The 2023 launch of R365 Intelligence solidified Restaurant365 as a core restaurant management platform by empowering customers to visualize, blend, and make sense of the data produced by their various systems. Through its centralized platform, operators can access detailed insights into sales performance, labor costs, and inventory levels across multiple locations. This integrated approach helps eliminate the data silos that plague other systems, providing restaurant teams with a 360-degree view of their operations. The seamless flow of information enables quick identification of areas that need improvement, be it in staffing or supply management, helping restaurants dramatically reduce costs and improve profitability.
Building a Brighter Future for Restaurants
With this substantial new funding, we are confident Restaurant365 is better positioned than ever to continue innovating to meet the complex needs of the restaurant industry. As the product and organization evolve, we believe Restaurant365's relentless drive for innovation and comprehensive technology suite will be a game-changer for restaurants of all sizes. We are thrilled to deepen our partnership with Restaurant365 and could not be more excited for all that is to come.
Published:
May 15, 2024
