ResQ, which does end-to-end tools repairs for over 4,000 restaurant teams — from Taco Bell to Tim Hortons — has raised a $39 million Series A co-led by Tiger Global and Canvas Ventures. The capital, which incorporates investments from Homebrew, Inovia Capital and Golden Ventures, comes simply months after the startup announced its $7.5 million seed round.
Driving down buyer prices is a massive enterprise wherever, however particularly inside the world of eating places — which have already got razor-thin margins and built-in volatility. With this in thoughts, ResQ’s development and subsequent capital is sensible. The startup, constructed by Kuljeev Singh, affords “revenue recovery” companies to its clients by optimizing its back-of-house operations.
ResQ’s core service connects contractors to eating places, after which gives them with one spot to arrange communication, pay payments and set up accountability. Toast’s profitable IPO has introduced a renewed highlight to the chance for cloud-based software program companies inside the restaurant industry. The Boston-based firm was valued at $4.9 billion in early 2020, and at present hovers at a valuation of $25.81 billion, based on a number of finance web sites.
Singh views Toast as a potential accomplice, not a competitor, as a result of the general public firm works on front-of-house operations and point-of-sales processes.
“This is not just a piece of technology you build and you sell to restaurants,” Singh mentioned. “We have to build a marketplace in the background, build products and services for local and national contractors…there’s so much depth.” ResQ is having conversations with restaurant tech corporations that want back-of-house options, as everyone tries to become an end to end solution.
Abid Lallani, president of The Lallani Group and a buyer, mentioned that ResQ has helped them “no longer need to look for vendors, shop around for multiple quotes and spend time going back and forth with vendors.”
By saving employee time and providing clearer visualization into how repairs will work, eating places on the ResQ platform have seen up to a 20% lower in annual operation prices, based on the corporate. New clients embrace Fogo de Chão, Marugame Udon and Akamai Brands.
Like any two-sided market, ResQ exposes itself to challenges of provide and demand. In its world, it must curate the fragile steadiness between a rising, various group of expert employees and a subset of places the place it could possibly fairly supply its on-demand servicing. The startup grew its contractor base by 400% within the final 4 months, and expanded its operations from seven to 36 states in the identical time interval.
Labor shortages are a problem that ResQ should continually navigate — and one which its customers are currently facing every single day. As the startup has scaled, a lot of its focus has been about understanding the right way to deliver worth to the evolving nature of the restaurant industry, from full-service companies to a small unbiased firm. Helping staff on workers higher spend their time appears to be the widespread thread.
“You’re essentially giving that time back to those team members, when you already have labor shortages, to focus on growth projects, to focus on opening up new restaurants, or to focus on guest experience,” Singh mentioned.