MarginEdge announced Monday that it has raised $ 18 million in Series B funding to give restaurant owners a real-time view of their costs.
Bo Davis was the co-founder and chief executive officer of the company. He founded it in 2015 along with Roy Phillips (formerly known as Bloomin) and Brian Mills (now known as Brian Mills). Both Phillips, and Davis, are both restaurant veterans: Phillips worked at Bloomin as an executive while Phillips founded Wasabi conveyor belt sushi chain. It was brands.
With independent restaurants, they saw that they had difficulty with tracking grocery costs and invoicing. They either created their own tools to track the information or used spreadsheets or pen and papers.
TechCrunch’s Davis said that they were focused on creating something friends would love to have. “We worked three years on the product, and we worked with 20 restaurants to test it. We wanted to focus on quality and not rush to market.
MarginEdge’s app is a restaurant management tool that integrates with a company’s point-of-sale to reduce inventory, track costs and order recipes. It can also take receipts, invoices and invoices and convert them into line items within 24 hours. Davis explained that the app is for owners of independent restaurants with less than 50 units.
The platform, which was launched in 2018 in Virginia by Davis, has been used in more than 2,500 restaurants. The company raised a Serie A, then an A2 in 2020. Schooner led the final round, which raised a total amount of $ 25,000,000.
Jeffrey Brosi (founder and managing partner) said that IGC Hospitality operates restaurant real property. Although the company had used several technology platforms to manage sales and inventory, they were looking for something that could manage all aspects of their inventory.
Brosi said that Bo came in to give a presentation, and it was incredible. “The greatest thing for us is [being] user friendly. MarginEdge offers great customer service. We have invested in many companies in the hospitality business and understand their flaws as well as what we want to improve. If it’s financially viable, we will invest. Bo solved that problem.
Davis explained that MarginEdge needed to reevaluate the business after the pandemic. His business is responsible for the revival of restaurants that rethink their processes, even though there are many restaurants closing.
“We were fortunate enough to have capital to hold our team,” He said that he was pleased with the results. “Sales declined for the first-time, but we grew at 45% despite the COVID and saw an annual growth of 200% during the first quarter.”
MarginEdge is home to over 400 people. The platform processes 45,000 invoices every week. Davis stated that he plans to use the funds to build the executive team, product design, new back office functions and data science. This is an area where he just graduated.
It uses benchmark data on sales, food prices, labor costs and other costs to give its customers more insight into how inflation is impacting all these and consequently menu prices.
Davis added that “Much uses data on menu prices to understand what others are doing so you don’t get out the market or work within margins where it is impossible to survive.” “It will be more about forecasting than reporting. We’re making it easier for both prep and inventory.
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