Restaurant365 has received a $175 million boost in its bid to make its clients’ 40,000-plus outlets run more efficiently.
The Irvine-based restaurant manager software company said the latest funding round was led by long-term partner Iconiq Growth with participation from current investors, including KKR and L Catterton.
“The biggest impact for us is continuing investment on the product side and primarily in our workforce and payroll product suite, as well as the pieces that we’re building for the major restaurant brands,” co-founder and Chief Executive Tony Smith told the Business Journal.
Smith is a 2021 Business Journal Innovator of the Year Award winner.
The Restaurant365 software platform combines accounting, inventory, scheduling, payroll and human resources functions into one system. The software simplifies day-to-day management for operators, allowing them to control food costs and optimize labor.
“We work across the whole spectrum of the restaurant industry,” ranging from small to large, Smith said on May 15, shortly after the funding was announced.
“We expect to continue working with all sides of the market.”
All Sides
Restaurant365’s clients include Buffalo Wild Wings, Dave’s Hot Chicken, Sbarro, Wetzel’s Pretzels and Taco Bell.
The company last year joined the ranks of Orange County recent unicorns—private firms with a valuation of $1 billion or above—after receiving an earlier $135 million funding round.
Smith told the Business Journal the company’s valuation is still above $1 billion, while he declined to disclose the total amount of funding the private company has raised.
Restaurant365 is among Orange County’s most valuable privately held software and software-as-a-service companies. Alteryx Inc. may be the only company ahead of Restaurant365 now that the Irvine-based data analytics firm has gone private.
The recent successes lead to questions about the future for the growing company, which now has about 900 employees.
“There’s lots of options for us in the future and an IPO is one potential route,” Smith said.
“We mainly are heads down still working hard to create value for the restaurants.”
In addition to Irvine, Restaurant365 has an office in Austin, Texas.
Higher Sales
The just-announced funding of $175 million comes on the heels of 12 consecutive quarters exceeding sales targets, according to Restaurant365.
Proceeds from the round will be invested in expanding enterprise features and growing the workforce and payroll product suite.
Smith said that better employee training for restaurants will be a major emphasis for the company this year.
The funds will also strengthen the company’s balance sheet to facilitate future acquisitions and support continued organic growth.
This latest financing round follows Restaurant365’s recent acquisition of ExpandShare, an AI-powered learning management system that provides training content for food service workers.
ExpandShare of Akron, Ohio, was founded in 2012 and works with more than 70 restaurant technology providers. It is used by hospitality brands nationwide, including US Foods, Starbird, Newk’s Eatery and Marco’s Pizza.
“Having recently crossed exciting milestones of $100 million in revenue and $1 billion in value, we can’t wait for what’s next,” Smith said a year ago.
Restaurant365 Firm About OC
Tony Smith, the chief executive of restaurant management software company Restaurant365 in Irvine, makes his OC loyalty clear.
“This is where we’re headquartered. We’re really grateful to be here in Orange County with our headquarters. This is where we got our start,” Smith said.
“While we have restaurant customers across the whole country and employees across the country, and even in other countries at this point, we’re glad to call Irvine home.”
