Restaurant365, a leading restaurant enterprise management software company, announced it has raised $135 million in a funding round led by investment firms KKR and L Catterton. Existing investors ICONIQ Growth and Bessemer Venture Partners also participated in the round.
The capital will help the California-based company expand its product offerings and market share. Founded in 2011, Restaurant365 provides cloud-based accounting, inventory, scheduling, payroll, and HR software aimed at boosting sales, managing costs, and optimizing labor for restaurants.
The software suite allows restaurants to bring together key financial and operational processes onto a single platform, integrating with point-of-sale systems, banks, vendors, and more to give operators real-time insights. The funding round values Restaurant365 at over $1 billion.
“Anytime we receive funding, we recognize it as a privilege” said Restaurant365 CEO and Co-Founder, Tony Smith. “Having recently crossed exciting milestones of $100 million in revenue and $1 billion in value, we can’t wait for what’s next.”, Smith added.
Meanwhile, Jimmy Miele, director at KKR’s Tech Growth strategy, said Restaurant365 has shown “compelling growth throughout its history, now powering more than 40,000 restaurant locations.” In addition, L Catterton’s Partner Ian Friedman cited the company’s “deep insight into the everyday pain points of restaurant operators”. Both investors will join the company’s board.
Restaurants Will Generate Nearly $1 Trillion in Sales in 2023
The restaurant industry is expected to grow in 2023, with sales forecasts pointing to $997 billion in revenue produced in the United States alone and 500,000 new jobs being created according to projections from The National Restaurant Association.
Rising food costs and intense competition are among the most relevant challenges that operators are facing in the current environment. Restaurant365 emerged as a valuable resource for customers during the pandemic, helping many stay in business through difficult times.
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The company aims to serve restaurants of all sizes with software that covers accounting, analytics, staff management, and inventory. With this new funding, Restaurant365 plans to keep expanding its product offerings to meet evolving industry needs and challenges.
Investors KKR and L Catterton bring strategic insight and industry experience that can help the company scale its solutions for restaurant customers worldwide.
Restaurant365 Solutions Help Manage Operations, Inventory, and Accounting
Restaurant365’s cloud-based software suite – which includes Accounting, Store Operations, Workforce and Intelligence products – aims to help restaurants “do away with their generic ERP and move to a platform built for them” according to the company.
The software allows restaurants to manage accounting, store operations, and workforce with a single platform. Its top customers include a wide range of large national chains and independent restaurants.
Restaurant365 charges customers a monthly fee per location that is billed quarterly. The essential package, which includes features like budgeting, keeping the store’s general ledger, a financial reporting module, and invoicing costs $435 per month.
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The company’s Store Operations tool provides access to detailed sales reports and labor data pulled from point-of-sale systems, automatically generating daily accrual entries. Restaurant operators gain visibility into inventory, scheduling, and labor costs in real time.
Meanwhile, the Workforce Management features help automate hiring, onboarding, scheduling, payroll, and benefits administration. Managers gain time back to focus on guest experiences and team performance. The Intelligence suite provides customizable reports and dashboards to identify issues, improve processes and enable growth.
Restaurant365 has experienced rapid growth in recent years. In 2011, the company was founded by Tony Smith, Morgan Harris, and John Moody. Headquartered in Irvine, California, the company has cultivated what it calls an “employee-first” culture that emphasizes empowering teams to do their best work. The new funding will enable Restaurant365 to keep investing in its platform and team to serve more restaurants worldwide.
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