Restoke.ai has raised $5.1 million to transform restaurant operations across the globe, as some of the country’s top restaurants call time over tough conditions.
An Australian hospitality-tech start-up, Restoke.ai, claiming to save restaurants and bars more than $8,000-a-week in operating costs (in as little as four weeks) has closed a $5.1 million funding round, led by ANZ venture capital firm, Rampersand.
Restoke.ai, which was founded in 2020 by former chef and restaurant owner Assaf Stizki, and advanced machine learning specialist, Ken Brand, is an AI-powered management platform that integrates with restaurant systems to automate operations like food costing, inventory, team management and accounting. The tech can provide real-time insights into expenses and identify opportunities for cost savings and profit growth.
So far, the company’s tech is used by more than 2,000 restaurants and cafes across Australia, New Zealand, Singapore and the US – including the likes of Mrs Pho, Yo-Chi and Gradi Group – and plans to use its cash injection to fuel expansion into the US market.
The funding round was supported by Mandalay Venture Partners, Archangels, US-based VCs BC Growth and Stage2 Capital.
“In just a few years, no one will be able to imagine running a restaurant without the power of AI driving efficiency, customer experience, and decision-making,” co-founder, Brand, said. “At Restoke, we’re using AI to help restaurants become more profitable and scale without the frustration of managing endless spreadsheets. It’s not just an advantage—it’s essential for success.”
Rampersand partner Andrew Poesaste said while the team’s vision may have seemed impossible years ago, now, it could redefine its category.
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“Restoke isn’t just offering another software solution; they’re pioneering a groundbreaking category: Restaurant Intelligence, redefining how the industry operates,” Poesaste said. “They have the potential to transform the industry on a global scale, and now, they’re poised to lead this revolution.”
And it comes at a fairly opportune time for the overall restaurant industry, which has seen numerous high-profile closures due to tough market conditions. In Sydney alone, Kylie Kwong’s Lucky Kwong famously shut shop in May and Tetsuya’s had its final service on July 31 after 35 years. Melbourne institution La Luna shut shop in May, right after one-hatted Little Picket in Lorne held its last service. Many report higher industry wages, scarcity of ingredients and inflated prices of raw materials.
“The sector has been hit hard by the pandemic, rising interest rates and inflation,” Mandalay partner Timothy Hui said. “The Restoke technology helps to rebalance the equation, supporting restaurant owners to better manage their costs while having significantly smarter processes when it comes to managing food waste and stock control.”
BC Growth’s managing partner, Blayke Hale, said the industry was yet to see a solution like Restoke.
“The hospitality industry faces numerous challenges with shrinking margins. Restoke is at the forefront of helping restaurants overcome these issues having a major focus on improving efficiencies, profitability and scale through their powerful intelligence,” Hale said.
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