Internet and telecommunications group SoftBank’s Vision Fund 2 has led an $80m series C round for 7shifts, the Canada-based developer of a team management software platform for restaurants.
The round was filled out by Enlightened Hospitality Investments, the growth equity affiliate of restaurant operator Union Square Hospitality Group, and Ten Coves Capital.
Founded in 2014, 7shifts operates a cloud-based platform which manages, schedules and evaluates the performance of shift workers in the restaurant industry.
A growing segment of the hospitality industry is increasingly integrating technology and software to digitise and optimise their operations, a trend that has accelerated throughout the pandemic.
Factors ranging from the spread of QR codes due to social distancing, to the continuing growth of online ordering and delivery apps, and technology such as contactless payments, online table reservation systems, automated inventory management software and digital kitchen boards mean restaurant operators are onboarding new tools to maximise revenue.
Last month, Flipdish, the Ireland-based creator of a customer experience software platform, raised $100m in a funding round led by internet and gaming group Tencent valuing the company at $1.25bn.
US-based restaurant management software provider Presto, which counts chipmaker Intel and human resources company Recruit as investors, agreed to a $1bn reverse merger with special purpose acquisition company Ventoux CCM Acquisition Corp in November 2021.
Other recent rounds for restaurant software producers include a $4.5m round for restaurant management system and payments technology developer Petpooja, also in November, the same month restaurant software provider Sarah raised $1.9m from corporates 7-Eleven, AP Holdings, DD Holdings and Infomart.
Restaurant technology platforms are not alone in experiencing an influx of funding, the wider hospitality industry is also rumbling towards higher digitalisation.
Automated accommodation provider H2O Hospitality received $30m in a September 2021 series C round led by Kakao Investment, the corporate venturing arm of internet group Kakao, a couple of months before SoftBank Vision Fund 2 led a $150m series D round for hospitality management software provider Cloudbeds.
Jordan Boesch, 7shifts’ chief executive, said: “Over the past two years, restaurants have dealt with countless challenges, and now more than ever need technology to streamline operations, empower workers and improve team retention.
“Our growth demonstrates that both independent and multi-unit brands are quickly adopting best-of-breed platforms to navigate the challenging labour market; and by building a first-class suite of solutions specifically tailored to the needs of restaurants, we have helped operators become employers of choice, all while controlling costs and building operational efficiency.”
The deal comes after 7shifts received $21.5m in a May 2021 series B round that included Conexus Venture Capital, the corporate venturing arm of credit union Conexus that had previously backed the company’s $15.7m series A round in 2019 along with Ten Coves Capital and existing investor Relay Ventures to take its total funding to $19.2m.
The company’s customers include Fusian, Salt & Straw, Mezeh Mediterranean Grill, Hook & Reel and Flagship Restaurant Group.
Photo courtesy of 7shifts.
