Restaurant tech startup Tre'dish raising $30M Series A
Tre'dish, the Toronto-based restaurant tech provider, is raising a $30 million Series A round, CEO Peter Hwang tells Axios exclusively.
Why it matters: Independent restaurant operators need software tools that help them manage costs, like the increase in the price of labor and ingredients.
Details: Proceeds from the round, to be raised over the next three to four months, will primarily be invested in growth, Hwang says.
- The startup raised a $10 million seed round in 2021.
Driving the news: Tre'dish is launching a SaaS platform today that encompasses a suite of tools and infrastructure to help small businesses operate more cost-effectively.
- It includes a buying group, where small businesses can leverage their collective power to lower their food costs, and cost management tools.
- Also on offer is an e-commerce store builder to create a digital storefront, AI marketing tools to reach a wider audience, and pop-up kitchens for food preparation.
- In addition, there are health and safety tools to help a restaurant operator comply with commercial-grade food preparation standards and regulations.
How it works: In exchange for using Tre'dish's platform, the SaaS provider extracts an 8% commission fee from sales.
What's next: Data collected from businesses will guide Tre'dish on where to launch local marketplaces for these restaurant operators, Hwang says.
- The first market is being launched in Toronto, to be followed by cities such as Chicago, Vancouver, San Diego and Los Angeles, he says.
- For now, Tre'dish is focused on the North American market, but international is on the horizon with the United Kingdom at the top of the list.
Be smart: Even before the challenges posed by the pandemic, independent restaurant operators' margins were below 5%, Hwang says.
- With the increase in costs across the board, 2023 will remain a difficult operating environment for mom-and-pop shops.
- Meanwhile, the market opportunity to create an independent operating system for these operators is worth some $150 billion, Hwang says.
The bottom line: "Countless food entrepreneurs work day and night, seven days a week, to keep their businesses afloat. This is a huge driver behind why Tre’dish was founded," Hwang said in a statement.