Choco raises $ 100 million to digitize restaurant food supply

Catering technology firm Choco announced today that it has raised $ 100 million in Series B funding led by private equity firm Left Lane Capital. Insight Partners along with existing investors Coatue Management and Bessemer Venture Partners also participated in the round, according to a press release sent to The Spoon. Choco has raised $ 171.5 million to date.

The company’s mobile app effectively digitizes the relationship between restaurants and their suppliers, allowing the two groups to chat with each other through the app. Restaurants can place orders directly through the Choco app, as well as view and edit all order sheets. Choco also released a new feature in early 2021 specifically designed for multi-unit restaurants to give them a more comprehensive overview not only of what they’re ordering, but also where it’s coming from and who’s in charge of that relationship. . At the time, Choco’s global industry advisor Chelsea van Hooven said multi-unit restaurants made up around 40% of Choco’s current user base.

The company’s initial pitch was to fight food waste in the restaurant industry. While this remains a part of Choco’s overall restaurant benefits, wasted time and money are now also part of the benefits package the company offers. Replacing siled paper-to-pen processes with digital ones, where all data is searchable from one place, has the potential to reduce hidden costs behind the home and, in so doing, reduce costs. improve restaurant margins.

Digital was widely regarded as a “nice to have” feature before the emergence of the COVID-19 pandemic. Today, many claim that digitization operations are a ‘must have’ and that those who do not will end up being left behind.

While this may be true for large chains (think McDonald’s or Chipotle), it remains to be seen how much this complete digitalization of the home background can actually help small independent restaurants. In other words, we have yet to see if the cost of implementing and operating the technology is worth the returns it brings to these small restaurants.

Choco says demand for its platform is on the rise and in part driven by the pandemic pushing more restaurants to go digital. The company currently has more than 10,000 restaurants and suppliers active on its platform. It will use the new funding to expand into its six current markets: the United States, Germany, France, Spain, Austria and Belgium. The company will also expand into several new markets and plans to double its workforce by the end of the year.

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