MarginEdge raises $4 million in funding to to eliminate paperwork and streamline operations for restaurants
MarginEdge, a Fairfax, Virginia-based tech startup and a provider of restaurant management platform, announced today that it has secured $4 million in new funding to assist restaurants with financial and operations management using its smart technology. The round was led by Osage Venture Partners with a new investment from Relish Works, the innovation hub for Gordon Food Service – the largest family-operated broad-line food distributor in North America. To date, MarginEdge has raised a total of over $15 million in funding.
Founded in 2015 by real-life restaurateurs Bo Davis, Roy Phillips, Michael Spitalney, and Sam Leiber, MarginEdge’s mission is to create a world where restaurateurs focus on the business they love. By using best-in-class technology to eliminate unproductive paperwork and streamline the flow of operational data. Every member of the MarginEdge business development team has owned, managed, or been an executive chef of a high-volume restaurant.
Two of the founders, Bo and Roy, have more than 40 combined years of restaurant experience and built and operated over 25 restaurants around the US. Bo is the founder of Wasabi restaurants, a group of modern Japanese conveyor belt sushi restaurants, while Roy was a Joint Venture Partner within Bloomin’ Brands, most recently building and operating 15 Bonefish Grill locations. Though they had very different operating backgrounds, both struggled with the same frustrating invoice flow, inventory and recipe updating, unpredictable P&L timing, and unending administrative details.
For the past six years, MarginEdge has provided smart technology to assist restaurants with financial and operations management. Founded and operated by restaurateurs, MarginEdge’s leading technology eliminates unnecessary paperwork, increases efficiencies, and streamlines back-office operations. Through real-time data analysis, MarginEdge’s platform allows restaurants to accurately look at up-to-the-minute costs, revenue streams, and other metrics to assist with growth-driven decision making. Today, MarginEdge services over 1,500 independent restaurant clients in 37 states.
“Our team is committed to investing in technology to help operators in this challenging environment. We see ourselves as a partner in their business and our success is only possible if the operators are successful. This investment and partnership is not only linked to our excitement for the MarginEdge product but the impact we think it can have on our customers and the industry at large,” said Rich Wolowski, CEO of Gordon Food Service.
As a testament to their product and impact, MarginEdge has recovered to pre-pandemic growth. With over 1,500 clients, well over 2 million invoices processed, and $2.5 billion in annual sales from their clients, MarginEdge continues to make its mark in the restaurant tech space.
“As restaurant owners ourselves we viscerally understand the pain of the Covid pandemic. Putting real-time data in the hands of operators has always been important, and central to what we do. Now more than ever restaurants are looking for ways to plan, implement, and measure changes in their businesses at the moment, not two weeks after the period ends. From understanding food costs with changing supply chain dynamics to measuring menu costs and new customer preferences, daily – we help our clients do more with less, which is unfortunately what most in our industry are faced with right now. I feel excited for our future and deeply grateful that our service can be a part of the rebuilding,” says Bo Davis, MarginEdge CEO and founder.