Restaurant repair and maintenance platform ResQ receives funding to grow
By Canadian PizzaNews Business and Operations
Toronto – ResQ, an all-in-one technology platform helping restaurants streamline repair and maintenance operations, has raised $39-million US in Series A funding to grow its business.
The funding is led by Tiger Global and Canvas Ventures. Mike Ghaffary from Canvas Ventures and former CEO of Yelp-Eat24, and Nilam Ganenthiran, former President of Instacart will be joining ResQ’s Board of Directors.
ResQ enables restaurants to submit, manage, and pay for repairs and maintenance on a single platform while ensuring high quality and cost-effective work through a curated marketplace of service providers. Amid the restaurant industry’s hiring crisis and increased operating costs, ResQ has aimed to alleviate much of the pressures of labour shortage and cost inflation by reducing time spent on managing repairs and maintenance by 70 per cent and driving down repair and maintenance costs.
“On average, restaurants spend five to seven percent of annual sales on repairs and maintenance — that’s $50B a year in North America. This number is much higher when you factor in the opportunity cost of managing repairs, including lost sales and inventory, and time spent on each repair. With ResQ, restaurant operators save 20 per cent in annual maintenance costs and reduce equipment downtime, helping them retain an additional $9B of sales revenue.” said Kuljeev Singh, CEO and Founder of ResQ.
The company has raised a total of $48MM US to date. Since its seed round announcement made in June 2021, ResQ’s customer base grew from seven states to 36 in the US. With the new capital, ResQ plans to grow its team by 400 per cent.
“Managing and operating restaurants in multiple brands and geographies requires reliable data and insights about our maintenance costs to identify operational priorities and cost-saving opportunities,” said Michael Mulcahy, Partner, MBN Brands, a customer of ResQ that also invested in the Series A raise after validating the product and team. “ResQ allows our teams to optimize our back-of-house operations and reduce the time spent on repairs and maintenance as well as down time due to equipment or facilities issues. This gives us more time to focus on our teams, growing our businesses, and delivering an excellent customer experience.”
“Operating restaurants has always been a game of margins. To sustainably grow those margins, you need sound data to help identify areas of opportunity. Repair and maintenance used to be something that happened reactively, but ResQ streamlined our R&M operations and added a layer of insights we didn’t have before. ResQ has helped speed communication between management and vendors so that issues get resolved quickly. At the corporate level, we can identify where we’re overspending and make the informed decision on replacing a piece of equipment rather than repair it.” said Nick Sorise, Partner and Director of Growth and Development at Parker Hospitality.
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