Rampersand leads AUD $5.1 million funding round for Restoke.ai

Australian venture capital leader Rampersand has led a funding round for Restoke.ai, a technology platform that helps restaurants increase profitability through automation.

The $5.1 million raise was supported by Mandalay Venture Partners, Archangels, and US-based venture capital firms BC Growth and Stage2 Capital. These funds will mainly be used to expand Restoke's presence in the US market.

Restoke.ai was founded in 2020 by Assaf Stizki, a former chef and restaurant owner, alongside AI specialist Ken Brand. The platform integrates with existing restaurant systems to automate various operational aspects, such as food costing, inventory management, team coordination, and accounting. It aims to provide real-time insights into expenses, identifying opportunities for cost savings and profit growth.

The technology is currently used by more than 2,000 restaurants and cafes across Australia, New Zealand, Singapore, and the US, including notable names like Johnny di Francesco's Gradi Group, Mrs Pho, Yo-Chi, and Bounce Inc.

Assaf Stizki states that Restoke has enabled restaurants and bars to save more than $8,000 per week within just four weeks of implementation, with larger chains reporting annual savings in the millions. "Owners often have to wear multiple hats and they tend to focus on the food - which is usually the passion - over the key business metrics," he said. "Often the first time they discover financial issues is after meeting with their accountant at the end of the quarter and, by then, it's often too late to address the problems."

Co-founder Ken Brand highlights that AI is increasingly becoming a critical driver for success in both Australia and the US hospitality markets.

"In just a few years, no one will be able to imagine running a restaurant without the power of AI driving efficiency, customer experience, and decision-making," Brand commented.

"At Restoke, we're using AI to help restaurants become more profitable and scale without the frustration of managing endless spreadsheets. It's not just an advantage—it's essential for success."

The concept has caught the attention of venture capitalists in Australia and the US. Rampersand Partner Andrew Poesaste noted Restoke's long-term potential to transform the hospitality industry globally. "When I first encountered Restoke years ago, their vision seemed almost impossible. But their relentless focus on product excellence and usability has paid off," Poesaste said.

"Restoke isn't just offering another software solution; they're pioneering a groundbreaking category: Restaurant Intelligence, redefining how the industry operates. They have the potential to transform the industry on a global scale, and now, they're poised to lead this revolution."

Timothy Hui from Mandalay Venture Partners commented on the investment's alignment with their mandate to support food systems both upstream and downstream.

"The sector has been hit hard by the pandemic, rising interest rates, and inflation."

"The Restoke technology helps to rebalance the equation, supporting restaurant owners to better manage their costs while having significantly smarter processes when it comes to managing food waste and stock control," Hui said.

Archangel Ventures' Ben Armstrong described Stizki and Brand as resourceful and persistent entrepreneurs with significant domain expertise. "Assaf and Ken are the type of entrepreneurs that we look for: resourceful, persistent, creative and with deep domain expertise," he said.

"With this funding, we're looking forward to them having an outsized impact on more geographies as they bring further efficiencies to the hospitality industry and show what is possible leveraging data and AI."

Blayke Hale, Managing Partner at BC Growth, also expressed enthusiasm for Restoke. "The hospitality industry faces numerous challenges with shrinking margins. Restoke is at the forefront of helping restaurants overcome these issues, having a major focus on improving efficiencies, profitability and scale through their powerful intelligence," Hale said.

"Customers are seeing dramatic results in the first month with completely hands-off onboarding. We're so excited to be part of Restoke's journey!"