Close Ad

The Spoon

Daily news and analysis about the food tech revolution

Zesty

Corporate Catering Service ezCater Raises $100M, Eyes International Expansion

Online business catering service, ezCater, has raised $100 million in Series D funding, the company will announce on Tuesday. The new investment is led by Wellington Management Company with participation from existing investors ICONIQ Capital, Insight Venture Partners and others. This brings the total amount raised by ezCater to $170 million.

EzCater’s marketplace connects businesses with catering services and restaurants across the county, as well as offering a suite of products to help restaurants receive and manage orders and deliver large scale meals.

In a press statement, ezCater says that it will use the new funding to “deepen its products, and expand internationally.” According to VentureBeat, ezCater has not announced which countries will will expand into first.

The money also makes a very public statement that ezCater is not going anywhere anytime soon. This could be important to winning new and keeping existing clients as the corporate catering sector appears to be entering a state of flux. In just the past few months, Square acquired Zesty, EAT Club acquired Farm Hill, and Peach laid off 33 percent of its staff.

Plus, the sheer size of the round could put added pressure on rivals such as Platterz ($21.7 million raised), ZeroCater ($17.6 million raised), and Forkable ($813,000 reported, but final amount raised unknown), all of whom can now be outspent by ezCater.

As we’ve said before, there isn’t much corporate catering services can do to differentiate themselves to customers. At the end of the day, companies are trying to keep employees happy and employees don’t care who delivered the meal, only whether or not the food is good and on-time. EzCater’s war chest will now tubocharge its scaling, and help it outlast (or acquire) its smaller competition.

Square Launches a Well-Rounded POS System for Restaurants

Square has long been the favorite of small businesses like hair salons and independent artisans. Now, the merchant-services company is hoping to make an impact in restaurants with its newly announced point-of-sale system (POS).

The software, which works for both sit-down and quick-service restaurants, is reportedly Square’s “most sophisticated software yet.” The system centralizes all a restaurant’s operations in a single place, from booking a table to placing orders and managing the check after the meal. Restaurant owners and operators can also do maintenance tasks, like changing table maps and updating menus on the fly, without the need of a service person.

Most important, Square’s new system promises to also solve an issue puzzling more and more restaurants nowadays: how to manage orders coming in from multiple different channels, both online and off.

Its POS system does so by integrating online and offline sales and centralizing them into one software system. In other words, sales from in-house diners as well as those ordering via Postmates, UberEats, and the growing number of other online services can all be viewed in the same place, giving restaurant owners and operators a better understanding of how each channel contributes to the overall sales picture.

As others have said, the acquisition of Caviar from four years ago makes more sense in light of this news. Add to that Square’s recent acquisition of “certain assets” of corporate catering service Zesty, which would help Square to further expand Caviar’s capabilities. Meanwhile, Caviar serves 18 different metro areas and counts Eataly, and Momofuku among its restaurant partners, presumably giving Square access to a whole new set of potential clients for this new POS platform.

Square isn’t alone in rethinking restaurant operations. Actually, that’s an understatement, because there are plenty of folks trying to centralize restaurant tasks, orders, and data into one place and also address the growing number of channels by which consumers order food. “Every restaurant is becoming an omnichannel business,” Gokul Rajaram, Caviar lead at Square, told Fast Company.

Toast is another big player in the space, offering similar features to Square, including the promise of integrating online orders with the rest of the operations. TouchBistro and Clover both offer “all-in-one” systems, and there are tons more options on the market, too.

Square puts a lot of emphasis on the online orders and delivery aspect of its system, even saying “delivery is in our DNA.” That’s a wise proclamation to make in this day and age, but it’s also only a matter of time before most restaurants will add the same thing to their DNA. Which means we can expect the battle for the omnichannel restaurant to get much bigger, sooner rather than later.

Square Gobbles up Zesty to Bolster Corporate Catering

Square, the merchant services company, announced today that it has acquired “certain assets” of the corporate catering startup, Zesty. This addition will help Square expand its food ordering service, Caviar. Terms of the deal were not disclosed.

Zesty is only available in the Bay Area, where it works with 150 restaurants to delivery corporate meals. The company had raised $20.7 million since launching in 2013, $17 million of that was in a Series A raised in 2015. Zesty will become part of the Caviar for Teams unit, which launched in 2016. The Zesty team will bring with it “full-fledged, white-glove corporate catering, allowing us to serve companies of all sizes,” Square said in a press announcement.

The acquisition comes at a time when the concept of corporate catering is going through its own evolution. It’s no longer just dumping food in a main room at 11:00 and having people scrum to get it while it’s still hot (and having the worst bits sit uneaten). New types of competitors are springing up with new approaches to feeding hungry employees.

Forkable uses smart recommendations to let employees order individual lunches rather than partake in large buffets. Allset flips the script entirely and makes it easier for employees to get out of the office and pre-order and pre-pay for meals at nearby restaurants. And Byte Foods sets up fridges with healthy snacks and food right inside the office.

But until those become more mainstream, Zesty will keep bringing in chafing dishes and, in the short term, continue operate independently.