AI-driven Restoke platform raises $5.1m on its mission to make restaurants more profitable

The raise, which was also supported by Mandalay Venture Partners and Archangels as well as US-based venture capitalists BC Growth and Stage2 Capital, will be used to fund the startup’s further expansion into the US after reporting significant cost savings for restaurant and café owners using the Restoke.ai platform.

Founded in 2020 by former chef and restaurant owner Assaf Stizki and AI specialist Ken Brand, the Melbourne-based Restoke’s tech automates every aspect of operations from food costing and inventory to team management and accounting.

The technology, which is used by more than 2,000 restaurants and cafes across Australia, New Zealand, Singapore and the US, is said to provide real-time insights into expenses for cost savings and profit growth.

Among the high-profile clients on the company’s books are Johnny di Francesco’s Gradi Group, Mrs Pho, Yo-Chi and Bounce Inc.

Stizki says Restoke has helped restaurants and bars save more than $8,000 per week within just four weeks of implementation, with larger chains reporting annual savings in the millions, primarily through reduced food costs and optimised inventory management.

“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,” says Stizki.

“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 says AI is increasingly being recognised as a critical driver for success in hospitality globally.

“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,” he says.

“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.”

Rampersand partner Andrew Poesaste says Restoke has the potential to transform the hospitality industry on a global scale.

“When I first encountered Restoke years ago, their vision seemed almost impossible, but their relentless focus on product excellence and usability has paid off,” he says.

“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.”

Mandalay Venture Partners’ Timothy Hui says supporting food systems both upstream and downstream remain a critical part of his firm’s investment mandate.

“The sector has been hit hard by the pandemic, rising interest rates and inflation,” says Hui.

“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.”

Archangel Ventures’ Ben Armstrong says the Restoke founders were a “perfect fit” for the seed stage investment fund.

“Assaf and Ken are the type of entrepreneurs that we look for: resourceful, persistent, creative and with deep domain expertise,” he says.

“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."

BC Growth also specialises in early-stage investment, although managing partner Blayke Hale says the venture capitalist has never seen software like Restoke’s in the hospitality space.

“The hospitality industry faces numerous challenges with shrinking margins,” says Hale.

“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.

“Customers are seeing dramatic results in the first month with completely hands off on-boarding. We’re so excited to be part of Restoke’s journey.”