Dive Brief:

• Restaurant365, a tech firm that makes an array of restaurant software, has raised $135 million in its latest funding round, the company said in a press release issued Friday.
• The funding round, led by investment firms KKR and L Catterton, pushed Restaurant365’s valuation above $1 billion. Previous investors ICONIQ Growth and Bessemer Venture Partners also participated in the funding round.
• The money raised will go towards “product enhancements to ensure that Restaurant365’s accounting, store operations, workforce, and intelligence product suites continue to meet the evolving needs of the restaurant industry,” the company said.

Dive Insight:

Restaurant365 offers software that it says can help consolidate restaurant tech stacks by bringing accounting, payroll and operational tools into a single suite of technology. Restaurant365 has steadily grown over several funding rounds and acquired Compeat, a restaurant management platform, in 2021. 

Restaurant365 CEO Tony Smith said the company was poised for new growth and recently crossed $100 million in revenue. 

Ian Friedman, one of the partners at L Catterton, will join Restaurant365’s board following the funding round. L Catterton’s portfolio includes a number of restaurant brands, such as Bartaco, which the company acquired in 2019, and Uncle Julio’s, which L Catterton bought in 2017. According to the press release, L Catterton manages about $33 billion in capital invested across a range of consumer facing brands.

KKR has investments in dozens of companies and brands across a broad range of industries. Jimmy Miele, director of tech growth investing at KKR, said Restaurant365’s products were in use at over 40,000 restaurants. 

Although increased costs of borrowing and panics at major regional banks have hurt companies’ ability to raise new capital in recent months, a number of restaurant tech businesses have continued to secure new funding.

Incentivio, a guest engagement platform for restaurants that uses AI, raised $10 million in Series A funding earlier this week. Delivery robot firm Kiwibot raised $10 million in February. There have been some larger deals dating back to last year. Kitchen United secured $100 million in funding in July, and MarginEdge raised $45 million in December.

The sizable funding round for Restaurant365 may indicate investor appetite for restaurant technology, especially for products that consolidate some of the disparate tech and software solutions.