Workforce upheavals during the Covid-19 pandemic forced restaurant managers to scramble to augment staffing plans, service hours and customer expectations.
Backed by a new round of venture funding, Austin hospitality-technology startup Union is hoping to help thousands more restaurants solve that problem with its ordering platform and experience-enriching data.
The company, led by founder and CEO Alex Broeker, on Dec. 8 announced it has raised a $22 million series B funding round led by Miami-based consumer tech-focused firm Clerisy, as well as new investors Roth Capital and Aquila Capital Partners and previous investors NEA, Wellington, Fiserv and Tony Catalfano, former CEO of WorldPay.
Union, which launched in 2017, has now raised a total $35 million, including a $13 million series A round in 2019.
Broeker said he targeted five venture and private equity firms and landed five term sheets.
"It was certainly a frothy market, but it's a really differentiated story," he said.
Union's point-of-sale platform starts with QR codes, which have become commonplace at restaurants and bars nationwide. The startup focuses on high-volume restaurants, often local chains or independent locations that serve thousands of people per week. Among its Austin customers is Bouldin Acres. The Union ordering platform generates data insights that the company uses to help restaurant servers understand their customers' preferences.
For example, if you've ordered a White Claw hard seltzer at happy hour in the past, the platform might help staff suggest trying a canned cocktail from Austin startup Canteen. Or if you often come in, ask for a seat on the patio and order a steak medium rare, the server might know to suggest your usual seating and food preferences, even if that waiter is new to the staff. In short, the platform promises to help restaurants provide better service with less staff.
It can also help restaurants split checks or close walked tabs with automatic gratuity.
The pandemic created a tailwind.
Earlier this fall for example, the Texas Restaurant Association estimated 100,00-125,000 workers were still sidelined, and a survey the organization conducted in September said 78% of operators reported not having enough employees to support demand.
"Covid completely wiped out this industry, wiped out millions of hospitality workers, millions of hospitality owners, and I've just never seen such devastation," Broeker said. "And as we come out of it, as it's been well written, the hospitality workforce isn't coming back. Most of those people went to other jobs. A lot of the ownership groups changed hands. It's going to come back, but how does it come back?"
Broeker acknowledged there's a lot of competition for technology to help restaurants deal with smaller staffs and changing consumer expectations. He said Union differentiates by using data insights to create a VIP-like experience.
Union currently has 72 employees, including 27 based in Austin. With the new funding, the startup plans to hire 20 new employees in Austin.
The company's platform is used at nearly 1,000 venues nationwide.
"Next year, we should cross about 4,000 venues, and go from where we are now to about 30 top cities," he said. "So that's that's kind of the growth plan."
