Restaurant management platform Toast announced the launch of Toast Capital, a subsidiary that gives restaurants access to capital for expansion.
The new line of business from the Boston unicorn has been in the works since the last fall. Through the new subsidiary, Toast offers capital loans to restaurants of all sizes across the country. The company has already disbursed over $20 million since the launch.
“Toast Capital is a restaurant-first funding partner committed to the success of the Restaurant Community,” said chief business officer Tim Barash in a statement. “We understand the unique challenges restaurant owners face when it comes to running a business and securing a loan. That’s why a Toast Capital Loan provides access to transparent financing with one flat fee, empowering restaurant owners to do what they love and thrive.”
These loans work like cash advances, where the capital lent is repaid based on the restaurant's sales. The loans are provided via the company's partnership with Web Bank.
"We are leveraging our proprietary data to help provide [restaurants] them access to capital to invest in their business," said Nick DeLeonardis, general manager at Toast Capital.
Toast raised a whopping $250 million in a Series E round in April that puts its valuation at $2.7 billion. Toast's clientele includes chains like osé Andrés’ ThinkFoodGroup and Tartine Bakery. In January this year, the company also launched a consumer-facing app called “Toast TakeOut” allowing users to order ahead and pick up their food from restaurants in the Toast network.
Toast Capital is based in Boston. It is currently building out its team, hiring for roles in data science, engineering, product, marketing and operations.
