As a business that provides an online reservation platform to restaurants, the coronavirus seemingly put Tock in a challenging spot.
The fast-growing Chicago startup allows diners to put down a deposit in order to hold a table, essentially putting an end to no-shows for restaurants. But with restaurants across the country closing their dining rooms amid Covid-19, Tock acted fast to not only keep its business going, but to provide a needed service to a restaurant industry struggling to survive.
In March, Tock launched Tock to Go, a feature that lets restaurants offer pickup and delivery. The service is aimed at restaurants that previously weren't equipped to offer takeout, helping them recoup lost revenue and employ more of their staff.
The startup says it has enabled 1 million Tock To Go meals since it launched in mid-March, and in April alone the startup added nearly 1,000 new restaurants to its platform. Tock charges a flat 3% for the delivery service, which is considerably less than the roughly 25% many third party delivery apps charge.
“We always focus on empowering restaurants to have a better, direct connection with their customers. In doing so we help them provide superior hospitality, increase their sales, and streamline their operations," Tock CEO Nick Kokonas said in a statement. "While we never expected a crisis like this, we know that what worked so well in good times is now critical."
And on Wednesday, the startup announced it raised $10 million in new funding led by Valor Siren Ventures, a fund managed by Chicago’s Valor Equity Partners that counts Starbucks among its investors. The coffee chain giant announced in 2019 that it would invest $100 million in the fund to back up-and-coming food businesses. Chicago-based Origin Ventures also invested in Tock's latest funding round.
Upscale restaurants like Alinea and Tao Chicago use Tock to Go to offer delivery, but the service isn't limited to fine dining. Even Chicago's Weiner Circle is a Tock to Go user.
First there was @NiseiLounge now there is @TheWienerCircle on @Tock. If *anyone* ever says Tock is only for high end restaurants -- something I've always rejected -- my case is now complete.
Welcome Wiener Circle.... Chicago icon. Bastion of great dogs and good feelings. pic.twitter.com/y8ZN4QeAce
— nick kokonas (@nickkokonas) May 12, 2020
Tock was founded in 2014 by Kokonas, the co-owner of Alinea, and former Googler Brian Fitzpatrick. Tock's reservation platform works with 3,000 restaurants, wineries and pop-ups across 28 countries, and it has booked nearly $1 billion in pre-paid reservations to date. In 2018, Tock raised $9.5 million from Valor Equity Partners and Origin Ventures.
“This is an investment not only in Tock, but in the future of the restaurant industry---one that we believe will rebound because it is so tied to our collective culture," Origin Ventures Managing Partner Jason Heltzer said in a statement.
