Restron Inc., a locally-developed app to help restaurants boost revenue, is preparing to launch in the coming weeks.
Restron is a digital toolbox for independent restaurants. One of its tools facilitates special menu offers to a network of foodies on behalf of restaurants.
The Sacramento-based startup has been in beta mode for most of this year. It plans to have 50 restaurants signed up by the second quarter of next year, said co-founder Clay Nutting.
Nutting is the owner of Canon restaurant in East Sacramento and Franquette in West Sacramento. Canon is a Michelin-starred restaurant. Restron's other co-founder is Anthony Sarti, who is also CEO of Sacramento software firm BPXI/O.
The Restron app is meant to pair engaged foodies with independent restaurants, helping the restaurants send out exclusive menus to drive higher sales and more engagement.
Restron is part of the second cohort of companies at the Growth Factory, a Rocklin-based business accelerator. The company will soon be seeking to raise about $2 million for growth funding.
Locally, Restron has 15,000 foodies signed up to support 12 local independent restaurants in the beta test, Nutting said. It will start taking new restaurants and foodies starting soon, he added.
There are more than 500,000 independent restaurants across the country, and they are all fighting to survive, Nutting said. Increased food costs, inflation and workforce retention are all challenging headwinds for restaurants.
“It’s difficult to be in our business,” Nutting said.
With Restron, restaurants could have the ability to change consumer behavior by engaging foodies with specials and perks. Other features of Restron include a to-go app and an app to help restaurants comply with the Americans with Disabilities Act.
Restron takes a $3 front-end user fee and a 5% commission on sales it drives into a restaurant, Nutting said.
That is for driving profitable business into the restaurant. One of the problems restaurants have been having in recent years is that outside delivery services are taking profits from restaurants, Nutting said.
Delivery services take up to 40% of the money from orders, he said. And that is in a business that has about a 10% profit margin. “It’s not sustainable,” Nutting said.
