Burnt
Setting the Scene
Restaurants are facing unprecedented challenges as rising costs continue to outpace revenue growth.
These challenges include:
An outdated procurement process, characterized by inefficient ingredient ordering through phone calls and emails.
Error-prone, old-school inventory management using manual tracking on Excel or paper.
A lack of live data and real-time insights on sales and inventory, hampering decision-making.
This week’s company provides a comprehensive platform for managing operations to help restaurants save money efficiently.
In a Sentence
Burnt is a platform designed to streamline a restaurant’s back-end operations, enabling data-driven decision-making to improve profitability and operational efficiency.
Operations: Burnt simplifies activities such as inventory, ordering, and financial management.
Data-driven: Using real-time data and analytics, restaurants can make informed decisions to maximize inventory and minimize spend.
Bulleted Version:
- Think of Burnt like Google Analytics for restaurant management, providing real-time data and insights to make informed decisions about inventory, ordering, and finances.
The Basics
- Headquarters: New York City
- Employee Count: 6
- Investors:
Hari Raghavan (autopilot.fund), Benjamin Fernandes (founder of Nala), and other fintech angels.
- Business model: B2B SaaS
- Early traction: 9k orders processed, ~200 restaurants on waitlist ($1.25M once onboarded), 150+ suppliers receiving orders via Burnt
Due Dilligence
WHAT WE LIKE
Market Opportunity: The restaurant management software market, is massive and growing quickly, presenting a vast opportunity for digital transformation, particularly in back-of-house operations where inefficiencies are prevalent.
Sticky Product: Burnt has positioned itself for a high retention rate, as once a restaurant updates their software and sees a return on investment, they will be life-long customers.
Vision: Burnt's vision involves establishing a strong foundation with restaurants and then targeting suppliers, leveraging existing customer relationships to achieve a low customer acquisition cost.
POTENTIAL RISKS
Adoption Challenges: Convincing traditional restaurants to adopt a new technology platform may be difficult, especially for those used to manual processes, potentially slowing customer acquisition.
Data Security: Handling sensitive financial and operational data for numerous restaurants carries significant responsibility; any data breaches or security lapses could undermine trust with customers.
Regulatory Hurdles: The restaurant industry is subject to various regulations and compliance requirements, and ensuring Burnt's platform adheres to these standards across different regions may be challenging and resource-intensive.
Founder Profile
Joseph (JJ) Jacob, CEO: Previously at REKKI and Blue Sea Productions.
Rhea Karimpanal, COO/CPO: Previously at Fora Travel and HSBC.
Chandru Shanmugasundaram, CTO: Previously at ThoughtWorks.
Comps
Zitti: Back by Serena Ventures, Oceans, Crossbeam Venture Partners, Vera Capital, and others.
ClearCogs: Backed by MATH Venture Partners, and various angels.
MarginEdge: Backed by Vitalize, Osage Venture Partners, Branded Strategic Hospitality, and others.
Restaurant 365: Backed by BVP, ICONIQ Growth, Tiger Global Management, and others.
Why Burnt
By streamlining operations, providing real-time data, and enhancing decision-making, Burnt prevents inefficiencies from burning through a restaurant's profits.