TouchBistro Raises $110M to Expand Restaurant Offerings

TouchBistro is looking to expand after raising 150 million Canadian dollars (about $110 million) in growth financing, the restaurant management platform announced Tuesday (Nov. 1).

The company will use the capital — from Francisco Partners — to expand its “product offerings, core services and strategic acquisitions as it continues to meet the evolving needs of its customers,” according to a news release.

TouchBistro CEO and Chairman Samir Zabaneh said in the release that in addition to the funding, “Francisco Partners also has significant domain expertise and industry connections that will enhance and accelerate our growth trajectory and acquisition plans.”

Founded as a point-of-sale (POS) solution for restaurants, TouchBistro has since evolved to include an automated marketing and customer relationship management functionality. Its platform now incorporates online ordering, delivery management, contactless payments and other tools for customer engagement, the release stated.

The funding comes at a time when more than 50% of restaurants are at least moderately dependent on digital channels to generate revenue, according to research by PYMNTS.

Read more: More Than Half of Restaurants Depend on Digital Sales, Despite Uptick in On-Premises Orders

Despite their dependence on digital channels, restaurants’ digital readiness showed a slight downtrend in the second quarter of this year, falling 12% from the third quarter of 2021.

Restaurants are also facing an exceptionally tight labor market, affecting their ability to hire and retain the staff needed for their businesses to stay above water as demand for in-person dining increases. Nevertheless, only a minority of restaurants reported they are investing in digital solutions to enhance on-site ordering experiences and boost efficiency.

PYMNTS research also found that restaurants provided consumers access to fewer payment methods in Q2 2022 than they had in Q3 2021, while the share of restaurants offering splitting capabilities among their payment channels fell by 36%.

Meanwhile, mobile apps that were helping consumers save cash last fall are now exposing them to higher expenses. Consumers using mobile apps to place orders in Q2 2022 ran into on average 2.7% higher prices compared to those ordering directly through restaurants’ websites.