QSR Automations Announces Majority Growth Investment from Battery Ventures

Rhea-AI Summary

QSR Automations, a global leader in restaurant technology solutions, has secured a majority growth investment from Battery Ventures. The company, founded in 1996, specializes in kitchen display systems, guest management software, and digital recipe solutions. Their ConnectSmart technology is currently utilized by 21 of the 25 largest casual-dining chains in the nation. Robbie Payne, Battery Executive-in-Residence, will become the new CEO, while current CEO Angela Leet will transition to a board member role. The investment aims to accelerate product development, expand market reach, and enhance innovation while maintaining existing operations.

Positive

• Strong market presence with technology used in 21 of 25 largest casual-dining chains
• Strategic investment from established technology investor Battery Ventures
• Experienced new CEO appointment with software industry background

Negative

• Leadership change may create temporary operational uncertainty
• Majority control transition to new investors could affect strategic direction

Insights

Tech Industry Analyst

Battery Ventures' strategic investment in QSR Automations signals significant competitive implications for Olo (NYSE: OLO). Both companies operate in complementary segments of restaurant technology, with QSR's strength in kitchen display systems and guest management potentially creating synergies or competition with Olo's digital ordering platform.

The deal's importance stems from QSR's impressive market penetration - serving 21 of 25 largest casual-dining chains. Battery's previous success with Olo suggests they see similar scaling potential here. Their track record in hospitality tech investments (Crunchtime, Vita Mojo) adds credibility to this move.

The leadership transition to Robbie Payne, who has experience scaling and selling tech companies (CAMBRIO), indicates potential preparations for aggressive growth or eventual exit strategies that could reshape the restaurant tech landscape.

Market Research Analyst

This investment represents a strategic consolidation in the restaurant technology sector, where private equity firms are increasingly seeking established players with proven market penetration. QSR Automations' strong presence in major restaurant chains provides stable recurring revenue - a highly attractive feature for investors.

The timing is particularly relevant as restaurants continue to seek automation and efficiency solutions amid labor challenges and digital transformation needs. Battery's involvement could accelerate product development and potentially lead to strategic acquisitions, creating a more comprehensive technology stack to compete with integrated solutions providers.

Transition Represents New Era of Innovation and Growth

LOUISVILLE, Ky., Nov. 1, 2024 /PRNewswire/ -- QSR Automations, a global leader in restaurant technology solutions, today announced a strategic, majority growth investment from Battery Ventures, a global, technology-focused investment firm. This investment represents a pivotal moment in QSR Automations' history, positioning the company for accelerated growth, enhanced innovation, and expanded market reach.

Founded in 1996, QSR Automations has been at the forefront of developing innovative technology solutions for the restaurant industry, including kitchen display systems (KDS), guest management software, table management, and digital recipe solutions. With nearly three decades of experience, the company has built a reputation for improving operational efficiency, enhancing guest experiences, and driving profitability for restaurant operators worldwide. The company's ConnectSmart technology is currently used in 21 of the nation's 25 largest casual-dining chains including The Cheesecake Factory and Brinker International.

Alongside the new investment, QSR Automations announced that Battery Executive-in-Residence Robbie Payne, a longtime software-industry executive, will become the company's new CEO. Angela Leet, who has served as CEO of the company since 2021, will remain involved with the company as a board member.

"I have been so impressed with the business Angela and her team have built at QSR Automations, and the traction the company has gotten inside large restaurant accounts," said Payne, who previously ran Battery-backed, smart-manufacturing solutions company CAMBRIO, which was acquired by Sweden's Sandvik AB three years ago. "We are excited about working with the team to help take QSR Automations to the next level and scaling the business through this next growth phase."

Leet said: "It's been such an honor to lead this company. But now, my team and I are incredibly excited for QSR Automations' next chapter. Partnering with Battery allows us to re-focus on our product development efforts, expand our market reach, and continue delivering exceptional value to our customers. This acquisition provides the resources and expertise we need to innovate even faster and meet the evolving needs of the restaurant industry."

Battery Ventures has a long history of backing and scaling business-focused software companies, including those in the hospitality technology space. In restaurant tech, Battery has backed Olo (NYSE: OLO), Crunchtime, and Vita Mojo.

"QSR Automations has built an impressive platform that we feel provides a critical service to restaurant operators worldwide," said Battery General Partner Morad Elhafed. "We see a unique opportunity to build on their success and are thrilled to partner with such an innovative team to help drive the next phase of growth." Elhafed will join the company's board, along with his Battery colleagues Satoshi Harris-Koizumi and Becca Jones.

The Battery growth investment is designed to accelerate QSR Automations' ability to deliver cutting-edge technology solutions that help restaurant operators streamline their operations, improve guest satisfaction, and optimize their workflows. The company will continue to operate under its existing brand, with no immediate changes to its day-to-day operations.

About QSR Automations

QSR Automations, headquartered in Louisville, KY with offices in the United Kingdom, is a global industry leader in kitchen automation and guest management services. Since 1996, restaurant operators have turned to the brand's signature platform, ConnectSmart®, for customized solutions to improve the guest experience and drive operational excellence. Used in 21 of the nation's top 25 casual dining chains, ConnectSmart® leverages data to create customized solutions that make calmer kitchens, simpler workflows, and happier guests.

About Battery Ventures

Battery partners with exceptional founders and management teams developing category-defining businesses in markets including software and services, enterprise infrastructure, consumer tech, healthcare IT and industrial technology and life-science tools. Founded in 1983, the firm backs companies at all stages, ranging from seed and early to growth and buyout, and invests globally from offices in Boston, San Francisco, Menlo Park, New York, London, and Tel Aviv. Follow the firm on X @BatteryVentures, visit our website at www.battery.com and find a full list of Battery's portfolio companies here.

William Blair served as exclusive financial advisor to QSR Automations.

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SOURCE QSR Automations

FAQ

What major investment did QSR Automations receive in November 2024?

QSR Automations received a majority growth investment from Battery Ventures, a global technology-focused investment firm.

Who is the new CEO of QSR Automations following the Battery Ventures investment?

Robbie Payne, former Battery Executive-in-Residence, was appointed as the new CEO of QSR Automations.

How many major casual-dining chains use QSR Automations' ConnectSmart technology?

QSR Automations' ConnectSmart technology is used in 21 of the nation's 25 largest casual-dining chains.

What is Battery Ventures' experience in restaurant technology investments?

Battery Ventures has previously invested in restaurant technology companies including Olo (NYSE: OLO), Crunchtime, and Vita Mojo.