Ordermark, a fast growing provider of online ordering solutions for restaurants, announced the close of a $9.5M Series A funding round. Led by Nosara Capital, the latest round brings in new investors including Vertical Venture Partners, Techstars Ventures, Riverpark Ventures, and Matchstick Ventures—joined by prior investors including TenOneTen, Mucker Capital, Act One Ventures and AARD Capital.
“This has been a growth year for Ordermark, expanding to reach hundreds of top restaurant brands nationwide, and launching new tools to make it easier and more cost efficient for restaurants of all sizes to increase online ordering,” said Ordermark CEO and Founder Alex Canter. “This new funding will enable us to reach more restaurants faster, to continue focusing on great customer service and reliability, and to stay ahead of the rapid growth of this market.”
Focused on early-stage online marketplaces, Nosara Capital works with founders before investing and then continues to provide CFO services to its portfolio companies after investing.
“Ordermark solves a pain point that Alex knows first-hand from his time as a restaurant operator,” said Ian Loizeaux, founding partner of Nosara Capital. “The company helps restaurants to optimize online revenue and allows online ordering platforms to scale quickly into new restaurants.”
Ordermark’s platform sends orders from several different online ordering services to a single tablet and printer—enabling restaurants to work with multiple online ordering services.
Since launching in 2017, the California-based company has added hundreds of independent and chain customers throughout the United States including TGI Fridays, Qdoba, Veggie Grill, Dickey’s Barbecue Pit, Yogurtland, Johnny Rockets and Sonic.
“Delivery’s becoming a meaningful contributor to our sales,” the company said. “In several of our top markets, delivery now represents as much as 10% of sales in those restaurants offering delivery.”
QSR rival Wendy’s has seen similar results, and is now offering delivery in approximately 40% of its North American restaurants, up from 25% during the first quarter of the fiscal year.
“The consumer has an appetite for convenience and we have seen this through our delivery economics,” the company said during its second quarter earnings call. “Average check sizes have been 1.5 to 2.0X higher on delivery orders, and we continue to see incrementality and customer repeat.”
As another (chicken) nugget, Stephens reported that Wingstop is moving forward with plans to launch delivery nationwide “after seeing mid-to-high single-digit sales lifts in its recent test markets” that include Austin and Chicago.
During its latest earnings call, Wingstop said its “lift in sales from delivery is highly incremental and profitable at the restaurant level.”