Running a successful restaurant business is not only difficult, but the profit margins can be razor thin, requiring long hours of labor. To increase profits, some restaurant owners are launching an online version of their business.
As such, a significant number of them depend on several channels to be successful online. “These include multiple delivery aggregators, white-label ordering platforms, QR code systems, reservation systems, pos and inventory systems,” according to Forbes.
However, successfully operating multiple channels is usually difficult. This is due to the fact that restaurants frequently have to attend to customers who visit their physical locations. This is where Nene Anagbogu and Colin Webb with Sauce come in. It is a startup that offers restaurant analytics and dynamic pricing.
“We’re the perfect combination of restaurant, data and product,” Anagbogu and Webb told Forbes. “Our families started small businesses, and we worked in restaurants, so we know what our customers are going through.”
The duo stated that they chose to focus on small businesses because many of them lack data and a pricing team. As a result, they are in the dark about pricing decisions and how to operate their online sales channels, they claim.
“Restaurants that use their data effectively can more easily improve their business, capitalizing on their strengths while evolving the aspects of their business that need more work,” Anagbogu and Webb told Forbes.
“Restaurants who take advantage of their data can gain more customers, set more accurate price points, create products that people love, discontinue ineffective products and initiatives, manage their staff, and procure supplies in a way that makes their businesses more effectively profitable,” they added.
“When restaurant owners forgo making the most of their data, they often leave money on the table. They’re either underpriced or overpriced, undersupplied or oversupplied, understaffed or overstaffed; each can significantly impact their margins.”
According to the duo, one of their customers, Rachel’s Kitchen, saw “a 64% increase in sales in just four months” after using their software.
Prior to launching Sauce, Anagbogu and Webb stated that they were looking into a way to help restaurants expand to new locations at a low cost. Sauce was born out of a desire to increase the value and revenue of restaurants without requiring them to do any additional work.
Anagbogu and Webb first met at the Massachusetts Institute of Technology. They have worked on a variety of projects, including data and technology solutions ranging from fintech to self-driving cars to Apple products. They were also recently featured on Forbes’ 30 under 30, a special feature about young trailblazers.