resq Secures $7.5M to Revolutionize Home Exterior Care

ResQ Secures $7.5 Million Seed Funding to Revolutionize Restaurant Equipment Maintenance

Kuljeev Singh, a seasoned entrepreneur, brings extensive experience from various roles within the food service industry. His background includes angel investing in ChefHero, partial ownership of an Australian meat pie shop, and currently, founding ResQ.

ResQ focuses on providing restaurants with reliable repair and maintenance services for their essential equipment, utilizing a network of qualified contractors.

The Problem: Neglected Back-of-House Operations

Singh’s direct involvement in restaurant ownership revealed a critical imbalance. He observed a significant investment in front-of-house operations designed to attract customers, yet a distinct lack of technological support for the crucial back-of-house functions.

Early experiences with the meat pie shop highlighted the financial impact of equipment failures and inefficient contractor management, with tens of thousands of dollars lost due to these issues.

This realization sparked the concept for ResQ – a company dedicated to streamlining and optimizing the often-overlooked back-of-house operations within restaurants.

$7.5 Million Seed Round Led by Prominent Investors

Today, ResQ announced the successful completion of a $7.5 million seed funding round. The investment was spearheaded by Homebrew, Golden Ventures, and Inovia Capital.

Notable angel investors also participated, including Nilam Ganenthiran, President at Instacart, and Gokul Rajaram, a DoorDash executive and board member at Pinterest and Coinbase.

Furthermore, existing customers, such as Soul Foods, a global franchisee of Yum! Brands, contributed to the funding round.

To date, ResQ has raised a total of $9 million in venture capital.

Future Plans: Expansion and Team Growth

The newly acquired capital will be strategically allocated to accelerate ResQ’s growth trajectory. A primary focus will be expanding the current team, aiming to double or triple its size of 60 employees.

New hires will be concentrated across key departments, including engineering, sales, and operations.

ResQ also intends to extend its service area, building upon its existing presence in major metropolitan areas like San Francisco, Los Angeles, Dallas, Chicago, and Phoenix.

The company’s expansion will enable it to serve a wider range of restaurants and address the widespread need for reliable equipment maintenance solutions.

ResQ: A SaaS-Enabled Marketplace for Restaurant Maintenance

ResQ operates through a dual-faceted business model, encompassing both a software platform and a contractor marketplace.

This platform empowers restaurants to submit service requests, oversee work, and process payments for necessary repairs, ranging from plumbing to electrical work. ResQ asserts that its services can yield annual repair cost savings of 10-30% for restaurants, achieved through competitive pricing and streamlined communication and hiring processes. A monthly SaaS fee is charged to restaurant groups per location.

The software component functions as an overlay to ResQ’s contractor marketplace, which provides access to a network of geographically focused workers possessing diverse skill sets for completing repairs and maintenance. In return for connecting contractors with job opportunities, ResQ receives a percentage of the revenue generated from each completed service. Singh highlights this marketplace aspect as a key differentiator compared to existing solutions and competing startups like ServiceChannel.

“Merely offering sophisticated software isn’t sufficient,” Singh explained. “A product capable of vendor management, ensuring timely arrivals, and preventing overcharging is essential.” This is why ResQ functions as a SaaS-enabled marketplace. By controlling the supply side of the repair industry, ResQ gains enhanced precision in matching supply with demand and understanding customer needs.

Maintaining a balanced and robust supply of qualified contractors presents a common challenge for any marketplace. Currently, ResQ has over 700 contractors registered on its platform. However, continued growth of this network is crucial to ensure timely service delivery and meet the demands of its restaurant clients.

Singh stated that the majority of their contractor base originates from restaurants introducing their preferred partners to the platform. ResQ then supplements this network, filling any gaps in coverage or addressing shortages in specialized skills. While this approach is currently effective, the company could potentially accelerate growth and enhance its offerings by proactively building its own contractor supply.

Future Expansion Plans

Hunter Walk, a partner at Homebrew, believes ResQ’s marketplace position could facilitate the integration of educational and financial services for contractors. Plans are underway to eventually offer skills training and placement services to local talent.

ResQ also envisions becoming a comprehensive “business in a box” solution for these contractors, providing support with payment processing and billing to help them expand their operations.

“The distinction lies between simply improving efficiency and actively empowering a segment of the workforce to explore new avenues for service delivery,” Walk commented. “Focusing solely on optimization algorithms limits the potential to truly improve the lives of these individuals, and that’s where significant economic benefits can be realized.” He further emphasized that Singh’s experience and founding principles will drive ResQ to address challenges in a more holistic and empathetic manner.

Industry Landscape

The restaurant business often operates with very small profit margins, even when businesses are running efficiently. This inherent challenge presents a risk for any new company entering the restaurant technology sector, as software-as-a-service (SaaS) tools are often among the first expenses reduced during cost-cutting measures.

Toast, a prominent example, initially reduced its workforce by 50% in response to the economic difficulties brought on by the pandemic.

The pandemic, however, spurred a heightened need for technologically advanced restaurants, according to Singh, the founder of ResQ.

“We redefined our product strategy and shifted from a transaction-based, mobile-first marketplace geared towards smaller establishments, to a comprehensive SaaS solution designed for multi-unit operators and supported by a local marketplace,” Singh explained. This strategic pivot resulted in a substantial 750% revenue increase over the last year.

ResQ has collaborated with more than 3,000 restaurant chains to date, including well-known brands like KFC, Taco Bell, and Tim Hortons.

With significant funding secured, the expectation is that ResQ will continue to expand its client base and strengthen its position within the restaurant industry’s operational technology space.