Toast Secures $115 Million in Funding Round Led by T. Rowe Price

News Growth Equity
5 mins read time 10 Jul 18

Toast

Investment values Toast at $1.4 billion, proceeds focused on accelerating market leadership.

Toast, the fastest-growing restaurant management platform in the U.S., today announced $115 million in
Series D funding to accelerate investment in research and development, recruit new talent, and expand
its market presence. The financing round, led by funds and accounts advised by T. Rowe Price Associates,
Inc., with participation from new investor Tiger Global Management, LLC – as well as existing investors –
values Toast at $1.4 billion.

“The way restaurants serve their customers is going through a fundamental change, and the technology
that enables restaurant operations must respond to these new demands. Toast does this,” said Henry
Ellenbogen, portfolio manager of T. Rowe Price New Horizons Fund. “Our investment in Toast reflects
our belief in the firm’s ability to become much larger over time. We look forward to working with Toast’s
management team as they help their clients and grow the business.”

The Platform of Choice for Restaurants

By combining a powerful Android™-based point-of-sale experience with solutions designed to increase
revenue and improve restaurant operations, Toast has become one of the fastest-growing technology
companies in North America. During the past year, revenue increased 150 percent as leading restaurants
and concepts including Jamba Juice (NASDAQ:JMBA), Sepia, WaBa Grill, Hattie B’s Hot Chicken, Dos Toros
Taqueria, honeygrow, The Pizza Press, and B.GOOD joined tens of thousands of existing restaurants
across all 50 states in the Toast customer community.

“Toast enables our team to streamline operations in a way that wouldn’t be possible with legacy
technology,” said Austin Brinson, VP of analytics at B.GOOD. “Thanks to Toast’s focus on the unique
needs of restaurant operators, our entire organization is empowered to make data-driven decisions.”

Hiring New Talent to Support a Global Footprint

To support the demand for its platform, Toast now employs more than 1,000 people in over 30 states
and is actively hiring new talent to support its increasingly global footprint. New offices opened in
Portland, Oregon and Omaha, Nebraska will support Toast’s growing workforce. When combined with
Toast’s Boston headquarters and existing office in Dublin, Ireland, the company is well positioned to
support thousands of employees in the future.

“With close to $800 billion in annual sales and representing nearly 15 million jobs in the U.S., the
restaurant industry is a powerful contributor to local economies,” said Christopher Comparato, CEO of
Toast. “As restaurant owners and operators navigate shifting consumer expectations driven by mobility
and personalization, they're selecting Toast as their platform of choice to deliver a guest-first and datadriven experience that increases revenue, streamlines operations, and delights guests.”

Accelerated Investment in Research and Development

The Series D funding allows Toast to accelerate investments in research and development. Areas of
continued focus include:

• Handheld technology to increase sales: Toast Go™, a fully integrated mobile point-of-sale device
designed by Toast, transforms how restaurateurs run and staff their business. Odd Duck – a full
service restaurant in Austin, Texas – increased revenue by over $500,000 and reduced server
turnover as tips grew by $7,000 per server, annually, with Toast Go.

• Back of house technology to increase speed of service: Eventide, an innovative seafood concept
in Boston, introduced a continued service model powered by Toast. In the fine-casual eatery,
guests enjoy a mobile ordering experience and receive text notifications from the Toast Kitchen
Display System when their food is ready. Servers on the floor extend the service model and
provide continuous tableside ordering with Toast Go.

• Guest-facing technology to manage brand risk: Harvard Business School found that a one-star
change in online restaurant ratings can have a dramatic impact on revenue. With new guest
feedback applications under development at Toast, restaurants of all sizes will soon be able to
proactively address service concerns and re-engage guests directly through their point of sale.

About Toast

Launched in 2013, Toast powers successful restaurants of all sizes with a technology platform that
combines restaurant POS, front of house, back of house and guest-facing technology with a diverse
marketplace of third-party applications. By pairing technology with an unrivaled commitment to
customer success, Toast helps restaurants streamline operations, increase revenue and deliver amazing
guest experiences. In 2017, Toast was recognized as the third fastest-growing technology company in
North America on the Deloitte Fast 500 and named to the Forbes Cloud 100. Learn more
at www.toasttab.com.