In the latest episode of Hospitality Hangout, Michael Schatzberg “The Restaurant Guy” and Jimmy Frischling “The Finance Guy” chat with Bo Davis, co-founder and chief executive officer of MarginEdge.
Davis before founding MarginEdge was the founder of Wasabi, a group of conveyor belt sushi restaurants currently operating in DC and Boston. Before Wasabi, he was in the US Peace Corps serving in Macedonia, earned an MS in Finance from London Business School, and founded an educational software company, Prometheus, which he sold to Blackboard in 2002. Davis had a restaurant in Northern Virginia and where he is based and primarily focuses on MarginEdge.
In December 2022 MarginEdge secured $45 million in a Series C funding. Davis says, “as far as deploying new capital, we’re not pivoting, we’re digging in, where we are here to help restaurant restaurateurs operate and make their back lives a little bit easier, solve some problems for them so they can focus on their customers and their food.”
Davis talks about the team and shares, “We’re continuing to grow our product team now, we wrote most of the core product with five people and now we’re growing to 45 people and dev, our sales team was a handful of people for a long time. We’re now at about 50 people there, so we’re just building out the team, we’re going to market and we’re pretty excited about it.”
MarginEdge primarily focused on selling to restaurants will now be selling to accountants and accounting firms that work with restaurants. Davis talks about selling to accounting firms and he says, “You know it’s one of those things where we were doing it before, not really realizing we were doing it because it wasn’t intentional but bookkeepers and accounting firms working with restaurants found the software super helpful because it basically takes out part of the headache of just capturing the invoices, getting them into accounting, tying in the point of sales, getting that into the accounting system so they can focus on the higher value things that they do, the cash flow management and the strategic stuff. And so we found that some of our biggest clients were actually firms.”
To hear Davis’ answer for Tuesday Trivia and the new rollout for MarginEdge check out this episode of Hospitality Hangout.
