A startup that uses artificial intelligence to predict restaurants’ labor and inventory needs has raised $3.8 million in a seed round.
Chicago-based ClearCOGS said it will use the funding to continue developing its software and add more customers.
The company was founded in 2021 by Matt Wampler, a former Jimmy John’s franchisee, and Osa Osarenkhoe, a computer engineer and entrepreneur.
Its software integrates with restaurants’ existing tech and uses both historical and real-time data to predict how much food and staff the restaurant will need on a given day—decisions that are otherwise often made based on limited data or feel. The goal is to help restaurants operate more efficiently and cut down on food waste.
“At ClearCOGS, we believe restaurant operators shouldn't have to navigate uncertainty alone,” Wampler said in a statement. “This funding empowers us to extend our reach and deliver the practical, reliable forecasting tools that restaurant operators need to consistently achieve better operational outcomes.”
ClearCOGS' current customers include Jimmy John’s, Cali BBQ and Goop Kitchen, according to its website.
The funding was led by Closed Loop Partners’ Venture Group and included contributions from Myriad Venture Partners and Level Up Ventures, a venture arm of media giant Hearst Corp.
Closed Loop Managing Director Danielle Joseph said that ClearCOGS aligns with the group’s mission to build a circular economy. “By providing clarity and precision to restaurant operators, ClearCOGS is helping to reduce food waste while simultaneously driving stronger business outcomes,” she said in a statement.
AI is making its way into restaurants in a variety of ways, including order-taking and content generation. Forecasting in particular has been identified as an area where the technology could have a big impact because of its ability to quickly analyze large amounts of data.
ClearCOGS says its AI uses 100 million data points to generate its forecasts.
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