The big restaurant tech supplier Olo is reportedly considering a sale after receiving interest from potential buyers.
That’s according to a Bloomberg article published Wednesday, which cited people familiar with the matter.
The New York-based company, which pioneered online ordering and later expanded into digital marketing and payments, works with many large restaurant chains and has reported consistent revenue growth since going public in 2021. It has been unprofitable on a net income basis, although losses narrowed to less than $900,000 last year.
Its stock price is also down more than 76% since the IPO, though shares jumped more than 12% on Thursday, to nearly $7, following talks of a sale.
Speculation about an Olo sale has been swirling for some time. Larger restaurant tech suppliers such as Toast and PAR have been thrown out as potential buyers.
Though Olo offers a number of features, they are largely focused on digital channels. It’s not considered an end-to-end tech provider with POS and back-office capabilities. Such a provider may view Olo as a way to bolster its offerings.
A buyer would be getting not only Olo’s technology, which is well-regarded in the industry, but also its client roster of more than 700 restaurant chains. The company has said that about one out of every six restaurant transactions runs through its platform.
Its customers include high-profile chains such as Shake Shack, Sweetgreen and Texas Roadhouse as well as the fast-growing Dutch Bros. It has also lost two of its largest customers in recent years—Subway and Wingstop—which opted to build their own software.
Olo had not responded to a request for comment Thursday.
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