Nory raises $16m in Series A funding to roll out AI across the hospitality industry following 400% revenue growth: Nory, the artificial intelligence (AI) powered operating system for hospitality businesses, has secured $16m in a Series A funding round to help it roll out across the sector. The round, led by London venture capital firm Accel, takes Nory’s total raised to $25m, following 400% revenue growth in 2023. Existing investors Cavalry, Playfair, Samaipata and Triplepoint also participated in the round. Nory said its AI-powered platform allows hospitality businesses to manage and scale operations, as well as increase profitability through centralising all key operational data into a single source. Working with operators such as Buns from Home, Jamie Oliver Group and Stonegate Group, Nory said it has been proven to reduce costs by almost 20% and increase Ebitda by more than 50%. The system analyses data in real time and acts as an AI venue manager to coach front-line workers on how to run their venues efficiently and profitability. Its technology predicts hourly venue demand for each day, with 95% accuracy based on historical data matched with AI algorithms, which take into account seasonal trends and live data on weather and events to help manage staffing. It then matches these predictions to other core workflows like stock management. Chief executive Conor Sheridan, who previously founded fast-growing Irish independent restaurant group Mad Egg, said the new investment will help Nory accelerate product development and international expansion. “The industry is facing challenges and complexities like never before,” he said. “Operators don’t want more tools and apps that digitise every micro-workflow; they need technology that can give them real control over their business, their profitability and their destiny. Our Series A funding will help us on our path to building the world’s largest restaurant technology company.” Luca Bocchio, a partner at Accel, added: “The industry is still under digitised, with fragmented point solutions that prevent businesses from gaining more granular data insights on their own operations. Nory’s AI powered operating system provides restaurants with much needed access to a central, real-time source of truth, which is easy to use and delivers fast return on investment. We’ve been impressed by the early traction and strong customer engagements the Nory team has already achieved.” Nory was founded in 2020 and is headquartered in Dublin. Mad Egg currently has four locations – three in Dublin and one in Dundrum. The business offers a franchise programme, and has targeted Dublin, Belfast. Limerick, Galway and Cork as preferred locations for expansion.
Sector sales fall for first time in 18 months: Britain’s managed groups saw sales drop 1.7% year-on-year in April 2024 after widespread wet weather, the new CGA RSM Hospitality Business Tracker reveals. It is the first year-on-year drop in monthly sales since September 2022 and a sharp contrast with March, when groups achieved 5.2% growth thanks to drier weather and an early Easter. Last month faced tough comparatives with April 2023, which included the full Easter holiday. Slightly weaker sales may also suggest that some consumers remain hesitant about their spending despite an easing of inflation in recent months, the tracker – produced by CGA by NIQ in partnership with RSM UK – said. The tracker shows the impact of the weather on pubs, where sales were 1.5% down. Restaurants, which sometimes benefit from wetter weather, achieved modest like-for-like growth of 1.2%. Bars were hit hardest, with sales dropping 15.1% below the levels of April 2023. The on-the-go segment was 4.2% down. Hospitality groups performed better in London than elsewhere, the tracker shows. April sales inside the M25 were 0.3% ahead of last year, but down by 2.2% beyond the M25. Karl Chessell, director, CGA by NIQ, said: “After 18 consecutive months of year-on-year growth, the hospitality sector had a challenging April. It’s a reminder of the very close correlation between the weather and sales, and a sign that some consumers have been saving their eating and drinking out for special occasions and holidays like Easter. Brighter weather in May should help to encourage more people out to eat and drink, and the medium to long term outlook for hospitality remains good – but it’s clear that businesses and consumers alike continue to face some severe cost pressures.”
