Key Takeaways
- ClearCOGS raised $3.8 million in seed funding to enhance its AI-driven restaurant forecasting software.
- The company’s platform leverages machine learning to optimize food prep, ordering, and staffing, aiming to cut food waste and boost efficiency.
- Plans for the new capital include accelerating product development and expanding the customer base, currently serving 100 brands across four countries.
Funding and Vision
ClearCOGS, an AI-powered restaurant forecasting startup, has secured $3.8 million in an oversubscribed seed round led by Closed Loop Partners. The funding consists of $2.3 million in new capital along with $1.4 million converted from pre-seed investments. The firm offers predictive analytics designed to help restaurant operators enhance decision-making related to food preparation, inventory ordering, and staff management, all with a focus on minimizing food waste and improving operational efficiency.
CEO Matt Wampler conceived the idea for ClearCOGS during the pandemic while grappling with his own layoffs. His research led him to a cousin who managed a Jimmy John’s franchise, using obsolete forecasting methods based on a decade-old Excel model. This sparked Wampler’s interest in utilizing AI for creating a more effective predictive forecasting tool. Teaming up with Osa Osarenkhoe, they developed a solution that processes over 100 million data points each day using machine learning and time-series forecasting.
Challenges with AI Interfaces
During the early stages, Wampler and Osarenkhoe experimented with integrating large language models (LLMs) to provide a user-friendly interface for their forecasting tool during a virtual Food AI Summit. However, Wampler noted that the experiments did not yield the desired response from restaurant operators, who preferred straightforward answers over interactive AI engagements.
“There was nothing wrong technically with the LLM interface,” Wampler explained. “The issue was with restaurant brands; operators wanted simply to receive information directly via email or through their existing systems like Toast or SevenRooms.” This feedback reinforced Wampler’s belief that proprietary forecasting would be more valuable than LLM-based conversational AI for their target market.
Focus on Direct Insights
Unlike many analytics platforms that merely provide dashboards or raw data, ClearCOGS aims to deliver actionable insights tailored to the specific needs of restaurant managers. Wampler asserted that operators face numerous daily decisions and emphasized that ClearCOGS focuses on addressing these specific queries systematically.
“If you’re a brand, you probably have 20 or 30 questions that you have to answer every day… We go really deep on those and provide a systematic way of delivering those to your operators every day,” he stated.
Growth and Future Plans
With the influx of new capital, ClearCOGS intends to expedite product development and enhance customer acquisition strategies while concentrating on establishing a more substantial presence in the food service sector. Currently serving a clientele of 100 brands in four countries, Wampler also highlighted plans to maintain a lean operational structure, prioritizing automation and AI discoveries over expanding the workforce. The goal remains clear: to empower restaurant operators with precise, decision-ready insights that drive efficiency and reduce waste in their operations.
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