Productivity

How Presto’s public debut could help restaurants improve labor productivity – Restaurant Dive

Summary

Over a decade after Rajat Suri dropped out of a doctoral program at M.I.T. to create restaurant technology company Presto, he is now poised to take the company public. Presto will merge with special purpose acquisition company Ventoux CCM Acquisition Corp. to become a public company with an estimated pro forma equity value of about $1 billion, the company announced last week. 

“To reach this stage is very rewarding not just for me personally, but really for …….

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Over a decade after Rajat Suri dropped out of a doctoral program at M.I.T. to create restaurant technology company Presto, he is now poised to take the company public. Presto will merge with special purpose acquisition company Ventoux CCM Acquisition Corp. to become a public company with an estimated pro forma equity value of about $1 billion, the company announced last week. 

“To reach this stage is very rewarding not just for me personally, but really for everyone who’s been involved with the company for so long,” Suri, Presto founder and CEO and co-founder of Lyft, said. 

The transaction will be funded by cash from Ventoux’s trust account of about $172.5 million and $70 million of gross proceeds from issuance of equity and convertible financing. Following the transaction, which is expected to close during the first half of 2022, Presto plans to add over $223.3 million in cash to its balance sheet. 

Going public is the next stage of maturation for the 13-year-old company, which specializes in labor saving automation, Suri said. Presto works with several enterprise companies, many of which are publicly traded. Becoming public itself helps it better align with these restaurant companies, since it shows Presto has already been through a level of scrutiny and compliance, Suri said. Presto currently works with many of the top 20 restaurant chains, including Chili’s, BJ’s Restaurant, Denny’s, McDonald’s, Taco Bell and Yum Brands. 

Joining the public market comes with additional benefits, too. The status change will allow Presto to acquire companies and attract talent more easily, Suri said, adding that having liquidity in its stock can provide an additional advantage in a market where there is so much competition for talent. 


“I’ve been doing this for a long time and this has been a watershed year for the entire restaurant technology industry. It’s all been driven by increased demand within the industry.”

Rajat Suri

Founder and CEO, Presto


“We’re riding off the coattails of other successful restaurant tech companies going public this year. It’s benefiting us as well. The wave is lifting all boats, as it were,” he said. “This is going to really help the industry in a time where [it’s] really struggling with a labor shortage.”

Presto’s debut on The New York Stock Exchange follows a flurry of not only restaurant companies launching IPOs, but also restaurant technology players including Toast and Olo. Toast, which became public in September, raised over $870 million on its first day of trading, while Olo debuted in March with a $450 million IPO.

“I’ve been doing this for a long time and this has been a watershed year for the entire restaurant technology industry,”Suri said. “It’s all been driven by increased demand within the industry. There’s just more restaurants adopting technology.”

McDonald’s, Wendy’s, Krystal and Burger King are just some of the chains using various forms of artificial intelligence and automation to …….

Source: https://www.restaurantdive.com/news/how-prestos-public-debut-could-help-restaurants-improve-labor-productivity/609982/