Dublin-based Nory, a company offering an AI-powered operating system for the hospitality industry, has secured $16 million in Series A funding led by Accel and existing investors including Cavalry, Playfair, Samaipata and Triplepoint. This investment brings their total raised capital to $25 million and comes on the heels of a remarkable 400% revenue increase in 2023.
Back in February, Curiosity VC invested $600K in BeCause to boost hospitality sustainability as well. You can have a look at it as well.
What problem is the startup solving
The hospitality industry is facing significant challenges. Restaurant profit margins are razor-thin, averaging just 3% in the UK (according to UHY) in 2023. Rising labour, food, and energy costs have squeezed profits further. Additionally, the industry has experienced a significant staff shortage, with skilled workers leaving for other sectors post-pandemic.
Nory aims to address these challenges by offering a centralised AI platform that streamlines core operations for hospitality businesses. This “single source of truth” approach allows restaurants and cafes to gain valuable insights into their data, leading to improved efficiency and profitability.
AI-powered insights for increased efficiency
Nory’s AI technology analyses real-time data to predict hourly venue demand with an impressive 95% accuracy. This is achieved by combining historical data with sophisticated algorithms that factor in seasonal trends and even hyper-local live data on weather and events. Armed with this information, Nory helps restaurants and cafes optimise staffing levels, thereby reducing costs and waste.
Customer success and global expansion plans
Nory is already making waves in the hospitality industry, with clients like Buns from Home, Jamie Oliver Group, and Roasting Plant Coffee across the UK, Europe, and the US. The company reports cost reductions of nearly 20% and EBITDA increases of over 50% for its customers.
This recent funding will be used to accelerate product development and fuel international expansion. Conor Sheridan, CEO of Nory and founder of Ireland’s fastest-growing independent restaurant group, Mad Egg, developed Nory out of frustration with existing hospitality software solutions. He envisioned a platform that could “stack the odds in favour” of restaurants by centralising data and providing actionable insights.
Luca Bocchio, Partner at Accel, a leading investor in Nory’s Series A round, expressed enthusiasm for the company’s “easy to use” and “fast ROI” platform. He highlighted the fragmented nature of existing hospitality software solutions and Nory’s ability to provide a centralised, real-time information source. Accel has a history of backing successful technology companies like Atlassian, Bumble, and Spotify.
What we think about the startup
Nory’s AI-powered solution arrives at a critical time for the hospitality industry. With its focus on centralised data management, efficient operations, and cost savings, Nory is well-positioned to help restaurants navigate current challenges and thrive in a competitive market. However, the long-term success of Nory will depend on several factors.
