Chowly Acquires Koala: What This Means for Restaurants

The restaurant technology landscape is constantly evolving, and recent news highlights a significant shift. Chowly, a leading point-of-sale (POS) integration company, has acquired Koala, an online ordering platform known for its exceptional guest experience. This acquisition signifies a strategic move by Chowly to expand its offerings and provide restaurants with a more comprehensive suite of tools to thrive in the increasingly competitive off-premise dining market. In this blog post, we'll dive into the details of this acquisition, explore the benefits it brings to restaurants, and discuss what the future holds for the combined company. Be sure to also listen to our latest episode, Chowly Announces Acquisition of a Guest Experience Platform | Season 8, Vol. 21, where we discuss this exciting news with Chowly's CEO, Sterling Douglass!

What is Chowly and Why is This Acquisition Important?

Chowly has established itself as a crucial player in the restaurant technology space by focusing on seamless POS integrations. In today's market, restaurants rely on various online ordering platforms like Grubhub, Uber Eats, DoorDash, and Google Food Ordering. Managing orders from these different sources can be a logistical nightmare, often leading to errors, delays, and frustrated customers. Chowly solves this problem by integrating all these platforms directly into a restaurant's POS system.

This integration offers several key benefits:

• Streamlined Operations: By centralizing order management, Chowly eliminates the need for manual order entry, reducing errors and improving efficiency.
• Increased Revenue: Efficient order processing allows restaurants to handle a higher volume of orders, leading to increased revenue.
• Reduced Labor Costs: Automating the order entry process frees up staff to focus on other tasks, reducing labor costs.
• Improved Customer Experience: Accurate and timely order fulfillment leads to happier customers and increased loyalty.

With over 12,000 restaurants on its platform, Chowly has a proven track record of helping restaurants improve their off-premise capabilities. The acquisition of Koala is a natural extension of Chowly's mission to empower restaurants and provide them with the tools they need to succeed in the digital age. The integration of a best-in-class guest experience platform will allow Chowly to offer even more value to its customers.

Who is Koala and What Do They Bring to the Table?

Koala is an online ordering platform that stands out for its focus on creating a premium guest experience. While many online ordering solutions prioritize functionality, Koala places a strong emphasis on design, user-friendliness, and personalization. They aim to make the online ordering process as enjoyable and seamless as possible for customers.

Here are some of the key features that Koala brings to the table:

• Customizable Branding: Koala allows restaurants to fully customize the online ordering experience to reflect their brand identity. This includes custom designs, layouts, and branding elements, ensuring a consistent brand experience across all channels.
• User-Friendly Interface: Koala's platform is designed to be intuitive and easy to use, both for customers and restaurant staff. This reduces friction in the ordering process and leads to higher conversion rates.
• Personalized Recommendations: Koala uses data-driven insights to provide personalized recommendations to customers, increasing order values and driving repeat business.
• Loyalty Programs: Koala offers built-in loyalty program functionality, allowing restaurants to reward loyal customers and encourage repeat purchases.
• Direct Ordering: Facilitates direct ordering through a restaurant's website, app, or social media channels, bypassing third-party marketplaces and reducing commission fees.
• Advanced Analytics: Provides restaurants with detailed analytics on customer behavior, order trends, and sales performance, allowing them to make data-driven decisions to optimize their online ordering strategy.

Koala has worked with notable brands like Shake Shack, Mod Pizza, and P.F. Chang's, demonstrating its ability to deliver a premium online ordering experience for large and complex restaurant operations. The company's mission is to democratize premium online ordering for restaurants of all sizes, making it accessible to independent operators and smaller chains.

The Details of the Acquisition

While the specific financial terms of the acquisition have not been disclosed, the strategic rationale behind the deal is clear. Chowly recognizes the growing importance of the guest experience in online ordering and sees Koala as the perfect partner to enhance its offerings. By combining Chowly's POS integration expertise with Koala's guest experience platform, the company aims to provide restaurants with a truly end-to-end solution for off-premise dining.

According to Sterling Douglass, CEO of Chowly, the acquisition was driven by a shared vision of empowering restaurants and democratizing access to premium online ordering technology. He believes that by combining the strengths of both companies, they can bring a superior product to the market and help restaurants of all sizes thrive in the digital age.

Key Benefits for Restaurants

The acquisition of Koala by Chowly offers several key benefits for restaurants:

• Enhanced Guest Experience: Restaurants can now offer a more engaging and personalized online ordering experience to their customers, leading to increased satisfaction and loyalty.
• Increased Revenue: By providing a seamless and user-friendly online ordering platform, restaurants can drive more orders and increase revenue.
• Improved Efficiency: The integration of Chowly's POS integration with Koala's online ordering platform streamlines operations and reduces errors, leading to improved efficiency.
• Reduced Costs: By reducing errors and improving efficiency, restaurants can lower their operating costs and improve their bottom line.
• Data-Driven Insights: Restaurants gain access to detailed analytics on customer behavior and sales performance, allowing them to make data-driven decisions to optimize their online ordering strategy.
• Strengthened Brand Identity: Customizable branding options allow restaurants to create a consistent brand experience across all channels, strengthening their brand identity and building customer loyalty.

For restaurants that are already using Chowly's POS integration, the addition of Koala's online ordering platform provides a seamless and integrated solution for managing all aspects of their off-premise dining operations. For restaurants that are new to Chowly, the acquisition presents an opportunity to adopt a comprehensive solution that addresses both the operational and customer-facing aspects of online ordering.

Chowly and Koala: Democratizing Premium Online Ordering

A key theme throughout this acquisition is the desire to democratize premium online ordering. Historically, best-in-class online ordering experiences have been reserved for large restaurant chains with the resources to invest in custom-built solutions. Chowly and Koala aim to change that by making premium online ordering technology accessible to restaurants of all sizes.

By combining their expertise and resources, Chowly and Koala can offer a solution that is both powerful and affordable. This will allow independent operators and smaller chains to compete with larger brands and provide their customers with a superior online ordering experience. As Sterling Douglass mentioned in our podcast episode, the goal is to bring the features and revenue-generating capabilities that Koala has developed for large brands like Shake Shack and Mod Pizza to the mom-and-pop shops and independent operators who need them most.

Looking Ahead: What to Expect from the Combined Company

The acquisition of Koala by Chowly marks the beginning of an exciting new chapter for both companies. Moving forward, restaurants can expect to see a more integrated and comprehensive solution that combines the best of both platforms. This includes:

• A Unified Platform: Chowly and Koala will work to integrate their platforms, creating a seamless and unified solution for managing all aspects of off-premise dining.
• Enhanced Features: The combined company will continue to develop new features and enhancements to improve the online ordering experience for both restaurants and customers.
• Expanded Support: Restaurants will benefit from expanded support and resources as the two companies combine their teams.
• Continued Innovation: Chowly and Koala are committed to continued innovation and will continue to develop new solutions to meet the evolving needs of the restaurant industry.

The combined company will be well-positioned to lead the way in the restaurant technology space and help restaurants thrive in the increasingly competitive off-premise dining market. Keep an eye out for future updates and announcements as Chowly and Koala work together to revolutionize the online ordering experience for restaurants.

Conclusion: A Game-Changer for the Restaurant Industry

The acquisition of Koala by Chowly is a game-changer for the restaurant industry. By combining Chowly's POS integration expertise with Koala's guest experience platform, restaurants now have access to a comprehensive solution that addresses both the operational and customer-facing aspects of online ordering. This acquisition empowers restaurants to streamline operations, increase revenue, and provide a superior online ordering experience to their customers. As Sterling Douglass shared with us on the Hospitality Hangout podcast, this move is all about democratizing premium online ordering and bringing enterprise-level capabilities to restaurants of all sizes. Be sure to check out the episode for even more insights into this exciting development!