86 Repairs Inc., a restaurant equipment repair and maintenance company founded in Grand Rapids, has raised $15.2 million from investors to support the company’s ongoing growth.
The $15.2 million in Series A funding was led by Silicon Valley-based Storm Ventures and included participation from Wyoming-based Gordon Food Service Inc. and Chicago-based Cleveland Avenue. The raise, which will support product innovation and nearly three-times year-over-year revenue growth, comes after the company landed $7.3 million in seed funding in 2021.
86 Repairs, which also has operations in Chicago, partners with restaurants to provide end-to-end repairs and maintenance for kitchen equipment. It also publishes an annual “State of Repairs” report on industry trends as restaurants face escalating equipment repair costs alongside persistent labor shortages.
“We’re living through the most challenging period in the history of the restaurant industry, and our customers constantly inspire me with their creativity and grit as they navigate this new reality,” 86 Repairs co-founder Daniel Estrada said in an announcement on the new funding round. “I’m proud of the value we’re providing through the 86 Repairs platform, and I’m excited to continue expanding our reach with the support of our world-cass investors and team.”
In addition to labor challenges, the average cost of repairing cooking equipment increased by 38 percent in 2021, according to 86 Repairs’ most recent report. For example, the average service visit to repair a fryer cost operators $735, and $1,000 for a walk-in cooler.
Longer lead times also plague restaurant operators with more downtime, limiting a restaurant’s ability to produce menu items. Restaurants nationwide spend $28 billion on equipment repairs and maintenance and $35 billion on new equipment each year, according to 86 Repairs.
The company has now raised a total of $24 million in investments since its founding. It manages repair and maintenance for more than 2,000 restaurant operators in the U.S. and Canada, ranging from upscale full-service restaurants to fast-food franchises.
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