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EAST LANSING, Mich. — Michigan Rise announced today it has invested in 86 Repairs, a Grand Rapids-based software startup founded in 2018 by serial entrepreneurs Daniel Estrada and Joe Gallagher. 86 Repairs works with restaurant and ghost kitchen operators, including brands such as 4 Rivers Smokehouse, Sonic Drive-Ins, and McDonald’s, to manage their repair and maintenance issues.
Restaurants spend 3% of annual revenue on repairs and maintenance, translating to over $26 billion spent annually on repairs. Now more than ever, it’s paramount for restaurant operators to deliver the highest quality of service and maintain consistent uptime of their kitchens through delivery, carryout, and limited on-premise revenue streams. Those in the hospitality industry know that getting things fixed in a busy commercial kitchen is a complex, frustrating, and expensive process. With 86 Repairs, restaurant operators recover valuable lost revenue and can focus their time on doing what they do best – serving their customers.
“We have been following 86 Repairs’ progress for a while and have been very impressed by the founding team’s deliberate approach to solving an intractable and frustrating pain point in the restaurant industry”, said Jeff Wesley, Executive Director at Michigan Rise Pre-Seed Fund III. “We are looking forward to joining other value-added investors as part of this funding round and be a part of the company’s exciting trajectory.”
With data derived from 86 Repairs’ machine learning algorithms, restaurant group managers can access total cost of ownership of equipment, assess equipment reliability, make strategic repair vs. replace decisions, get information on the most reliable service providers in their area, and much more.
“Disrupting established workflows and getting a foothold in the restaurant industry is extremely difficult, but 86 Repairs has demonstrated stickiness with customers even during COVID and continues to grow. Restaurant groups are looking to leverage technology solutions as force multipliers, and 86 Repairs does precisely that”, said Prem Bodagala, Director at Michigan Rise.
86 Repairs is a graduate of the 2019 cohort of the Food Foundry, a Chicago-based growth accelerator program by Relish Works built in partnership with Gordon Food Service and 1871. The company previously raised $1.5 million in a round led by Ann Arbor-based VC firm Tamarind Hill. Other backers in the company include Invest Detroit Ventures, Gordon Food Service, Network Ventures, MATH Venture Partners, and M25 Ventures.
“We’re very proud to have the support of Michigan Rise,” said Daniel Estrada, Co-Founder & CEO, 86 Repairs. “As 86 Repairs continues to grow, we’re fortunate to partner with great people like Jeff and Prem, and the MSU ecosystem.”
