Online restaurant-order platform ChowNow announced this week it has closed a $21 million Series C funding round. The round included growth-equity firms 3L Capital and Catalyst Investors, and brings ChowNow’s total funding to $60 million.
The ChowNow system powers the online ordering and delivery process for smaller, independent restaurants, either integrating with a restaurant’s own app or website or by creating those digital properties for the business. The company’s biggest selling point is that it doesn’t gobble up a hefty commission fee from the restaurant for each order like other third-party delivery services. Rather, restaurants who participate with ChowNow pay a flat monthly fee. ChowNow also promises restaurants they can keep their own data and branding in the process.
…One area ChowNow could prove valuable is with small neighborhood restaurants who want to focus more on takeout than actual delivery. If a restaurant is in the process of building a delivery strategy but isn’t quite ready to pull the switch, using a system like ChowNow’s might be a less-risky way to test out off-premises orders.