Toast files for IPO; xtraChef founders to benefit?

Tom Paine

Toast, the Boston-based restaurant management cloud startup, finally announced its filing for an IPO that may value the company at as much of $20 billion per reports. Toast would trade on the NYSE under the symbol “TOST”.

In addition to functioning as a sort of ERP for individual restaurants, Toast also helps its customers manage delivery services, maintaining control over the various food delivery vendors they deals with.

Toast reported $704 million in revenue in the first half of 2021, a 105% gain over the worst period of the pandemic last year.

At the beginning of the pandemic, Toast was thinking about survival, cutting half its staff. But by November of last year, Toast was recovering, reaching an $8 billion valuation.

Locally, Toast’s major impact comes from its acquisition of Philly-based xtraChef, which it purchased in early June of this year. xtraChef provides cost and productivity analysis tools specific to restaurants.

While I haven’t seen a breakdown of xtraChef’s acquisition terms, a slice of Toast’s equity could make this exit a very good outcome for xtraChef and its cofounders Andy Schwartz (CEO) and Bhavik Patel (CTO), who both remain witb xtraChef in their existing positions.