🍻 Toast - The Ultimate Vertical SaaS For Restaurants

The median bootstrapped B2B SaaS company currently spends around 90% of its annual recurring revenue on costs—25% on go-to-market strategy and execution, 24% on research and development, 15% on administrative and miscellaneous expenses, 13% on website hosting and implementation, and 10% on customer retention. Each of these categories of cost is now... See more

But with SaaS + fintech, a vertical SaaS company can capture a customer’s traditional software spend as well as the spend on employee and financial services.

While selling into the finance department has historically been a daunting task due to large incumbents in the category, we believe the next-generation of finance software has arrived. There’s a huge opportunity ahead for vendors who identify critical components of the finance workflow that have been grossly underserved by technology.

Blackbird Pay is a no-brainer. Lowering payment processing fees from 3-4% to 2% improves profitability in both the short-term and long-term. Faster turnover improves profitability in both the short-term and long-term. Restaurants will adopt Blackbird for Blackbird Pay, in order to get back 1-2% of margin, which in some cases, might mean doubling ma... See more

Let’s assume the average vertical SMB customer spends about $1,000/month on software and services. Of that, $200 per month will typically be on traditional software (e.g., ERP, CRM, accounting, marketing), and the rest on other financial services (e.g., payments, payroll, background checks, benefits). In a traditional vertical SaaS business, the on... See more