Tandem, Kutlerri.ai raise money for AI agents that do restaurant work

Based on the companies' announcements and websites, and reporting by Restaurant Business, Food On Demand and Restaurant Technology News.

If catering inquiries sit unanswered because nobody has time to call back, or food costs creep up before anyone notices, two startups that announced funding in late September say AI agents can take on that work.

Kutlerri.ai announced $4 million in funding on Sept. 30 (Food On Demand). Tandem announced a seed round on Sept. 22 (Tandem). Both build AI agents: software that carries out tasks rather than just reporting data.

Tandem

Tandem launched with what it called an "initial seed financing" but didn't disclose the amount (release). Its co-founders, CEO Andrew Schwartz and Bhavik Patel, built xtraCHEF, an invoice software company they sold to Toast in 2021, Restaurant Business reported. Chef and restaurateur Michael Schulson joined as a founding partner (release).

Tandem connects to a restaurant's existing software, pulls that data into one database and trains agents on specific tasks, Restaurant Business reported. One example: an agent that watches cost of goods and alerts the operator when it rises above a target. Schwartz said the AI has done best so far at forecasting.

The company is piloting Tandem free with 100 restaurant locations, according to Restaurant Business. Neither the company nor Restaurant Business named them.

Tandem hasn't published a price. Schwartz told Restaurant Business it plans a flat monthly fee that covers a set amount of use, with extra charges above that: "let's say it's $99 a month," he said.

Kutlerri.ai

Kutlerri.ai's $4 million round was led by Narahari Investments, Food On Demand reported. It was founded by Kiran Rana and Payal Tripathy, according to Restaurant Technology News, and its contact page lists an address in Stafford, Texas.

Its one product in general release is a catering sales agent. It answers calls, emails, web forms, texts and chats, sends quotes and finds catering-fit businesses within 30 miles to contact (Food On Demand). Agents for delivery-app sales, delivery-app ad spending and prime cost (food and labor costs) are in beta, Restaurant Technology News reported.

Kutlerri.ai runs the agents for restaurants and charges "a percentage of the catering orders it generates," with no charge if there are no orders (case study). It doesn't publish the percentage. "We price to the size of your business and the scope you hand over," its website says.

The company's main example is RASA, a five-location fast-casual group around Washington, D.C., where nobody had time to answer every catering inquiry or follow up with past customers, according to Kutlerri.ai's case study. People stayed involved there: Kutlerri.ai's team made the calls and checked AI-drafted quotes, and RASA approved them.

Kutlerri.ai says its agent closed $450,000 in new catering revenue for RASA over 10 months, more than 10 times what RASA paid (case study). That is a company-reported sales figure, not profit. Trisha Narahari, whose firm led the round, is a RASA board member, Food On Demand reported.

What to ask before you try one

1. How exactly is the fee figured? For a results-based fee, does it count repeat orders, customers you already had, cancellations and refunds?
2. What will it do without my approval? Send messages, place orders or quote prices?
3. What systems and data does it connect to, and can I take my data out if I stop?
4. Who fixes it when it gets something wrong?