EatClub brings in the AI, takes on split bills after $2.5m raise

A Sydney start-up founded by a nightclub manager has just raised $2.5m for an app that uses AI to help lock in meal discounts and split group dining bills.

EatClub’s Pierre White and Pan Koutlakis have raised $2.5m after introducing a new payment option which automatically applies restaurant discounts.

A Sydney hospitality start-up founded by a former nightclub manager is on a mission to stop the awkward interaction of splitting the bill once and for all after having raised $2.5m in capital.

EatClub, which allows customers to lock in discounts at its 2500 restaurant partners, has introduced a new internal payment option which is building out the ability to split a bill by instantly charging other app users.

The system would also automatically lock-in discounts for all diners of a group booking after one user had redeemed a deal.

“While there’s lots of issues operationally for a restaurant, on the customer side, it’s always a little bit awkward going into a restaurant with a voucher,” said founder Pan Koutlakis. “And there are certain occasions where you’re less likely to bring a voucher, like a business meeting or a date.”

EatClub was founded by Mr Koutlakis in 2017 after he’d spent several years working in bars and restaurants while studying law and economics.

EatClub was also looking to partner with cinemas, introducing deals that would discount both the costs of a ticket as well as a meal at a nearby venue.

The latest raise was a bridging round from existing investors, Sydney-based VC firm Equity Venture Partners and investment fund ALIUM Capital.

Mr Koutlakis said the round required little effort on EatClub’s part, as the start-up was less than a year away from profitability.

“So not a whole lot of convincing. They have seen the body of our work now for a while and they want to make sure that we’re able to realise our ambitions and their ambitions as well,” he said.

The new capital arrives as the start-up is set to double down on marketing and sales over the next 12 months in a bid to become profitable.

It also has big plans beyond its current business model – which allows customers to lock-in discounts of between 15 to 50 per cent off at restaurants via a mobile app.

Mr Koutlakis said EatClub was about to introduce a dynamic pricing model in which its AI engine would assess a restaurant’s bookings and consider the weather and nearby events to determine what kind of deals would bring the most customers to its store.

It would provide larger discounts on days when it was raining in a bid to bring customers in.

The next step for the business was to consider selling packages. “We have our sights set much broader than hospitality but taking it one step at a time,” Mr Koutlakis said.

“On the EatClub platform, a customer who has jumped on and booked dinner might then be prompted to drink at a bar nearby before or after their reservation.”

EatClub was also looking to partner with cinemas, introducing deals that would discount both the costs of a ticket as well as a meal at a nearby venue.

“Cinemas have the exact same issues as restaurants. Once they put the movie on, the cost is the same whether the cinemas are full or half empty,” Mr Koutlakis said.

“The marginal cost of an extra person sitting in that cinema is extremely low which shows cinemas can discount tickets quite heavily.”

Investors were impressed with the recent addition of a predictive artificial intelligence engine as well as EatClub Pay, its new payment method.