CAKE Acquisition: Key Details, Impact, and What Comes Next

Mad Mobile's acquisition of CAKE, a Sysco company, marks a significant development in the restaurant technology sector. This strategic move aims to enhance Mad Mobile's mobile-first vision, integrating CAKE's established POS solutions to better serve over 5,000 restaurant locations. The acquisition underscores the growing importance of mobile technology in modernizing restaurant operations, especially in the wake of the COVID-19 pandemic.

What Is CAKE?

Founded in 2011, CAKE offers a comprehensive suite of point-of-sale solutions tailored for the restaurant industry. Its core products include the CAKE Point of Sale, CAKE Pay, AI Reporting, and self-service kiosks. CAKE differentiates itself with its ease of use, 24/7/365 US-based support, and a wide range of integration capabilities. The system is designed to streamline operations, enhance customer experience, and provide real-time insights, making it a versatile choice for various restaurant types.

Who Acquired CAKE?

Mad Mobile plays a pivotal role in the restaurant and retail technology sectors, offering solutions that enhance operational efficiency and customer experiences. Key products include "CAKE for Restaurant," featuring tableside and online ordering, and "Concierge for Retail," which offers mobile POS and clienteling tools. The company is recognized for its advanced technology solutions and is trusted by leading businesses, underscoring its significant influence and established presence in the market.

When Was CAKE Acquired?

Mad Mobile's acquisition of CAKE was announced on August 10, 2020, and the transaction was expected to close by September 30, 2020. This acquisition occurred during the COVID-19 pandemic, a period that significantly accelerated the adoption of mobile technology in the restaurant industry. The timing underscores the strategic importance of integrating CAKE's solutions to meet the urgent need for contactless services and mobile-first experiences in restaurants.

Why Was CAKE Acquired?

• Market Expansion: The acquisition of CAKE by Mad Mobile significantly broadens Mad Mobile's customer base, as CAKE's POS solution is already in use at over 5,000 restaurant locations. This move allows Mad Mobile to support CAKE's existing customers while introducing new modules such as Mobile Ordering, Contactless Payment, and Curbside Pickup.
• Technology Integration: By integrating CAKE's technology with its own mobile platform, Mad Mobile aims to deliver a next-generation POS solution tailored for restaurants. This integration will modernize restaurant operations with features like Mobile Ordering and Contactless Payment, which are increasingly important in the post-COVID-19 landscape.
• Competitive Advantage: The acquisition strengthens Mad Mobile's competitive position by providing access to CAKE's advanced technology, extensive customer base, and experienced workforce. This strategic move enables Mad Mobile to offer a more comprehensive and modernized restaurant experience, giving it a significant edge over competitors in the restaurant technology market.

Acquisition Terms

• Acquisition Price: The financial terms of the deal were not disclosed.
• Payment Method: The payment method is not specified in the available information.
• Key Conditions or Agreements:
  • The transaction is expected to close by September 30, 2020.
  • Mad Mobile will fully support CAKE's existing customer base while expanding the CAKE offering to include new modules such as Mobile Ordering, Contactless Payment, and Curbside Pickup.
  • Sysco will focus on its digital transformation, including its e-commerce platform, as a result of this transaction.
  • Mad Mobile will combine its mobile platform with CAKE technology to deliver a mobile-first POS solution for restaurants.

Impact on CAKE

The acquisition of CAKE by Mad Mobile has led to significant changes in operations and management. Mad Mobile has integrated CAKE's technology and customer base, aiming to deliver a next-generation POS solution with modern architecture and mobile capabilities. Sysco, the former owner, will now focus on its digital transformation and e-commerce platform. This strategic shift allows Mad Mobile to support CAKE's existing customers while expanding its offerings to include new modules such as Mobile Ordering, Contactless Payment, and Curbside Pickup.

Employee reactions to the acquisition have been positive, with CAKE employees ready to help achieve Mad Mobile's vision. This enthusiasm is echoed by Bruce Bennett, CEO of Mad Mobile, who praised the acquisition for its technology, customer base, and workforce. While direct customer reactions are not extensively documented, the commitment to fully support CAKE's existing customer base suggests a focus on maintaining and improving customer satisfaction. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.