Reeco has officially launched its solution - a marketplace connecting hospitality buyers and suppliers - and raised $10M in seed funding. Supported by investors including Net Capital Ventures, Joule Ventures, Eynat Guez, CEO of Papaya Global, and other noteworthy angel investors, the AI-powered platform offers a convenient way for hotels and hospitality establishments to order F&B and cleaning supplies while considerably reducing costs.
The hospitality industry has been hard hit by pandemic-related supply chain issues, with 86% of hoteliers reporting that it adversely affected their operations. As the sector works to claw its way back, hotels struggle with procurement due to rising prices and ongoing shortages. Eyal Goldberger, former Area General Manager of AC Marriott and Element Brickell Miami hotels, aptly summed up the ordeal: "If a hotel can't get eggs to serve for breakfast, that has a knock-on effect on the entire guest experience. He explained that 30% of orders couldn't be met by suppliers and finding alternatives is not as simple as just heading down the street — often requiring laborious manual processes and filling out forms in triplicate.
Reeco simplifies shopping for thousands of products. their online store enables buyers to select the items they need, and their cutting-edge system automatically finds the best suppliers based on price, availability, and delivery dates. They also divide orders between as many as four providers to guarantee the lowest cost and quickest fulfillment while allowing customers to finalize their purchase in one place and get a single invoice. This innovation has cut ordering time by 80% and usually results in savings of 19% per order.
"Reeco was built for the unsung heroes of hospitality," said Henrik Shimony, Reeco co-founder and CEO. "As a hotelier who has worked in every role, from the front desk to the back office, the purchasing department was always the most neglected. This makes no sense, considering hotels' largest expenses originate there. Reeco helps mitigate supply chain issues and food waste by using AI-driven insights into purchasing habits."
"I've been in the hospitality business a long time and never seen a product quite like Reeco," said Nick Murray, VP of Food & Beverage at Shaner Hotels. "Reeco eliminates inefficiencies from the back office, saving substantially on both time and costs across the board. I feel confident saying unequivocally that Reeco is the future of procurement for hotels."
In 2022, the Tel Aviv, Israel-based company added Miami, Florida, as its United States headquarters location. Reeco counts Playa Largo Resort - Autograph Collection, Hilton Aventura, The Even Hotel, hotel management company Shaner Hotel Group, and Marriott and Ramada hotels among its customers.