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Objective Logistics raises VC to gamify restaurant waitstaffs

July 18, 2013: 12:07 PM ET

image001 (1)Objective Logistics raises $5.3 million to grow its waitstaff management platform.

FORTUNE -- If you've ever worked in a bar or restaurant, you know that there are certain shifts and sections that are more desirable than others. And you also know that getting a good schedule is capricious at best, and at worst based on how much managerial butt you can kiss.

But Philip Beauregard is working to upend that dynamic through Objective Logistics, a Massachusetts-based provider of "talent optimization" software that helps better manage and reward workers.

The company today is announcing that it has raised $5.3 million in its second round of venture capital funding. Atlas Venture led the deal, and was joined by Google Ventures (GOOG) and NextView Ventures. It previously raised $2.3 million from the same firms.

Objective Logistics currently is operating in nine mid-sized restaurant chains, including Not Your Average Joe's and Five Napkin Burger. Beauregard said that he first wanted to roll out the system to chains with fewer than 40 locations before trying to get large client wins like a Darden Restaurants (DRI).

"That's obviously where we want to ultimately be, and we've had a lot of inbound interest from larger players, but we've really wanted to improve the system and expand its capabilities first."

The company claims that its clients are seeing between 2% and 8% increases in top-line sales, in large part because it improves self-motivation within a high-turnover workforce. It also helps managers better weed out poor performers.

Objective Logistics also is working to adapt the platform for related sectors, like fast-casual and retail, although worker rewards there may be more about things like gift cards than prime shifts.

Beauregard declined to provide a valuation for the new round. He says that Objective Logistics did hold preliminary conversations with some Silicon Valley venture firms, but that they indicated an interest in investing more money than Beauregard felt the company requires at this point in time. "Maybe we'll come back to them for the big Series C round," he says.

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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