SHOUTOUT: Arc, AI Drive-Thru Platform for QSR Operators, raises $10.76 Million Seed Led by Andreessen Horowitz
Every so often a company takes something we've all driven past a thousand times and makes us see it completely differently. This week, that company is Arc, and I'm proud to share that Branded has formally partnered with the team turning the drive-thru into a genuine growth channel.
Let's start with why this matters.
The drive-thru isn't a side door. For quick-service restaurants (“QSR”), it is the front door. It generates up to 70% of fast-food sales, and in a business that runs on razor-thin margins, that lane is where the money gets made or left on the side of the road (too much?).
Roughly 95% of guests say fast service is critical, and the drive-thru is where that need for speed and convenience gets answered. It serves more people than any dining room could seat, trims the cost of tables and floor space, and welcomes guests including busy parents, folks with mobility challenges, anyone who can't easily walk in (and who might otherwise drive right past).
So, the drive-thru matters. The problem is that most operators have been running it blind.
That's the gap Arc closes.
Arc is the first voice AI platform built to run, optimize, and grow the drive-thru like a digital channel (not just automate it). And that distinction is everything. Arc's proprietary AI agents are trained on thousands of real orders, handle accents, background noise, and complex customizations at 95%+ accuracy, and sit on top of a full intelligence layer: AI-powered upselling, real-time accuracy tracking, automated A/B testing across locations, and a live dashboard (Arc Observe) that shows operators exactly what's working and what isn't.
The numbers are the part that makes an investor sit up. Arc customers see 3 - 7% increases in average order value, 5 - 10% improvements in order accuracy, and meaningful labor freed up every shift. This is all done with zero negative impact on guest satisfaction or line speed.
Do me a favor and read that last part again: faster lines, fewer mistakes, more revenue, happier guests. That combination is rare.
Thank you.
Just as important for operators, there's nothing to rip out. Arc plugs directly into the major POS systems (NCR, Toast, Par/Brink, Oracle Micros, Xenial and more). There’s no new hardware to buy and no disruption to existing operations. Menus, LTOs, and 86'd items update in minutes. Your crew can talk to Arc in real time. Kickoff to pilot runs about eight weeks, with no cost until deployment. Low risk, high leverage and exactly how technology should walk into a restaurant.
Arc is backed by a serious bench including Andreessen Horowitz, Adverb, Broadway Restaurant Group, and United Talent Agency, and led by founders who build for operators first.
That operator-first DNA is exactly why this partnership made sense to us.
The best restaurant technology doesn't replace the operator's judgment. It amplifies it. Arc does exactly that, turning every order into data, and every drive-thru into a smarter one.
Welcome to the village, Arc. Excited to build this one together.
If you’d like to learn more about Arc, please click here or contact me directly.
