Magic raises US$10M in seed funding to enhance its AI solutions for restaurants

GLOBAL – Magic, a provider of AI-driven solutions for the restaurant industry, has secured US$10 million in seed funding to develop new products and expand its technological capabilities.

The financing round was led by prominent venture capital firm Lerer Hippeau.

Other participants included Bling Capital, Floodgate, and strategic investors such as the Major Food Group and VCR Group, a hospitality company associated with entrepreneurs Gary Vaynerchuk and David Rodolitz.

Founded by Maggie Tang, Magic’s flagship product, Loyalist, is an AI-powered customer relationship management (CRM) platform designed specifically for restaurants.

The platform integrates data from reservation systems, point-of-sale, private event management, and social media to create real-time customer profiles.

This enables restaurants to personalize guest experiences, tailor marketing strategies, and improve customer retention by understanding dining habits, preferences, and visit frequency.

Magic’s technology allows businesses to send targeted marketing messages that match the restaurant’s unique brand voice, encouraging repeat visits and fostering guest loyalty.

Its growing user base includes major hospitality groups like Major Food Group and acclaimed restaurants such as Le Bernardin, Cosme, and Momofuku, demonstrating its ability to cater to high-end operations.

CEO Maggie Tang brings firsthand industry experience from elite dining establishments and a vision for modernizing restaurant technology, which often lags behind other sectors in leveraging customer data.

The new funding will accelerate Magic’s product innovation, expand its market reach, and further develop its AI capabilities to make personalized hospitality accessible at scale.

By integrating AI into everyday restaurant operations, Magic aims to enhance both customer satisfaction and operational efficiency, marking a major step forward for the hospitality sector’s digital transformation.

Artificial intelligence is revolutionizing the restaurant industry by transforming operational efficiency and customer engagement.

Many restaurants leverage AI to offer personalized dining experiences, analyzing customer preferences for tailored recommendations.

AI-powered systems forecast demand, optimize staffing, and dynamically adjust pricing to boost profitability. Automation in kitchens reduces errors and accelerates food preparation, improving consistency and reducing wait times.

Contactless ordering, powered by AI, enhances convenience while enabling data-driven marketing strategies.

Globally, AI adoption fosters innovation by reducing waste, improving supply chain management, and enabling new service models like ghost kitchens.

As the industry embraces AI, restaurants can adapt more swiftly to evolving consumer needs and competitive pressures, ensuring sustained growth and enhanced guest satisfaction.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.