Axial Shift, a restaurant software startup backed by Ellis Winstanley, the owner of El Arroyo, has recently raised $4 million in seed funding to expand its operations. This platform distinguishes itself through the use of gamification principles, a strategy that applies elements commonly associated with games, such as scoring systems and competitive elements, to contexts outside of traditional gaming.
Axial Shift’s primary claim to fame lies in its capacity to encourage positive behaviors by employing transparency and fostering healthy competition, all while tapping into fundamental principles of human psychology. By making these behaviors more engaging and rewarding, the platform aims to drive better outcomes in the restaurant industry.
Axial Shift’s platform introduces gamification elements for servers, including competitions to achieve higher tip rates, sales contests, and the establishment of winning streaks. The company envisions gamification as a means to make frontline service jobs more engaging and appealing, ultimately leading to improved staff retention rates.
However, not all service industry workers view this approach positively. The Texas Service Industry Coalition, for instance, expressed a contrasting opinion on Instagram, suggesting that an alternative solution to enhancing the work environment and supporting service workers could involve treating them with respect and offering a living wage. This response highlights the ongoing debate within the service industry regarding the most effective and ethical ways to motivate and retain employees.
The introduction of gamification for restaurant workers comes at a time when advocacy groups, such as One Fair Wage, are pushing for higher wages in the industry, aiming for a base pay of $15 per hour with tips on top. In Texas, where the reliance on tips is significant, employers are only required to pay tipped employees a minimum direct wage of $2.13 per hour if the total earnings, when combined with tips, at least equals the federal minimum wage.
For managers, Axial Shift’s platform offers tools to set goals for frontline teams and access real-time data, including tip percentages, sales mix, and the performance of specific items sold by team members or at various locations. This feature enables better oversight and decision-making, potentially leading to improved customer service and profitability.
Silverton Partners, based in Austin, Texas, provided the funding for Axial Shift, expressing confidence in the platform’s potential to drive higher sales growth in the restaurant industry. Mike Dodd, a general partner at Silverton Partners, highlighted the exciting opportunity Axial represents, believing it has the potential to bring positive transformation to the industry.
This financial support comes approximately a year after El Arroyo announced its expansion plans across Texas. While Ellis Winstanley serves as the founder of Axial Shift, the leadership team includes individuals with a background in HotSchedules, a company offering workforce, inventory, and operations management services for the restaurant and hospitality sector. Justin Buckley serves as CEO and President, while Matt Woodings holds the position of Chief Technology Officer. With this experienced team and funding in place, Axial Shift aims to make a meaningful impact on the restaurant industry.
Gamification has gained popularity across various work settings, with proponents arguing that it can enhance employee performance. However, it has also faced criticism from some workers who liken it to practices seen in dystopian portrayals, such as the “Fifteen Million Merits” episode of Black Mirror.
In the gig economy, gig workers, such as those employed by ridesharing apps, have encountered gamification elements where apps reward drivers with badges for delivering quality service.
For instance, San Antonio-based Salesforce partner 6 Street Digital has provided a gamification tool to the cloud software company Salesforce. This tool allows workers to earn points and access leaderboards, potentially creating a more engaging and competitive work environment. However, the use of gamification in the workplace remains a topic of debate, with varying perspectives on its effectiveness and ethical implications.
Axial Shift has attracted customers in Houston, including Mendocino Farms, a deli with a presence in Houston’s Rice Village, and the fast food chain Chicken Express. These businesses are using Axial Shift to enhance the quality and timeliness of information provided to their operations teams. Brian Pearson, CTO of Mendocino Farms, expressed the value of Axial Shift in reimagining ways to drive new value within their operations. This suggests that Axial Shift is finding utility and support among restaurant businesses in Houston.
