How MYR POS CEO David Nadezhdin grew MYR POS to $1.3M revenue and 400 customers in 2025.

hey folks my guest today is david nadir's den he's a tech monkey with over 15 years of experience he's intimately familiar with all aspects of project from concept to execution now building m-y-r-dot io a pos for limited service restaurants david you ready to take us to the top yeah well why not thank you what what is a limited service restaurant um okay well the number one point of a limited service restaurant is always think about the uh one fundamental thing you pay before you eat right a full service restaurant you're sitting down a waiter is coming you're there to have a good time and it's all about upselling if you're looking at a limited service restaurant the goal is how do i ensure to take as many orders as possible during either a morning rush a lunch rush a dinner rush whatever rush it may be but that's usually what happens so anything that's limited service you're going to be looking at how do i maximize the amount of orders i can input into a certain amount of window of time how many how can i minimize that and then how do i put the results as fast as possible i am in airports all the time and i'm i'm the one that shows up 20 minutes before takeoff and just challenges just dares them to take off without me and my favorite restaurants in the airports are the ones where you sit down i don't have to talk to any humans i push some buttons on an ipad i pay and my food comes out is that what you're powering uh we're power we're powering that we're also we're we're powering that and that's where it's going towards but what we're starting to see is that there's a huge niche in a huge segment a limited service restaurant that are simply not being uh catered to they're still being catered to with old they're not antiquated but enterprise based solutions you know much like ncr micros they're not being catered to really fundamentally with cloud-based systems and what what it is is take for example any mom and pop type of pizza chain right anybody who's still using a casio cash register they have a franchise across you know the united states or canada 400 locations and now they need to go into this digital world which is today's reality right everything has now changed especially with the pandemics that's like accelerated everything but how do you now deal with this plethora of not just lineups out the door but now you have orders coming in digitally you have orders coming from third-party integrations direct integrations uber eats and grub hubs and postmates and david who who are you replacing like what i mean why doesn't toast why isn't square why isn't par well you know why does why does an order mark why don't they handle this kind of stuff well because they've originally all started with well okay so let's let's go back i'm sorry square has started with fundamentally a general point of sale for everybody and anything right so they're they they're a point of sale that is all about a payments company if you're looking at actual pos like toast like lightspeed like touch bistro for example they were built and inherently servicing a full service market industry so naturally their technology stack didn't grow and evolve for what the actual limited service needs are when we originally started about 12 years ago with the tech stack and the only the company's only been founded five years ago we were approached wait wait how's that work how did you start 12 years ago but you were founded five well because i used to have my own digital studio and i used to develop a lot of applications and custom applications for different customers and a third-party uh third third wave coffee shop approached me and said we want to build a pos and that was the time when i said why do you want to build a pos i said go get one and they said none of them are doing what we need to be doing and this specific point of sale that they wanted was to say we want to mimic what starbucks has done we want to mimic what what mcdonald's has done right mcdonald's and starbucks back then there were full-service restaurants and chains and when these when these i mean i don't know if you remember still when you were walking on mcdonald's you would have a cash register system all of a sudden they switched over into their own best folk pos they didn't look at full-service restaurant technologies because those full-service restaurant technologies were not answering to their pain points got it and they built their own system so basically what we ended up doing is building 12 years ago a cloud-based pos that was solely focused on what mcdonald's was trying to deal with which is maximizing top line revenue not dealing with a single like location at a full-service restaurant which is why it's a pizza what's a pizza shop paying you all in today to monthly to use the technology on average a base price will go from 79 and we can go all the way to 299. i mean it really depends everything's a little card everything is you know you pay for what you need and this is something that's very unique in our system because if you're well david hold on real quick so what would you say the average i mean was the average like would the average be like 150 bucks a month something like that 129. 129. okay and is it just the is it just the flat sas here or do you take a percentage gmv as well we take on the transactions as well if they're going to take payment services via our system so we've gone agnostic much like vend has so as a pos provider we actually connect to as many different payment terminals as possible because we can obviously get access into their lead generation into their isos into their agents that actually have feet on the street and are talking to these chains that are talking to these restaurants that can then bring them on to our platform how much gmv is are throwing through all of your deployed devices today that's a good question uh i wasn't prepared for that but i would say north of 100 million right now monthly or annually annual yeah and that's across how many devices uh we have 1200 locations that are launched and in terms of devices most locations are averaging now two point of sale terminals in general okay got it so it's 2400 devices that you've effectively shipped um interesting okay let me get more of the backstory here real quick because some of the most successful sas founders the ones i appealing today they start off as an agency like you did 12 years ago so i love your founding story but i want to dive in because i see the big successes but i also see founders build a big agency that just doesn't millionaire and they get addicted to that revenue they never shut it down to build the bigger sas opportunity so tell me about that how big was your agency did you put it down we were we were at 45 employees i mean we're from canada so obviously you know we're a little bit smaller than in the states but we were we got up to about 45 employees we were doing everything from development to uh you know everything that had to do with digital creative so from emotion graphics to you know whatever whatever it was required around uh a campaign on a digital side what was biggest revenue year across the 45 2.5 million annually okay so that's not an easy thing to shut down no it's definitely not an easy thing to shut down um i shut it down because i just realized that i was going to burn out as a founder because you know dealing even with my partner i had a great team you know when you're running 20 different projects you're dealing with 20 different clients that have 20 different types of budgets 20 different understanding of what those budgets are of their of their technical requirements of their timelines of their modifications and it just never ends it's just it's a continuous cycle that you're always chasing after the revenue and i was like this doesn't make any sense because the active capital is nice but if i'm going to keep doing this well past my 40s one i hope i still stay relevant and two i can't i won't have the energy to keep chasing active passive uh active capital so i was like okay how do i turn this into a passive situation right passive capital is obviously the name of the game especially for sas i mean there's an active portion to it but once you establish your baseline you're making passive capital right like the the sweetest industry that i've ever seen is still uh merchant services anything that's in payments is phenomenally lucrative because totally totally yeah so close up the agency's story though so what did you did you shut it down um i shut it down with my partner we both we decided to part ways he wanted to go into a gamification type of sas model and i wanted to go down this path which was did you have to buy this technology from him or did he let you take it no we built it for a specific customer and that customer i ended up buying it from him oh i see interesting smart okay so what does the cap table look like today did you own 100 at the beginning of the sas company um i owned about 90 with certain partners and then now we're still with my two like two found like i guess co-founders when we decide to go serious about this we're now sitting still at 75 equity everybody else is sitting in common shares we have some great investors that came in uh one of our investors is lester fernandez who's the co-founder of pivotal payments co-founder and cfo pivotal payments they went public uh about i think a couple years ago maybe a little bit more at a five billion dollar market cap there they used to be nouveau now they're a payments company called pivotal uh he invested into us he sees he sees what...