Cinnaholic Sues Pos Provider Revel Over ‘Debilitating’ Outages

Cinnaholic, a popular vegan cinnamon roll chain, has filed a lawsuit against Revel Systems, a leading point-of-sale (POS) provider, alleging that the company’s “debilitating” outages have caused significant financial losses and disrupted business operations.

In the lawsuit, filed in the United States District Court for the Northern District of California, Cinnaholic claims that Revel’s POS system has experienced frequent and prolonged outages, resulting in lost sales, damaged reputation, and wasted resources. The lawsuit seeks damages and injunctive relief, alleging that Revel’s failures have breached their contractual agreement and violated California’s Unfair Competition Law.

Cinnaholic, which operates over 40 locations across the United States and Canada, began using Revel’s POS system in 2018. Initially, the system seemed to meet the company’s needs, providing a user-friendly interface and robust reporting capabilities. However, over time, Cinnaholic alleges that Revel’s system began to experience frequent outages, often lasting several hours or even days.

These outages, according to the lawsuit, have had a devastating impact on Cinnaholic’s business. During outages, the company is unable to process transactions, manage inventory, or access critical business data. This has resulted in lost sales, as customers are unable to make purchases during peak hours. Furthermore, the outages have damaged Cinnaholic’s reputation, as customers are left frustrated and disappointed by the inability to complete transactions.

The lawsuit also alleges that Revel’s customer support has been inadequate, with the company failing to provide timely and effective solutions to the outages. Cinnaholic claims that Revel’s support team has been unresponsive, leaving the company to fend for itself during critical periods.

Cinnaholic is seeking damages for the financial losses incurred as a result of the outages, as well as injunctive relief to compel Revel to take immediate action to rectify the issues. The company is also seeking a declaration that Revel has breached their contractual agreement and violated California’s Unfair Competition Law.

This lawsuit highlights the critical importance of reliable POS systems for businesses, particularly those in the food service industry. A POS system is the lifeblood of a restaurant or bakery, providing the infrastructure for transactions, inventory management, and customer data. When a POS system fails, the consequences can be severe, resulting in lost sales, damaged reputation, and wasted resources.

The lawsuit also raises questions about the accountability of POS providers, who often have a significant impact on the success or failure of a business. As the food service industry becomes increasingly reliant on technology, it is essential that POS providers prioritize reliability, security, and customer support.

In a statement, Cinnaholic’s CEO, Florian Radke, said, “We are disappointed that Revel’s failures have forced us to take legal action. We believe that Revel has a responsibility to provide a reliable and functional POS system, and we will not stand idly by while their outages continue to harm our business.”

Revel Systems has not commented on the lawsuit, but the company has faced similar complaints from other customers in the past. As the lawsuit moves forward, it will be interesting to see how Revel responds to the allegations and whether the company will take steps to address the issues raised by Cinnaholic.

In the meantime, Cinnaholic’s lawsuit serves as a warning to businesses to carefully vet their POS providers and to prioritize reliability and customer support when selecting a system. As the food service industry continues to evolve, it is essential that POS providers prioritize the needs of their customers, providing systems that are reliable, secure, and functional.