Layoffs hit one other restaurant know-how firm

Lunchbox’s group had grown to as many as 250 individuals as of February. / {Photograph} courtesy of Lunchbox

UPDATE: This story has been up to date with a remark from Lunchbox.

Restaurant know-how layoffs have come for Lunchbox.

The fast-growing on-line ordering firm reduce a 3rd of its employees final week, CEO Nabeel Alamgir wrote on LinkedIn, particularly in its engineering, buyer success, advertising and supply departments.

“Lunchbox had grown too rapidly and the layoffs impacted all departments,” mentioned Head of Advertising Dexter Chu in an electronic mail.

The information was first reported by Enterprise Insider.

The New York-based firm has raised $70 million since October 2020 and had grown its headcount from 50 individuals to 250 as of February. It had additionally made two acquisitions in Unfold and Novadine.

Lunchbox presents on-line ordering, advertising, loyalty and integration instruments for eating places. Since elevating $50 million in February, it has been within the technique of increasing its horizons past midscale eating places to incorporate massive chains in addition to mom-and-pops.

“Yesterday, we made an extremely tough resolution to scale back our workforce,” Alamgir wrote. “This was powerful for all of us, however particularly for many who we’ve parted methods with. These individuals have been mates, colleagues, and oldsters.”

It’s the most recent restaurant tech supplier to make cutbacks after a frenzy of enterprise capital-fueled development, becoming a member of Reef, Nextbite, Sunday and ChowNow. The pattern will not be restricted to the meals business: Tech corporations massive and small have been shedding staff all yr within the face of an unsure financial system and impending recession.

Business observers mentioned restaurant tech corporations are buckling down after rising rapidly over the previous two years and with out extra funding in sight. Enterprise capital corporations have warned they’ll need to be extra conservative and urged startups to chop prices to get by means of the financial downturn.

Members assist make our journalism attainable. Change into a Restaurant Enterprise member in the present day and unlock unique advantages, together with limitless entry to all of our content material. Join right here.