Layoffs hit one other restaurant know-how firm

Lunchbox’s crew 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 lower 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 shortly and the layoffs impacted all departments,” stated Head of Advertising and marketing Dexter Chu in an e 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 provides 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 troublesome choice to scale back our workforce,” Alamgir wrote. “This was robust for all of us, however particularly for many who we’ve parted methods with. These individuals have been pals, colleagues, and fogeys.”

It’s the newest restaurant tech supplier to make cutbacks after a frenzy of enterprise capital-fueled progress, becoming a member of Reef, Nextbite, Sunday and ChowNow. The development isn’t restricted to the meals trade: Tech firms large and small have been shedding staff all 12 months within the face of an unsure financial system and impending recession.

Business observers stated restaurant tech firms are buckling down after rising shortly 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.

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