New York-based Lunchbox, a food tech company that offers an online ordering system to restaurants, laid off 60 employees Thursday, Business Insider reports. The terminations impacted all divisions, including engineer and tech positions, and represent a 33% reduction — bringing LunchBox’s staff total to 120 employees. Lunchbox did not respond to a request for comment before press time.
Lunchbox joins a growing list of restaurant tech companies that have cut down their workforces as inflation and rising interest rates drive up the cost of capital. ChowNow, GoPuff, Nextbite and Sunday have all laid off employees in recent weeks, and DoorDash shuttered its Chowbotics division. These companies have secured significant venture capital investments over the years.
Lunchbox closed a $50 million Series B round in February, which was used to build out its team and product suite. The company has raised a total of $72 million since 2019, according to Crunchbase. Lunchbox acquired NovaDine, a digital ordering system for multi-unit restaurant companies, in June to enhance its offerings for enterprise chains. That same month, Lunchbox also offered free basic online ordering services for independents, and Lunchbox CEO Nabeel Alamgir told Business Insider it would continue to offer the service.
Alamgir told the outlet that much like other VC-capital backed startups, Lunchbox grew too quickly and will now focus on becoming cash positive and less reliant on investors.
In addition to online ordering, Lunchbox also provides loyalty and marketing services for chains like Mexicue, Fuku and Bareburger, according to Business Insider.
