New York-based Lunchbox, a food tech company that offers an online ordering system to restaurants, laid off 60 employees on Thursday, Business Insider reports. The layoffs affected all divisions, including engineering and technician positions, and represent a reduction of 33%, bringing LunchBox’s total workforce to 120 employees. Lunchbox did not respond to a request for comment before press time.
Lunchbox joins a growing list of restaurant technology companies that have downsized as inflation and rising interest rates drive up the cost of capital. Chow Now, GoPuff, next bite and Sunday have all laid off employees in recent weeks, and DoorDash closed sound 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 bolster its team and product line. The company has raised a total of $72 million since 2019, according to Crunchbase. Acquired lunch box NovaDine, a digital ordering system for multi-unit catering businesses, in June to enhance its offerings for corporate chains. That same month, Lunchbox also offered free basic online ordering services for freelancers, and Lunchbox CEO Nabeel Alamgir told Business Insider it will continue to offer the service.
Alamgir told the outlet that, like other venture capital-backed startups, Lunchbox has grown 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.