ChowNow lays off 10% of staff

ChowNow Order Better Network
Just months after ChowNow laid off about 100 employees, the tech company laid off another 40 in December 2022 as delivery demand levels off. Permission granted by ChowNow

Dive Brief:

  • ChowNow has laid off about 40 people, or roughly 10% of its staff, the company confirmed Thursday in an email to Restaurant Dive. The news was originally reported by Restaurant Business.
  • ChowNow CEO Chris Webb said the layoffs were made in response to a leveling off of delivery demand “as the U.S has reopened” compared to a period of heightened demand during the peak of the COVID-19 pandemic.
  • The company laid off almost 100 employees in July across various teams, including onboarding, operations and sales.

Dive Insight:

During its last round of layoffs, Webb told Restaurant Dive that tech layoffs are occurring because executives are concerned about the increased cost of capital, and are preparing to weather any potential economic downturn that could last a few years. The Federal Reserve just increased interest rates again this week and said it could do so again in 2023, which will only make capital more expensive. 

“We have had to make the difficult decision to lay off team members this week. We are deeply grateful for their contributions and they will receive our full support during this time of transition,” Webb said in a statement. “These actions are never taken lightly, but we believe they are necessary in order to ensure the long-term sustainability of the company and our commitment to supporting local restaurants.”

Delivery demand showed signs of leveling off earlier this year after several quarters of explosive growth during the height of the COVID-19 pandemic. Americans are dining out more and becoming wary of the higher costs that come with delivery, according to NBC News

ChowNow isn’t alone in laying off employees. In November, DoorDash laid off about 1,250 employees after the company said it wasn’t disciplined enough about hiring and needed to reduce operating expenses. Other restaurant technology companies, including SundayNextbite and Reef, laid workers off earlier this year.

Clarification: This article has been updated to reflect the number of people ChowNow laid off. The company has let go about 40 employees.


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