Main Munchery
Cafe · New Port Richey ·
Fresh cafe with delicious sandwiches, breakfast, and treats
Fresh cafe with delicious sandwiches, breakfast, and treats
"A San Francisco–based meal delivery service that once raised more than $125 million at a $300 million valuation has shut down operations entirely and laid off hundreds of local workers immediately. Munchery announced via email that it is closing its doors effective immediately and that any outstanding orders will be canceled and refunded. Its final product was simple: meal kits and pre-made meals for breakfast, lunch, and dinner priced roughly $9–$14, with a membership option ($9 monthly or $85 yearly) that offered 20% off. The nine-year-old startup expanded to New York, Los Angeles, and Seattle before contracting back to the Bay Area (by spring 2018); at one point in 2016 it produced far more meals than customers purchased, losing as much as $5 million a month in unsold meals, and in 2017—after taking funding from backers including Menlo Ventures and Sherpa Capital—it pulled back and laid off about 30% of its workers (roughly 250 people). Its collapse is the latest in a string of meal-delivery startups to fold, alongside companies such as Sprig, Spoonrocket, and Bento." - Caleb Pershan
"A San Francisco–based food startup that launched locally in 2010, Munchery has shut down operations in New York, Los Angeles, and Seattle and retreated to just the Bay Area. I understood the company announced the move alongside a reduction of 30 percent of its workforce—more than 250 workers laid off—and CEO James Beriker wrote he was “saddened by this development,” while saying the team will “focus on growing our business in San Francisco.” The company delivered fully prepared meals on-demand from its commissary kitchen, and according to Crunchbase had raised more than $125 million, though it was reportedly losing as much as $5 million a month in unsold meals in 2016; in 2017 it cut 30 of its then-900 San Francisco employees in a “normal course adjustment” even as Beriker projected national expansion. A source familiar with Seattle operations said that market was too small to be successful and never gained traction after an initial sales spike following a later series investment of $85 million. I see this retreat as further evidence that the food-delivery market is difficult to prosper in—other players like Sprig (which shut down despite $57 million in funding), Bento, and Spoonrocket met similar fates, though companies like Thistle continue—and Beriker nonetheless concluded on a positive note: “I fundamentally believe in the opportunity that exists in food e-commerce, fresh food production and home delivery — and in our position as a leading innovator in this market.”" - Caleb Pershan
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