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ChowNow 2024
Technology

ChowNow Acquires Cuboh, Lays Off Staff After Cuboh Acquisition

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ChowNow’s First Acquisition: Consolidating Orders and Simplifying Restaurant Operations

In a significant move, ChowNow, the online ordering platform and marketing service for local restaurants, has acquired Cuboh, a Y Combinator-backed point-of-sale (POS) platform that consolidates all orders from delivery apps into one place. This marks ChowNow’s first acquisition, which is expected to strengthen its POS integration solution and help restaurants tackle orders across multiple services.

The Acquisition: A Restructuring Effort with Layoffs

As part of the acquisition, ChowNow laid off around 30 employees, bringing the total workforce to 300. Meanwhile, Cuboh’s entire 30-person team — including marketing, sales, product, and engineering — is transitioning to ChowNow.

"We unfortunately did do a little bit of a layoff as part of the restructuring to best position us," ChowNow co-founder and CEO Chris Webb told TechCrunch. This comes after the company laid off 100 people in 2022. Webb later clarified that 60 people were laid off, but 30 people joined through Cuboh, resulting in a net loss of 30 employees.

Cuboh’s Notable Addition to ChowNow

Launched in 2012, ChowNow connects customers with local restaurants and helps businesses establish an online presence by providing custom online ordering systems and marketing support. It also offers a dispatch system that pairs restaurants with delivery drivers.

With Cuboh on board, restaurants can now manage their menus across all delivery apps from one place, mitigating the potential for errors and overall mayhem in the kitchen. Menus can be updated to reflect out-of-stock items and price increases, among other changes.

The "ChowNow + Cuboh" Bundle: A New Offering for Restaurants

Starting next week, restaurant owners can access a newly launched bundle, ‘ChowNow + Cuboh,’ for $275 per month. The bundle combines ChowNow Pro ($199), the company’s flagship product that handles all ordering, marketing, and operations, and Cuboh’s POS solution, which ranges from $100 to $200 a month.

This integration will enable restaurants to manage their orders and menu items more efficiently, reducing errors and increasing customer satisfaction.

The Future of ChowNow: Integrations and Expansion

In the future, ChowNow wants to build more integrations, such as one for catering services. "It’s getting back to the longer-term product vision of what we’re building, of being the only platform restaurants need for their entire takeout business," Webb said.

ChowNow is a profitable company that has raised around $80 million to date. The acquisition of Cuboh is expected to further solidify its position in the restaurant tech industry.

Related News and Developments

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Key Statistics and Facts

  • Over 20,000 small restaurants consider ChowNow as customers
  • More than 250 million online orders have been processed through ChowNow
  • The company has saved restaurants $700 million in commission fees
  • ChowNow is a profitable company that has raised around $80 million to date

ChowNow’s Mission and Vision

ChowNow’s mission is to connect customers with local restaurants and help businesses establish an online presence. With the acquisition of Cuboh, the company aims to further simplify restaurant operations and provide a more seamless experience for both restaurants and customers.

Conclusion

The acquisition of Cuboh marks a significant milestone for ChowNow as it strengthens its POS integration solution and helps restaurants tackle orders across multiple services. As the company continues to expand and integrate new features, it remains committed to its mission of simplifying restaurant operations and providing a better experience for both restaurants and customers.

Frequently Asked Questions

  • Q: What is ChowNow’s first acquisition?
    A: ChowNow has acquired Cuboh, a Y Combinator-backed point-of-sale (POS) platform that consolidates all orders from delivery apps into one place.
  • Q: How many employees were laid off as part of the acquisition?
    A: Around 30 employees were laid off, bringing the total workforce to 300.
  • Q: What is the "ChowNow + Cuboh" bundle and how much does it cost?
    A: The bundle combines ChowNow Pro ($199) and Cuboh’s POS solution (ranging from $100 to $200 per month), and costs $275 per month.