Restaurant365, a provider of back-office software for restaurant chains, laid off about 9% of its staff last month, according to a companywide email shared with Restaurant Business.
The email from cofounder and CEO Tony Smith said that the company was reducing its workforce from 1,100 to 1,000 after falling short of its ambitious growth targets for the year. The job cuts affected all departments.
The Irvine, California-based company has grown quickly in recent years behind more than $300 million in private funding over two rounds. The investments valued Restaurant365 at more than $1 billion, making it one of the larger restaurant tech suppliers. Last April, it acquired ExpandShare, a staff training system.
Over the past four years, Restaurant365’s revenue quadrupled, and it scaled up its workforce, Smith wrote. The company set aggressive goals for this year and staffed up accordingly, but it has not grown as quickly as expected.
“At our scale, controlling cash flow is critical, and each year we must make measurable progress bringing us closer to profitability,” Smith wrote. “These adjustments are required to ensure the future health of the company.”
It’s a sign of growth challenges for restaurant tech companies, especially those serving large chain restaurants. That market is particularly competetive, with a large number of vendors going after a relatively small pool of potential customers.
Restaurant365 declined to comment on the layoffs, but said in a statement: “We remain committed to supporting our customers across the country as they continue to grow their businesses and serve their guests.”
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