USA: Beginning of the end for Food.com?
US-based restaurant guide and home delivery website Food.com has dismissed half of its 200-strong workforce and announced plans to close down its Seattle office. Operations will continue at the San Francisco HQ for the time being, although COO John Laing and CFO Joan Varrone have resigned.The news provides another example of a business-to-consumer (B2C) website which failed to translate forecasts into real sales in step with the business plan. The layoffs are intended to improve the company's chance of long-term survival, and CEO Rich Frank remains confident that refocusing on the more profitable restaurant business and switching away from neighbourhood deliveries will get results. It will be crucial to get restaurant chains on board, as a one-time signing with a chain can mean instant sales to a large number of restaurants.Nonetheless, any company that sheds half its staff is vulnerable, and perhaps none more so than a dot.com. Reorientation towards the B2B sales stream may give the group new momentum, but Food.com will have to work hard to convince investors that their money is in safe hands.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- It won't just be Unilever to push for Brexit hikes
- Nestle lowers outlook on "softer environment"
- UK announces "action plan" to drive food exports
- Kraft Heinz: Innovation more important than ever
- Online snack seller Graze makes US retail debut
- Farmers' groups slam Danone over non-GMO stance
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review