Putting the power back in the hands of restauranteers may very well be the unofficial slogan of Lunchbox, the online ordering and digital infrastructure platform for restaurants of all sizes. Lunchbox enables restaurants to build online ordering experiences into their own websites and apps instead of relying on third-party apps such as Grubhub and Seamless that charge onerous, hefty commissions to restuarants at a time when these restaurants are fighting for survival. Lunchbox’s platform empowers restaurants by increasing sales (clients sales increase 30% in some cases) and by creating independence by establishing an owned digital presence that flexible and adaptable to a restaurant’s needs. Partners include LA-based Ordermark (which recently raised $120M from Softbank) and chains like 16 Handles and Sticky’s Finger Joint.
AlleyWatch caught up with Cofounder and CEO Nabeel Alamgir to learn more about Lunchbox and how it plans to use this recent funding to scale its team, provide more products that will benefit restaurants, and the company’s recent funding from, which brings the total funding raised to $22.1M across two round. This funding comes at a reported $100M+ valuation.
Who were your investors and how much did you raise?
We were able to secure $20M of funding led by Coatue, followed by syndicate investors like Celebrity Chef Tom Colicchio, Scott Belsky (founder of Behance) COO of Venmo Michael Vaughn, Planet Hollywood founder Robert Earl, Hello Fresh founder Bryan Ciambella, and Girls Who Code founder Reshma Saujani.
Tell us about the product or service that Lunchbox offers.
A collection of enterprise solutions that redefine the digital restaurant experience. With built-in growth hacking tools drive guests to your system and away from third-party.
What inspired the start of Lunchbox?
Lunchbox was founded by restaurateurs who grew tired of the exhaustive and fractured journey of solving omnichannel digital ordering.
I was formerly the CMO of the NYC-based Bareburger and had extensive experience working in restaurants, so I knew I could help build the perfect solution for the industry. I partnered with my longtime friend Andrew Boryk (Co-founder and CTO) to assemble a team to make the backbone of Lunchbox. Lunchbox launched in early 2019 with Bareburger’s web and app products.
How is Lunchbox different?
Lunchbox is different from other online ordering companies because we are an all in one omnichannel that is able to integrate web, app, catering, white-label, omnichannel loyalty, and UX/UI.
What market does Lunchbox target and how big is it?
Lunchbox targets the restaurant vertical. The goal is to help these restaurants refine their online presence and take back their digital space.
What’s your business model?
Lunchbox is an all-in-one month-to-month SaaS model.
How has COVID-19 impacted the business?
COVID impacted our business in many ways. One way it impacted us was by closing down some of these locations. It hurt to see so many of our partners struggle, but in the same sense it opened us up to provide more solutions and opportunities to help us grow our business.
What was the funding process like?
We gave ourselves a 30-day timeline to get a term sheet and lock down the final raise. We started the morning of Sept 1 and within the next week we had our first term sheet. The process of talking with VC’s had started weeks before though unofficially where we started with casual conversations to gauge interest.
What are the biggest challenges that you faced while raising capital?
Some of the biggest challenges that we faced raising capital was managing to meet with a lot of these amazing investors face to face. The new normal of COVID hindered the opportunity to really get out our ideal pitch. Getting used to the Zoom pitch took some getting used to.
What factors about your business led your investors to write the check?
They loved the clear market fit and vision for the Lunchbox product along with our founders’ in-depth knowledge of what it means to work within this cut-throat industry. We bring much-needed experience and perspective into the restaurant tech space.
What are the milestones you plan to achieve in the next six months?
We are looking to expand our TAM through strategic product updates and advancements and grow our team by 2x-3x.
We are looking to expand our TAM through strategic product updates and advancements and grow our team by 2x-3x.
What advice can you offer companies in New York that do not have a fresh
injection of capital in the bank?
It sounds basic but keep your numbers organized.
Where do you see the company going now over the near term?
Right now, we are between 50-55 employees. The goal is to double or even triple that by the time Spring 2021 comes around.
We don’t want to get you in trouble with all your restaurant partners but what’s your favorite outdoor dining restaurant in NYC?
It’s hard to list a favorite restaurant because I have so many, so I’ll list the last one I ate at – Tacuba in Astoria, a personal favorite of mine!
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