Munchery Explained

Munchery Inc.
Type:Private
Fate:Bankruptcy
Location City:San Francisco, California
Location Country:United States
Industry:Hospitality
Key People:James Beriker (CEO)[1]
Founders:Tri Tran
Conrad Chu[2]

Munchery Inc. was an online food ordering and meal delivery service that served parts of San Francisco, Seattle, and New York City.[3] The company shut down abruptly on January 21, 2019.[4] It was valued at $300 million.[5] The website currently relaunched as a recipes-only website.

Overview

Munchery was a conglomeration of chefs who offered continually changing menus to users. Chefs chose their dishes and sourced ingredients, and users rated the meals. Meals could be ordered up to 6 p.m. the same day or a few days in advance. A fleet of drivers delivered the dinners within a chosen one-hour window between 5 and 9 p.m.. The chilled food needed to be reheated before serving.[6] After trying the meals, diners could post reviews online, and they could also directly message chefs through the site.

History

Munchery was founded in 2010 in San Francisco, California.[7] [8]

In 2015 the company raised $85 million in Series C funding and was speculated to be valued at $300 million, though a company spokesperson did not confirm that number.[9] [10]

In 2016, the company launched a corporate lunch delivery program.[11] James Beriker became CEO, taking the place of co-founder Tri Tran.[12]

On October 2, 2020, Rolliyo, Inc., a DE corporation doing business as ("DBA") Munchery.com, sent an email to Munchery, Inc's email list announcing that "Munchery is back (as a recipe site)."[13]

Bankruptcy

In late 2018 the company laid off 30 percent of its employees. In January 2019 Munchery abruptly ceased all operations. In a March 2019 bankruptcy declaration, the company claimed assets between $1 and $10 million with liabilities totaling $28.5 million in secured debt to lenders as well as $6 million in unsecured debt to its 230 vendors and suppliers.[5] In all, investors — Greycroft, Sherpa Capital, Menlo Ventures, E.ventures, Cota Capital, and M13 — sank $125 million in the company, with an $87 million round in 2015.[14]

“To be honest, it was a house of cards,” said an anonymous well-known chef who worked at Munchery for two years.[15]

In May 2019 the bankrupt company sold its 70,000-square-foot South San Francisco headquarters for $5 million. Munchery's CEO James Beriker planned to pay himself a $250,000 “success fee” for the sale of the company's headquarters and other assets.[16]

Notes and References

  1. News: Dickey. Megan Rose. Munchery appoints new CEO amid reported struggles. 21 November 2016. TechCrunch. 21 November 2016.
  2. Gold, Amanda High-quality meal delivery offers takeout alternative San Francisco Chronicle. July 21, 2015
  3. Gold, Amanda Cook Your Week: Munchery and Belcampo Team Up San Francisco Chronicle. July 21, 2015
  4. News: Meal-delivery startup Munchery shuts down. Murphy. Mike. 21 January 2019. MarketWatch. 21 January 2019.
  5. Said, Caroline (4 March 2019) "Munchery bankruptcy filing leaves little for food vendors." San Francisco Chronicle. (Retrieved March 5, 2019.)
  6. Kosoff, Maya Food startup Munchery has hired a bunch of gourmet chefs to answer the most popular question in your household Business Insider. July 21, 2015
  7. Gayomali, Chris Inside the Secret New York Launch of Munchery, the Delivery Startup that Might Upend Seamless Fast Company. July 21, 2015
  8. Huet, Ellen Dinner Take All: How Munchery Wants To Win The Evening Meal Forbes. July 21, 2015
  9. Lein, Tracy Munchery raises $85 million in bid to make healthy meals accessible to all Los Angeles Times. July 20, 2015
  10. MacMillan, Douglas Munchery Valued at About $300 Million Amid Food Fight Wall Street Journal. July 21, 2015
  11. News: Munchery challenges Amazon and Peach with new corporate lunch delivery program. 2016-10-06. GeekWire. en-US. 2016-12-07.
  12. Web site: Munchery appoints new CEO amid reported struggles. Dickey. Megan Rose. TechCrunch. 21 November 2016 . 2016-11-23.
  13. News: Guszkowski . Joe . Ghost kitchen precursor Munchery relaunches as recipe site . Restaurant Business . en.
  14. Web site: After raising $125M, Munchery fails to deliver. TechCrunch. 22 January 2019 . en-US. 2019-01-22.
  15. Said, Caroline (January 28, 2019) "Munchery, Sprig: What went wrong with on-demand, artisanal food." San Francisco Chronicle. (Retrieved January 28, 2019.)
  16. Pershan, Caleb (May 9, 2019) "CEO of Failed Startup Munchery Gets Massive Payout for Selling Company HQ." Eater San Francisco. (Retrieved May 10, 2019)