ChowNow, the online ordering platform and marketing service for local restaurants, has made its first acquisition by acquiring Cuboh, a Y Combinator-backed point-of-sale platform that streamlines orders from delivery apps.
This acquisition will enhance ChowNow’s POS integration solution, enabling restaurants to manage orders from multiple services more efficiently.
As part of the acquisition, ChowNow has laid off approximately 30 employees, reducing its workforce to 300. However, Cuboh’s entire 30-person team, consisting of marketing, sales, product, and engineering professionals, will join ChowNow.
“We unfortunately had to make some layoffs to best position us for the future,” said Chris Webb, ChowNow’s co-founder and CEO. This decision follows a previous layoff of 100 employees in 2022.
The financial details of the acquisition have not been disclosed.
ChowNow, founded in 2012, helps local restaurants establish an online presence and connect with customers through custom online ordering systems and marketing support. It also offers a dispatch system to facilitate deliveries without charging commission fees, allowing restaurants to retain 100% of their profits. With over 20,000 small restaurant clients, ChowNow has processed more than 250 million online orders, saving restaurants an estimated $700 million in commission fees. The company is profitable and has raised approximately $80 million to date.
The addition of Cuboh to ChowNow’s offerings allows restaurants to manage their menus from all delivery apps in one place, reducing errors and simplifying kitchen operations. A new bundle, “ChowNow + Cuboh,” priced at $275 per month, combines ChowNow Pro and Cuboh’s POS solution to provide comprehensive ordering, marketing, and operational support.
ChowNow’s platform currently integrates with over 30 POS systems, and Cuboh brings 14 additional integrations to the table, including popular systems like Clover, Lightspeed, and Square. ChowNow plans to expand its integrations in the future, with a focus on catering services.
“Our goal is to be the only platform restaurants need for their takeout business,” Webb stated, emphasizing ChowNow’s long-term vision for providing comprehensive solutions to the restaurant industry.
