Munchery Chief Executive James Beriker announced late last week that the company is shutting down operations in Seattle, New York, and Los Angeles.
In a blog post, Beriker said the decision was not made lightly, but that it’s slowing down fast-moving expansion plans. “When the company was founded in 2011, Munchery had a great idea, which turned into a great product that consumers loved. The company doubled down on growth and expanded our operations quickly with the goal of providing fresh, healthy meals to as many households as possible,” wrote the CEO. “This change is hard, but moving forward, our San Francisco team will focus on growing our business in San Francisco, our first and largest market, developing our shipping capabilities so that we can more efficiently serve other regions, and continuing to focus on evolving our technology platform. This reduction in scope will allow us to focus on continuing to execute on Munchery’s vision, achieve profitability in the near term, and build a long-term, sustainable business.”
Beriker recognized the impact it will have on the staff in those regions, saying they have built the businesses from scratch and worked hard to serve the customers in those communities. “I am grateful for their unwavering commitment to Munchery’s mission and success. I truly wish that the outcome would have been different,” wrote Beriker, noting that while he is saddened by the moves, he is also “incredibly hopeful and excited by” the changes at the company. “I fundamentally believe in the opportunity that exists in food eCommerce, fresh food production, and home delivery — and in our position as a leading innovator in this market.”
According to a report in TechCrunch, it has been tough going for Munchery since it launched back in 2011. The company has faced reports that it wastes on average 16 percent of the food, laid off employees and used up the lion’s share of the funding it raised. It has also tried different strategies to grow the business. This is the latest attempt to stand out in a crowded marketplace.