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ChowNow acquires YC-backed POS platform Cuboh and is laying off employees

ChowNow, a platform that provides online ordering and marketing services to local restaurants, has acquired Cuboh, a Y Combinator-backed point-of-sale (POS) platform that consolidates all orders from delivery apps into one place.

This marks ChowNow’s first acquisition, which will help strengthen its POS integration solutions and help restaurants process orders across multiple services.

However, as part of the acquisition, ChowNow laid off about 30 employees, bringing its total headcount to 300. At the same time, Cuboh’s entire 30-person team, including marketing, sales, product and engineering, is transitioning to ChowNow.

“Unfortunately, we did make some layoffs as part of the restructuring to make sure we were in the best position,” ChowNow co-founder and CEO Chris Webb told TechCrunch. The company had previously laid off 100 people in 2022 .

Financial terms of the deal were not disclosed.

Launched in 2012, ChowNow connects customers with local restaurants and helps businesses build an online presence by providing a customized online ordering system and marketing support. It also offers a scheduling system that pairs restaurants with delivery drivers.

It doesn’t charge any commission like its competitors and allows restaurants to keep 100% of the profits. ChowNow counts more than 20,000 small restaurants as customers and has helped process more than 250 million online orders. The company said it saved restaurants $700 million in commissions.

Webb said ChowNow is a profitable company that has raised about $80 million to date.

Cuboh is a noteworthy addition to the company. Previously, ChowNow’s dashboard could only manage a restaurant’s internal menu. Now, restaurants no longer need to manually manage all their menus, reducing the potential for errors and overall chaos in the kitchen. All delivery app menus can be updated to reflect changes such as out-of-stock items and price increases.

Starting next week, restaurateurs can take advantage of the newly launched bundle “ChowNow + Cuboh” for $275 per month. The bundle combines ChowNow Pro ($199), the company’s flagship product that handles all ordering, marketing and operations, with Cuboh’s POS solution ($100 to $200 per month).

While ChowNow’s platform is already integrated into over 30 POS systems (including Toast, Otter, MobileBytes, Positouch, and more), Cuboh is bringing 14 additional integrations to the desktop, such as Clover, Lightspeed, Brink, Micros, Revel, Positouch, Square , Par, Cutlery, Aloha and more.

In the future, ChowNow hopes to build more integrations, such as a food service integration.

“This goes back to the long-term product vision we’re building, which is to be the only platform a restaurant needs for their entire delivery business,” Weber said.

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