Foodservice startups in trouble

Many foodservice startups whose clients are individual restaurants or chains are in trouble. Indeed, even those working on a subscription business model are facing unwillingness to pay unused services and the fear that many of their clients will not reopen their doors. These startups are adjusting by cutting their staff as we are shifting from a “growth at all cost” to a “profitability above all” paradigm.


The hospitality industry was digitising fast before the crisis, notably for procurement and payment. Even if severely affected, it seems that this ecosystem is particularly resilient. Indeed, notably in payment or HR, most of the startups were already profitable and backed by companies strong enough to help them survive the crisis. However, their growth model may have to change.

It may also be the confrontation of two growth models. While some were betting on “growth at all cost”, others were managing more sustainable and slow growth. The duration of the crisis and its impact on the willingness of investors to bet on the first model may determine the future of this ecosystem for the incoming years.

Find out more in our FOODTECH INTERRUPTED REPORT on the impact of COVID-19 on the FoodTech ecosystem


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