Helping restaurants take back the power

INC. THIS MORNING Helping restaurants take back the power Good morning, If there's one thing that makes 30-year-old Nabeel Alamgir fume, it's watching eateries pay exorbitant fees to tech companies. In an industry known for razor-thin margins even in ideal circumstances, third-party delivery platforms like GrubHub and Uber Eats can charge commissions of 15 to 30 percent per transaction. "At that point, it's almost pointless for the restaurant to even take your order," Alamgir tells Inc. "They're not making any money." More than 110,000 U.S. restaurants in the U.S.--one in six--permanently closed in 2020, according to the National Restaurant Association. Of those that have survived, many have been forced to rely heavily--or exclusively--on delivery and take-out orders. Alamgir believes his New York City-based startup can provide a more sustainable solution. Instead of charging a per-order commission, Lunchbox operates on a SaaS model, charging restaurants a flat fee of about $200 per month per location. The startup's early clients include Clean Juice, Mexicue, Zaro's Family Bakery, and Chip City, as well as Alamgir's previous employer, Bareburger.  Lunchbox, which raised $20 million last October, is hardly the only company trying to tackle this problem: Startups like ChowNow, Toast, and Olo all operate similar platforms. Read our story to learn why Alamgir is rooting for all of them, too--even though they’re his competitors. And check out more of Inc.’s restaurant industry coverage from the past year: Restaurants’ winter plan: Do anything and everything to stay alive, because there’s too much at stake for more to fail. Serial food entrepreneur Seth Goldman: The old restaurant model is dead. Here’s what he says is next. This delivery service is using strategies like personal attention and cross-promotion to spread the word about Black-owned restaurants. Here’s why an Atlanta-based vegan burger joint is thriving, even as restaurants nationwide struggle. JOIN US Sarah Kauss created a new business category in 2010 when she launched the water bottle brand S’well. Today, the company’s products have helped displace more than four billion single-use plastic bottles, and Kauss now supports other brands through a sustainability-as-a-service program called GroundS'well. Kauss will discuss how she built an iconic brand and $100 million business. Learn how brand building, assembling high-performance senior leadership teams, and thinking globally about product innovation, business development, and collaboration can help you thrive through any business challenge. Wednesday, February 24, 2021, 3:00 pm Eastern Time Reserve your free spot. HERE'S WHAT ELSE I'M READING TODAY: The U.S. Small Business Administration’s biggest Paycheck Protection Program fraud problem may have nothing to do with actual criminals. --Inc. Here are four easy ways to update your recruitment process and attract the best talent. --Inc. Ikea pioneered cheap, disposable furniture. Now, it’s encouraging disassembly. --Fast Company The new work-from-home uniform: a business suit that’s pajamas, too. --The Wall Street Journal Vimeo and Mailchimp Presents are teaming up to showcase their favorite Black-owned small businesses in a new video series. --Inc. ONE MORE THING: Opinion: Ted Cruz’s Cancun adventure is another reminder that your business should require, and expect, much more from your elected officials. --Inc. --Cameron Albert-Deitch Reporter, Inc. How are we doing? Send me ideas and feedback at calbertdeitch@inc.com, and sign up for daily text messages from me. Become an Inc. Unlimited subscriber. Click here to forward to a friend. This email was sent by: Mansueto Ventures 7 World Trade Center, 29th Floor New York, NY, 10007, Unsubscribe • Update Profile • View in Browser • Privacy Policy