Nextbite’s Downfall: A Cautionary Tale for the Virtual Restaurant Industry
Nextbite, once a thriving virtual restaurant company, has faced several setbacks, including multiple layoffs and selling its technology arm, Ordermark, to UrbanPiper, an Indian company. Recently, it was acquired by SBE CEO Sam Nazarian, the leader of its former competitor, C3, marking a significant consolidation in the virtual restaurant sector. Initially, Nextbite was a part of Ordermark, a pioneer in offering software solutions for managing restaurant online orders. Despite raising substantial funds and merging with Ordermark, Nextbite struggled to maintain momentum, with many attributing its downfall to overly complex menus and an over-reliance on celebrity-backed brands, which often failed to meet customer expectations. The company’s focus on technology over food quality was a significant pitfall. As the virtual restaurant industry reaches a critical juncture, the emphasis seems to be shifting towards offering quality products that align with the restaurant’s standard operating procedures and ensuring customer satisfaction.
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