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ChowNow
ChowNow
from Wikipedia

ChowNow is an online food ordering platform that connects customers with local restaurants. Christopher Webb and Eric Jaffe, American entrepreneurs, founded the company in 2011 with headquarters in Los Angeles, California.

Key Information

History

[edit]

The company ChowNow was founded in 2011 by Christopher Webb, a former employee of RBC Bank and Lehman Brothers; and Eric Jaffe, a former commercial real estate investor. The platform was launched in March 2012.

In January 2013, ChowNow raised over US$4 million, including funding from accelerator Launchpad LA.[1][2] The same year, ChowNow, initially part of the incubator Launchpad LA, closed a seed round of $1 million from GRP Partners, James Bailey and angel investors. For its expansion and product improvement, it further raised 10 million US dollars in venture funding in a round led by Upfront Ventures.[3] In October 2017, ChowNow raised $20 million U.S. dollars in a Series B round led by Catalyst Investors, bringing ChowNow's total funding to 40 million U.S. dollars.[4] ChowNow's other notable investors include GRP Partners, Canyon Creek Capital, Clark Landry, Daher Capital, Double M Partners, Karlin Ventures, Launchpad LA, Tiller Partners, Upfront Ventures, Velos Partners.[5]

In June 2016, ChowNow partnered with Uber and Postmates to enhance its services with an order delivery feature called Flex Delivery service.[6][7][8] In August of the same year, ChowNow introduced a feature that allows potential diners to place orders directly from Google search results, including thousands of restaurants across U.S. and Canada.[9][10] In October 2016, ChowNow teamed up with Squarespace, a SaaS content management system and website builder platform, to enable restaurants with ChowNow's entire suite of online ordering tools.[11][12] In May 2018, ChowNow released a feature that allows customers to place orders via a restaurant's Instagram profile.[13]

In March 2024, it was announced ChowNow had acquired the Victoria, Canada–headquartered point-of-sale food ordering platform, Cuboh, for an undisclosed amount.[14]

Overview

[edit]

ChowNow's online ordering technology enables independent restaurants to take orders via their own branded channels.[9][15] The company was launched in March 2012 at the National Restaurant Show in Chicago[16] and currently partners with thousands of restaurants in 50 states in U.S.

In addition to operating a consumer-facing platform, ChowNow allows restaurants to individually customize and brand their ordering apps. Restaurants can use ChowNow's online ordering technology to take orders directly through their Facebook page and Instagram profile.[17]

Operation

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ChowNow operates on a SaaS model where restaurants subscribe on a monthly basis. The company does not prepare or deliver food, its approach not only offers financial relief but also shifts power back to restaurants.[18] As the restaurant receives the order on its website, mobile app, Facebook, or Google page, ChowNow processes the order and communicates back to the diner for pickup or delivery. Last, ChowNow collects information from diners' orders and provides this information to the restaurants for remarketing. The user places an order from an online menu displayed on ChowNow's interface. Upon receiving confirmation of a diner's order through the integrated Apple Pay, Yelp or Google Wallet,[19][20] the system forwards it to the selected restaurant. As it receives the order on its Facebook page website, or Instagram, this restaurant processes it and communicates back to the diner for delivery. Last, ChowNow collects information from diners' orders for its data analytics.[21]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
ChowNow is an American that provides a commission-free online ordering and platform designed specifically for independent restaurants, enabling them to accept direct orders through their own websites and branded mobile apps while retaining full customer data and avoiding third-party delivery fees. Founded in 2011 by entrepreneurs Christopher Webb and Eric Jaffe, the company is headquartered in , and focuses on empowering local eateries to build sustainable relationships without the high commissions charged by aggregator apps like or . As of 2024, ChowNow serves over 22,000 partners across the , processing millions of orders annually and having saved its clients more than $700 million in commission fees since inception. The platform's core offerings include customizable online ordering systems integrated with point-of-sale hardware, automated email and text marketing tools to drive repeat business, and optional delivery solutions through partnerships, all aimed at helping restaurants increase revenue while reducing operational costs. In December 2024, ChowNow appointed Kanika Soni, a veteran in consumer technology with prior leadership roles at and , as its new to guide strategic growth amid evolving industry dynamics. Notable milestones include the 2024 acquisition of Cuboh, a management platform, which enhances ChowNow's capabilities in streamlining multi-channel for complex operations. By prioritizing direct ordering, ChowNow addresses key pain points for small and mid-sized restaurants, such as data ownership and profit margins, positioning it as a key player in the shift toward restaurant-centric digital tools in the post-pandemic food service landscape.

History

Founding and Early Years

ChowNow was founded in 2011 by Christopher Webb and Eric Jaffe in Culver City, California. The co-founders were driven by a desire to empower independent restaurants, which were increasingly burdened by high commission fees—often 15-30% per order—imposed by third-party online ordering platforms like Grubhub and Seamless at the time. This motivation stemmed from their recognition that such fees eroded restaurant margins and limited direct customer relationships, prompting the creation of a more equitable alternative for local eateries. The initial development centered on a commission-free online ordering solution tailored for independent restaurants, enabling them to integrate ordering capabilities into their own websites and branded channels without intermediary costs. Unlike marketplace models that aggregated orders across multiple venues, ChowNow's early platform emphasized simplicity and control, allowing restaurants to manage orders directly while retaining full customer data and profits. ChowNow officially launched in March 2012 at the National Restaurant Show in , marking its entry into the foodservice industry with a focus on digital tools for and pickup. In its formative years through 2013, the company's operations prioritized refining this system, avoiding involvement in delivery to keep costs low and scalability high for partner restaurants. This approach laid the groundwork for building a network of independent operators seeking independence from commission-heavy ecosystems.

Funding and Growth

ChowNow secured its initial seed funding in January 2013, raising $3 million led by GRP Partners, with participation from Daher Capital, Double M Capital, Karlin Ventures, and Velos Partners. This early investment supported the platform's development following its 2012 launch, enabling expansion of its online ordering tools for independent restaurants. Additional funding in mid-2013, including a $2 million extension to the round from existing investors, brought the total early-stage capital to approximately $5 million. In October 2017, ChowNow raised $20 million in a Series B round led by Catalyst Investors, with participation from Bonfire Ventures and Upfront Ventures, bringing the company's total funding to $40 million at that time. This capital infusion facilitated product enhancements and , positioning ChowNow as a key player in commission-free online ordering for local eateries. Key ongoing investors included Upfront Ventures, which had backed the company since its early stages, alongside Bonfire Ventures and later 3L Capital. The company continued its growth trajectory with a $21 million Series C round in May 2019, led by 3L Capital and including participation from Catalyst Investors and Bonfire Ventures, increasing total funding to about $60 million. These investments drove significant scaling, with ChowNow expanding to serve over 15,000 restaurants across the by early 2020. The workforce grew to approximately 250 employees by that year, supporting operations from its Culver City headquarters.

Acquisitions and Expansions

In March 2024, ChowNow acquired Cuboh, a Y Combinator-backed platform specializing in point-of-sale (POS) integrations for restaurants, to streamline the processing of orders from multiple third-party delivery services. The acquisition, announced on March 28, integrated Cuboh's technology into ChowNow's ecosystem, enabling restaurants to consolidate and route incoming digital orders more efficiently without additional commissions, thereby reducing operational friction for independent eateries. Following the funding rounds, ChowNow expanded its network significantly, growing from thousands of partners to over 22,000 independent restaurants across as of 2025. This scaling reflected strategic efforts to deepen penetration in the U.S. market, where the company maintains its primary focus and headquarters in . While ChowNow has conducted limited pilots in markets like as part of its North American operations, underscoring the platform's U.S.-centric strategy. Recent operational enhancements include app updates that facilitate seamless and delivery integrations, allowing restaurants to manage orders directly through their websites without intermediary fees.

Company Overview

Mission and Business Model

ChowNow's mission is to empower independent restaurants to thrive by delivering technology that enables commission-free online ordering, allowing owners to retain full control over customer data and profits while avoiding the substantial third-party fees—often up to 40% per order—imposed by platforms like DoorDash and Grubhub. The company's core philosophy, "Fare Should be Fair," underscores its commitment to transparency and equity in the food industry, ensuring that local eateries can focus on serving their communities without profit erosion from marketplace intermediaries. This approach has enabled restaurants using ChowNow to save over $700 million in commissions since the platform's inception as of 2024. At the heart of ChowNow's is a subscription-based structure that charges restaurants flat fees for its software and tools, eliminating per-order commissions entirely to prioritize direct revenue retention for operators. Restaurants pay monthly or annual subscriptions for access to the core online ordering system, with initial setup fees covering and customization. This model contrasts sharply with commission-heavy competitors, providing predictable costs that average savings of around $16,000 annually per restaurant based on typical third-party rates. ChowNow differentiates itself by emphasizing direct, branded connections between restaurants and diners, fostering loyalty through owned digital experiences on restaurant websites or apps rather than generic marketplaces. This focus supports the long-term sustainability of local businesses by keeping customer relationships in-house and avoiding data commoditization. Additional revenue streams include optional marketing services, such as SEO optimization and automated email campaigns, alongside tiered Pro plans that scale with features and commitment length to accommodate varying needs.

Leadership and Headquarters

ChowNow's current is Kanika Soni, who assumed the role in December 2024 after serving as chief commercial officer at . The company was co-founded in 2011 by Christopher Webb, who now serves as chairman of the board and brings a background in finance from roles at firms including , , and RBC, before transitioning to technology entrepreneurship with ChowNow. Co-founder Eric Jaffe, who previously served as until 2022, now acts as a board director and advisor; he previously co-founded and managed a boutique commercial investment firm. Key executives also include Emmy Yardley as , contributing to the company's focus on solutions. ChowNow is headquartered in , a of , where it has maintained U.S.-centric operations for over a decade since its founding in 2011. As of 2025, the company employs approximately 271 people. The includes founder Christopher Webb as chairman, along with representatives from major investors such as Tyler Newton from Catalyst Investors, who joined following the 2017 Series B funding round, and Shawn Colo from 3L Capital, added after the 2019 Series C. Other board members include Jocelyn Mangan and Alan Henricks, providing strategic guidance influenced by expertise.

Products and Services

Core Online Ordering Platform

ChowNow's core online ordering platform enables independent s to offer direct digital ordering through customizable, branded websites and mobile applications, facilitating and limited delivery options without incurring third-party commissions. Launched in 2012 as a basic system to provide an alternative to high-fee marketplaces, the platform has evolved into a comprehensive, commission-free solution that prioritizes control over and profits. As of 2024, it supports over 22,000 s across the and , allowing them to capture the full value of online sales. From the diner's perspective, the platform streamlines discovery and ordering via restaurant-specific branded interfaces accessible through dedicated websites, the ChowNow consumer app, or integrations with search engines like . Customers can browse menus, customize orders, and complete payments securely within these interfaces, ensuring a seamless experience tailored to each restaurant's branding without exposure to aggregated third-party marketplaces. On the restaurant side, operators use the centralized ChowNow to manage menu updates, process payments, and oversee , with real-time notifications routing incoming orders directly to kitchen displays or staff devices. A key aspect of the platform's efficiency is its integration with point-of-sale (POS) systems, which automates order routing to minimize manual intervention and errors. Compatible with major providers such as Square, Revel, and , these integrations synchronize orders instantaneously, updating inventory and enabling smooth handoff to fulfillment teams for preparation and dispatch. This connectivity has been refined since the platform's inception, transforming the initial setup—focused on simple web-based ordering—into a robust ecosystem that handles high-volume operations for diverse types.

Additional Tools and Features

ChowNow enhances its core online ordering platform with supplementary tools and features designed to boost marketing, , and for independent restaurants. Through ChowNow Pro, an all-in-one suite, restaurants gain access to advanced capabilities that drive direct sales, expand digital presence, and foster without third-party commissions. These tools prioritize simplicity and profitability, allowing operators to focus on growth rather than complex integrations. The Order Better Network serves as a key promotional feature, distributing restaurant menus and enabling direct ordering across external platforms such as , , and local media sites to increase visibility and attract new customers. Launched in 2021, this network facilitates the simultaneous setup of digital storefronts on over a dozen online properties, helping restaurants expand their reach and potentially increase online sales by up to 30%. ChowNow Pro includes branded mobile apps, which are custom-built and Android applications that allow restaurants to maintain full control over their brand while enabling commission-free ordering directly from customers' devices. Automated tools within Pro automate personalized campaigns, such as re-engagement emails and promotional offers based on past orders, to nurture customer relationships and stimulate repeat visits without manual effort. Complementing these, built-in provide actionable insights into diner behavior, order trends, and retention metrics, empowering restaurants to refine strategies for long-term loyalty. In March 2024, ChowNow acquired Cuboh, a platform, integrating its capabilities to streamline multi-channel . This allows restaurants to manage orders from direct channels and third-party delivery apps in a unified , reducing errors and improving efficiency for complex operations. Additional features tailored for independent restaurants include auto-accept orders, which sync with point-of-sale systems to automatically process and prepare incoming orders, minimizing delays and errors during peak times. The customizable rewards program functions as a tool, enabling customers to earn digital points or "stickers" on direct channel orders, redeemable for discounts that encourage habitual patronage while safeguarding margins. For flexibility, the platform supports extensive customization of menus—including item descriptions, , and allergens—along with time-bound promotions and multi-location , allowing operators to deploy consistent or location-specific updates across multiple sites efficiently.

Operations

Technology and Integrations

ChowNow's platform is built on a modern cloud-based that supports to handle high volumes of orders efficiently, enabling seamless operations for restaurants during peak times. This architecture facilitates reliable and processing, allowing the system to adapt to growing demand without compromising performance. Central to its technical backbone are API-driven integrations with over 45 point-of-sale (POS) systems, including Toast, Square, Revel, and , which automate order transmission directly to kitchen printers or POS terminals, reducing manual entry errors and centralizing and sales data. These integrations ensure a 99% order success rate by streamlining workflows and providing real-time synchronization between online orders and in-house systems. Security is a core priority, with ChowNow maintaining full PCI-DSS compliance to protect cardholder data during storage, processing, and transmission, as it assumes responsibility for securing all payment information received from restaurants and customers. Additionally, the platform emphasizes data ownership retention, granting restaurants complete access to their customer information for and initiatives, unlike third-party marketplaces that restrict such control. ChowNow offers native mobile applications for both and Android devices, designed to enhance accessibility with features like customized ordering and real-time order status updates, allowing users to monitor progress from placement to fulfillment. These apps integrate with the broader platform to support quick checkouts via or while maintaining secure data handling. Following the 2024 acquisition of Cuboh, ChowNow has incorporated enhancements for unified order management, consolidating incoming orders from multiple channels—including its own platform and third-party delivery apps—into a single dashboard for streamlined processing and menu syncing across systems. This integration provides real-time analytics on sales performance, automating workflows to minimize errors and improve operational efficiency for restaurants.

Market Reach and Partnerships

ChowNow primarily operates in the market, serving over 22,000 independent restaurants across the and as of 2025. Its platform has a strong presence in major urban centers such as , where the company is headquartered, and , supporting local eateries through direct online ordering solutions. While the core focus remains domestic, ChowNow has extended limited operations into since initial testing in 2013, with no significant international expansion beyond documented to date. The company has grown to encompass a diverse range of restaurant types, including casual dining establishments, quick-service outlets, and emerging brands, thereby extending its reach into both urban and suburban areas. This expansion highlights ChowNow's emphasis on empowering independent operators across varied community settings, from city storefronts to neighborhood spots. To enhance ecosystem integration, ChowNow maintains partnerships with leading point-of-sale (POS) providers, such as Lightspeed Restaurant, enabling seamless order synchronization and reducing operational errors for connected restaurants. Additional integrations with over 45 POS systems, including Toast, Square, and Revel, allow for automated order acceptance and menu updates, broadening the platform's utility within the restaurant technology stack. In May 2025, ChowNow was included in DoorDash's Preferred Integrations Program, which provides restaurants with real-time visibility into POS and middleware performance on the platform, further strengthening third-party delivery integrations. Collaborations extend to marketing platforms like Boostly for integrated campaigns, further supporting direct without third-party commissions. ChowNow also engages with local business associations to bolster independent eateries, exemplified by its partnership with the Texas Restaurant Association (TRA), which provides members access to discounted online ordering tools and marketing resources. Through the Preferred Partner Program, alliances with group purchasing organizations like Dining Alliance offer cash-back rebates on supplies, reinforcing support for small-scale operators nationwide. These efforts underscore ChowNow's commitment to fostering sustainable growth for non-chain restaurants via targeted external networks.

Reception and Impact

Industry Recognition

ChowNow has received notable recognition for its rapid growth and contributions to the sector. In 2021, the company was named to the Inc. 5000 list of fastest-growing private companies in America, ranking No. 1170 with a three-year growth rate of 414%. Additionally, clients ranked ChowNow as the top and platform for service quality on in 2021, highlighting its leadership in user satisfaction and market positioning within restaurant tech. The company has been featured in prominent media outlets for its role in advancing sustainable practices in restaurant technology. A 2020 Forbes article praised ChowNow for enabling restaurants to pivot during the crisis through direct online ordering, describing its model as a sustainable alternative that fosters long-term viability for eateries by reducing reliance on high-commission third-party services. has covered ChowNow's innovations, including a 2022 discussion with its founder on reorienting to prioritize restaurants, emphasizing the platform's focus on equitable tech solutions amid industry shifts. ChowNow's platform has had a significant positive impact on the restaurant industry, particularly during the delivery surge triggered by the , by helping operators avoid substantial commission fees from aggregators. By 2022, the service had saved U.S. restaurants over $470 million in commissions through its commission-free direct ordering system, allowing businesses to retain more during a period when third-party fees often reached 20-40% per order. A representative involves Chicago-based , a family-run chain, which reported a 358% increase in after implementing ChowNow's tools to streamline orders and . By promoting direct relationships via branded ordering channels, ChowNow contributes to industry sustainability, enabling independent restaurants to build and maintain profitability without the erosive effects of aggregator dependencies. This approach supports broader , as evidenced by its facilitation of equitable revenue distribution for over 22,000 partner locations across the as of 2024. The 2024 acquisition of Cuboh, a management platform, has further enhanced these capabilities by streamlining multi-channel . In December 2024, Kanika Soni was appointed as CEO to guide the company's strategic growth.

Criticisms and Challenges

One notable criticism of ChowNow is its limited built-in delivery capabilities compared to full-service competitors like , which manage end-to-end logistics with their own fleets. Instead, ChowNow relies on restaurants to handle delivery through in-house drivers or optional partnerships with third-party services such as , , or , potentially increasing operational burdens for smaller establishments. ChowNow has faced significant competitive pressures from aggregated platforms like , which offer broader customer reach and seamless delivery but impose high commissions of 20-40% per order, contrasting with ChowNow's commission-free subscription model. During the peak demand in 2020-2021, when online ordering surged by over 90% in some sectors, ChowNow encountered challenges amid rapid growth, leading to subsequent staff reductions of about 20% in 2022 as the company adjusted to post-crisis market stabilization. In response to these gaps, ChowNow has invested in expanded integrations with point-of-sale systems and delivery partners to streamline operations and mitigate limitations, such as syncing orders directly to printers and POS for efficient fulfillment. No major legal issues have been reported against the company, though it has pursued litigation in cases like a 2025 dispute. Ongoing industry debates highlight data privacy concerns in direct ordering models like ChowNow's, where restaurants gain ownership of for targeted marketing but must navigate stricter compliance with regulations amid rising scrutiny over in apps.

References

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