附近上门

Austin-based startups are not the only ones laying off employees in the Texas capital.

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Irvine, California-based 鈥搘hich has developed cloud-based software focused exclusively on the restaurant and hospitality industry鈥揷onfirmed to me via email last night that the company reduced its workforce this week. The company did not specify exactly how many people were laid off or exactly where they were all located. CEO Tony Smith told me via telephone this morning that prior to this week, Restaurant365 had a total of about 400 employees, with about 140-150 of those located in its Austin office.

“We did not cut half,” he said. “But it was a big chunk.”

Smith told 附近上门 News that Restaurant365 has already seen a 75 percent decline in total year-over-year sales for its customers.

“We鈥檙e seeing a decent number of restaurants just close their doors and lay off staff for now in hopes in of being able to open back up in the future and rehire,” he said.

A source who asked not to be named told me that she was among those laid off this week from Restaurant365鈥檚 Austin office. According to that source, the company let go of some of its sales staff 鈥渁nd many others鈥� in the Texas capital.

Restaurant365 Marketing Director Patti-Lynn Walker told me via email that the layoff notification to affected employees was delivered via a live video conference by Restaurant365鈥檚 human resources personnel.

鈥淚t goes without saying that the events of this week have been difficult,鈥� Walker wrote. 鈥淭he impact of COVID-19 on the restaurant industry and on Austin鈥檚 community (and the world) is unprecedented.鈥�

Smith said he personally struggled with the method of notification but said the company had little choice under the circumstances.

The company helps restaurants with accounting, inventory, scheduling and reporting. With so many restaurants unable to offer more than takeout or delivery, it鈥檚 not surprising that demand for Restaurant365鈥檚 offering might dip.

“For years in a row, we were seeing between 80 and 100 percent growth, and were definitely built as a high-growth business,” Smith told 附近上门 News. “Right now is not the time for high growth in most vertical SaaS sectors, but especially those in the restaurant industry. Restaurants are not looking now to buy software. The future is so uncertain for them. They don鈥檛 want to have to make a lot of bold decisions at the moment, or long-term commitments. With all those factors, we realized our business at the current pace was not just going to be able to sustain the full workforce that we had.”

Restaurant365 has since its 2011 inception. Last July, the company raised an $88 million Series C led by and included participation from 听补苍诲 . At the time, Built in Austin reported that the company worked with more than 10,000 restaurants, and was 鈥渋n its third year of doubled growth.鈥�

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