The food delivery startup, Munchery, left local San Francisco small business owners eating the bill after abruptly shutting their doors. Munchery provided prepared meals to residents in San Francisco, Los Angelas, Seattle and New York. In San Francisco, Munchery partnered with local businesses like “Crumble & Whisk,” whose owner, Charles Farriér was outspoken on the unexpected shutdown and the impact on his business.
When Farriér went to Munchery headquarters to collect his final payment of $1,700 the only other person there was another upset vendor. “They just expect us to sit back and take it, but we need that money to keep our businesses afloat,” Farriér told TechCrunch.
“It may be pennies to them but it’s money to us, we cannot stay afloat without being paid. It hurt my business; I had to take out a loan; I had to tell my staff I couldn’t pay them this week.”
Other local businesses are awaiting similar payments. “Dandelion Chocolate” owner Jennifer Roy, says Munchery owes her $6,000. Lenore Estrada of “Three Babes Bakeshop” said Munchery owes her $20,000 and that she will not be paying herself in order to pay her employees.
TechCrunch estimated Munchery owes nearly $40,000 in overdue bills to local business owners. What is infuriating to these vendors is that Munchery raised roughly $125 million in VC funding yet didn’t shutdown the company in time to pay their debts.
“This feels like these guys locked the doors and ran off to another country,” Munchery vendor Jennifer Nguyen told TechCrunch.
Keep up with Food On Demand!
Subscribe to our newsletter to receive the latest industry news and updates.