ChowNow raises $21M to let local restaurants keep more of their delivery profits

Written by Brian Nordli
Published on May. 08, 2019
ChowNow raises $21M to let local restaurants keep more of their delivery profits
ChowNow Team
Photo Via chowNow

These days, we live in a buffet of meal choices only a quick click away. Craving a late night taco from your neighborhood taqueria, or a slice of ‘za from the joint down the street? Just open an app, follow your gut and wait.

However, that convenience can come at a cost to participating local and independent restaurants, as delivery apps often come with fees that eat away at a restaurant’s already-thin profit margins.

ChowNow aims to change that, offering a food delivery designed to help local restaurants thrive.

On Wednesday, ChowNow announced that it has served up a fresh helping of funding, raising a $21 million Series C round to fuel those efforts.

In addition, the company launched a new website, OrderBetter.com, to raise awareness around the costs associated with using third-party delivery apps.

ChowNow CEO and co-founder Chris Webb said helping local restaurants thrive is the core of company’s mission.

“Local restaurants are often the heart of neighborhoods and there should be a way for them to stay competitive and profitable,” Webb said in a statement. “We’re interested in giving these small businesses the tools they need at a fair price so they can focus on doing what they do best.”

Founded in 2010, ChowNow provides a delivery service platform that local restaurants can customize and integrate into their own websites, Facebook or Instagram. Participating restaurants own all of the customer data collected from the app, and only pay a flat monthly fee rather than a commission on every order.

Local restaurants are often the heart of neighborhoods and there should be a way for them to stay competitive and profitable.”

ChowNow is used by 11,000 restaurants in the U.S. and Canada. The funding round came from 3L Capital and Catalyst Investors, and raises ChowNow’s total funding to $60 million.

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