ChowNow has snapped up YC-backed POS platform Quboh and is laying off employees

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ChowNow, an online ordering platform and marketing service for local restaurants, acquired Quboh, a Y Combinator-backed point-of-sale (POS) platform that consolidates all orders from delivery apps into one place.

This is ChowNow's first acquisition, which will help strengthen its POS integration solution and help restaurants deal with orders across multiple services.

However, as part of the acquisition, ChowNow laid off approximately 30 employees, bringing its total workforce to 300. Meanwhile, Quboh's entire 30-person team — including marketing, sales, product and engineering — is transitioning to ChowNow.

“Unfortunately we had to make some layoffs as part of a restructuring to best position ourselves,” Chris Webb, ChowNow co-founder and CEO, told TechCrunch. This comes after the company laid off 100 people in 2022.

Financial terms of the deal were not disclosed.

Launched in 2012, ChowNow connects customers with local restaurants and helps businesses establish an online presence by providing custom online ordering systems and marketing assistance. It also offers a dispatch system that connects restaurants with delivery drivers.

It doesn't charge any commission fees like its competitors, and it allows restaurants to keep 100% of their profits. ChowNow counts more than 20,000 small restaurants as customers and has helped process more than 250 million online orders. The company says this has saved restaurants $700 million in commission fees.

ChowNow is a profitable company and has raised about $80 million to date, Webb said.

Quboh is a notable addition to the company. Previously, ChowNow's dashboard could only manage restaurants' in-house menus. Restaurants no longer need to manage all of their menus manually, reducing the chances of errors and overall mess in the kitchen. Menus may be updated across all delivery apps to reflect out-of-stock items and price increases, along with other changes.

Starting next week, restaurant owners can access a newly launched bundle, “ChowNow + Qboh,” for $275 per month. This bundle combines the company's flagship product, ChowNow Pro ($199) which handles all ordering, marketing, and operations, and Quboh's POS solution, which ranges from $100 to $200 per month.

And while ChowNow's platform already integrates into more than 30 POS systems — including Toast, Otter, MobileBytes, Positouch, and more — Quboh is bringing 14 additional integrations to the table, like Clover, Lightspeed, Brink, Micros , Revel, Positache, Square, Par, Dinnerware, Aloha, and more.

In the future, ChowNow wants to create more integrations, such as for catering services.

“What we're building is getting back to that long-term product vision of what restaurants need as a single platform for their entire takeout business,” Webb said.