WBUR reports Clover Food Lab filed for Chap. 11 bankruptcy in Delaware federal court on Friday, citing "low sales, high rent and lack of funding."
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WBUR reports Clover Food Lab filed for Chap. 11 bankruptcy in Delaware federal court on Friday, citing "low sales, high rent and lack of funding."
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Comments
Too Bad
By plt3012
Mon, 11/06/2023 - 4:57pm
I remember when they first started with a truck in Dewey Square. I'm not a vegan/vegetarian, but I tried their chickpea fritter. I was hooked. I'm no longer working in the area, and I was told the truck hadn't been around for some time.
It's too bad, maybe they should've stayed with their food trucks.
Yep
By Cleary Squared
Mon, 11/06/2023 - 6:37pm
I used to frequent the one over at Kendall/MIT when I worked over in Watertown - the chickpea fritter pita platter was good, but it was pricey.
Food trucks aren't profitble
By tblade
Tue, 11/07/2023 - 12:51am
Or they're marginally profitable.
Generally, food trucks are "proof of concept" in hopes of gaining brick-and-mortar spots; you suffer through lean years to flip your business into a permanent spot.
Again generally, the most sustainable/profitable way to run a food and beverage business is to have multiple outlets. Having one or two food trucks would always be a +90-hour-a-week shit show struggle to tread water and a struggle during the height of winter.
For example, few franchisees who own one McDonald's are killing it. You need multiple locations.
I don't pretend to know why Clover is going bankrupt, but I suspect it's because a.) every concept has a shelf life and b.) there are several plant-based/plant-focused quick service competitors (Sweetgreet, Cava) that have entered the market since Clover's inception.
Clover is a good concept, but ran its course. Quick service restaurants and the restaurant biz is a shit industry overall. Remember that McDonalds/Aplebees/Dunkin, etc., will always be the most profitable businesses in the "restaurant" industry.
Economics
By BostonDog
Tue, 11/07/2023 - 9:15am
I don't know the economics of food trucks but I miss the days when trucks weren't "branded" and were owner/operator. They parked in the same place every day and the knew how to get food made quickly. The food wasn't fancy and it was cheap.
Given many of these trucks stuck around for decades, they must have been making ends meet even if they weren't getting rich.
The new style of "Gourmet Restaurant on wheels" is what seems to be a flawed modal.
I ain't a restaurant expert, but...
By u-hub-fan
Mon, 11/06/2023 - 5:06pm
I get the feeling the only people making money in the restaurant biz nowadays are the people who own the buildings.
nope
By anon
Mon, 11/06/2023 - 7:55pm
The restaurant industry overall has been doing just fine, which made the billion dollars or so of our state tax dollars they received as a "bailout" pretty absurd.
https://fesmag.com/topics/the-latest-news/20053-re...$898-billion-in-2022
> Sales at full-service restaurants will total $289 billion in 2022, a 5.3% increase from 2021 in real terms per the NRA.
2023:
https://restaurant.org/research-and-media/research...
> Growth will continue: The foodservice industry is forecast to reach $997B in sales in 2023, driven in part by higher menu prices.
While they were complaining about how rough life was during the pandemic, they were cashing government loans (that we can't even tell if they paid back or not) and other bailouts, and reaping profits from relaxed liquor regs.
Hey hey, don't forget the
By HighGuard
Mon, 11/06/2023 - 8:45pm
Hey hey, don't forget the delivery companies here. They don't exploit their workforce to make a few pennies
Not true
By vteri
Tue, 11/07/2023 - 10:40am
The delivery companies who overcharge drastic amounts do too! See, there are multiple ways to make money in small restaurant business!
Magoo sez
By MisterMagooForYoo
Mon, 11/06/2023 - 5:08pm
Magoo feels frisky when Magoo eats chickpea fritters. Magoo
You know what they say
By BostonDog
Mon, 11/06/2023 - 5:09pm
If the Salmonella fries don't get you, the creditors will.
He took care of it...
By Plen-T-Pak
Mon, 11/06/2023 - 7:55pm
After repeated violations and dozens getting sick.
Never forget
By Chester J Lampwick
Mon, 11/06/2023 - 5:33pm
They put the $3 falafel cart out of business at MIT. They charged $9 for the same sandwich with little to no difference in quality.
How did they put the $3 falafal cart out of business
By FarquharianFink
Mon, 11/06/2023 - 6:09pm
by charging three times as much for the same sandwich?
They also instantly moved
By CH
Mon, 11/06/2023 - 6:40pm
They also instantly moved into the old Hi-Fi space across from the Middle East after the landlord swore that no, they totally weren't using the alleged ventilation issues as an excuse to jack up the rent and kick out a long-term tenant for someone who could pay more, and they definitely would not rent to another restaurant. And Clover somehow got a 24-hour operating license there from the City of Cambridge. Not suspicious at all.
When was it $3 vs $9?
By Ari O
Mon, 11/06/2023 - 9:15pm
In 2014 the truck was $5 cash (including tax, so like $4.65). It's $9 now, since apparently they're paying their employees more and people will pay it because Kendall Square. How did they put the truck out of business if they were charging 3x as much?
Ever see
By Chester J Lampwick
Tue, 11/07/2023 - 7:44am
Im guessing you've seen new construction that is built of particle board and other inferior materials pop up and is priced 3x as much as a property built better and out of real materials?
The cart was offering at one point $3 falafel. Same way burrito max offered a gut busting $5 burrito for years till other places horned in and offered something "of better quality."
Food
By M. Sanchez
Mon, 11/06/2023 - 6:20pm
Their food sucked.
I’m so sorry to hear this.
By Lee
Mon, 11/06/2023 - 8:42pm
Their food was tasty and healthy and creative. I loved that there were 3 taps for bottomless cups of water, hot, cold still and sparking.
I must admit I haven’t patronized them much since since the pandemic and regret that. I hope they are able to restructure and make a come back.
Can we bring back Hifi pizza
By anon
Mon, 11/06/2023 - 10:19pm
Can we bring back Hifi pizza now?
I wouldn't have used the word
By anon
Tue, 11/07/2023 - 9:10am
I wouldn't have used the word "Lab" in the name. Not appetizing. Better luck next time
In my opinion Clover has a
By Anon
Tue, 11/07/2023 - 9:52am
In my opinion Clover has a work from home issue. They tended to be in commercial districts with lots of commuting workers at the types of jobs that have not gone fully back in office yet. The workers that are coming back make less than the workers who are working from home or mostly at home. I loved Clover when I worked near one but now that I work outside the city I never encounter one and I am not traveling to it.
I suspect many of those new era restaurants in business districts will struggle because those workers may just never come back. The price points are too high to succeed anywhere else and the food does not travel all that well, which is ironic considering the food truck origins.
I think Clover is pretty good
By cden4
Tue, 11/07/2023 - 10:52am
I think Clover is pretty good overall but it seems expensive for the amount of food that you get, especially compared to competitors in the fast casual space. That's what has discouraged me from going back on a regular basis.
They do pay their employees well
By Tim Mc.
Wed, 11/08/2023 - 7:07am
A few years back they hiked their prices considerably to something more like today's prices, and that was explicitly to ensure their employees were getting a living wage.
That was a good move.
By Lee
Wed, 11/08/2023 - 10:59am
They also put it to their employees as to whether they should still allow tip jars and tips added to bills. Employees mostly voted in favor. I liked that they gave the choice to employees, even though tip inflation is reaching ridiculous levels.
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