The encyclopedia · Finance & Accounting · Financial decision · 2012–2016
Dinner Lab ran pop-up dinners in 30 cities — $10.5M later, it shut overnight
Dinner Lab raised $10.5M for members-only pop-up dinners in 30 US cities; on 14 April 2016 it shut down immediately, unprofitable, laying off 43 people.
Dinner Lab · 2016-04
What happened
Dinner Lab began in New Orleans in 2012: a members-only supper club that threw five-course dinners with an open bar in unusual spaces — warehouses, churches, empty stores — with up-and-coming chefs. Members paid an annual fee plus $60–90 a dinner, and filled in detailed surveys rating every course; the plan was for memberships to cover overhead while the meals turned a profit.
The company scaled to 30 cities and raised $10.5 million, but every new concept was, in its own words, like opening a restaurant from scratch — an ever-changing grind of staff, sourcing and venues that made consistent margins nearly impossible. The survey data that was supposed to become a second business never monetised: most restaurants already had menus they were happy with.
On 14 April 2016 Dinner Lab announced it was shutting down immediately, halting all events; 43 people were laid off. The company had never turned a profit and could not raise the funding it needed after the first quarter of 2016.
Why it happened
- A new pop-up in a new space every night meant restaurant-opening costs every night — margins never stabilised.
- The membership-and-survey data play never became revenue.
- The food-startup ecosystem was collapsing around it; when the Q1 2016 raise failed, there was nothing left.
The lesson
Dinner Lab proved people would pay for pop-up dinners in 30 cities — and that a business model with restaurant-opening costs every night cannot reach margin: $10.5M and four years, shut overnight.
Aftermath
All events halted the day of the announcement; the membership model and survey data were wound down with the company.
Sources
- Forbes, 24 May 2016 — How Dinner Lab Blew Through $10 Million On A Failed Restaurant Startup ($10.5M raised; founded 2012 by Brian Bordainick; annual membership fee plus $60–90 for five-course meals with open bar; memberships meant to subsidise overhead, profit on meals; expanded to 30 cities; shut down April 2016 with 43 people laid off; never turned a profit; couldn't secure funding after Q1 2016; every new concept 'like going through a restaurant opening every single time'; survey data never monetised; food venture ecosystem collapsing with peers like Kitchensurfing and Storefront shutting down)
- Eater NOLA, 14 April 2016 — NOLA-Based Roving Supper Club Dinner Lab Abruptly Shuts Down (shutdown announced 14 April 2016, effective immediately, via letter to members; all events halted; launched three and a half years earlier from New Orleans; 150,000+ members nationwide at shutdown; company statement: 'we weren't able to turn the corner on creating a profitable enough enterprise to support our ambitions')
spotted an error? The club wants to know.
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