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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.
What it cost$10.5M raised, never profitablecostly

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

spotted an error? The club wants to know.

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