ASAP, the Louisiana-based food delivery company formally known as Waitr, announced its closure over the weekend. UNO business professor Mark Rosa said in the business world there are winners and losers and the combination of COVID, rising inflation, and interest rates is creating more losers.
“And depending on what the particular debt-structure may be in the company, if they went in with a lot of debt and the cost of the debt doubled, or sometimes tripled, that’s all a company needs to put themselves completely out of business,” said Rosa.
Waitr originated in Lake Charles, then moved operations to Lafayette in 2016. In 2022 Waitr changed its name to ASAP after a copyright infringement lawsuit.
Rosa said the rising cost of food, coupled with delivery fees made it cost-prohibited for many consumers.
“I could see demand falling off, with the increase in prices, but their competition is after that as well,” said Rosa.
Rosa said with ASAP being a Louisiana-based company, you always cheer for the home team, but the odds are usually against a small company, especially in the early stages.
“The financial statements are usually very fragile, you might be borrowing money, you might be getting on operations with a shoestring budget, and it doesn’t take much sometimes to push you over that ledge where operations are no longer possible,” said Rosa.
A statement on ASAP’s website said after 15 -years of dedicated service they made the tough decision to cease operations and thanked customers for their unwavering support and loyalty throughout the company’s journey.
