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Good Eggs' business model cracks under expansion; Brooklyn operations to be shuttered

Chard is loaded up in delivery bags at

Chard is loaded up in delivery bags at Good Eggs in September 2014. Photo Credit: amNewYork / Georgia Kral

Good Eggs, a much-touted service that delivered food produced by local farmers to urban consumers, announced it was taking its final orders in New York City on Wednesday. 

The company, based out of San Francisco, is scaling back its business nationwide, including shutting down its Brooklyn operation. 

In a statement on the farm-to-table delivery start-up's website, co-founders Rob Spiro and Alon Salant explained that the company, which was founded in 2012, met unexpected challenges after its overzealous expansion.

"We didn't fully anticipate the challenge of creating a new kind of food business that required a different approach to supply chains, logistics and commerce," the statement read. "We made a mistake in expanding as quickly as we did without perfecting the model first, and we take full responsibility for that mistake and its consequences." 

Spiro also announced in a separate blog post that the company would be closing its Los Angeles and New Orleans locations as well, leaving only its original San Francisco location in business -- in other words, it will be putting all its Good Eggs into one basket. 

Good Eggs will also be paring its staff at its San Francisco headquarters, ultimately laying off as many as 140 employees across all four locations.


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