Wonder Trucks In Westfield To Still Operate Amid Company Layoffs

WESTFIELD, NJ — Residents in the Union County area will start to see less purple trucks roaming around their towns, as the food delivery startup Wonder is shifting away from its "mobile restaurant" model.

The founder of the company, Marc Lore, announced in a LinkedIn post on Tuesday that Wonder plans to open 10 stationary kitchens in 2023 in Union, Essex and Bergen counties, as well as New York City and Westchester County.

Wonder will start phasing out trucks next week in some New Jersey neighborhoods and will be entirely eliminated by May, according to Bloomberg. A spokesperson from Wonder, however, told Patch that delivery service to the Westfield area will not be interrupted.

"Wonder’s vision also remains unchanged: our aim is to become the primary destination for at-home dining," the spokesperson said.

The company first began operating in early 2021 in Westfield and then expanded into more than 18 of North Jersey's wealthiest towns. Wonder had a unique business model in that chefs would prepare the meals inside the truck, as it was parked outside the customer's home.

While some residents enjoyed the trucks, others were initially concerned that local restaurants would lose business. Others complained about hearing the trucks in the evening and smelling the exhaust.

Read more: Ex-Walmart CEO Debuts 'Wonder' Food Trucks In Westfield: Report

Lore told the Wall Street Journal that the company's new strategy offers a "faster path to profitability that requires less capital." Wonder needed to raise another $1 billion in about two years to expand its mobile kitchen truck fleet at the pace it hoped, but now it plans to raise around $350 million in the same period, according to The Journal.

The four-year-old startup, which currently has a fleet of around 500 trucks that deliver to households in the New Jersey and New York suburbs, has raised $900 million in venture capital and was valued at around $3.5 billion last year, The Journal reported.

"As we look to expand into new markets in 2023, we’ve begun to untap a new operational strategy," wrote Lore on Tuesday, "reducing the number of mobile restaurants we have in-market, and replacing them with physical locations that allow for delivery, pick-up and limited dine-in options."

Wonder has already laid off around 400 workers in recent months and currently has around 1,400 employees, a spokesperson told The Wall Street Journal. The company plans to lay off more people in the coming months, but Lore said it will end the year with more employees than it current has as it opens physical locations.

"By far the most difficult part of this strategic decision is that it will mean having to make tough personnel choices for our employees who operate our mobile restaurant business - people who have made huge contributions to Wonder’s success," Lore said, referencing the layoffs.

As opposed to operating out of a "ghost kitchen," Wonder will soon cook food from specific restaurants with which it has licensing deals. Some in-restaurant seating will be available.

Wonder currently has licensing deals with Bobby Flay Steak and Di Fara Pizza. It will continue cooking food from those restaurants in its physical locations, according to The Journal. Lore said the company also aims to grow its business selling food kits and fast-cooking oven software to other businesses, such as convention centers.

Unrestrained by the confines of a delivery truck, a physical location allows Wonder to sell from more restaurants at once, Lore told The Journal.

"To power this new service, we’re building locations near customers that will ensure you get your dinner delivered in minutes," a spokesperson told Patch. "Customers can expect consistent, on-time and faster delivery, more restaurants, and hotter food."

Recent data from OpenTable shows that dining out is back to pre-pandemic levels. According to Axios, the number of people dining in restaurants in the U.S., who reserved on OpenTable in August and September of 2022, was higher than in the same months in 2019.

How do you feel about Wonder eliminating its mobile restaurant service? What's been your experience with Wonder trucks? Leave a comment down below!

Have a news tip? Email remy.samuels@patch.com.