Investor's Business Daily

Cuisine For Your Cubicle

April, 2005 - Jason Finger was an associate at a New York law firm when a business idea hit. Working on a case one evening, he suddenly got hungry. No price ranges were open. Pizza was the only option.

Then, the idea: What if he could go online, order food from hundreds of Manhattan restaurants, and have it delivered to his desk? Better yet: What if thousands — perhaps millions — of others could do the same, and he reaped the benefits?

For months, Finger had had doubts about his law career. His secret dream: Be an entrepreneur. Online ordering sounded like the ultimate moola menu — mouthwatering Finger food.

He ran the idea by law school friend Paul Appelbaum, who'd also wanted to start a business. Before long the two were scouting for investors and clients.

Sowing Seed Money

Finger approached his law firm's chief financial officer, who said the organization would be his first customer. Fellow attorneys offered to kick in capital.

The pair sought additional investors by “talking to anyone who'd listen," Finger, 33, recalled. Within a few months they'd raised $350,000. The business launched in December 1999.

Today, SeamlessWeb has more than 600 corporate clients and 1,200-plus vendor restaurants. It's expanded into seven markets — from New York and Philadelphia to Chicago and San Francisco.

After absorbing credit-card fees, the firm makes 7% to 10% on the price of each order. Sales grew from $220,000 in 2000 to $49.6 million last year. The revenue-to-employee ratio: more than $1 million per worker.

The business launched with five restaurants and one client. What followed: thousands of hours of aggressive marketing.

“We met one-on-one with restaurant owners and said, ‘If we bring you revenue, you'd compensate us as though we were a sales force for you. If we don't, you pay nothing.' It was no risk for them, and a win-win if they got new business," said Finger, the firm's CEO.

He signed up client companies by touting the productivity angle: Employees who eat at their desks spend more time on the job. Starting in Manhattan, he targeted law firms, investment banks, accounting businesses and ad agencies.

Today his client roster spans all industries, from software companies to fashion houses. His restaurant list includes every cuisine imaginable.

Among new customers are individuals ordering from home. To help launch that segment, Finger hopes to leverage the 200,000 employees of his corporate clients.

Another targeted niche: automating firms' in-house restaurants and cafeterias. Finger's system reduces the need for food-service employees and allows the work force to order from their desks on client Web sites or intranets. Workers specify a pickup time, and the orders are ready when they arrive.

The system streamlines clients' record-keeping and boosts revenue through suggested up-sells: “Would you like fries with that?"

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