Why Did Terence Tam Shut Down Ross & Zane?

Terence Tam, founder of the Australian lunch-delivery startup Ross & Zane, remembers deciding to shut it down in an office lobby converted into storage. About five fridges and freezers were full of food while Ross & Zane served only 30 or 40 people, far below the model he needed for scale and profit. Margins, how fast the food turned, and the storage a larger operation would need convinced him a small team could not run it. Incumbents with infrastructure might. Ross & Zane also lacked subscription stickiness, and the churn was too high to justify the funding required to continue.