Chowdeck Reduces Contract Workforce by 68% Following Operational Enhancements, Plans Expansion to Ghana

Chowdeck Streamlines Operations, Reduces Contract Workforce by 68%, and Prepares for Ghana Expansion

Chowdeck has announced a reduction in its contract workforce, letting go of 86 staff members following significant improvements in its rider and restaurant operations. According to CEO Femi Aluko, the company’s operations team expanded rapidly over the past year, growing from 20 employees in January 2024 to 120 by January 2025. However, sustaining this growth became impractical as Chowdeck set ambitious targets to scale its business fivefold in 2025.

To address this, the company has optimized its internal processes and reduced reliance on manual operations. "Last year, as we experienced rapid growth, we had to bring in several contract workers to manage operational demands," Aluko explained. "Over the past two months, we've streamlined these processes, reducing the need for as many contract employees." He emphasized that the decision was not driven by financial difficulties but rather by improved efficiency.

These optimizations have led to tangible improvements, particularly in delivery times. Tasks previously requiring 24 employees can now be handled by just two, and the average delivery time has dropped from 41 minutes to 33 minutes.

Employees affected by the layoffs were informed during a company meeting and will receive severance packages, including three months’ salary and health insurance. Chowdeck also committed to assisting them in securing new job opportunities. Notably, full-time employees remain unaffected by the downsizing.

Accelerating Expansion with Improved Efficiency

Chowdeck, which secured a $2.5 million seed round in 2024, has experienced rapid growth, reaching 10 million deliveries as of March 3, 2025. A significant portion—six million deliveries—occurred within the past nine months, demonstrating the startup’s momentum.

With its operations now running more efficiently, Chowdeck has fast-tracked its expansion plans. In January 2025, it extended services to Kaduna and Owerri and is now preparing for a beta launch in Ghana next week. The company has already appointed a country manager for Ghana and intends to maintain a lean team by leveraging its newly optimized processes.

Initially, Chowdeck’s services in Ghana will be limited to Accra, aligning with its city-focused expansion strategy. "Even though we’re launching in Ghana, the team is focused on Accra for now. Just because we’ve entered the country doesn’t mean we’ll immediately expand to Kumasi. We prefer to scale in cities where we’ve achieved strong product-market fit," Aluko stated.

Operational improvements have also enhanced Chowdeck’s ability to enter new markets swiftly. While launching in a new city previously required three months, the company can now achieve this in just one week. The recent launch in Owerri, for example, was completed over a weekend.

With these advancements, Chowdeck is positioning itself for further growth, ensuring sustainable expansion while enhancing service efficiency across its markets.