Get your free personalized podcast brief

We scan new podcasts and send you the top 5 insights daily.

When the pandemic caused revenue to drop over 90%, Toast was forced to lay off half its staff. This near-death experience reset the company's focus to a 'basement stage' scrappiness. This led to rapid development of essential features for survival, like QR code ordering, which became central to their future growth.

Related Insights

The initial period of struggle and repeated failures, while painful, is what forges a resilient team and a strong, frugal company culture. These early hardships create shared experiences that define the company's DNA for years to come.

Deciding to abandon a profitable product for a nascent one was difficult. The COVID-19 pandemic forced the decision by killing the old product's sales pipeline while accelerating demand for the new one's remote access capabilities, making the pivot clear and necessary overnight.

When Trello's PMM team shrank from ten members to two, the crisis forced them to build robust systems for tracking projects, assessing bandwidth, and prioritizing tasks. This extreme constraint became the necessary catalyst for developing a more strategic and organized workflow out of sheer survival.

As Toast grew, it suffered from operational breakdowns like hardware failures and poor support. Founder Aman Narang realized his focus on revenue growth neglected the need for scalable systems. The team made the mature decision to bring in an experienced external CEO to professionalize the company and fix these foundational issues.

When COVID-19 invalidated its revenue plan, Nextdoor's GM used a pre-existing worst-case scenario to pivot the product strategy. The focus shifted from subscriptions to features that provided immediate cash flow to local businesses (e.g., gift cards), enabling a quick, board-aligned response to the crisis.

Despite strong initial demand, Toast paused its scaling efforts. The founders recognized their tech wasn't ready: the software didn't work offline, commodity hardware was failing, and support was nonexistent. This discipline was crucial for long-term survival.

Within 20 minutes of their first-ever launch, Toast's system went down during a busy service. The founders, who were on-site, immediately started writing orders on paper and taking credit card numbers manually. This hands-on crisis management taught them that their system was mission-critical and couldn't fail.

Thumbtack's "Google death penalty"—being completely de-indexed—was a crisis that could have killed the company. Co-founder Jonathan Swanson reframes this intense period as a favorite experience because it forged team unity and resilience, proving that existential threats can become powerful, positive catalysts.

The initial idea for a mobile payment app failed because integrating with over 100 legacy POS systems was impossible. By talking to frustrated restaurateurs, the founders realized the real, larger opportunity was to replace the entire clunky, non-cloud POS system that everyone hated.

To combat enterprise stagnation, Toast launched "New Ventures," an internal incubator that isolates small, entrepreneurial teams. With dedicated comp plans, these teams focus on finding the next zero-to-one product, successfully launching initiatives like Toast Retail.

The COVID Crisis Forced Toast Back into a "Basement Stage" Mindset, Sparking Critical Innovation | RiffOn