Anthony Ha (@anthonyha) of TechCrunch reported earlier this week that the farmers market style marketplace, Good Eggs, announced they would be closing three of their four locations. Specifically, they are closing their LA, New York and New Orleans locations, leaving only San Francisco. Unfortunately, this downsizing has resulted in 140 employee layoffs, yet they have reassured the press that there are still 100+ employees still on payroll.

Here’s what co-founder and CEO, Rob Spiro had to say about their decision:

“The single biggest mistake we made was growing too quickly, to multiple cities, before fully figuring out the challenges of building an entirely new food supply chain. We were motivated by enthusiasm for our mission and eagerness to bring Good Eggs to more people. But the best of intentions were not enough to overcome the complexity. Today we realize that in order to continue innovating in San Francisco, our original market, in order to continue figuring out all the complexity that is required to achieve our mission, we cannot productively maintain operations in other cities.”

Yet, this isn’t the first time the company has had to layoff a decent chunk of their staff. Back in January they had to cut 15% of their employees due to overestimation of growth and operation abilities. It’s an unfortunate side effect of starting a business in this market: you can’t get ahead of yourself, and overestimate demand. Good Eggs has a great business, and I believe that it could be really successful, but they will have to do a better job of forecasting demand. Under promise and over deliver!