Hello Fresh has an interesting business model and story it began in Sweden, opened in 2012 in London. Then it was so successfully that when it reached the United States with incremental funding it found copycat competition the ilk of Blue Apron and Plated to name but a few but Hello Fresh still stands-out.
Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food works in every country today, “meal kit deliveries” are a natural evolution of the intersection of internet and fresh prepared food according to Foodservice Solutions® Grocerant Guru®.
Companies the ilk of Blue Apron and Plated come up with a meal ideation as well. All pre-measure the ingredients, and mail it to you as a subscription service yes they are just like Hello Fresh. Where is what our Grocerant Guru® found “Millennials find that Meal Kits are training wheels for learning how to cook, to shop, to plan a meal, and to portion a meal.”
Our Grocerant Guru® went on to day “Meal Kits provide a platform for cooking discovery and Millennials simply love it.” Meal kit companies operate somewhere in between a restaurant and a grocery store its that intersection that Millennials find so appealing. Millennials want to find their way, find something new and not do everything their parents did.
Grocery stores and restaurants are both losing meal occasion to meal kit companies and the numbers don’t look like they will decrease anytime soon. Restaurants have a competitive advantage as they are in the meal business and over the course of the past ten years have as an industry gone from 3% Take-Out to 15% today.
Grocery stores on the other hand are not in the meals business, don’t understand it and quite honestly do want to be in the meals business. They want to do what they have always done, sell CPG products and get paid for putting them on the shelf.
We believe local meal kit companies, regional restaurant chains have a distinct advantage selling local, seasonal, specials that edify the shopping experience and complement Millennials desire to discover. Foodservice Solutions® team believes Meal Kits, Plate Lunches, and Boxed Dinners will become staples in Millennials households.