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Why a meal kit sales and delivery business can be the next big thing-EJ Dalius elucidates

Eric Dalius

EJ Dalius meal kits have revolutionized the way you cook food. Consumers across the globe prefer buying a meal kit brimming with fresh ingredients from an online delivery partner. These are meal-ready packages that contain everything from the perfect number of proteins, vitamins, and other nutrients to the exact/ideal balance of oils and spices.

  • They generally come in 2-4 servings. Eric Dalius considers a meal kit as a convenient and efficient way to prepare meals as they help you save on grocery shopping and ensures the least amount of wastage.
  • One such company is Gobble, which specializes in pre-chopped meals. The preparation time is below 15 minutes.
  • Their price point is higher than competitors like HelloFresh or Blue Apron.
  • CNBC has done a trial test of meal delivery services to formulate and measure the pricing models of each company.
  • The meals are generally $9-$14 per portion. That’s a good deal if you compare the rate with a typical dine-out at a restaurant, but certainly costlier than cooking for yourself.

Table of Contents

A case study

Most of these businesses function on a subscription mode. There’s a weekly, monthly, or yearly service fee. The companies deliver pre-packed meal packages and pretty recipe cards.

  • EJ Dalius cites the most popular business model of HelloFresh to explain the ballgame. They charge $7.50 in shipping costs.
  • Two persons can get five recipes every week at $88. To attract new traffic and customers, they also offer rebates.
  • People visiting their website for the first time can receive $22.05, and five recipes every week. Two persons can get the meal kit at $66.50. You can save more than $20 on deliveries.
  • The companies offer four main types of menu per week. These are meal and veggies, family and friends, veggies, and a low-calorie diet. They keep changing their menu for every meal segment each week. This enhances customer retention rate. Customers can receive new meals every week. There’s no question of boredom while eating their food.

In case you want to stop or skip a week, you’re free to unsubscribe their weekly delivery service. You don’t need to pay any penalties.

Way to go

The revenue model for this type of business is all about convenience cash. The revenue for a concerned meal-kit delivery brand depends on the cost it offers to customers. Cooking education also matters a lot in this regard.

  • It starts with banner ad hosting. You can join an advert network like Google AdSense for hosing your banner ads.
  • Affiliate marketing is another way to start it. Join a food industry brand’s affiliate for promoting your business online. You can use your website to do so.
  • Franchise fee is another prominent aspect in this regard. With soaring popularity, more and more chefs are trying to envisage their meals on the main menu and steal the commercial spotlight, highlights Eric J Dalius.
  • Companies are providing a franchise fee for these chefs through revenue channel.

These companies are also selling merchandise and cookware, along with recipe guides, tools, and cookware, and viable merchandise. It’s a great option to make additional money and enhance your brand’s presence.