To The Internet I Eat!
Darren Seifer, Executive Director, Industry Analyst ;
Food Consumption Foodservice
I’ve often wondered if I could convince Grubhub Seamless to give me equity in the company given the number of times I use their service. I probably order food for delivery from the internet too often so I decided to take a different path. I’m still using the internet but this time I’m using a meal delivery kit.
A friend already uses Plated so she sent me a link to get my first complimentary box. Just like at meetings in the office, free food is a great motivator! The selection process was fairly easy and I was even able to make slight recipe adjustments that fit my tastes. Everything arrived as planned and I was even impressed with how little packaging was required. All the ingredients were separated by the appropriate recipe and everything still looked fresh despite having been on a delivery truck.
Now the real test – how easy was it to prepare and how did it taste? Well, I still had to do a fair amount of chopping, slicing, and preparation, but the key convenience of the service is that I didn’t have to make a trip to the grocery store. In some areas of the country, going to the grocery store is merely a chore, but in New York City it’s a nightmare with long checkout lines (and sometimes lines to enter the store), crowded aisles, frequent out-of-stock items, all on top of having to take the Subway to get your items home. A little chopping and preparation is a small price to pay here for avoiding the shopping experience. The recipe was easy to follow with pictures to show me exactly how it should look when I’m done with each step. In about an hour, my zucchini lasagna was finished and, I have to say, quite tasty.
The plan I used for Plated costs $72 per week, and each box has three meals that feed two people. If you do the math that comes out to $12 per person per meal and for me that’s a bargain! It costs much less than going out to dinner, ordering for delivery and is probably only slightly more than going to the grocery store to get the ingredients. I fully understand, however, that prices where I live are higher than the rest of the country (and don’t get me started on Hamilton tickets).
At NPD we recently conducted a study on consumers using these services and one of the most interesting findings was that the majority of users said had they not prepared a meal from the kit they would have made another meal from their homes. In other words, meal kits are mostly replacing meals from the home but at higher prices. I’m often asked about the long-term viability of these services and my answer is always that meal delivery kit companies need to convince consumers they are worth the extra spend for the convenience and time savings they provide. Consumers also tell us a key challenge at dinner time is finding new and different recipes to make, which meal kits inherently provide and can be a key marketing message as well.
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I have been in the foodservice industry, actually working in the industry and later watching the industry, for a real long time.
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