Technology has given us a lot, it has made our lives easy and comfortable. At the same time, it has made the same lives fast, stressful, and has taken away one of our most important assets – Time.
Our days and nights are so busy that even the thought of planning for a wholesome, nutritious, and delicious meal adds to our anxiety levels. We do have solutions similar to tiffin services, but the options are limited, giving us less control over ingredients and the style of preparation.
A meal prep service offers nutritious and healthy food, according to the customers’ choice of ingredients, style of preparation, as well as their choice of menu. A marketplace of chefs takes the idea to the next level.
That is precisely why it is a business idea with high possible returns. Here are suggestions concerning how to start a meal prep business:
Currently, in order to achieve success every business needs an online presence. Meal prep business isn’t an exception. The first step towards starting a meal prep business is having a clear idea of the business model you want to use, and sketching out a detailed plan for execution.
Such a business has three primary models as explained below:
The most profitable niches in meal prep business right now are:
To take the idea further, you can plan diets for people with specific goals like – diabetics, high blood pressure, etc.
As the owner of a meal prep marketplace website, you will list experienced chefs. The customer visits your website to select the meals he/she wants, selects his/her chef, and the suitable time for delivery/pick-up.
The customer will have the liberty of specifying a menu of their choice beforehand, their favored ingredients, as well as the recipe. For convenience, you should mention the time during which orders will be accepted.
Chefs will make storable and re-heatable food, strictly adhering to the specifications of the customers.
You will earn your basic revenue via commission from each sale. You will also gain extra from featured chef listing, banner ads, and affiliates of your business on your website.
Some people like the idea of not going through the trouble of waiting for the food delivery each day, and like to order food (pickles, various sauce, dried food etc.) in bulk for an extended period like a week, or a month.
The customer selects a chef from marketplace website and informs his/her specifications for ingredients, recipe, and required quantity for the order. The chef directly shares the time required for preparation and decide a time for delivery/pick-up.
You can also have subscription model for regular customers.
Similar to previous revenue model, you will earn your profit via commission form each sell, featured lists, banner ads, and affiliates on the site.
An online meal-kit delivery business model will appeal to people who like to experiment according to their own convenience and specifications, however, cannot afford the time for the arrangement which goes before the actual meal. In this model, you will deliver meal-kit with measured ingredients, including the recipe, right at the customer’s doorstep.
Chefs decide the menu mentioning the nutritional and ingredients, which the admin can update as well. Customer makes a choice and select meals along with the number of members he/she wants to cook for. You deliver pre-measured fresh ingredients and recipes for each such preparation at his/her choice of date and time.
Note: You can expand this model by providing equipment on rent or on sale, depending on your resources and the customers’ interest.
The primary source of revenue will be the price for each meal-kit delivered, which can be per-meal or on a subscription basis. You can also earn by placing an advertisement on your website as well as affiliates of the website wishing to promote their business. For positive outcome, evaluate potential meal prep business profit beforehand.
One of the most considerable things to do before starting a meal prep business is to get registered officially. You can contact your local food department and internal revenue service department to know what licenses and permits you would need.
It is wise to safeguard your meal prep business assets by getting insurance. Owning a business coverage offers you the security that will help you to establish a profitable business.
Before starting a meal prep business, you need to estimate the amount of money you require to get your business to operational status. Calculate every start-up expenses and investments along with employee’s salaries for at least six months to account secure potential funding.
Minimizing food waste is an important factor to consider before launching a meal prep business. Think about different ways and apply proven strategies to control food waste.
Note: You can also create a campaign showing how you manage your waste without causing any environmental hazard.
It is essential to identify your competitors and analyze what strategies they follow to stand out in the industry. Consider their pricing, marketing strategies, food delivery services etc. to refine your business model and identify the market gaps, if any.
Get your meal prep business online with website. You can either start with a minimum viable product (MVP) to offer essential features or buy a ready-made meal kit delivery portal such as YoMeals.
After launching your online meal prep business successfully, you will need additional help such as delivery drivers, meal/ingredient packers, kitchen cleaners etc. So, hire employees carefully with proper skills and proven customer service experience.
You need to market your services to create brand awareness and find more customers. Effective GTM strategy aids to compete with your competitors and engage customers.
Once you know your target audience, you can easily reach them and spread the word about your meal prep business. Hence, it is an important aspect to consider before starting the meal prep business. For preliminary buyer persona, Facebook and Google Analytics can help you know more.
Integrating multiple revenue channels to your website can increase the profit margins for your online meal-kit delivery business. There is high revenue potential and increasing customer demand for meal-kits. To get started in this domain, you can launch your own meal-kit delivery business with our feature-rich YoMeals.
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