3 ms·
The raw cost of ingredients to the cost of a plate is at most 30% (restaurants tend to collapse at 35%). For Asian restaurants it is closer to 20%. Say that th
by notyourday 8y ago
The raw cost of ingredients to the cost of a plate is at most 30% (restaurants tend to collapse at 35%). For Asian restaurants it is closer to 20%.
Say that the average "entree" for an Asian restaurant is $12, soup/app is $6. Lets pretend that there are two of you and both order app and entree. This means that the meal for 2 from an Asian restaurant is 2 x (12+6) = 36. We will let the cost be 33% i.e. restaurant barely hanging on which is equivalent of your family not buying anything on sale and every time randomly selecting the most expensive place to buy your ingredients.
This brings the input cost of a meal for two people (app or soup/entree each) to:
~33% of $36 = $12
Lets give a 50% upcharge for convenience of using a meal kit:
$12 + 0.5 * $12 = $18.
Ok, so we are at $18 for two people for the entire meal. Hell, lets increase margins further. Make it $20.
There's not a single meal kit company on the market at this time that sells kits for 2 people for $20 a meal on a non-trial basis.
WholeFoods, Wegmans, KeyFoods, ShopRite, Ahold are going to kill this entire "industry". They already have pre-packaged "dinner ready" containers that they are willing to sell at their cost + 10%. It is just a matter of time until they start marketing it.
The cost of WholeFoods "meal kit" for two people needed to make the standard Asian fare? About $11. That's the competition for meal kit companies. They need to compete with $11 spent at Whole Foods.
- overcast 8y agoWell, if they are willing to, then I'm certainly not seeing it. Wegmans prepared foods are insanely expensive. Like $12 for a cold chicken parm with some green beans. The price seems to go up a $1 every 6 months. The quality also isn't great. I haven't looked at their prepared kits, but just a bag of chopped up fruit is like 4x the price of just buying the fruit and cutting it yourself.
- deleted 8y ago[deleted]
- notyourday 8y agoNot prepared. They have boxes of vegetables needed for X around the vegetables section. In the meat section they have pre-marinated protein needed for Y. Prices are about 10% higher than picking up those ingredients by themselves. Right now it is "pick up X", "pick up Y". Overpay by 10% or so. Currently they have about $10 worth of margin (currently 80% to 100%) on this before they are hitting price points of intro period of meal kit companies (nearly $20-$30 post intro). If they spend $3 of that margin on little things ( soy sauce, tahini paste, miso, oyster sauce, sprouts ) that are just for that meal they recreate meal kit cheaper, faster, fresher and most importantly from an already existing infrastructure that is designed to operate successfully on 5-10% margins.