HelloFresh and Grubhub Snatch Up Restaurant Customers

HelloFresh and Grubhub Snatch Up Restaurant Customers

Consumers today are looking to save time, money, and calories. And in trying to do that, it has completely changed how and where they eat. According to data from the USDA, at least 50% of U.S. food expenditures in 2014 we’re allocated towards food away from home. That number has steadily increased since they began collecting the data in 1929.

Additional USDA data shows that 62 percent of millennials surveyed in December 2017 reported purchasing prepared deli food, carry-out, delivery, or fast food within the last seven days.

Mostly fueled by trends to eat healthier meals in shorter amounts of time, consumers are more than willing to fork over some extra cash for convenience and time efficiency.

According to business insider, there is a massive unfulfilled market opportunity here.

“As of 2015, about $210 billion worth of food is ordered for delivery or takeout on an annual basis in the U.S., according to Morgan Stanley research. But two of the industry leaders, GrubHub/Seamless and Eat24, generated a combined $2.6 billion in food sales last year. This means the market is underpenetrated but massive, which will incentivize continued competition and, potentially, an influx of new entrants.”

Meanwhile, the meal kit industry has seen exactly that sort of influx. The meal kit industry was dominated by Blue Apron just one year ago. Now, though Blue Apron has managed to hold on to its lead internationally, their market share has more dropped more than 17 percent and now Hello Fresh has surpassed them as the largest meal kit company in the US. And other competitors like Home Chef and Sunbasket are now gobbling up those extra dollars.

But the overall popularity of meal kits is dipping. The Wall Street Journal recently reported that investors have all but abandoned the meal kits space. And data from Foodable Labs shows that all the top meal kit brands are showing decreases in their consumer sentiment ratings.

Still, the meal kit industry is a 1.5 billion dollar industry, and certain segments of our industry are heavily impacted by consumer crossover with meal kits and groceraunts. For example, 34.7% of fast casual customers also use meal kits or groceraunts, making them a direct competitor. QSR’s, on the other hand, are safest with only 12.3% crossover.

Check out the episode above and let us know what other data you want to see!

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HelloFresh Finds Success in U.S. Surpassing Blue Apron in Customer Growth

HelloFresh Finds Success in U.S. Surpassing Blue Apron in Customer Growth

Since the German meal-kit service, HelloFresh, went public late last year, the company more than doubled its customer base in the United States. This is thanks to its wise investment in marketing, which has propelled the business forward surpassing its biggest competitor— Blue Apron.

“HelloFresh’s customer base also grew to 1.5 million globally, making it much bigger than Blue Apron, whose customer base shrank 15 percent to 746,000 due to lowered marketing spending,” as reported by “Recode.” It’s important to note that “HelloFresh includes customers who’ve received free boxes toward its customer total while Blue Apron only counts paying customers,” which obviously adds to its overall customer count.

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Blue Apron Faces Layoffs After Lukewarm IPO

Blue Apron Faces Layoffs After Lukewarm IPO

On Wednesday, Blue Apron announced it will be implementing “a company-wide realignment of personnel to support its strategic priorities.”

Since going public in June of this year, Blue Apron has been hard at work fixing operational issues in order to grow subscriber numbers and also please investors’ expectations.

As Foodable reported in August, the first quarter report for Blue Apron revealed a surprising $238 million in revenue, a disappointing $31.6 million in losses, and a decline in subscribers (from 1 million to 938,000 customers) leading to a drop in shares.

Since then, the company has been forced to shrink its marketing budget, laid off 14 recruiters and launched a podcast in an effort to become more of a lifestyle brand around home cooking.

Now, the meal-kit competitor is faced to lay off approximately 6 percent of its staff across both corporate offices and fulfillment centers—  that figure will “probably amount to more than 250 layoffs” according to “TechCrunch.”

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Study Reveals What Could Take a Huge Bite Out of Restaurant Sales in the Future

Study Reveals What Could Take a Huge Bite Out of Restaurant Sales in the Future

As a restaurant operator or food service professional, you probably have wondered if meal kit services, like Blue Apron, Plated and Hello Fresh are really competition to restaurants. 

Consumers may be paying less for meals in these kits than most of the meals served at restaurants, but they still have to put in the work to cook their own meal. So what impact do these services really have on the restaurant business?

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Will the Rise of Meal Subscription Services Affect Restaurant Sales?

Will the Rise of Meal Subscription Services Affect Restaurant Sales?

By Kerri Adams, Foodable Contributor

With an array of elevated restaurant concepts and farm-to-table in full force, most consumers have a good amount of healthy dining options available to them.

Some consumers, however, are starting to dine-in less, and even order less takeout. They’re not venturing to restaurants as much for a full-on dining experience. Instead, they are using meal subscription services.

The Appeal

These meal delivery services allow users to select their dietary preferences and choose between a few meal plans. Every week thereafter, consumer select their meal options and receive a shipment of ingredients with recipes to prepare the week’s meals. Depending on the service, the price per meal per person can start anywhere from $8.75 to $12.

With the growth of these subscription services, it is evident that a large population of consumers want to cook for themselves. They may still be visiting restaurants, but these avid foodies are looking for another kind of social dinner experience. They want a convenient way to cook but also want to make something tasty and fresh.

These amateur chefs are finding a way to enjoy the art of cooking without having to do the time-consuming legwork of deciding what to cook, what ingredients are needed, and how much of each ingredient they’ll really need. Instead, subscribers receive a box straight to their door that contains everything needed for their meal, along with a recipe pamphlet explaining how to prepare that meal.

The high potential for growth with these meal programs has sparked some fierce competition. More and more food delivery services continue to saturate the market as the big dogs on top continue to recruit members. Let’s take a closer look at the companies leading this category:

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