A few years ago, investors saw a lot of potential in the meal-kit market. But it appears to have been short-lived.
This year, most of these companies are seeing a slump and we have seen many casualties. For example, Chef'd closed last week. Blue Apron saw a lukewarm IPO. Home Chef was recently acquired and grocery chains, like Albertson's which bought Plated, are investing in these companies to offer additional meal options to compete with Amazon.
"If you look across the [consumer packaged goods] landscape, there's a really proven model of [companies] focusing on manufacturing, branding, and convincing people to buy, and companies that are good at distribution," said Rich DeNardis, Home Chef Chief Revenue Officer.
Even though we are seeing meal-kit companies struggle in the market, that is still not stopping the beloved QSR giant Chick-fil-A from jumping on the cook-at-home bandwagon.
Starting August 27, customers in Atlanta (where the company is headquartered) can buy two-person meal kits for less than $16 each.
After surveying its customers, Chick-fil-A found out that their target demographic cooks at home often and usually picks chicken as their protein.Read More