Investor
There were several elements that immediately presented themselves as being attractive to investors. It firstly met our criteria of being a socially conscious business, plus the thematic around supporting a community of cooks and the high quality of food they produce from their special recipes. We were also very impressed by the commitment of the founders – people are everything!
We like businesses that can demonstrate an ‘hourglass’ model – by that we mean little to no concentration at both the customer and supplier level. Customer and/or vendor dependency is to be avoided in most circumstances.
We also like large addressable markets – the grocery/restaurant replacement market in Australia is massive. The existence of large players demonstrates the ability for consumers to engage – so we are actually encouraged by that rather than being put off.
Our immediate goals with the investment capital is to tweak a few ‘house-keeping’ matters such as working capital, inventory management and premises. Then we can confidently focus on growth via customer acquisition and/or partnerships.
FoodSt is Australia’s leading platform for home-cooked food. They enable qualified home cooks to earn an income cooking from home, whilst improving access to healthier and tastier convenience food options.
Their network of cooks prepare their favourite family recipes with fresh ingredients in small batches, before meals are quickly frozen and stored in their central HQ. FoodSt provides business, logistics and delivery services and markets all the meals on their platform FoodSt.com.au.
This small batch approach ensures for a high quality, great tasting range of meals that are also diverse and sought after by our loyal customer base.
Customers visit the online store to pick and choose from our menu of over 100+ items and delivery is across Sydney and surrounds twice a week.
Life can be so hectic, and finding the time to cook nutritious meals can be a real challenge. Yet we all want to do what’s best for our wellbeing and our families health.
Well, it’s time to throw away the guilt and bring in FoodSt!
Our network of accredited home cooks prepare delicious meals with the best and freshest ingredients. All meals are fresh frozen for convenience and then delivered to your door.
Happiness is having over 100 meals to choose from, we have something for everyone, every meal, everyday! Healthier is happier!
The business model boasts low operating costs, great profit margins and the company has outlasted multiple competitors in Australia, the US and UK. This is a strong investment offering for an exciting, scalable market concept.
Australians spent $45b on meals outside of the home in 2017, up 33% in 6 years and equating to 32% of our weekly budgets (Intermedia Report 2018).
The trends are similar in other markets such as Canada and the US. As the need for convenience continues to grow so to do the options for outsourced meals.
Whilst the online takeaway food market is set to grow so to is the Meal Kits and Prepared Meals Market, currently valued at $600m and set to reach $2b by 2025. This offers a fantastic opportunity for FoodSt to differentiate in a growing market space.
Of the total amount spent on meals outside of the home, there are two industry sectors relevant to FoodSt:
FoodSt charges cooks a 25% fee on every meal sold through FoodSt. This Service fee covers the cost of:
Deliveries are charged at a rate of $9.99 to customers in Sydney Metro and $13 to customers across Sydney Regional and deliveries are twice a week.
At Christmas time, they offer a fresh delivery service where they provide catering options that are home delivered, this has been hugely successful!
While there are many different food delivery niches, from restaurant delivery, takeaways, meal kits and subscription meal plans, all of these options have drawbacks for consumers. Many delivery options are unhealthy to eat regularly, need preparation, have limited choices, are unappetising or filled with preservatives to extend shelf life. In the end there is just no substitute for a good home-cooked meal.
Whilst all of these options fill the need for convenience at varying levels, none of these offer the goodness of real home-cooking or empower home-cooks to earn an income from home.
FoodSt has a very unique offering that has resulted in regular, high volume customers and collaborations. Some of their USP’s:
“I wanted to say a huge thanks to the team at FUNDSITION. In just a few short months they have helped me successfully raise funds for my business. The process working with FUNDSITION is so much more than just an introduction, the team provided unparalleled marketing and campaign development support and were extremely helpful with practical advice on the cap raising process. The overall experience with FUNDSITION has been professional and personable, they are not only expert at what they do, but great to deal with and the communication was excellent throughout the entire process. I would definitely recommend FUNDSITION to anyone looking for help in raising funds for their business.”
Lorraine Gnanadickam
Founder and CEO
Founder & Director
Co-Founder
Operations Manager
Marketing & Driver
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