FoodSt-2

Industry

Food & Beverage Technology

How it works

Business Highlights

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.

• Regulatory Approval – Successfully influenced policy in NSW to allow cooks to sell from home
• Accomplished Team – Experienced Directors and Advisory Board
• Scaleable Business – With a huge market potential and export ability
• Product Market Fit – With strong growth in the last 12 months

As seen in

Huge Market Opportunity

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:

• One is Online Takeaway, which refers to restaurant takeouts ordered online and services such as UberEats and Deliveroo. In this segment, food orders in Australia are predicted to grow from $1.5b, or 10% of the fast food market, in 2017 to $2.4b or 23% of the market by 2025 (AFR, 2018).
• The other segment is the direct segment that FoodSt competes in, which is the Meal Kits and Prepared Meals Market. This includes brands like Dinner Ladies, Gourmet Dinner Service, Marley Spoon and HelloFresh, Supermarket Ready Meals and specialist services like LiteNEasy, Muscle Meals etc.

Business Model

FoodSt charges cooks a 25% fee on every meal sold through FoodSt. This Service fee covers the cost of:

• Setup of meals
• Marketing
• Insurance
• Access to our customer base
• Standardised packaging and labelling
• Collection & storage of food at FoodSt HQ

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!

Competitive Landscape

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:

• The de-centralisation of our kitchens means we have an unlimited capacity to create meals and meet demand unlike commercial kitchens
• Our cook network represent a huge, low cost R&D engine for creating new recipes and being nimble enough to respond to market demands
• There is no shortage of aspiring chefs wanting to cook for FoodSt, meaning a fantastic variety and new meals added every week
• Meals are healthy and cooked in small batches, with high quality ingredients – exactly the kind of food consumers enjoy eating regularly
• Limited prep time – most meals are simply heat and serve
• Most of all, the meals are DELICIOUS