Sophisticated

Investor

Watch Video

FoodSt

Successful Wholesale Offer

Our view on FoodSt and why it was successful

There were several elements that immediately presented themselves as being attractive to investors. 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.

We especially like the commitment of the founders – people are everything.

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.

 

  • $250,000 invested
  • 100% funded
  • 0 days left
  • 1 No. of investors
  • $250,000 Minimum subscription
  • $250,000 Maximum subscription
  • $ Minimum investment parcel

Industry

Food & Beverage


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!

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 TeamExperienced 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

 

 

Testimonial

“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

Lorraine Gnanadickam

Founder & CEO

Ex-chef, passionate home cook and over 20 years in commercial roles within Medical and Pharmaceutical industries. Named Top 50 Small Business Leader 2018.
read more

Sanjay Gnanadickam

Co-Founder

Over 25 years working in the Telco, Technology & Financial Payments industries for companies like PayPal, Western Union & Optus.
read more

Michelle Sursok

Operations Manager

Formerly a recruitment manager and owner of Forage Sydney Catering company. Michelle has been cooking with FoodSt from Jan 2017.
read more

Marc Wanstall

Marketing & Driver

Former Senior Director and Marketer at Deloitte and the Australian Business Council, Marc is excited and passionate about the opportunity that FoodSt presents. 
read more
FoodSt Overview

Q&A

Comments are closed.

Company updates

FAQS

Investment in new business carries high risks. It is highly speculative and before investing in any project about which information is given, prospective investors are strongly advised to take appropriate professional advice;

The information contained in our Website has been prepared by or on behalf of the person who is proposing to issue or sell the securities or scheme interests and neither FUNDSITION nor the Publisher (if any) has undertaken an independent review of the information contained in the Website;

The information contained in the Website about the proposed business opportunity and the securities or scheme interests is not intended to be the only information on which the investment decision is made and is not a substitute for a disclosure document, product disclosure statement or any other notice that may be required under the Corporations Act 2001 (Cth) (Act), as the Act may apply to the investment. Detailed information may be needed to make an investment decision, for example: financial statements; a business plan; information about ownership of intellectual or industrial property; or expert opinions including valuations or auditors’ reports;

A prospective investor is strongly advised to take  appropriate professional advice before accepting an offer for issue or sale of any securities or scheme interests;

Prospective investors should be aware that no established market exists for the trading of any securities or scheme interests that may be offered; and

The Website is subject to ASIC Class Order [CO 02/273].

SME CrowdFunder Pty Ltd