Meal kits are a modern revolution, embracing them is truly the way forward for the food industry.
The modern world is fast and we can easily lose track of our schedules. An aspect of life where this phenomenon has been majorly felt, is the food industry. With little time to spare on our hands, going to the grocery store can be outright inconvenient.
With the dawn of the meal kit, convention has been broken.
Meal Kits; The Description
A meal kit contains all the ingredients you would need to prepare a meal and usually comes with a step by step guide, that is easy to understand. We all love home cooked food, but the thought of going out to shop can be discouraging. Meal kits offer the solution to this dilemma.
With a little fee, customers get their meal kits delivered to them at home. Owing to its convenience and simplicity, the meal kit market has been booming in recent years, with an estimated over $1 billion generated in profit in the year 2016.
And it seems, that this is only the beginning.
The Inherent Benefits
Modern restaurants are starting to tap the potential in meal kits; their ability to generate extra revenue. Once viewed as competition for their market, the speedy rise in its popularity made restaurateurs who are business-oriented to re-strategize, adding them as verticals.
The same goes for online food delivery services like GrubHub, UberEats etc. who some years ago, traditionally delivered food alone. However, taking up the meal kit business can further boost generated revenue, ultimately leading to expansion and growth.
It is A Booming Business; For The Restaurants
The meal kit business still has further room to grow, as people and firms are already showing interest in using restaurant-made meal kits, to prepare their meals.
Humans seek comfort and convenience.
The simple idea of meal kits, has made them increase in popularity in recent years. They are a perfect fit for the working class, who do not have the time to go out and buy the necessary ingredients for a meal. Customers can now order meal kits from their favorite restaurants, just using their mobile phones.
The meal kit is tasty convenience; it gives buyers the power to control how the food would turn out. Home cooked food quality.
Considering the concentration of busy people in urban areas, no other area is more fertile for its growth. The working class are willing to pay extra, for the convenience of meal kits.
Fusion and partnerships between businesses are imminent.
Online food delivery services like GrubHub or UberEats, would be the choice of restaurants, to foster their meal kit businesses. This has drawn the attention of investors to less-prominent delivery services, now viewed as potential profit generators. The meal kit business has room to further expand.
A Ready Market
It is intuitive that the first buyers for restaurant-made meal kits, are their trusted customers. Maintaining customers is much easier, than advertising to completely new people. Customers have built trust with their favorite restaurants and hence feel their meal kits are in good hands. Restaurant owners can exploit this fact and use it as a head-start.
Like with all businesses, good market research should be conducted; leaving nothing to chance.
Restaurants should also keep in mind that competition is growing every day. The way to retain a competitive edge, is to stand out from the rest. For example, by providing meal kits for food that is not readily available. Experimentation is key and opens the door for customers, to discover new things they might like.
For The Delivery Businesses
Adding meal kits as another vertical to delivery businesses like GrubHub, UberEats, DoorDash, Caviar etc. can bring a boost, to generated revenue. Traditionally, they deliver cooked food on demand by customers from their various restaurants of choice. Meal kits are not here to replace but instead, complement food sales. Diversification into play along with its benefits; risk of loss minimization, preservation of capital etc. Delivery businesses thrive on the number of restaurants they are affiliated to. As the demand for restaurant made meal kits increase, more restaurants would turn to delivery services in order to keep up. Both upcoming and well-established delivery services, can utilize this to their advantage. The end result being more revenue for both the delivery services and their partner restaurants.
Where We Make a Stop
The food industry has many opportunities to expand and meal kits have a good potential to be its driving force; food on the move. It is a growing trend that has the potential to generate extra revenue for both delivery companies and their affiliated restaurants. However, exploring this potential requires adequate creativity, planning and skill. Intensive market research should also be carried out to determine how much market is available. When handled properly, meal kits can complement normal cooked-food deliveries, increase market and take food companies further up the financial ladder.
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