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Albertsons snaps up meal kit startup Plated

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Re: Albertsons snaps up meal kit startup Plated

#11

Post by x2f10 »

ethbro wrote: post #5
WheelsAtLarge wrote: post #2

This is just the start. Eventually all supermarket companies will buy a meal kit company.

Curious what the value proposition would be. I mean, I can see delivery + pre-existing logistics network. Or selling better kits in stores. Or a segue to delivered groceries. But it seems kind of antithetical to how grocery stores make money. They're low margin, high volume businesses. And this directly attacks volume. Buying a grocery delivery startup seems like it would make way more sense as a first step.

>But it seems kind of antithetical to how grocery stores make money. They're low margin, high volume businesses. And this directly attacks volume.

Not necessarily. The margin on meal kits are stronger than the ingredients alone (e.g. sliced fruits & veggies). In relation to the volume, meal kit buyers still need to eat. The hungry buyer must cook at home (w/ groceries), go to a restaurant, or buy a second meal kit. To me, this sounds like an attack on the fast food / restaurant industry. Grocery stores can market these meal kits as more affordable, healthier, and 'hip'.

Re: Albertsons snaps up meal kit startup Plated

#12

Post by hkmurakami »

ethbro wrote: post #5
WheelsAtLarge wrote: post #2

This is just the start. Eventually all supermarket companies will buy a meal kit company.

Curious what the value proposition would be. I mean, I can see delivery + pre-existing logistics network. Or selling better kits in stores. Or a segue to delivered groceries. But it seems kind of antithetical to how grocery stores make money. They're low margin, high volume businesses. And this directly attacks volume. Buying a grocery delivery startup seems like it would make way more sense as a first step.

Well, the take away salads and wraps and other to-go options have become very popular within supermarkets (and have eaten into sales at fast casual type restaurants).

Re: Albertsons snaps up meal kit startup Plated

#13

Post by hkmurakami »

milesokeefe wrote: post #7
gscott wrote: post #4

Earlier quoted context omitted.

Maybe a high percentage of young people go into a supermarket and are overwhelmed. Supermarkets need employees to tell people what can be done with the food they find on the shelves to remain relevant and buying a pre-packaged fresh mailed to you food company is trying to fix a symptom of that actual problem.

Regardless of feeling overwhelmed, the convenience of picking up one meal kit box vs knowing what ingredients to get, finding them, getting the right amount (often the minimum is far too much for the meal), etc. is huge. AFAIK a lot of the margins for online meal kit companies is the shipping+packaging cost. Grocery stores don't have to pay for shipping to the customer and can keep the boxes refrigerated which would…

I've used a meal kit once or twice. I cook multiple meals for myself a day. But even for me, a person not in a meal kit business' target demographic, I can appreciate the value of not having to spend 10 minutes looking for the butter that was moved to some other location by the elves that run the Supermarkets.

Re: Albertsons snaps up meal kit startup Plated

#14

Post by toomanybeersies »

Nition wrote: post #10
ethbro wrote: post #5

Earlier quoted context omitted.

Curious what the value proposition would be. I mean, I can see delivery + pre-existing logistics network. Or selling better kits in stores. Or a segue to delivered groceries. But it seems kind of antithetical to how grocery stores make money. They're low margin, high volume businesses. And this directly attacks volume. Buying a grocery delivery startup seems like it would make way more sense as a first step.

One of the major national supermarkets here does delivery[1]. There's also a cheaper option where you can pick up but they do the shopping for you, so you can just stop by and get your cart. Both are actually a really nice service and good value for the time you save too, but I'm not sure how popular it actually is. You do miss out on being able to select your own fruit, meat etc, but they did a good job the couple o…

New World is starting to roll out grocery delivery, they're trialing it in a couple of stores in Auckland.

Re: Albertsons snaps up meal kit startup Plated

#15

Post by [deleted] »

toomanybeersies wrote: post #14
Nition wrote: post #10

Earlier quoted context omitted.

One of the major national supermarkets here does delivery[1]. There's also a cheaper option where you can pick up but they do the shopping for you, so you can just stop by and get your cart. Both are actually a really nice service and good value for the time you save too, but I'm not sure how popular it actually is. You do miss out on being able to select your own fruit, meat etc, but they did a good job the couple o…

New World is starting to roll out grocery delivery, they're trialing it in a couple of stores in Auckland.

[deleted]

Re: Albertsons snaps up meal kit startup Plated

#16

Post by CapnCrunchie »

x2f10 wrote: post #11
ethbro wrote: post #5

Earlier quoted context omitted.

Curious what the value proposition would be. I mean, I can see delivery + pre-existing logistics network. Or selling better kits in stores. Or a segue to delivered groceries. But it seems kind of antithetical to how grocery stores make money. They're low margin, high volume businesses. And this directly attacks volume. Buying a grocery delivery startup seems like it would make way more sense as a first step.

>But it seems kind of antithetical to how grocery stores make money. They're low margin, high volume businesses. And this directly attacks volume. Not necessarily. The margin on meal kits are stronger than the ingredients alone (e.g. sliced fruits & veggies). In relation to the volume, meal kit buyers still need to eat. The hungry buyer must cook at home (w/ groceries), go to a restaurant, or buy a second meal kit. T…

>Grocery stores can market these meal kits as more affordable, healthier, and 'hip'.

I did a meal kit service for a little while, and my biggest complaint was that it was not any cheaper than if I were to go out to eat, but I still had to cook the meal and clean up afterwards. If there were a cost savings versus going to eat at a restaurant, I would have kept the subscription.

Re: Albertsons snaps up meal kit startup Plated

#17

Post by fernly »

Plated should be able to lower costs by participating in Albertson/Safeway's purchasing system. Everything that they pack in a meal kit is also an SKU for a grocery store.

Then, there's lovely marketing synergy. On the one side, people going through the store looking for the stuff they need to cook for dinner, are going to see how "oh, I could have all this packaged up for me and sent to my door and I wouldn't have to futz with this list."

While on the other side, people who are stopping by the store to pick up their Plated box -- which they would be incented to do because the subscription price would be lower for that mode -- will take a few extra seconds to buy a bottle of wine or a dessert to go with it.

Re: Albertsons snaps up meal kit startup Plated

#18

Post by jsonne »

milesokeefe wrote: post #7
gscott wrote: post #4

Earlier quoted context omitted.

Maybe a high percentage of young people go into a supermarket and are overwhelmed. Supermarkets need employees to tell people what can be done with the food they find on the shelves to remain relevant and buying a pre-packaged fresh mailed to you food company is trying to fix a symptom of that actual problem.

Regardless of feeling overwhelmed, the convenience of picking up one meal kit box vs knowing what ingredients to get, finding them, getting the right amount (often the minimum is far too much for the meal), etc. is huge. AFAIK a lot of the margins for online meal kit companies is the shipping+packaging cost. Grocery stores don't have to pay for shipping to the customer and can keep the boxes refrigerated which would…

Yeah so I'm working on a pickup meal kit company and that's true. Over half the cost of a meal kit is tied up in last mile logistics. I have yet to see a company not offer door to door delivery, but in my mind that's only 1 piece of the value prop. You can reach the middle market more effectively, while offering more options and customization, by simply having the customer pick it up at a much lower price point.

Re: Albertsons snaps up meal kit startup Plated

#19

Post by foolfoolz »

maybe just me, I don't see meal kits going away but I think they are niche and temporary subscriptions at best. people are paying for convenience. an obligation to making a big dinner is not convenient

if they were much cheaper, and give you more choice on what says its active, and faster activation turnaround (maybe at 3pm I decide if I want the dinner kit for tonight) then it might make more sense.

I do not buy the "young people don't know how to shop and need us" argument. sounds like a forced effort to get the word millennial in your message

Re: Albertsons snaps up meal kit startup Plated

#20

Post by ThrustVectoring »

tyingq wrote: post #6
WheelsAtLarge wrote: post #2

This is just the start. Eventually all supermarket companies will buy a meal kit company.

I wonder if one might buy a national pizza delivery chain. Then you get an established driver network too.

Pizza delivery chains are largely operated as franchises, from what I remember. Buying Papa John's would get you the existing relationships with franchisees and the right to use the trademark. It wouldn't get you direct access to drivers - their paychecks are paid by entities like Rain City Pizza LLC.
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