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Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

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Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#11

Post by chenchenhuo »

crsv wrote: post #10

How do you guys plan to strategically and operationally adjust as you expand in to markets that far removed from economics and social drivers of SF?

We can't wait to be in markets removed from the economics of SF! San Francisco has the highest costs of running a restaurant (labor, rent, food) and consequently, hurts our margins.

In other areas removed from social drivers, we'll spend less time on our viral social media presence and more on grassroots marketing and community engagement.

It's our thought that if we can make it (twice) in SF, we can make it in other areas where the unit economics are so much better.

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#12

Post by ryanworl »

chenchenhuo wrote: post #8
ryanworl wrote: post #5

Hi Chen-Chen and Antony, Why did you choose to join YC with a restaurant business? Is there a technology differentiator in your business? I have a lot of experience in the on-demand food space and your method of using commissary kitchens is very smart and will allow you to access tens of thousands of customers without an expensive build out. I would guess net (after paying the delivery platforms for distribution) you…

Great questions. We believe that YC builds companies that are lean, scale efficiently, and build products that people want. We felt like we had a product that people wanted, and wanted a bit more guidance on how to grow. Our technology differentiation is taking advantage of the growth of delivery platforms to scale our business via commissary kitchens. We've talked briefly about expanding to other concepts once we've…

Have you explored offering pick-up directly from the commissary kitchens? Not sure what local regulations you'd be navigating there or provisions on your lease, but redirecting diners there with some collateral you include with every delivery order could provide you additional orders without paying the platforms for every order.

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#13

Post by seltzered_ »

ryanworl wrote: post #12
chenchenhuo wrote: post #8

Earlier quoted context omitted.

Great questions. We believe that YC builds companies that are lean, scale efficiently, and build products that people want. We felt like we had a product that people wanted, and wanted a bit more guidance on how to grow. Our technology differentiation is taking advantage of the growth of delivery platforms to scale our business via commissary kitchens. We've talked briefly about expanding to other concepts once we've…

Have you explored offering pick-up directly from the commissary kitchens? Not sure what local regulations you'd be navigating there or provisions on your lease, but redirecting diners there with some collateral you include with every delivery order could provide you additional orders without paying the platforms for every order.

That concept may work if you're an independent offering a unique item for the area. For example, http://www.windycitypie.com (chicago pizza pequod's style) in seattle started out this way by having online-only pickup/delivery from a commissary kitchen in an industrial district south of downtown.

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#14

Post by chenchenhuo »

ryanworl wrote: post #12
chenchenhuo wrote: post #8

Earlier quoted context omitted.

Great questions. We believe that YC builds companies that are lean, scale efficiently, and build products that people want. We felt like we had a product that people wanted, and wanted a bit more guidance on how to grow. Our technology differentiation is taking advantage of the growth of delivery platforms to scale our business via commissary kitchens. We've talked briefly about expanding to other concepts once we've…

Have you explored offering pick-up directly from the commissary kitchens? Not sure what local regulations you'd be navigating there or provisions on your lease, but redirecting diners there with some collateral you include with every delivery order could provide you additional orders without paying the platforms for every order.

We're working on that with our Portland commissary right now. There are talks of installing a delivery/pick-up window to better operations. Stay tuned!

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#16

Post by deadmetheny »

chenchenhuo wrote: post #8
ryanworl wrote: post #5

Hi Chen-Chen and Antony, Why did you choose to join YC with a restaurant business? Is there a technology differentiator in your business? I have a lot of experience in the on-demand food space and your method of using commissary kitchens is very smart and will allow you to access tens of thousands of customers without an expensive build out. I would guess net (after paying the delivery platforms for distribution) you…

Great questions. We believe that YC builds companies that are lean, scale efficiently, and build products that people want. We felt like we had a product that people wanted, and wanted a bit more guidance on how to grow. Our technology differentiation is taking advantage of the growth of delivery platforms to scale our business via commissary kitchens. We've talked briefly about expanding to other concepts once we've…

>Our technology differentiation is taking advantage of the growth of delivery platforms to scale our business via commissary kitchens.

I'm reading this as having commissaries specially for take-out/delivery apps to make use of, rather than being for dine-in space (and presumably a level of prep work), which sounds like an interesting concept. I own a food truck and have been considering how to go about having availability on delivery apps myself, definitely great food for thought. Best of luck on your endeavor!

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#17

Post by nowarninglabel »

Is there anything to learn from the experience of "The Melt"? It seemed they started with a grilled cheese focus, didn't do so well, and pivoted to burgers. Now they seem to be doing well (however this is only through observation, I have no idea of their finances). It would seem Mac & Cheese would find a similar issue of being too narrow / too niche. Granted, if you don't intend to have in-person location ordering be a big piece of the business, then maybe that is irrelevant.

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#18

Post by physcab »

We used to get Homeroom catered to our company so I'm pretty familiar.

Its pretty delicious but also really heavy. I noticed that it was difficult finding something that I'd want to eat on a recurring basis, and that must have been uniform because we stopped getting catering from them after 6 months or so.

I'm curious to know if you've seen recurring business from customers or just getting new business because its a new concept and people love mac and cheese and want to try.

While there are trends in fast casual, I'd say there are also trends in healthier eating. Have you thought about how to provide healthier / lighter options to encourage more habitual ordering from existing customers?

Also another idea is food trucks as mobile storefront. A pizza truck a block away from me bought access to an unused parking lot, and while they do provide walk-ups, the majority of orders are fulfilled by delivery companies. Since they are located in a parking lot on a busy street, I will often see 4-5 Uber / Postmates / Eat24 cars lined up waiting for their quick-fire pizzas.

Re: Launch HN: MAC'D (YC S18) – Fast-Casual, Build-Your-own Mac and Cheese

#19

Post by nedwin »

nowarninglabel wrote: post #17

Is there anything to learn from the experience of "The Melt"? It seemed they started with a grilled cheese focus, didn't do so well, and pivoted to burgers. Now they seem to be doing well (however this is only through observation, I have no idea of their finances). It would seem Mac & Cheese would find a similar issue of being too narrow / too niche. Granted, if you don't intend to have in-person location ordering be…

Location was two of their main problems.

High rents and limited food options (so they went into burgers) and the high rent locations they took in suburban malls often came with contracts which explicitly stated they couldn't sell burgers due to competition with other mall burger places.

Looks like this is very different in that they're mostly selling through Uber Eats et al and some locations. They can easily expand to selling anything they want out of these commissaries.

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