Services like Blue Apron, Chef’d, Plated have been a part of the rising tide of companies delivering the pre-set meal kit to customers since 2012. Market Research firm Packaged Facts predicted the meal kit industry would generate around $1.5 Billion in 2016. These companies have attracted the attention of investors, CPG brands, grocers and restaurants alike; each for their own obvious reasons.
Restaurants look on warily, fearing another category competitor carving away much needed traffic and revenue. We at Food and Restaurant Marketing have examined the most successful of the hundreds of meal kit brands to identify a few lessons restaurant chains could apply to their own business. It all starts with understanding why meal kits have been successful.
It is convenient
Well, sort of convenient. It’s delivered to the door of the customer, and is prepared on their schedule. But it does have to be prepared. And cleaned up. While there is convenience, it comes with a limitation that is understood by customers.
Restaurants have both of these same elements. Dining at a restaurant, getting takeout or delivery can be more convenient than grocery shopping and cooking. But waiting and other factors can diminish the value exchange of paying for the overall convenience of not cooking. Restaurants need to continue to look for ways to remove friction from their ordering experience when consumers are looking for that convenience. They don’t necessarily need to cut out all the stops for dine-in guests.
Takeaway: Focus on friction.
Restaurants can take advantage of this trend of adventurous eating by being bold.
Foodies love it
Meal kits have a tendency to feature unique or unexpected ingredients. This gives customers a chance to ‘experiment’ with a new flavor in a safe way. It also lets them explore many profiles of spice, protein and vegetable combinations than they might be able to shop for at their grocery store without guidance. The chefs at Blue Apron have already tested the flavor and assembled the kit.
Restaurants can take advantage of this trend of adventurous eating by being bold. Even if it means offering variations on successful menu items, brands can add spicier profiles and unique proteins where it makes sense. The rise in turmeric and other spices is a trend that has hit meal kits and CPG but not yet mainstream chains. This despite Technomic and others (see previous paragraph) calling for it.
Takeaway: Bring the flavor.
Remember this concept? Meal kits do a great job of making sure customers get a square meal. Their meals come set with complementary fruit, vegetables and side dishes that all work together. And we’re not talking about the frozen peas and carrots that we know from TV dinners. As above, this is part of a trend of playing to foodie culture that has flourished with gourmet cooking content and celebrity chefs rising to prominence.
QSR and Fast Casual (and many, many Casual concepts) under-emphasize or else flat-out ignore meal balance. For a long time, guests looked past it and just had a meal with fries and a soda. We’re all more educated, even if the lesson is the same one taught in elementary school using the outdated food pyramid. How can your restaurant add vegetables or sides to the mix that make sense to your concept and will be embrace by your guest.
Takeaway: Side dishes can be the star.
There’s also something to be learned in where they fall short:
You can’t predict a craving.
It is great when you’ve pre-ordered that pork cutlet with green chiles, and it shows up three days later and you are still in the mood for it. Yes. However, when customers suffer multiple lapses in orders; when they pass on a meal that’s been delivered, we’ll begin to see attrition.
What most restaurants have going for them is the very thing that you cannot control. Making food that people crave. Know your guests, and continue catering to their tastes. They’ll come when they crave it.
Takeaway: Find ways to drive craving.
These along with other factors such as accurate portion size are reasons that meal kit services have blossomed in the US. But through careful study of their customers, restaurants can find keys to improving their offering, guest loyalty and new customer acquisition.