Major Meal Kit Companies Lose 90% of Customers in a Year

… even the most ignorant and innumerate Americans quickly figure out that adding a big Private Equity “skim rate” to your grocery bill doesn’t make the food taste any better.



Yeah, unless you can pile on a huge margin in a short time, that re-acquisition customer cost is going to kill you. When the churn is that high there’s almost no way to win.

One that interested me (not as an investment, just … because) is the toaster oven with food plan. Tovala? (Edited to correct.) Something like that which I see all over TV. “Look, I’m not doing anything” is the pitch line in the commercial. First they sell you the toaster oven that scans the food (the razor) and then the food with the cooking codes (the blades). As opposed to the “just food” plans, at least they’ve got their hooks into you for an expensive appliance which makes the food part easier to swallow, pardon the pun.

I figured it’s a decent play to the 20-something’s who don’t cook but who still like to eat better than a Big Mac every night, and I can see some slice of that demographic - or even single 60-year old divorcees and widowers taking up such a thing. Time will tell, but I’ll still be a bit surprised.

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Potentially viable–but only one way. If the food is sold in grocery stores and is reasonably priced compared to other brands. OR if the gadget can adjust itself to other groceeery store brands and prepare them correctly. Problem: Selling the gadget is a “one off” while selling through grocery stores is a long-term not-very-high return (but VIABLE).