Meal Kits Rebound

Meal kits have been around for a number of years. When they first launched, the novelty and ease of use quickly drove the subscriptions up. But sales plateaued as competitors proliferated and differentiation between companies was missing. After all, how many meal subscriptions does a household need? The cost of the first sale was high, and competitors all seemed to be trying to reach the same target market. Growth stalled.

But, the coronavirus pandemic is changing the dynamics of the market once again. With more people staying at home, restaurants closed, and fear of the virus in crowded places such as supermarkets, meal kits are primed for a resurgence. According to Nielsen Research, consumer spending on meal kits in April of this year is nearly double the level from the same period a year ago.

Restaurants also are getting in on the action with Panera Break readying a launch of its own make-your-own salad and sandwich kits. It is being joined by other dining chains such as Denny’s, Chick-fil-A, Shake Shack, and others. Doing an Internet search for “meal subscription boxes” brings up dozens of options for meal and snack subscriptions!

Environmental conditions have a big impact.

Group Activities and Discussion Questions:

  1. Discuss the importance of environmental scanning in marketing.
  2. What are the environmental factors that are impacting the meal kit industry?
  3. How can meal kit companies use this information to retain and grow their customer base?
  4. Divide students into team. Have each team research one of the following meal kit companies, or another of their choosing:

Hello Fresh: https://www.hellofresh.com/

Home Chef: https://www.homechef.com/

Sun Basket: https://sunbasket.com/

Blue Apron: https://www.blueapron.com/

Freshly: https://www.freshly.com/

  1. How are these companies different? How are they similar? What is the value offered by each company?
  2. Have students build a SWOT analysis chart for the company.

Source: Wall Street Journal; other news sources

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