Offered by First Democracy VC
Time to Invest
Minimum Investment: $100
Offered by First Democracy VC
Time to Invest
2017 revenue was $231,000, a 144% increase from 2016
Generated more than $107,000 in revenue during Q2 of 2018, a 95% year-over-year increase
2018 Editor’s Pick for Home-Delivered Meals in Best of Rhode Island magazine
Customer retention rate of 40%, almost double some industry competitorsi
Security Type: Crowd Note
Round Size: Min: $50,000 Max: $300,000
Valuation Cap: $2.5 million
Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price paid per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price paid per share paid on a $2.5 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
A study published by UBS—called Is the Kitchen Dead? —predicts a potential scenario where “most meals cooked at home are instead ordered online and delivered from either restaurants or central kitchens” by 2030.ii According to a 2017 survey, only 10% of American consumers claim to love cooking, down 33% from a similar study conducted 15 years prior. More notably, approximately 45% of American consumers said that they hated to cook.iii
Founded in 2016, Feast & Fettle is a subscription-based, premium food delivery service. Seasonally inspired meals are prepared and cooked by chefs and delivered fresh, directly to members’ doors.
Each week, members go online and select meals from a rotating menu of entrées and sides, catered to the dietary requirements and preferences of their households. Members simply reheat their meals before eating - no cooking or prep is required.
Feast & Fettle was founded on the appreciation for how difficult it can be for working professionals and families to prepare healthy, wholesome dinners every night.
Since launching, Feast & Fettle has realized notable growth in monthly revenue. The company plans on expanding operations, having just signed a lease on a new commercial kitchen facility. Feast & Fettle currently delivers meals to members in Rhode Island and plans to expand into Massachusetts in Q3-2018 and Connecticut in 2019.
Customers can sign up at Feast & Fettle’s website and choose a meal plan that suits their needs. Plans are based on household size and can be customized to serve between 2-4 full meals per week.
Each week, the company releases a new menu, where members select a combination of entrées and sides catered to their dietary preferences. Orders are placed at least 4 days in advance of delivery to provide Feast & Fettle adequate time to prepare the meals.
The company aims to offer a wide variety of selections to accommodate various dietary needs (i.e. vegetarian, vegan, and gluten-free). A-la-carte entrees and sides can easily be added to accommodate more family members and/or guests.
Meals are prepared from scratch and cooked at Feast & Fettle’s kitchen in Rhode Island. The food is then packaged and chilled for delivery the following day. The company sources its ingredients from local suppliers and aims to use organic options when possible.
Meals are packaged family style, so members can mix-and-match entrees and sides based on individual household preferences. The only prep involved is reheating, which can be done by microwave, stovetop, or oven depending on the dish. This is a relatively quick process – the reheating time is between 5 and 25 minutes.
Meals are delivered in insulated bags with Hydropac® ice packs to keep the food cold until members return home and place them in the fridge or reheat them. Food containers are 100% recyclable and drivers recollect the insulated bags when they drop off their next delivery.
Sample entrees include:
Sample side dishes include:
Feast & Fettle anticipates using the proceeds from this raise in several ways. First, the company plans to build out its own commercial kitchen space—they are currently renting space from a third-party location. The company has executed a lease for its own commercial space and plans to commence a buildout upon completion of this raise. Additionally, if the maximum of $300,000 is raised, the company plans to use the additional proceeds on kitchen equipment, wages, and marketing to help further scale operations.
The company has discretion to alter the use of proceeds under the following circumstances: (i) the kitchen buildout costs vary from what was originally quoted from the company’s contractor, (ii) economic conditions alter the general marketing or general working capital requirements to adhere to the company’s business plan and liquidity requirements.
Feast & Fettle offers weekly meal plans with pricing that varies depending on the serving size and number of entrees and sides ordered per week. The pricing structure for the company’s meal plans are as follows:
Single Plans, serves one person:
Couples Plans, serves two people:
Family Plans, serves four people:
In June 2018, Feast & Fettle had 92 customers, up 188% year-on-year. Order volume is up 153% (June of 2018 vs June 2017).
On average, Feast & Fettle added 17 new users per month in 2018 (January – June), a 183% increase from the equivalent period in 2017. Customer retention has remained relatively consistent during this period, with a weighted average retention rate of approximately 40%—almost double some industry competitors.iv
Rhode Island Monthly: The Dish: We Tried Feast & Fettle’s Local Meal Delivery Service
Providence Journal: R.I. meal-delivery service Feast & Fettle takes stress off the table
WPRI Eyewitness News: In the Kitchen: Feast & Fettle Spring Panzanella Salad
Providence Online: The New Fast Food: Warren's newest meal delivery service is chef made
Providence City Mom’s Blog: Feast and Fettle: Home Delivered Dinner for Busy Families
Patty J Lifestyle Blog: This local meal delivery service is next level & you'll want to loop in your foodie friends
Year to date through June 2018, Feast & Fettle generated $194,000 in revenue. The majority of revenue came from subscription fees with the remainder coming from catering and gift cards. In 2017, Feast & Fettle generated $231,000 in net revenue, a 143% increase over 2016. In 2016, Feast & Fettle generated $95,000 in revenue.
Year to date through June 2018, Feast & Fettle incurred $230,000 in total expenses. In 2017, Feast & Fettle incurred $243,000 in total expenses, a 106% increase over 2016. In 2016, Feast & Fettle incurred $118,000 in total expenses. The majority of expenses came from costs of goods sold, labor, and rental payments for the commercial kitchen. In 2018, the company began investing in marketing to improve acquisition efforts and had increased expenses as a result.
Year to date through June 2018, Feast & Fettle generated a net loss of $36,000. In 2017, Feast & Fettle generated a net loss of $12,300, an 88% decrease over 2016. In 2016, Feast & Fettle generated a net loss of $23,200. The increase in net loss in 2018 is largely due to an increase in marketing expenses—which the company has deployed to help improve customer acquisition—as well as increased spending on labor and packaging as the business expands. Throughout 2016 and 2017, Feast & Fettle had several months of profitability. However, as the company began to focus more on scaling the business, profitability has decreased.
The global meal kit delivery industry was valued at an estimated $2.2 billion as of mid-2017.v However, as of March 2017, only 25% of adults in the U.S. had tried a prepared meal kit over the prior twelve months.vi Statista estimates that the global industry could reach $10 billion by 2020.vii Due to industry growth, many new competitors have been formed. According to the Economist, there were more than 150 different meal kit companies in operation as of April 2018.viii
There are several reasons consumers are interested in buying prepared meal kits. According to a 2017 study conducted by Nielsen, more than 45% of consumers who purchased meal kits did so because it saves time planning meals. Another popular response was the short prep and cook time involved with meal kits.
When comparing purchasing habits for prepared meal kits across demographics, several large trends stood out. Generation X consumers were 321% more likely to purchase them than older consumers. Additionally, busy families with children are 326% more likely to buy a meal kit than households without children.ix
Popularity in prepared meal kits has also prompted several acquisitions, mergers, and large new entrants in the industry. This past September, Albertsons—a supermarket chain—bought a large subscription-based meal kit delivery company called Plated. In March 2018, one of the largest meal kit delivery companies in the industry—HelloFresh—acquired Green Chef to become the biggest player in the U.S., surpassing Blue Apron.x Additionally, large companies such as Walmart and Amazon have begun looking into rolling out their own meal kit delivery services. Walmart plans to offer its own kits in 2,000 locations this year.xi
There are several sub-segments within the meal delivery kit industry. The most popular of these segments is pre-packaged, freshly cooked meals that only require heating before eating. Following closely behind were fresh meal kits with all the ingredients included.xii
Freshly: Founded in 2012, Freshly delivers chef-cooked, healthy meals to its customer’s doors. Customers can choose from a rotating weekly menu with more than 30 gluten-free options. Freshly cooks the meals and delivers them to the customer’s door chilled and fully prepared—only reheating is required before eating. Freshly seeks to provide healthy meal options for its customers with high-protein, low-carb, paleo friendly, and vegetarian dishes available. All meals are portioned to be a single serving, and depending on the chosen meal plan, the average meal can cost between $8.99 and $12.50 per meal. Freshly’s most popular meal plan includes 6 meals per week for $59.99—or $9.99/meal.xiii The company offers meal delivery in 27 states.xiv It has raised $107 million in funding, including a $77 million Series C round in June 2017 that was led by Nestlé USA.xv
Prepped: Founded by reality tv star Jonathon Chebanxvi — and originally known as Fit Fuel Prep—Prepped delivers freshly prepared meals to customer’s doors. Meals are locally sourced, and chef prepared. Customers can order meals weekly from the Prepped website—$55 minimum—and the company can ship nationwide.xvii Prepped menus change weekly with a focus on low-carb and paleo meal options. Customers can order meals individually or as meal packages. A five-meal package starts at around $61 for both the low-carbxviii and paleoxix plans.
Munchery: Founded in 2010, Munchery prepares meals using all-natural, local ingredients, and delivers them to customer’s doors. Customers can order from a rotating menu for delivery the following week. Meals are delivered chilled and only need to be re-heated before being served. Customers can order individual meals and are not required to sign up for a weekly or monthly plan. Meals on are priced individually and vary depending on the type of food. Munchery also offers a membership plan for $83.40 per year which gives members 15% off all menu items.xx The company plans to offer same-day deliveries in San Francisco, San Jose, and Sacramento.xxi In March 2017, the company raised $5 million via a convertible note that—according to a source—carried an $80 million valuation cap. The company had previously raised $120 million in financing, including an $85 million Series C that had valued the company at roughly $300 million.xxii
The Foodery: Founded in 2011, The Foodery prepares and delivers prepared meals made from locally sourced ingredients. Its products focus on pasture raised proteins and seasonal produce, and do not have GMO’s, antibiotics, or hormones. Customers can place weekly orders online and meals are delivered the following Wednesday or Sunday. Meals arrive fresh and only require reheating before being served. No subscription is required and each meal can be ordered individually for two or four servings. Meals generally cost between $24 to $43 per order.xxiii Currently, The Foodery currently serves the greater Boston area.xxiv
Fresh N Lean: Fresh N Lean is an organic meal delivery service. The company seeks to prepare meals using natural, organic ingredients that are gluten-free and low sodium. Customers can choose from four weekly meals plans: Ion Performance Protein, Ion Performance Paleo, Standard Plant-Based, and Low Carb/Low-Calorie plan-based meals. Orders are placed online and customers can order one to three meals per day for either five or seven days. Additionally, orders can be made a la carte and shipped individually. Meal plans range from $9.33 to $12.69 per meal.xxv
Carlos Ventura, Chief Executive Officer (CEO): Carlos joined Feast & Fettle as CEO in February 2018. Prior to joining Feast & Fettle, he worked for Deliveroo—one of the largest start-ups in the United Kingdomxxvi — on Strategy and Corporate Development. Before Deliveroo, Carlos worked in banking at Goldman Sachs and Citi, and in consulting at CAPCO. He has a bachelor’s degree in Business Administration and Finance from the Isenberg School of Management at UMass Amherst.
Margaret Mulvena, Founder and Executive Chef: Maggie founded Feast & Fettle in 2016 and has served as the Executive Chef ever since. Prior to starting Feast & Fettle, she worked as a private chef for several families in Rhode Island. As she began cooking for more families, she decided to take the entrepreneurial leap and serve a larger customer market. Maggie graduated from Johnson & Wales University with a Bachelor of Science in Culinary Nutrition.
Nicole Oliveira, General Manager: Nicole has been with Feast & Fettle since it was founded in 2016. Over that period of time, she has worked in many roles including Community Manager, Bookkeeper, Customer Service Specialist, Chef Aid, and currently as the General Manager. Prior to joining Feast & Fettle, Nicole worked for several international hotel and cruise line companies in the Hospitality and Food & Beverage industries.
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