Meal Prep Business Plan
If you want to start a meal prep business or expand your current meal prep business, you need a business plan.
The following meal prep business plan template gives you the key elements to include in a successful meal prep business plan.
Sample Meal Prep Business Plan
I. Executive Summary
Products Served
[Company Name] will ship meal kits with organic ingredients to customers, so they can make a variety of fresh and healthy meals in their homes. Our website will showcase a variety of meal options to choose from, and the options will change every week. A few example recipes from our initial menu include:
- Sicilian Penne
- Mediterranean Panini
- Black Bean and Corn Burrito Bowl
- Sweet Potato Fajitas
- White Cheddar Burgers
- Thai Coconut Curry Chicken
In addition to focusing on organic ingredients, [Company Name] will also offer vegetarian and vegan options and allow substitutions and alterations for those with common food allergies.
Customer Focus
[Company Name] will serve a wide customer base across the United States. Our meals will attract those who are interested in healthy living and consuming food that is 100% organic. Therefore, we expect our customer base to primarily be affluent millennials or members of Gen-Z, which are the generations most interested in organic and healthy eating.
Management Team
[Company Name] is led by [Founder’s Name], who has been a chef for [X] years. During her career, she has cooked hundreds of healthy and organic recipes for five-star restaurants in the [location] area. She now wants to take her skills and knowledge and apply them to meals that customers can cook in the comfort of their homes.
Though [Founder’s Name] has never run a business herself, she will hire others to help her run the management and operations sides of the company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will focus on providing recipes made with organic ingredients, which most other meal prep companies do not provide.
- The founder has a track record of success in the restaurant industry and can apply her skills and experience to this new business.
- The meal prep delivery industry is a proven business and has succeeded across the globe.
- Market trends such as healthy and organic living support our business opportunity, as well as growing awareness about the obesity epidemic and the repercussions of non-nutritious eating.
Financial Highlights
[Company Name] is currently seeking $400,000 to launch. Specifically, these funds will be used as follows:
- Kitchen design/build: $150,000
- Equipment and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new meal prep company that is focused on providing meal kits made with 100% organic ingredients. [Company Name] will list a selection of meal options available each week and then send the customer pre-portioned and prepped organic ingredients to make those meals in the comfort of their homes. All meals are nutritious, organic, and take 30 minutes or less to cook.
[Company Name] is led by [Founder’s Name], who has been a chef for [X] years. During her career, she has cooked hundreds of healthy and organic recipes for five-star restaurants in the [location] area. She now wants to take her skills and knowledge and apply them to meals that customers can cook in the comfort of their homes.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] on [date of incorporation] as an S-corporation. The business is currently being run out of her kitchen/home but will run out of a commercial space once a lease is signed.
Since incorporation, [Company Name] has achieved the following milestones:
- Found a commercial space and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and fixture requirements
- Created initial menu
- Found partners who will supply organic ingredients
[Company Name]’s Products/Services
[Company Name] will provide organic ingredients to customers, so they can make a variety of fresh and healthy meals. Our website will showcase hundreds of recipes for our customers to choose from. A few example recipes from our initial menu include:
- Sicilian Penne
- Mediterranean Panini
- Black Bean and Corn Burrito Bowl
- Sweet Potato Fajitas
- White Cheddar Burgers
- Thai Coconut Curry Chicken
- Affluent individuals: Since organic ingredients are harder to get and can be fairly expensive, we expect affluent individuals to be the customer segment most willing to pay our prices.
- Millennials: Millennials tend to care the most about healthy living. They are most likely to shop for organic ingredients and take great care to make healthy, nutritious meals. Therefore, they are the most likely generation to purchase our meal kits.
- Gen-Z: Gen-Z comes right behind millennials as the second most likely generation to care about organic ingredients and healthy living. Therefore, we expect this generation to make up a large chunk of our customer base.
- 100% Natural/Organic/High-Quality Ingredients: [Company Name] will offer 100% organic and high-quality ingredients in every recipe.
- Management: Our management team has years of experience in the food industry that will help our meal kit delivery company thrive.
- Customer-Oriented Service: We will create and tweak our menus based on customer feedback and preferences. [Company Name] plans to offer more variety and better quality meals that will keep customers coming back for more.
- Offering organic, high-quality ingredients for a variety of fresh and healthy meals.
- Offering a wide variety of recipes to choose from.
- Providing excellent customer service.
- Bookkeeping
- Marketing
- Sourcing and storing organic ingredients
- Hiring and training staff
- Customer service
- Ingredient preparation
- Meal kit preparation
- Ongoing menu creation and modification
- Shipping out orders
- Chefs (3 to start)
- Director of Operations
- Director of Marketing
- Administrative Assistants (1 to start)
- Customer Service Associates (3 to start)
- Kitchen design/build: $150,000
- Equipment and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
In addition to focusing on organic ingredients, [Company Name] will also offer vegetarian and vegan options and allow substitutions and alterations for those with common food allergies.
III. Industry Analysis
The meal kit industry has taken off in the past decade. Many people want healthy cooking, but don’t have the time or patience to follow extremely detailed recipes. Furthermore, many ingredients come in enormous portion sizes at the grocery store, so many people end up wasting food on their journey to eating healthier.
Prepared meal kits address these issues. Since all the ingredients are prepped and packed together, all the customer has to do is put them together and cook the meal. And since each ingredient is pre-portioned before being packaged, no food or ingredient is wasted throughout the process.
The data shows that all these advantages put the meal kit industry in great demand. According to research, the meal kit delivery industry was valued at $15.21 billion dollars and is expected to grow at an annual rate of 17.4% over the next 5 years. This is tremendous growth for any industry and shows just how much people love these services.
Furthermore, many people are more than willing to pay extra for food that is organic and healthy. According to Pan American Life, 83% of US citizens opt for organic options at least some of the time. With the convenience of a meal kit delivery service, there is a huge customer base that will be interested in this convenient, healthy option. Therefore, it is a great time to develop a prepared meal kit service that focuses solely on organic ingredients and recipes.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve any U.S. customers who are interested in organic and healthy eating. We expect this customer base to primarily be young to middle-aged adults in the middle and upper classes.
Customer Segmentation
We will primarily target the following three customer segments:
V. Competitive Analysis
Direct & Indirect Competitors
The following companies are popular within the meal prep industry and, therefore, directly or indirectly compete with [Company Name].
EveryPlate
EveryPlate offers all the services and perks of a meal kit delivery service at a fraction of the cost. With every serving costing just about $5, it’s the most affordable option for those looking for easy, delicious meals. Customers can expect a lot of delicious comfort food from this meal delivery service, such as meatloaf, burgers, and pasta dishes. However, EveryPlate offers a very limited selection of recipes each week. Furthermore, the company has very few options for customers with food allergies and does not use organic ingredients.
HelloFresh
HelloFresh is perhaps the king of meal prep delivery companies. It offers a much larger variety of meals than other competitors and caters to customers that have diet restrictions and allergies. And unlike many other companies, HelloFresh allows customers to make substitutions to their recipes. Though HelloFresh has many reasons to be popular, it does not offer organic ingredients nor has many gourmet options on its menus.
Blue Apron
Blue Apron offers a number of weekly menu items based on the meal plan that customers choose. Meal plan options include a Signature plan, a Vegetarian plan, and a Wellness plan, which features nutritionist-approved, carb-conscious recipes. Customers can also choose how many recipes they want each week (two to four) and how many servings they need for each recipe (two to four). The prices vary depending on the plan chosen by the customer but start as little as $8/serving. However, Blue Apron does not include vegan or organic recipes, and the menu is limited to just eight meal options each week.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
Promotions Strategy
[Company Name] expects its target market to be affluent young to middle age individuals who are interested in organic and healthy eating. [Company Name]’s promotions strategy to reach these individuals includes:
Website/SEO
[Company Name] will develop a professional website that showcases the variety of fresh, organic meals the service offers. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Company Name] will create social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its customers to refer other individuals by providing discounts on future meals for every new customer who signs up for our service. This strategy will increase in effectiveness over time.
Special Offers
Offers and incentives are an excellent approach to bringing in new customers. The company will introduce special offers on meal plans to attract new consumers.
Influencer Marketing
[Company Name] will partner with social media influencers to promote the company’s value proposition and various recipes.
Email Marketing
[Company Name] will maintain ongoing email communications with current customers to communicate special offers, new recipes, and general cooking tips.
Pricing Strategy
[Company Name]’s pricing will be marked up compared to other competitors to reflect the quality and freshness of the organic ingredients we use for every recipe. However, discounts and promotions will be offered frequently, so customers can feel that they are getting a great value when purchasing our meal kits.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the Company needs to perform many functions, including the following:
Administrative Functions
Kitchen Functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been a chef for [X] years. During her career, she has cooked hundreds of healthy and organic recipes for five-star restaurants in the [location] area. She now wants to take her skills and knowledge and apply them to meals that customers can cook in the comfort of their homes.
Though [Founder’s Name] has never run a business herself, she will hire others to help her run the management and operations sides of the company.
Hiring Plan
[Founder] will serve as the CEO of the business and the head chef. In order to launch the restaurant, we need to hire the following personnel:
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of its meal kits.
The major cost drivers for the company will be food production costs and the salaries of the staff. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $400,000 to launch. The capital will be used for funding capital expenditures, labor expenses, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| FY 1 | 25 |
| FY 2 | 35 |
| FY 3 | 45 |
| FY 4 | 55 |
| FY 5 | 75 |
| Annual Lease (per location) | $50,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
