Takeout Kit bets big on shelf-stable gourmet meal kits: ‘We’re already profitable with a strong customer retention rate’

While the economics of running a subscription based home delivery model for fresh meal kits are notoriously challenging, shelf-stable kits offer distinct advantages to consumers and operators, argues the founder of gourmet meal kit brand Takeout Kit, as they’re cheaper to ship and consumers are not under pressure to cook within a limited time window or waste food (and money) if their plans change.

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According to new research from Magid, meal kit subscriptions have grown 67% over the past 12 months, although many subscribers are “triers/researchers (40%), who frequently try many subscriptions in the same category before fully committing,” it says.

“Surprisingly, men make up the majority of the meal kit subscription market (58%), compared to women, who make up 42%. This group is overwhelmingly young, as millennials make up 58% of the market, and skew on the lower side of income, as 55% of subscribers make less than $100,000/year.”

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