Tasty and Hasty: How To Win With A Meal Prep Business

When you consider the world in 2024, starting a meal prep business could be the smartest business idea you’ve ever had. So many people work long hours, they’re stressed out, and they’ve lost touch with the idea of home cooking with fresh ingredients. 

They want delicious, healthy home-style food, but they have no idea where to start. 

These are your potential customers and they’re a gold mine. It’s no surprise that demand for prepared meals, either frozen or ready-to-eat, is booming around the world. 

According to the FitMenCook blog: 

“The meal prep industry shows no signs of slowing, and with projected growth, for years to come, it’s a great market to jump into if you’re considering starting a business.” 

The numbers back this up. Meal prep businesses in the USA are projected to show annual revenue around $15.1 billion in 2024, with a compound annual growth rate (CAGR) of 9.3% from 2020 to 2027. 

But a passion for food and cooking is not enough to start a successful meal prep business. Your killer lasagna recipe can only get you so far when it comes to running your own business and delivering cost-effective, delicious meals across town! 

We’re here to help you take the first steps towards making your food business dream come true. Let’s go!

What kind of meal prep business do you want to start?

This is your first decision, and it’s a critical one. A lot depends on what type of business you want to start. There are two main options:

1. Ready-made meals

This involves preparing complete meals in your own commercial kitchen, then delivering them directly to customers. Some things to consider with this model are:

• Will you deliver meals ready to eat (like a restaurant) or frozen/chilled so they can be eaten later? This will have a big impact on your delivery costs — it costs the same to deliver a week's worth of frozen meals as it does to deliver just one ready-to-eat meal.  
• How big will your menu be? The more dishes you offer, the more ingredients you need to keep on hand and the longer it will take to create each dish. 

Bowlz is a good example: They deliver ready-to-eat lunches around Zurich, and keep their menu small and focussed so that they can deliver fresh, fast, and cost-effectively.

2. Meal kits

Meal kit delivery means your customers receive a package containing all the pre-prepped ingredients they need to make their own meal at home, along with a recipe card. This is a popular option for busy people who love the idea of having someone else take care of their meal planning and basic prep, so they can just show up and cook. It’s also great for foodies who like to try out new things. 

Some things to consider with this model:

• Recipe development is critical for a meal kit business. You’ll want to offer your customers a good selection each week, and each recipe will need extensive testing to be sure it’s easy to follow. 
• Meal kit delivery is perfect for a subscription model, where people sign up to receive a number of kits each week. It’s convenient for customers, and offers predictable, reliable revenue for the business. 
• It creates opportunities to experiment with low-cost, sustainable and reusable packaging. If you’re delivering to the same customers every week, you can easily collect their old cooler while dropping off the new one. 

Vancouver-based Fresh Prep, for example, delivers all its kits in reusable coolers, so there are no cardboard boxes. It’s also developed a zero waste kit to cut out single-use plastics as much as possible. 

There’s an article by NerdWallet which suggests meal prep workshops as a third option. It might be a good addition to a meal prep business — you could offer in-person workshops as an extra, or do online workshops for very new and inexperienced cooks. This is a very difficult model to scale, though, so won’t discuss this option in much detail.  

Now that you’ve decided what kind of meal prep business you want to focus on, it’s time to take the next step — developing a business plan. 

Developing your business plan

Every startup needs a solid business plan, and your meal prep business is no exception. A well thought out business plan will force you to think strategically and find a model that works. It’s also the first step to finding funding. 

Here’s how to set about creating a business plan that will set you up for success. 

1. Do your market research

You need solid facts to work with. Answer these questions to get started:

• What are the demographics of your area? Think about age, family structures, income levels, and lifestyles.
• Is your ideal customer base predominantly male or female? How will that affect your branding? 
• Are there any dietary restrictions or preferences that are common in your area? 
• What ingredients are readily available to you? 
• What niches are under-served in your area? Are there enough options for people who need their meals to be vegetarian, vegan, halal, low-carb, gluten-free, allergen-free, or low-calorie?

The deeper you go with this kind of research, the greater your chances of success will be. The key is to understand your customers’ pain points and develop personas that capture your market. Here are some examples of personas:

• Ashley is a competitive athlete who understands the importance of sports nutrition. She wants to eat clean and healthy, but she doesn’t like cooking. She wants a meal plan she can trust, so the right meals for her needs appear like clockwork. 
• Emma is a busy working parent who wants to offer healthy, home-cooked meals. But she doesn’t have a lot of time to plan menus and shop for ingredients, so she wants someone else to take that responsibility off her hands. 
• Matt is a curious vegetarian looking for ideas and inspiration. He wants to try new recipe ideas, but without spending a lot on fancy ingredients he might never use again. 
• Justin is working on a weight loss program and needs delicious low-calorie meals that will meet all his nutritional needs and help him avoid cravings. 

All of these are great niches to occupy — you just need to find the one you can feel passionate about, that also meets a real local need. If you can gear your business model towards solving a client's problems then you’re probably on the right track. 

2. Research your competitors

Once you understand your customers, take a long, hard look at all of your competitors. Don’t stop with the big names like Blue Apron and HelloFresh — find out what small, local meal prep businesses are doing in your area. Sample their service, look for the gaps, and try to find an underserved niche you can own. Your chances of success increase dramatically if you can find a niche that you can dominate. 

3. Create a marketing plan

Once you understand your customers and your niche, craft your USP (unique selling proposition). What is going to make you stand out from the crowd?  Whatever it is, you need to find an edge, own it and make sure you can deliver on what you promise. Take your time. Remember you only get one shot to make a good first impression on your target audience.  Some questions to consider:

• What pricing strategy will you choose? Would it make more sense to offer a monthly or weekly subscription, or let customers pay as they go? 
• Who can you partner with in the area to have maximum impact? Perhaps you can test out your offering at a local gym or office park

4. Build your legal and administrative foundations

Every startup needs to get their legal basics in place. As a small business owner you need to decide:

• What kind of business entity to create: Will you operate as a sole proprietorship, a partnership, or register a limited liability company? Business structure is a decision that has big implications, so get advice from the Small Business Administration (if you’re in the USA), or your local equivalent. 
• What permits and licenses you will need. There’s more to it than a business license — if you’re in the food industry there are extra health and safety considerations. You may need a food handlers licence or certificate, a catering license or other health department permits. Don’t take chances with food service safety.  
• What business insurance should you get? Again, this depends on the laws in your state, province or country. A good small business advisor or insurance broker will be able to help you here. 

Other important steps every entrepreneur needs to take:

• Choose and register your business name.
• Find an accountant who understands small businesses. Ask your friends, family, colleagues and mentors for referrals. 

5. Choose your delivery model

Delivery is often overlooked when people begin their meal prep business, but it will be one of your biggest costs so it’s critical to your success. Some considerations:

• Figure out your delivery areas — how far are you willing to travel?
• Will you handle deliveries in-house or outsource?
• What kind of delivery schedule will you run — on demand or scheduled?

There’s more about how to streamline your food delivery process, including the importance of route optimization, in the section on scaling your business further down in this article.

6. Do your financial homework

The final part of your business plan is always the money, (honey). 

First of all, what are your startup costs likely to be? Consider:

• Can you work from home, or do you need a commercial kitchen? If the latter, do you need to set up something new or can you rent, or buy used equipment?
• Will you buy or lease delivery vehicles?
• Where will you source ingredients, and how will you control the cost?
• How many employees will you need?
• What other operating costs do you need to plan for?

We highly recommend working with a small business adviser or accountant to help with your financial planning. Don’t be afraid to ask silly questions — this can be a steep learning curve, but the better you understand your financials, the higher your chances of success. 

💡 Check out our article on writing a business plan for a delivery service for more details, and a free template to help you get started. 

A 5-step meal prep marketing plan that works 

Like most businesses in the digital economy, your meal prep business will live or die on the quality of your marketing strategy. Building a strong online presence is patient work that really pays off when you get it right. It doesn’t have to cost a lot and can help you build up exactly the kind of customer base you need.

Here are five steps to building a marketing machine that will consistently bring in new business:

1. Website development

Your website should turn visitors into customers by clearly showing why your meal prep service is the best choice:

• Create a user-friendly website that shows off your meals with great photos. 
• Make sure it's easy to order online and works well on phones. 
• Include important info like what's in your meals and where you deliver.

Luckily you don’t have to build everything from scratch. There are plenty of e-commerce site building tools that include shopfronts, ordering and payment tools. Check out our review of the best 11 platforms for small businesses for more details. 

2. Search engine optimization (SEO)

SEO helps people find your service on Google and other search engines. It can appear very scary and technical at first, but don’t let the buzzwords fool you! Read up on the basics, and then start by following some simple ground rules:

• Research keywords people use when looking for meal services and use them on your site (in moderation). Ubersuggest, Ahrefs and Semrush are three good tools you can use for this.
• Get good reviews on Google and Yelp. Ask friends and family to help out at the start, then encourage returning customers to leave reviews. 
• Keep your website updated with new content, like recipes or health tips. 

3. Social media 

Use social media to connect with customers. Depending on your audience, there are lots of ways:

• Post photos of your meals on Instagram — and ask customers to share pics of their own meals. 
• Share tips and ask for feedback on Facebook. Respond quickly to comments and messages. 
• Talk about your business journey and share pics of what goes on behind the scenes.

Used well, social media lets you build relationships with customers, turning them into fans who recommend your service.

4. Email marketing

Send emails that keep customers coming back:

• Share your weekly menu and make it easy to order. 
• Send helpful tips and customer stories, not just ads.
• Use birthdays or milestones to offer special deals.  

Monitor how many people open and click your emails to make them better over time.

5. Referral and loyalty programs

Reward customers for spreading the word. Give them discounts when they bring in new customers. For loyal customers, offer points for each order that add up to free meals. Surprise them with perks like free delivery. These programs keep customers ordering from you and help bring in new business.

Scaling a meal prep business

Chances are you’re going to start off small in your home kitchen while you figure everything out. That makes perfect sense. Costs are low, it fits into your lifestyle, and you know where everything is (and if it works). It won’t take long before you get a real sense of whether this is going to work or not. 

But as you grow, so will the demands on your workspace. Here are some things to plan for.

From home to a commercial kitchen

At some point, your meal prep business is going to need a commercial kitchen and a dedicated staff if it’s going to be sustainable. 

What should you be looking for?

• A good location is crucial—look for a central, easy-to-reach place with plenty of parking and space to grow. Good air flow, natural light, and being close to your suppliers are all big advantages. 
• The right equipment will make everything easier. Invest in commercial fridges, large ovens, and prep stations with built-in coolers. You  don’t have to buy new – good used equipment can be excellent value. Don't cut corners on equipment, though; you'll need it to handle lots of orders. 

But having the right tools is just the start; how you use them matters most. Set up your kitchen with clear areas for prepping, cooking, packaging, and sending out orders. Create a smooth, one-way flow from raw ingredients to finished, healthy meals, and make sure everything has its designated spot. 

Building a team

Whether you’re flying solo or working with a friend, most people start out with the owner(s) doing everything. You set the standard, you learn every aspect of the business and figure out what works and what’s not worth doing. 

But eventually, if this is working, you’re going to need to hire employees. It’s important to find staff who are passionate and work well under pressure. Look for experience, but don’t ignore those who are eager to learn and enthusiastic. Good communication is key in a fast-paced, busy kitchen. Make sure you hold regular team meetings to keep everyone on the same page and be open to new ideas. 

By focusing on a smart layout, reliable equipment, a streamlined workflow, and a strong team, you're setting up your kitchen for success. It's not just about cooking; it's about creating a system that delivers tasty meals quickly and consistently. 

Streamlining your delivery process

Your food delivery system is the lifeline between your kitchen and your customers' tables. 

• Offer a range of delivery options, from scheduled weekly drop-offs to on-demand service for those last-minute cravings. 
• Consider implementing a subscription model with customizable delivery frequencies, allowing customers to adapt the service to their changing lifestyles. 
• Explore the possibility of strategic pickup points.

If you’re not handling your deliveries in-house, then partnering with reliable delivery services is crucial; find a provider with a track record of punctuality and care in handling food orders. These partnerships should feel like extensions of your own team, they share your commitment to customer satisfaction. 

When evaluating potential partners, prioritize those offering real-time tracking, temperature-controlled vehicles, and comprehensive insurance coverage.

Route optimization is the key to efficient delivery

The secret weapon of successful food delivery companies? Route optimization to lower the cost of each delivery and ensure a five-star customer experience, with fast turnaround time and live tracking. 

For example, Greenhouse Juice uses Routific to optimize their delivery routes so they can get their fresh-pressed organic juices to customers as fast and fresh as possible. Their logistics manager Brian Zaffuto says:

“Depending on the time they order, there are some instances where customers get their orders even faster than Amazon Prime.”

Packaging solutions for safe and efficient delivery

Getting your packaging right is another crucial factor. Not only should it be well-branded so that people recognize where the food is from, but it needs to be robust enough to protect the food in transit, able to keep it warm, and made from sustainable materials. 

Packaging can do so much to improve your branding and help with dietary requirements. Think about color-coding for different diets, make sure your labeling is clear and informative (e.g CONTAINS NUTS), consider separate compartments within the packaging… the list goes on.

A final note on packaging: the best delivery companies ensure that they pack their orders into the vehicle in such a way that it streamlines the delivery process. The last thing you want is your driver going through each and every package trying to find the right one for the right customer. That’s when errors occur. 

What does the future look like?

Before we wrap up this guide to starting your own meal prep business, it makes sense to take a look at what’s coming down the pipeline in the world of online meals. Technology is likely to make a dramatic impact on meal prep in ways big and small. 

• Personalization is likely to be a big factor in the near future. For example, it’s not unrealistic to imagine that meal prep software will be able to accurately predict when a customer needs a pre-cooked meal from you and reach out to them for permission to start prepping. 
• Convenience is set to deepen as apps become smarter and voice-driven interactions surge. Imagine a chatbot that can provide meal recommendations to consumers, tell you what’s just arrived at the farmers market and handle changes to orders in real time.
• Sustainability will become even more of a driving factor for success. Consumers are bearing witness to the climate crisis and trying to mitigate their impact in big and small ways. For example, e-bike delivery for meal prep companies is likely to surge as consumers try to reduce their carbon footprint. 
• Social connectivity will also become more common. Perhaps consumers who like the same types of meals would like to eat them together? Perhaps they would like to learn how to cook together in a workshop. You can see meal prep communities forming and becoming an important part of the cultural landscape in a community.  

If you can get this right, and maintain your passion for making beautiful, healthy food, then you’re in the right industry. 

Success in the meal prep delivery business hinges on a delicate balance of culinary creativity, operational efficiency, and customer-centric strategies. By focusing on swift, economical delivery without compromising food quality, you position your business at the forefront of a rapidly evolving market. Remember, your journey as a food service entrepreneur will be challenging, but the rewards—both personal and financial—can be substantial.