News broke that Chef’d, the meal-kit provider known for its gourmet-style offerings and early adoption of brick-and-mortar partnerships, shut down unexpectedly following “unexpected circumstances with the funding of the business.” It reinforces one big truth for grocers: they not only should – but eventually will – own the meal-kit segment, said David Bishop, partner with Brick Meets Click.
In the end, grocers have to understand how they respond if their partner meets a similar fate or begins developing an alternative plan that transitions to a more stable source. As for meal-kit providers, they must continue to remember that consumers shop online very differently for fresh foods compared to packaged foods. They should not count on consumer loyalty – as expectations and competition continue to increase, they must focus on improving consumer outcomes.
Lightbulb Moment: Meal kits in grocery gives consumers the best of both worlds – convenience with hands-on choices. It also allows consumers to pick up additional items they may need for home and they can customize their meal kits with perimeter or center store items. And don’t forget – Chick-fil-A will launch its own line of meal kits. The line, called Mealtime Kits, will be tested at 150 of the company’s locations across the Atlanta area, beginning Aug. 27.