Please note that this is a pre-emption campaign and as such a limited amount of information is provided at this time.
Mindful Chef (mindfulchef.com) is a 2 year old recipe box company.
We focus on the healthy and premium end of the recipe box market and ship all the ingredients that you need to make 2-5 evening meals - all with fresh British produce and no refined carbs (no pasta, no white rice, no bread).
We pride ourselves on our innovative uses of vegetables in evening meals that are both gluten-free and dairy-free. We ship nationwide, and cater for 1 person, 2 person and 4 person boxes. To our knowledge we also offer the UK's first and only vegan recipe box, alongside our meat and fish options.
We have shipped over 500,000 meals.
It takes time to plan for healthy meals, it is hard to source fresh products and there is often a lot of wastage.
We solve that by delivering all the fresh ingredients that you need to create a delicious healthy evening meal together with a recipe card. This saves our customers hours of time and importantly allows them to stick to a healthy routine.
Substantial accomplishments to date
Last year we were selling £20k per week and had shipped 75,000 recipes.
1 year later we are selling £80k per week and have shipped over 500,000 recipes!*
We are proud to announce that from July 2017, we will be supporting One Feeds Two, meaning that for every meal that a customer buys, a school meal will be bought for a child living in poverty.
*source: unaudited management accounts.
Since June 2016, customers spend on average £209 with us in the first 3 months. With 30% gross margin, we generate enough gross profit within this period to cover our acquisition costs.
After that, the average customer goes on to make 7 purchases per quarter (1 purchase includes multiple meals).
Use of proceeds
► Marketing, Tech and Team:
We plan to spend approximately £2m on marketing in the next 12 months. We also intend to spend an additional £250k on technology, improving UX further and investing in a mobile app.
Our best customers are:
- 25-45 year old ABC1.
- With a set weekly routine meaning they will almost certainly be cooking at home at the start of the week.
- Interested in health and wellness.
- Understand what healthy food looks like and the benefits of eating well.
This customer cohort displays the fastest Payback periods and the largest LTVs.
Characteristics of target market
£9bn is spent online on groceries in the UK each year, forecast to be £18bn by 2020. Grocery e-commerce, although currently small, with only one in four people shopping online, is growing fast. Kantar forecast it will be worth $150bn globally by 2025.
In the US, meal kit services have grown from $1.5bn sales in 2016 to a projected $5bn in 2017. We expect that this terrific growth will follow in the UK as major retailers (as well as pure-play recipe box services like ourselves) enter the space.
The Mindful Chef brand allows us to talk to potential customers on lots of different levels - recipes, nutrition, provenance, Mindfulness, health and fitness. After customers have engaged with the brand a few times, they are ready for targeting with highly focused adverts.
We have built a product that can be endorsed by the health and wellness industry and already leverage partnerships with some of the country's largest gym groups. This is low activation, but a highly targeted audience which potentially turn into great customers.
We are the healthy, premium product within the category and as such we focus our marketing efforts on SEO/direct, select partnerships, and content marketing.
All this allows us to pre-qualify audiences as being interested in healthy food, before we present the Buy Now button. We will have a lower Total Addressable Market than the mass market companies in our category, but given the sheer size of the grocery market (and the huge growth in the health market that we sit in), we think we are very well positioned to win the hearts and minds of our customers and create an aspirational brand.
We believe the superior quality of our product is demonstrated in what we would describe as industry-leading retention data.
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