Businessmodel of Plated

Customer Segments

Plated has a niche market business model, with a specialized customer segment. The company targets its offering at consumers who desire the delivery of fresh ingredients for meal preparation. It describes its most passionate customers as “aspirational foodies” who live in dual-income households and have no children. In general, most are women between the ages of 25 and 35.

Value Proposition

Plated offers four primary value propositions: accessibility, customization, convenience, and risk reduction.

The company creates accessibility by enabling consumers to receive ingredients they might have difficulty obtaining otherwise. These include 100% antibiotic-free meats, 100% sustainably-sourced and domestic seafood, beef with no added hormones, and produce that is seasonal and hand-packed. Moreover, it provides recipes for vegetarians. Plated also offers accessibility by making its offering widely available. It delivers to 96% of the U.S. (Alaska and Hawaii are not yet serviced).

The company enables customization by offering nine recipe choices weekly. It also allows customers to highlight their food preferences in a “taste profile.” This ensures that certain types of recipes will be excluded. Users can also specify format preferences such as number of dinners per box - offerings range from two dinners for two people to seven dinners for two people. Moreover, they may choose their shipment preferences on their online account page, such as preferred delivery day.

The company provides convenience by sending customers an e-mail with tracking information just before their meal is due to arrive. Furthermore, members are not required to provide a signature or be at home for their delivery – they can give instructions beforehand on where to leave the box. Moreover, Plated allows members to skip weeks (provided they give six days’ notice), change their plans with short notice, and cancel their subscriptions at no cost and at any time. Lastly, they can manage their account and schedule deliveries through the company’s mobile app.

The company reduces risk by ensuring the safety and security of food deliveries. Each package is hand-packed and shipped via FedEx or local couriers. The box is insulated, keeping food fresh up to midnight of the delivery day if unrefrigerated and for at least five days if refrigerated.

Channels

Plated’s main channel is its website, through which it acquires most customers. The company promotes its offering through its social media pages, online advertising, and regular contests and sweepstakes.

Customer Relationships

Plated’s customer relationship is primarily of a self-service, automated nature. Customers utilize its website or mobile app while having limited interaction with employees. The company’s website includes answers to frequently asked questions and information about “The Plated Cookbook”, a collection of the staff’s favorite recipes that can be ordered through various websites. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Plated’s business model entails maintaining a robust platform for its customers. The platform includes its website and mobile app.

Key Partners

Plated does not maintain a formal partnership program; however, it does frequently form alliances with various types of organizations for promotional and other purposes. Examples include the following:

• The company has partnered with Real Simple magazine to create meal boxes based on recipes featured in the publication and offer them to customers
• The company has partnered with Veuve Clicquot, a French champagne house, to pair its “Chef’s Table” brand of meal boxes with bottles of champagne
• The company has partnered with Chobani to create recipes that incorporate the popular Greek yogurt
• The company has selected Kenwood and De’Longhi as its exclusive small appliance partners; the alliance includes a marketing campaign featuring digital ads, in-store offers, and offline events ### Key Resources

Plated’s main resource is its staff of culinary experts, who design creative recipes for customers utilizing unique ingredients. The company also relies on its technology staff to maintain its website/mobile app. An important physical resource is the set of fulfillment centers it maintains in New York, Chicago, and San Francisco; it plans to eventually open three additional ones in Los Angeles, Miami, and Dallas. Lastly, as a relatively new startup it has relied heavily on funding from outside parties, raising more than $56.4 million from 17 investors as of July 2015.

Cost Structure

Plated has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is likely product development, a fixed expense. Other major drivers are in the areas of customer support/operations and sales/marketing, also fixed costs.

Revenue Streams

Plated has one revenue stream: the subscription fees it charges for its meal plans. Pricing for its recipes starts at $12 per individual dinner. “Chef’s Table” recipes include specialty cuts of seafood or meat and thus vary based on market price. Dessert costs $4 per serving.

Plated’s subscription plans are as follows (free shipping is offered for boxes costing more than $50):

• 2 dinners for 2 people - $48/week (plus a $6 shipping fee)
• 3 dinners for 2 people - $72/week
• 4 dinners for 2 people - $96/week
• 5 dinners for 2 people - $120/week
• 6 dinners for 2 people - $144/week
• 7 dinners for 2 people - $168/week