Busy lives, rising inflation and the desire to live more healthily have many people rethinking how they eat. Between work and household responsibilities, many hope to prioritize nutrition without sacrificing taste, cost and convenience — cue the meal prep business model.
It’s little wonder why you want to start a meal prep operation. This type of food service is more popular and successful than ever. However, getting a profitable small business off the ground takes time, money and effort.
Here are the latest trends in the meal prep market and everything you should consider to ensure your new endeavor thrives.
Meal Prep Businesses Thrive in the U.S.
You may have heard of Blue Apron, HelloFresh and Sun Basket — a few popular meal prep companies taking the U.S. by storm. The meal kit delivery market value reached $20.54 billion in 2022, with experts anticipating a 15.3% growth between 2023 and 2030.
Generation Z and millennials are among the majority who have adopted these products, which tend to be more cost-effective than traditional takeout and dining at a restaurant. About 64% of Americans eat at home to save money and maintain control over what goes into their food.
Younger generations are particularly more health-conscious than older ones. According to the 2022 Food & Health Survey by Food Insight, 74% and 62% of Gen Z and millennials changed their eating habits and diets in 2022 — a 22-point and 19-point increase from the year before, respectively.
How to Start a Meal Prep Business
Learning how to start a meal prep business is one of the more challenging aspects of this venture. However, these tried-and-tested steps will help you build a profitable operation from the ground up.
Business Plan
Every successful meal prep model starts with a comprehensive business plan, including your company’s name, target market, funding, budgeting and operations strategy.
For instance, you must consider where you’ll get your ingredients at an affordable price. Also, will you have a standard or rotating menu of items? A business plan will help you brainstorm how to fund your company, too — for instance, pursuing a line of credit, loans, credit cards and financing options.
Now is also the time to consider how much you will charge customers, how to package the food and where to sell the meals. Will you create a website for people to shop online, attend farmers markets or purchase a storefront for customers to pick up their orders?
Licenses and Permits
Licensing rules and regulations for meal prep businesses vary by state, with most places requiring special permits for food services. Standard licensing conditions include:
- Business registration: Requires registering your business as a sole proprietorship, partnership, LLC or corporation
- Sale privilege: Directs companies to collect the state sales tax
- Kitchen health and safety inspection: Ensures your kitchen and prep space passes food safety regulations for certification
- Food handler’s license: Indicates everyone involved in the business understands how to handle food properly
- Zoning permits: Allows you to sell food out of your home
You may also need clearance from your homeowners association to operate your business if you live in a gated community, townhouse, condo or apartment complex.
Ingredients and Packaging
Sourcing supplies is crucial when starting a meal prep business, from acquiring the freshest ingredients to providing quality packaging in bulk without too much overhead.
Wholesale distribution is one cost-effective way to stock up on inventory with discounted products in large quantities. You can also partner with local farms for fresh produce. Just be sure not to overbuy ingredients — otherwise, they’ll go to waste.
Of course, you can only achieve a profitable meal prep concept if you have adequate packaging to deliver goods. Experts predict the plastics industry will increase by $643.37 billion by 2029 — and quality food packaging can make or break your business.
Supplies should range in size, shape and materials. Nowadays, manufacturers can create packaging supplies that use less plastic for greater sustainability.
Look for packaging materials at nearby restaurant supply stores and online retailers. If you have something else in mind, some manufacturers can produce branded packages to suit your needs.
Catering to Customers
Consider your customers’ expectations when you launch your meal prep business. Some people may have dietary needs, such as gluten-free, vegetarian or keto-friendly. Will your services cater to these types of restrictions?
For example, you can design your meal prep business model around a specific diet, such as plant-based eating. In 2023, 68% of Americans tested plant-based meat products and nondairy options, while 31% opted for vegetarian options eight meals a week. Focusing on one type of diet could also save you money on food supplies.
Other business owners may offer a variety of dietary options. Regardless, you’ll want to decide on your niche as early as possible so you can prepare. If you choose one, you can always expand your offerings later.
Robust Marketing Strategy
Marketing is essential to building a successful business — the first step is creating a website. Your site should be visually appealing and easy to navigate. There must also be a way for customers to place their orders online.
A social media presence is equally important. About 4.59 billion people used social media in 2022 — a number expected to rise to 6 billion in 2027. This allows you to reach your target audience more easily.
Other effective marketing strategies include search engine optimization, loyalty programs, discounts and sweepstakes. Be sure to highlight what makes your meals irresistible.
Choosing Your Meal Prep Business Model
Another critical component of your meal prep business plan is deciding on your actual business model, such as the following:
- Meal kits: Customers use the packaged ingredients and instructions to create easy meals at home
- Pre-prepared: Customers make their selections for prepared meals based on their food preferences and heat them up each day
- Meal plans: People sign up for nutritious meals based on a specific diet to lose weight and improve their health
Customers trust your ability to deliver fresh, convenient foods at an affordable price with whatever meal prep business model you choose.
Meal Prep Business Deliver Opportunities for Success
People are eager to eat healthier while spending less time and energy cooking at home. Your meal prep business will flourish with a loyal customer base if you can fulfill the promise of delicious, nutritious foods with optimal convenience.
