HelloFresh: What Entrepreneurs Can Learn from this Meal Kit Brand

Since first launching, HelloFresh has cooked up a delectable feast in the meal kit industry, leaving competitors chopped in their wake as they continue to spice up the lives of home cooks worldwide with their fresh approach to dinner. Learn how this brand cooked up a recipe that grew from $0 to over $3 billion.

Life is busy, but you still have to eat. However, finding time to plan meals, grocery shop, and cook overwhelms many people. In 2011, three German entrepreneurs set out to change dinner tables across the globe. HelloFresh revolutionized people's cooking habits, one pre-packed, chef-curated, shipped-directly-to-your-door meal at a time. And with over 8 million active customers in Q1 2023, this company has become a household name.

Discover how HelloFresh SE popularized meal kits worldwide, surpassing a 10-figure market cap.

PLUS, get ready to turn up the heat and discover how YOU can sauté your way to success, cooking up a million-dollar business—FREE!

What is HelloFresh?

It is an online meal kit company. Customers choose from 30+ recipes in the weekly menu, and HelloFresh food gets delivered to their doorstep.

Who founded HelloFresh?

Dominik Richter, Thomas Griesel, and Jessica Nilsson founded HelloFresh in 2011. The company started in Berlin, Germany.

What is this company's origin story?

"HelloFresh's success story started with just a handful of people and with an ambitious mission to change the way people eat forever," Dominik Richter said in a 2021 press release. But where did the idea come from in the first place? Surprisingly, not from the founders.

Business and entrepreneurship were in Richter's blood. According to Dominik S. Richter's LinkedIn, he studied at both WHU-Otto Beisheim School of Management and the London School of Economics and Political Science before starting his career at Goldman Sachs. His education, background, and determined work ethic soon caught the eye of Oliver Samwer, a German internet mogul and Founder and CEO of Rocket Internet SE.

Rocket Internet SE is an online brand incubator. And Samwer wanted to test a meal kit company, a relatively new concept at the time. Samwer convinced Richter to help found the company alongside Thomas Griesel and Jessica Nilsson. HelloFresh launched in November 2011.

Within three months of operation, HelloFresh shipped its first meal kits. Business was slow at first. As Griesel remembered, "When we started out, our product was simple. We put ingredients for three meals in a paper bag. It was just us founders and the three HelloFresh employees we had at the time."

And it worked. A 2023 press release reported the company earned over €2 billion in revenue for Q1.

How was it funded?

As the brand's incubator, Rocket Internet gave HelloFresh its initial investment. The amount was undisclosed. Since then, the company has raised $367.5 million across six funding rounds. They include:

• Series B (December 2012)
• Series C (September 2013)
• Series D (June 2014)
• Series E (February 2015)
• Series F (September 2015)
• Series G (December 2016)

Curious investors should head to the HelloFresh SE Investor Relations website to learn more.

What made HelloFresh grow?

Despite humble beginnings, the novel meal kit company built a rabid customer base. The founders consider themselves pioneers of the meal kit industry. Much of the brand's success is due to increasing the profit margins per box. The company creates the recipes, manufactures the products, and sources directly from suppliers.

Global expansion also contributed to HelloFresh's growth. The German-based company launched HelloFresh UK and HelloFresh US in 2013. But the brand didn't stop there. Today, the company operates in 19 countries.

What is its valuation?

In 2017, it had an implied pre-money equity valuation of €1.2 to €1.5 billion after announcing an IPO price range of €9.00 to €11.50 per share. (On November 1, 2017, the company officially set its IPO stock price at €10.25 per share.)

As of June 2023, HelloFresh SE has a market cap of over $3 billion.

What lessons can entrepreneurs learn from this brand's story?

HelloFresh took a simple idea and turned it into a 10-figure success story. Here's what you can take away from the brand's undeniable success:

Follow your convictions

As a business owner, cutting corners to save money is easy—and highly tempting. But will you go against your morals and purpose in the process? Instead, find ways to incorporate what you believe into your business model. For example, sustainability has always been a key pillar for HelloFresh. To this day, the brand seeks ways to address climate change, reduce food waste, and utilize sustainable packaging.

Never stop innovating

What do customers desire? They want new products, groundbreaking services, and things they can't find anywhere else. In a nutshell, customers crave innovation. When it launched, meal kits were a novel idea. But the brand continues introducing new recipes and offers (like the HelloFresh Market). These innovations keep their core audience engaged, excited, and ordering.

If you can't beat them, acquire them

Think you can run your competitor's business better than they can? Buy them! If you have the cash flow, acquire companies in the same industry that would otherwise be direct competition. You'll gain their audience and increase revenues. HelloFresh's acquisitions include Youfoodz, Factor, Chefs Plate, and Green Chef.

Embrace your inner techie

Technology helps entrepreneurs streamline operations and boost the customer experience. And in today's technology-driven society, it's a must. The company leveraged technology from the start. The online company began with an easy-to-navigate website and, soon after, launched its app for iPhone and Android to streamline the user experience further.

FAQ

What is HelloFresh?

HelloFresh is an online food delivery and meal kit company. Several brands fall under the HelloFresh Group umbrella. The HelloFresh companies include:

• HelloFresh
• Green Chef
• EveryPlate
• Chefs Plate
• Factor
• Youfoodz

HelloFresh operates in 19 countries. They are:

• United States of America
• United Kingdom
• Germany
• Netherlands
• Luxembourg
• Belgium
• Austria
• Australia
• Canada
• Switzerland
• Sweden
• New Zealand
• France
• Denmark
• Norway
• Italy
• Japan
• Ireland
• Spain

What is the cost of a HelloFresh subscription?

The cost of a HelloFresh subscription varies depending on your location, meal quantity, and number of servings.

As of June 2023, the price for US customers ranges from $8.99 to $12.49 per serving. The cost of HelloFresh for 2 is $59.94 plus shipping.

Where does HelloFresh in the United States ship?

But does HelloFresh deliver to me? According to their website, HelloFresh USA ships anywhere in the continental United States. Does HelloFresh deliver to Hawaii? No, they do not ship to Hawaii or Alaska.

Does HelloFresh offer any discounts or coupons?

Yes! New subscribers can sign up with a promotional offer to try out the service.

Where can I find out more about HelloFresh?

Visit the HelloFresh website to learn more about the service, get subscription information, or find the HelloFresh contact information. You can also read the Corporate Governance Report.

Looking for a job? Search for a career at HelloFresh here.

Takeaway

Meal kits were hardly a thought when HelloFresh first launched in 2011. But under the guidance of three business-savvy founders, the brand grew into a global food delivery empire. Now, hardly a day goes by without seeing a HelloFresh ad or influencer partnership.

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