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The Daily Dish: Blue Apron: The Dark Truth

The Daily Dish: Blue Apron: The Dark Truth

Blue Apron: The Dark Truth

Blue Apron’s incredible success in what is quickly becoming the crowded market of pre-portioned meal-delivery companies is certainly impressive. However, in the need to expand quickly in a short period of time, it seems that some important considerations may have fallen to the wayside, namely food safety and the proper care of employees. BuzzFeed released a comprehensive report called “The Not-So-Wholesome Reality Behind the Making of Your Meal Kit,” which found that “in the rush to scale its supply chain at the speed of startup, [Blue Apron] has had health and safety violations, violent incidents, and unhappy workers at one of its packing facilities.” At its Richmond, California, packing plant, according to the report, there have been “dozens of instances of workplace violence, threats, and unsafe working conditions,” according to Eater. Blue Apron has also received more Occupational Safety and Health Administration (OSHA) violations than any of its competitors, costing the company more than $25,000 in proposed penalties.

Report Suggests a Couple Cups of Coffee a Day Could Keep Cardiovascular Disease Away

Could coffee be the key to preventing cardiovascular disease (CVD)? A report commissioned by the Institute for Scientific Information on Coffee “suggests that 2-5 cups per day of coffee may reduce risk of death from CVD by just over a fifth,” according to Beverage Daily. The report includes findings from several different studies, which is important to note as the suggested amount of coffee to consume and degree of protection differs among populations worldwide. For example, two cups seem to offer optimal protection for Japanese populations, while in the U.K., three cups is best. “The precise mechanisms of action behind the suggested association are unknown,” the report read. “The antioxidant profile of coffee has also been proposed as a potential mechanism that might affect the association between coffee consumption and reduced CVD morality risk.”

Colorado Now Requires Stamp on All Marijuana Edibles

As of Saturday, Oct. 1, all edible marijuana products in Colorado must bear a diamond-shaped stamp with the letters T-H-C. The mark must be present not only on outside packaging but on the edibles themselves, The Associated Press reported. With this new law, Colorado becomes the first marijuana-legal state with such labelling requirements. A 2016 study at Children’s Hospital Colorado found that more children were treated for accidental pot ingestion after the legalization of marijuana, from 1.2 per 100,000 people two years prior to legalization to 2.3 per 100,000 two years after legalization. The state has no estimate for exactly how many cases of accidental ingestion might be avoided with the new stamping requirement.

Where in the World Are People Most Obsessed With Dieting?

We may associate food posts on social media with dripping cheeseburgers and colorful doughnuts, but the truth is that “healthy Instagramming” is on the rise. Researchers with Dr. Ed, an online medical service, compiled social media data to determine the most diet-obsessed states and countries in the world. Based on the number of #diet Instagram posts per capita, the small island nation of Cyprus posts the most about portion control in Europe, followed by Denmark and Ireland. The No. 1 digital diet-focused American state is Florida, followed by California and New York. Not coincidentally, the most diet-obsessed American states also coincide with the wealthiest states, with a few exceptions like Louisiana and Tennessee. As for the most popular diets overall? Fasting and detoxing take the lead, comprising 43 percent of dieting posts overall, while the most popular European diet is the lemonade diet, a variation on the juice cleanse.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Blue Apron: What's Killing The Iconic Meal-Kit Company?

Blue Apron reported its latest earnings on Aug. 2, and the results can only be described as . [+] disastrous, with the company having missed even the low end of analysts' projections for revenue and customer retention. (Photographer: Dan Acker/Bloomberg)

An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different. None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.

Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

I have been bearish on Blue Apron since the company started, and with good reason. I wrote in June 2017 that Blue Apron, which at the time had an estimated value of $1 billion-plus, would be worth only $200 million to $400 million by early 2018. Blue Apron's market cap as of Aug. 2 is $368 million.

After I wrote my article in 2017, I began speaking at conferences and participating in round table business discussions where I voiced my concerns about Blue Apron's operations, business model and future. E xecutives and employees of Blue Apron began to reach out to me, seeking my advice on and off the record.

I was never a paid consultant for Blue Apron because my desire wasn't to make money off of the company my goal was to sincerely help the company realize where it was making mistakes in terms of strategy, operations and especially the supply chain. I respected Blue Apron for introducing a new food option for customers, but I understood how economics would eventually work against the company.

It was clear to me from the beginning that Blue Apron's executive team believed the company could succeed on its own. I knew that was hope wrapped inside wishful thinking. Blue Apron executives continued to reach out to me into 2018, and I continued to provide my advice free of charge. I still respect Blue Apron, but economics have caught up with the company.

  1. The Blue Apron brand is damaged, and it is only getting weaker.
  2. Blue Apron has made too many missteps since its logic-defying IPO, allowing founder Matt Salzberg to remain CEO far longer than he should have been. Salzberg, more than any other person, is to blame for the downward spiral of Blue Apron.
  3. Blue Apron's supply chain, logistics and manufacturing operations are still unable to reduce unit costs to the lowest possible levels. No meal-kit company can succeed without reducing unit costs and implementing an optimized supply chain.
  4. Consumer trends are shifting away from subscription-service meal kits.
  5. Restaurant chain Chick-fil-A has wisely entered the prepared meals business as a way to offer its customers more food options but without the hassle of a subscription service. I anticipate more restaurants will copy Chick-fil-A, increasing competition.
  6. Prepared food and ready-to-eat meals, such as those offered by ICON Meals, are gaining favor with consumers.
  7. The next big thing in food will be on-demand hot cooked meals delivered direct to customers, further eroding the need for meal-kit companies. I anticipate restaurants will jump at the chance to leverage Zume's platform and trucks to reach more customers without the need to build additional physical restaurant units.

I want Blue Apron to grow and achieve profitability, but my experience leads me to the following conclusion: Blue Apron will struggle to survive as a standalone company, and it should make every effort to be acquired.

Yes, it is true that the company is working diligently to correct the issues with its supply chain and operations. It is also true that the company continues to offer customers high-quality meal-kits. Its not enough. Celebrity endorsements, meal kits in retail stores, and partnerships with other companies will all fail to prevent the death of Blue Apron. Some of my ideas were recognized by the press as being options Blue Apron should pursue.

Unless Blue Apron abandons its efforts to remain a standalone meal-kit company, it will continue to lose customers and revenue. Sand is quickly leaving the hourglass, but until the last few grains trickle into the abyss, Blue Apron has options it can pursue. I anticipate that Blue Apron will be acquired in 2018 or 2019. If an acquisition doesn't take place, Blue Apron will eventually be killed.


Watch the video: A Better Way to Cook (September 2021).