Plated Meal Kits
DEAL
EPISODE SUMMARY
đź•“ Air Date: April 4, 2014
Asking For:
$500,000 for 4%
Investor:
Mark Cuban
Deal:
$500,000 for 5.50%
PRODUCT SUMMARY
Plated delivers ingredients and chef-designed recipes to help customers make delicious, nutritious meals at home in 30 minutes or less.
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Background Story
Plated, founded by Nick Taranto and Josh Hix, originated from their shared struggle to balance healthy eating with their busy lifestyles. Both alumni of Harvard Business School, the founders met during their studies and bonded over their passion for entrepreneurship and innovation. Their diverse backgrounds complemented each other’s skill sets: Taranto brought experience from tech startups and finance, while Hix’s background in engineering provided a solid foundation for product development.
The idea for Plated arose from a common frustration—they found it difficult to prepare nutritious meals at home due to time constraints and the hassle of grocery shopping. Determined to find a solution, they embarked on a mission to simplify the cooking process for busy professionals like themselves. Drawing inspiration from their own experiences, they envisioned a service that would deliver fresh, pre-portioned ingredients along with chef-designed recipes directly to customers’ doorsteps.
Based in the Northeast, Plated initially served local customers before quickly gaining traction and expanding nationwide. Their shared vision and entrepreneurial spirit propelled them forward, leading to the successful launch of Plated. With a commitment to helping Americans eat better and live healthier lives, Taranto and Hix have transformed Plated into a leading meal kit delivery service, revolutionizing home cooking and making it more accessible to busy individuals and families across the country.
The Product
Plated offers a convenient solution for busy individuals and families to enjoy chef-designed meals at home without the hassle of grocery shopping and meal planning. Customers can easily browse Plated’s website to choose from a wide selection of recipes, ranging from gourmet classics to quick and easy options. Once they’ve made their selections, Plated delivers all the necessary ingredients in pre-portioned quantities, along with detailed recipe cards and instructional videos.
The process is straightforward: customers simply follow the step-by-step instructions to prepare delicious meals in 30 minutes or less. Plated’s service eliminates the need to hunt for recipes or measure ingredients, saving valuable time and reducing food waste. Each meal kit is carefully curated to ensure freshness and quality, with ingredients sourced from trusted suppliers.
Plated offers flexible pricing options, starting at $10 per person per meal, with a minimum order of four portions ($40). Shipping costs are included in the price, and customers can choose between one-time purchases or subscribe to a weekly meal plan for additional savings.
With Plated, customers can enjoy restaurant-quality meals in the comfort of their own homes, whether they’re cooking for themselves, their families, or entertaining guests. The service caters to a wide range of dietary preferences and tastes, making it a convenient and affordable option for anyone looking to elevate their home cooking experience.
How It Went
The company’s position before Shark Tank
Plated has demonstrated robust performance and positioned itself as a leader in the meal kit delivery industry since its inception. With a focus on quality, convenience, and innovation, the company has attracted a loyal customer base and achieved significant growth. Plated’s strategic partnerships with trusted suppliers ensure the freshness and quality of ingredients in every meal kit, contributing to its positive reputation in the market. The company’s customer base primarily consists of busy professionals, families, and individuals seeking convenient and nutritious meal solutions.
Plated’s nationwide expansion has allowed it to reach a broader audience, catering to diverse dietary preferences and tastes. In terms of funding, Plated has successfully raised $3 million to date, with initial investments from the founders themselves and subsequent funding rounds from venture capital firms. The company’s valuation stands at $9.5 million post-money, reflecting investors’ confidence in its growth potential. Plated’s financial performance has been impressive, with total sales reaching $350,000 within the first seven months of operation.
The company projects sales of $2.5 million for the calendar year and aims for $10 million within 12 months. With a gross margin of 40%, expected to increase to 60% at scale, Plated demonstrates strong profitability and scalability. The company’s current structure includes active warehouses in Brooklyn and Chicago, covering the entire Northeast and Midwest regions. Plans for expansion include establishing hubs in additional locations nationwide to further enhance operational efficiency and customer reach. Overall, Plated is well-positioned for continued growth and success in the rapidly evolving meal kit delivery market.
The Negotiations:
The negotiations between the founders of Plated and the Sharks on “Shark Tank” were dynamic and reflective of the company’s potential for growth. Initially, the founders sought $500,000 in exchange for 4% equity in the company. Mark Cuban made a competitive offer, proposing $500,000 at a $9 million valuation, which would translate to about 5.5%-5.6% equity, along with advisory shares. The founders deliberated briefly, ensuring the terms aligned with their expectations, before accepting Cuban’s offer.
Other Sharks expressed concerns about the uniqueness of the concept and the competitive landscape, questioning the need for Plated’s service in a market saturated with grocery options and meal delivery services. Despite some skepticism, Cuban recognized the value of Plated’s brand and market potential, making a compelling offer that ultimately secured a deal.
The negotiation showcased the founders’ confidence in their business model and their ability to address the Sharks’ concerns effectively. Cuban’s offer provided the necessary capital for Plated’s expansion plans while also leveraging his expertise and network as an advisor. Overall, the negotiations underscored Plated’s position as a promising player in the meal kit delivery industry, poised for continued growth and success with the support of strategic partners like Mark Cuban.
