It’s a rainy day and you feel cumbersome to go out to get your own pack of favorite food all by yourself. You would feel a helping hand would be great at this moment of cozy bliss to get you food at your doorstep. How is that when all this come to reality! Munchery says an absolute yes – making fantasy a reality.
What is Munchery?
On-demand industry has been on the trend a while. Munchery chooses food as its on-demand industry vertical to deliver meals to customers at their doorstep in and around the major cities of USA that includes San Francisco, New York City, Seattle and Los Angeles. Munchery defines a unique business model that stations its online marketplace to help customers to order food prepared by well known professional chefs.
We sometimes refrain ourselves from buying food from the city’s well known chefs as it would definitely cost a fortune for the brand value he/she owns. However Munchery has made it plausible to reach access to food prepared by such chefs of fame at an affordable price. There is definitely a room to ponder, where do the chefs prepare their food. Munchery takes an upper hand that it has stationed kitchens at different geographical locations while it hires chefs who work part time to cook their variety of master dishes. The menu is changed on a regular basis, while it engages customers to get the come-back attitude through the munchery platform. Users have never been disappointed with Munchery as it uses technology the right way to integrate sharing economy concept with food lovers to get their meals delivered at their doorstep.
Munchery Existence Unveiled – Facts and Figures
- Munchery took its inception – 1st April 2011
- A total funding received in a span of 4 years – $125 Millions (As of August 2015)
- Founders of Munchery: Conrad Chu, Van Tran and Tri Tran.
- Stationed at: New York, Seattle, Los Angeles and San Francisco Bay Area.
- Valuation of Munchery: $300 Million.
- Munchery is headquartered at: San Francisco, California.
- GeekWire – A technology-based news website has rated Munchery a 9.3 out of 10 on July 2014.
- Munchery has elevated a Series C funding of $85 million on May 2015 and it was theorized to maintain a big fat value of $ 300 million dollars.
- Munchery partnered with Belcampo Meat Co. in July 2015, to source out and stock good quality meat. Since its inception until July 2015, Munchery has furnished 3 million meals delivery.
- Munchery has seen exponential folds of raise in its revenue system year after year – that its brand value has attracted city’s top chefs to prepare meals at the kitchen outlets hitting to-date sales records. A chef earns more if he does a good amount of sale with his respective dishes.
Value Propositions
- Kitchens housed in all locations
- Visiting city’s top-rated chefs
- Menu changed on a daily basis
- Well proficient resident chefs
- Part time manpower for deliveries
Cutting-Edge Features of Munchery
- Professional chefs prepare meals at the Munchery Kitchen outlets
- Delivery Manpower has been organized by the Munchery team to get the meals delivered to the customers on demand.
- New Menus are framed each day. The regular change probes the customers to order food on the Munchery platform.
- Meals are also prepared to meet specific set of customers. e.g., gluten free for fitness freaks and colorful and attractive meals for kids.
- Users are given an option to rate and review the chefs’ menu which can be altered as per the feedback from the users.
- Munchery has already delivered its millionth meal in the year 2014.
- As of April 2015, Munchery managed to deliver over 5000 meals per day
Customer Segments
Munchery business model pirouettes around 3 different customer segments
The trio that combines the business model
- Users
- Chefs
- Delivery Guys
Users:
- Munchery app has been developed for the users to select the meal of their choice from the menu of the day after which they can place an order through the app at their convenience.
- Users can process the payment of their order through the app
- Users can rate and review the meals delivered to share their experience of the quality and quantity of the meals.
- Orders can be scheduled by the users in advance with an option to choose a particular date and time from a drop down.
Chefs:
- Chefs are given the leverage to create their own menu on a daily basis.
- They can either work as a resident chef or on a part time basis.
- Chefs are recognized well through the Munchery platform.
Delivery Guys:
- People who are looking out for additional income can join the Munchery’s delivery manpower.
- They can choose to work on flexible hours based on their free time.
Cost to Investment
- Design and development of the application platform
- Human resources
- Payment system maintenance
- Marketing
The 4 Step Business Model – The Munchery Way
- Munchery houses kitchens at different locations where the chefs can choose their location that fits their convenience to prepare meals.
- Complete details of the chefs and the respective details are listed on the online applications for the users to access the menu.
- Users order the meals and perform the payment online.
- Munchery organizes the delivery through a troop of delivery personnel.
Chef Hunt Formula by Munchery Team
Munchery makes its business model a no-fail platform by housing professional chefs to curate delicious and high quality meals. Munchery spearheads to hire prominent chefs offering them a good remuneration.
- Innovative factors which probe celebrity chefs getting allured to partner with Munchery include:
- Chefs are high paid.
- Munchery in certain scenarios pay a percentage amount of the total revenue generated exclusively from a specific meal sales from the chef who prepared it.
- Besides payment, Munchery honors the chefs with dish credits to the particular chef and helps them earn fame in the industry.
- Good pay, flexible working hours, liberty to prepare their own meals and getting recognized through dish credits are the factors that helps Munchery to attract the chefs to join the on-demand business.
How Munchery Reach Access to its Customers
- Social Media
- Promotional offers, discounts and deals
- Word of Mouth
- Digital Marketing – Promotion through Internet
- Referral Programs
Delicious meals at low and affordable prices, delivered at your convenience at your doorstep – who does not want such a welcoming treat, this is Munchery’s way of finding happy and returning customers.
Key Problems and Solutions
Munchery, just as any other on-demand food platform, confronts concerns and issues in its business model. Munchery focuses on the right solutions to retain its business on a success run. Some of the fundamental issues that Munchery faces include:
- Kitchen Location
- Retaining Chefs
- Timely Delivery
Kitchen Location: The success of on-demand food business is much inclined to timely delivery. To get the best food on time, businesses like Munchery have to station the kitchen at the heart of the city that measures the smallest radius to serve the customers better. However, residents have criticized Munchery for causing environmental problems. Residents have come up with complains about the parking issues, fish smell, improper waste disposal and what not.
The Munchery customer support team has intervened on the issue to understand the problems the common masses are going through. The team was ready to solve the issues much at a faster pace.
The on-demand food platform should make it a point to position their kitchen location far away from the residential area covering a lot of parking space as well.
Retaining Chefs: Businesses like Munchery rely on chefs, retaining them is an important factor and it plays a vital role in the business revenue system. Munchery has organized a plan that is already in place to stand a solution to such a problem in a smart way. The main role play that stands a solution to retain customers is that, chefs at Munchery are given recognition, they free to cook any dish of their choice and put up in the menu and above all their packets are wealthy with good payments. By this way, Munchery pampers its chefs with sound perks and benefits.
Timely Delivery: Users look at on-time delivery and Munchery focuses on it meticulously to refrain from late delivery, Food lovers cannot be convinced when the food that they order arrive late from the promised time. Munchery is focused on quality. It looks into business with customer satisfaction on timely deliveries and it is involved delivering food only for dinner time. It has no plans to expand its business to deliver food parcels for breakfast and lunch. When the customer places an order through the app, the nearest delivery guys are notified on the order. The delivery guy are given an option to cancel the request, if the personal in charge of the delivery cancels the request, the notification is passed on to the next nearest possible delivery guy. Once the notification is processed and the delivery personal accepts the request, he/she collects it from the kitchen and delivers at the customers’ doorstep within the promised time frame of 20 to 25 minutes.