Opinions on this business idea

[Neo]

My wife hates her job and has hated all her jobs since I met her. She is very smart but doesnt have a degree and generally works low paying jobs surrounded by people she doesnt like. We dont need her income so I have been encouraging her to start a business hoping she will get more fulfillment out of growing something of her own vs being a low-paid wage slave. I don't need this business to make a large profit. I'm more hoping to improve her happiness and help her find meaning in her work.

She loves to cook and meal prep so I came up with the idea of a meal prepping business. Basically a storefront (they are fairly affordable in my area) with multiple meal prep stations where people can come and do their meal prepping. She would create a few meal options each week and people would sign up for whatever they wanted to make. She would buy all the ingredients based on the sign ups and supply all the kitchen needs at each cooking station. The atmosphere would be fun (TVs, music, bring your own wine, etc.) with a focus on the social aspect of cooking with friends. I'm picturing moms coming with their friends to cook some meals for the week while socializing. Then they leave with their meals and dont have to worry about the shopping, coming up with new recipes, clean up, doing the dishes, etc. It could even be pitched as saving money/eating healthier since it would still be better than eating out even though there would be a premium over simply cooking at home alone. In my experience some women dont socialize as much bc they feel guilty about having fun when theres a lot that needs done around the house. Maybe this would allow them to have fun while still feeling like they are taking care of their family. Hopefully that doesn't come across as sexist it's just my personal experience.

Any thoughts? I haven't run any numbers yet to estimate what she would need to charge, but if each meal for a family of four cost say $30-40 to the customer do you think that would be tolerable? I could also see this expanding to her selling her own premade foods. She makes breakfast burritos in bulk for me and when I warm them up at work people at my office are always commenting about how they wish they could do that (they totally could but dont think they have time). I could also see expanded business around holidays. Maybe even some light catering.

Please no armchair psychologists telling me what will or wont make my wife happy based on my tiny description of the situation. Only interested in input on the actual business idea. Thanks!

[Metalcat]

$30-40 per client, who will use an entire kitchen station for probably a few hours if the purpose is for them to socialize.

Okay. So your wife will need to
-furnish multiple fully equipped cooking stations, which won't function efficiently like a commercial kitchen, because it's not a bunch of people working together to batch cook, it's a bunch of people cooking individually. This means enormous amounts of repeated cooking supplies and equipment for each station...that's extremely expensive and an inefficient use of space.

-She will have to do all of the shopping and hauling of groceries for all of the participants, including accounting for food allergies. This is A LOT of work.

-she's doing all of the cleanup??? That's also A LOT of work, and without a dedicated cleanup staff and doubles or triples of supplies, that means she can only have one, maybe two cooking sessions per day.

-Speaking of sessions, she'll have to be open evenings and weekends and work some long ass days.

-Bring your own wine? What's her licensing and liability on that? What's her liability on clients drinking and handling knives and fire?

-Will she be providing the containers to take the food home?

-Is the purpose to make large batches to be stored and reheated or taken home and served right away? If the main purpose is to be reheated then she's depending on the small portion of the market that gets excited about having leftovers, if it's to serve right away...how do they get it home warm enough???

So, 1-2 cooking sessions per day, let's say you have a big enough space to fit 10 cooking stations, so that's max 20 clients paying $40/day. Compare that to just a small pizza place that sells literally hundreds of pizzas a day at $10-30 each, and still struggles to meet overhead demands.

The margins in the food industry are razor thin and either depend on volume, high prices, or on alcohol sales, all of which are ruled out by this model. Your plan also requires maintaining an enormous amount of expensive equipment in a set up that's totally inefficient for production even at max capacity.

Then we're back to the question as to whether or not anyone actually wants to pay a premium in order to make a batch of leftovers that they then have to haul back home.

It's just not a business.
The logistics are a nightmare, the market is tiny to non-existent, especially for repeat clients, the labour involved is astronomical, and the model actually rules out all options for generating profit.

Sorry, it's a no for me.

[Neo]

Appreciate the thoughtful feedback and you make some good points. To clarify I would envision $30-40 per MEAL with people making multiple meals during a given appointment. For example maybe 3 dinners for the week so $120 per person.

Keep the feedback coming!

[Neo]

Also I did more googling last night. Similar businesses already exist. This one has 75 locations in the US. Perhaps I'm already late to the party.

https://dreamdinners.com/main.php?static=how_it_works

[Metalcat]

Also I did more googling last night. Similar businesses already exist. This one has 75 locations in the US. Perhaps I'm already late to the party.

https://dreamdinners.com/main.php?static=how_it_works

So that's a very different model.
That's a place where people go to assemble meals that they then cook at home. All the prep work is done for them, they just measure and portion out food into containers.

That's very very different from cooking. I can see that model producing the kind of volume required because the whole appeal is about producing enormous amounts of portions in a very short period of time.

[Neo]

Really? You see that as a VERY different model? To me its quite similar if not nearly identical especially if I were to pivot to non-cooking and do assembly instead. In any case that businesses faces many of the same challenges that you took issue with originally (containers, cleanup, shopping, evening/weekend hours) and has grown to a 75 location nationwide franchised company. There must be something to it.

At this point I'm more discouraged that there are already so many locations in my area. The market is probably saturated for me. Oh well.

[Linea_Norway]

I have been cooking with several people on a few occasions, on campings and on a food course.
It it always a lot of chaos, people running in each other's way and the too few cooking stations. Arms leaning over someone else's cooking pot to stir in one's own. Someone washing up, while another needs access to the water tap behind the dishes. Hot water for washing dishes running low later in the evening.
I think your wife could better sell her own dishes, ready made.

Another business idea: home restaurant? I think there is already an app where you can register yourself as a home cook and serve a restaurant meal (but from a fixed menu) for guests. People can visit with how many they want and strangers can get to meet each other. You might want to check that out.

And is it a good idea to turn a hobby into a profession?

[Metalcat]

Really? You see that as a VERY different model? To me its quite similar if not nearly identical especially if I were to pivot to non-cooking and do assembly instead. In any case that businesses faces many of the same challenges that you took issue with originally (containers, cleanup, shopping, evening/weekend hours) and has grown to a 75 location nationwide franchised company. There must be something to it.

At this point I'm more discouraged that there are already so many locations in my area. The market is probably saturated for me. Oh well.

You're right that from a client perspective it's a very similar product and outcome, but from an operational standpoint it's extremely different, at least based on what I was envisioning from your initial description, where I pictured individual cooking stations and clients prepping and cooking entire meals to completion independently.

If you pivot towards an assembly model focused on volume, then she'll definitely need staff, which is a big leap in terms of starting a business.

As for whether to be discouraged by an existing model, it's only an issue if there's already a location directly in your market, or if you are looking to build a multi-location brand. If the goal is to have a small business for her to enjoy, then it's not the end of the world if a company already exists.

[NotJen]

I used to frequent a business like this (it was called Dinner by Design - part of a chain).  I usually went with friends, as a social outing, and wine was allowed (I think I might have drank the first visit, but not subsequent ones).  It was the kind of thing I didn't really want to do alone, though, so that limits business somewhat.  It was also expensive - I think I first did it with a Groupon, and later waited until there were deals to take advantage of before I would sign up for a session.  Doing this is what launched me into being very good at food prep and batch cooking, and convinced me that my freezer was the best tool in my kitchen.

The store went out of business a few years ago.  I believe the owner continued to do meal prep for pickup for a while after (that was also available in addition to the make-your-own sessions when she had the storefront), but I've lost touch with her since then.  I do think building up a customer base is difficult for this kind of business, even when people express interest.

I think the idea of "prepping" vs. "cooking" is better for both the owner and the customers.   I don't think many people want to cook a full meal when they are "out", unless it's part of a cooking class.  I imagine the business had a full kitchen in the back where the more involved work was done.  The front of the store just had stainless steel prep stations (no cooking, just some refrigeration available) - they had a lot of space - each dish had its own station, so no one was ever in the way of someone else (if someone was at the station you needed, you waited until they were done).

As a customer, I really enjoyed having access to this business.  I do think it would be difficult, and not super profitable for the owner.

[Kris]

So, I know you didn't want any armchair psychologist replies. And I don't think this is one, exactly. But as an entrepreneur myself, I do have a couple of observations:

First, you say that you came up with the idea. As someone who runs her own business, I will tell you that if I wasn't super committed and passionate about it, it would fail. Because it is a fuckton of work. I have no sense from your post whether your wife wants to do this, doesn't want to do this, is indifferent, etc. But: just your phrasing that you came up with this idea, instead of her, is a red flag to me for that reason. If she is hugely excited and passionate about this idea, then okay, disregard this point.

Second, you say she has hated every job she has had since you met her. Do you, in fact, think she will like/love this one? Or would she be better off just not working at all, for example, and I dunno... choosing a volunteer gig she really likes? Since you don't need the money?

I know you said you don't need this to make money. But you do want her to be happy. If this business is a failure, or not profitable, or is a ton of work that she will not, in fact, enjoy doing, then will she actually be happy in the end? It is a question to ponder.

[Villanelle]

I used several different "come and assemble meals" businesses about 10-12 years ago.  They all went out of business.

Yours is different in that you would have people cooking, but I'm a bit confused about that.  You say they'd be cooking several meals at a time.  So they cook it, then pop it in the fridge and eat it several days later?  Basically it is leftovers at that point, and would eat like leftovers as far as texture and flavor.  And they are going to pay $30 for that? (And is that $30 per serving, or per meal for 2?  Meal for 4?) Maybe I'm misunderstanding. 

Also, these moms you imagine gathering to cook together?  When they cook at home, they can mind their own children.  When they come to your business, are they going to have to find and pay for childcare, in addition to paying a premium for someone else supplying the recipes and doing the shopping? At that point, it's probably cheaper (and definitely easier and less time consuming) to order in or buy pre-made meals from a grocery store hot bar. 

[FINate]

The food service business has to be one of the most difficult to succeed in: Paper thin margins, logistics nightmare, and an incredible amount of work and long hours for relatively low pay. If your wife hated all of her wage-slave jobs, she will almost certainly despise being held captive by running a business. Not only do you NOT get overtime pay, but you also get to shoulder all the stress associated with trying to keep the thing afloat.

Work is work. Very few people find something they love which also pays well. FIRE is likely her best bet.

[Goldielocks]

The business idea is interesting, but complex.

Can you keep it simpler...   I have taught special interest classes with the local community adult education offerings.   I made $200 per class (e.g., $100 to $200 per night, not including preparation time).

Can you wife do almost the same thing, but call it a "cooking class"..  With a fee to register, and a material fee due to the instructor at the start of class?  We have a few different ones here -- a vegetarian class, an indian food one, one on how to can fruits, etc.  They are held in the local high school spaces, run by the school district.

This has tons of flexiblity as you are only on the hook to give the classes you commit to, and can change up what you offer every couple of months (or take a break).

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Otherwise -- what about just volunteering?  There are many volunteer jobs that are sort of like work, but would not potentially lose money (like a business).  At least with volunteering you can say no, and there should be someone you are really helping as the reason to be there.

[Proud Foot]

It is an interesting idea and could be done but I think you need to figure out what your target market is and why they would want to do something like this. You would also need more than just this idea to operate as I see high overhead costs with very little to no margin.

I think the largest draw will be the variety of meals which are prepared as well as the final prep. Are they casseroles or crock pot meals which can be cooked easily at home or will they be cooking them at your location and in effect creating leftovers to heat up? I see the latter having a low return customer rate as the food will not be as good come mealtime.

I remember a few years ago seeing some of these classes being offered. But they were put on by take-home meal prep services. If your wife truly enjoys cooking she could combine those two, or find someone to partner with so she can offer these classes.

[theSchmett]

I LOVE this idea.

I don't know what regulations or health codes are in your state. I know in NJ you are allowed to grow a tomato, sell a tomato, but not sell tomato sauce. Or sell bakes goods, jams, ANYTHING without a commercial kitchen.

PERHAPS, emphasis intended, you can minimize the initial outlay some by doing this as "prep parties". Again, not a lawyer, but if I want to hire someone to come into my home with portable stovetops, coolers full of ingredients, etc... And get a bunch of friends set for a night or cooking and meal prep what's to stop it?

You no longer need a storefront, just a client willing to have everyone over. You provide ingredients, recipes, equipment, setup, cleanup, and help cooking.  And if one person makes 30 burritos they can share with the person making several pots full of soup.

You can charge for ingredients, shopping, equipment, maybe even wine, setup/cleanup, and even sell "Tupperware" and Pampered Chef items while you are there.

So fun idea, just consider the scale of the investment and lock regulations, and since there is heat/fire/electricity also safety (and liability).

[HPstache]

This concept somewhat exists already in the MLM world... I think it's called Wildtree?  Your  wife will be competing against a bunch of moms that feel loyalty to their friends to participate in their prep party.  I wish you the best if you decide to pull the trigger, but I personally would advise against it, one entrepreneur to another.

[Goldielocks]

Do you have something like M&M Meat Shops in your state?   This concept fills a similar gap, and targets the identical clientele.

It is widely popular here because the food and variety is excellent.  Honestly, I think it is one of the reasons that the store/ club types like you are suggesting never really got off the ground.

https://www.mmfoodmarket.com/en/franchising/why-m-m-food-market

[Dee18]

A few years ago there were several of these businesses in the city where I live, but they all went out of business.  I would research that to find out if that is a national trend.  I suspect that all the boxed delivery services, where you get all the ingredients proportioned and a recipe, have taken over.

[MaaS]

A few years ago there were several of these businesses in the city where I live, but they all went out of business.  I would research that to find out if that is a national trend.  I suspect that all the boxed delivery services, where you get all the ingredients proportioned and a recipe, have taken over.

Yeah, this business is brutally competitive.

With the floods of investor cash and huge losses in this space, it feels unlikely that a small business could turn a profit here.

[Missy B]

A few years ago there were several of these businesses in the city where I live, but they all went out of business.  I would research that to find out if that is a national trend.  I suspect that all the boxed delivery services, where you get all the ingredients proportioned and a recipe, have taken over.

Yeah, this business is brutally competitive.

With the floods of investor cash and huge losses in this space, it feels unlikely that a small business could turn a profit here.

Also, if there is a recession, kiss half your customers goodbye. It doesn't even depend on whether or not they've still got a job. During a recession people feel anxious and that they should save money on things they can do themselves.

Apart from the other comments its worth noting: just because you enjoy doing something periodically for yourself/family, doesn't mean you're going to enjoy doing it for hours every day as a job.

instead, I'd ask her this: If you could do anything, independent of money or training requirements, what would it be? That's the place to start. A lot of people find excuses not to honestly answer that question (oh, I'd never get in the program, the tuition is to expensive, it takes too long, I'm too old, I missed my chance, I don't have the right connections etc) so don't accept them.

[AnnaGrowsAMustache]

What would the hygiene requirements be? In my country, you'd have to be rated as a commercial kitchen at the very least.

Also, I'm not clear on exactly what the customers are buying. At best it sounds like a cooking class, but without substantial learning involved. I'm with the previous posters on the thread - this doesn't sound like a viable business. That's not to say that there isn't the kernel of one in here somewhere, but it needs to be thoroughly refined.

Would it be an option to teach classes on meal prep/bulk cooking at a local adult education type place? In NZ most high schools offer short term classes in the evenings for hobbyists. That way there would be no outlay on facilities.

Armchair psychologist comment - just beware ruining your wife's passion. As soon as you get paid to do something it stops being fun!