What's for Dinner?
Somewhere between soccer practice and homework, entrepreneurs are helping families get dinner on the table with do-it-yourself meal preparation services.
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It's 4 p.m. Families, couples and singles everywhere are
getting hungry. Cornish game hens are a whimsical fantasy, but
there's a fast-food joint on the drive home. You do the cooking
math.
What's changing about this scenario is that more families
are looking for dinner options that are fast and healthy. Working
Americans are more constrained for time than ever. Over 70 percent
of mothers with children under age 18 were in the labor force as of
2004, according to the Bureau of Labor Statistics--that's 35.4
million families. What's more, an estimated two-thirds of
American adults are overweight, according to the National
Institutes of Health, and nearly 31 percent are obese. Factor in
the growing number of obese children--approximately 9 million
children over age 6--and it's no wonder Americans are perking
up at the idea of skipping the battered, deep-fried chicken in
favor of a nice, light stir-fry.
Stepping in to fill the need are do-it-yourself meal preparation
services--places where time-constrained, health-conscious consumers
can prepare their meals in a hurry for up to a month in advance.
It's a new take on fast food--and one that's raking in the
proverbial dough for entrepreneurs nationwide.
"For at least the past 15 years, the food
industry--supermarkets and restaurants-has been looking to deal
with the frantic consumer," notes Jonathan M. Seltzer, founder
of food industry consulting firm Corporate Resource Inc. in
Minneapolis and project manager for The Food Industry Center at the
University of Minnesota, Twin Cities. "[These consumers are]
trying to have quality mealtime while dealing with work and
children's activities." Certainly, the evidence is in the
grocery aisles, where pre-cut or pre-made fruits, vegetables, side
dishes, and even meats and cheeses coexist happily with more
leisurely fare behind the deli counter and in the produce bins.
Indeed, in a 2005 customer survey conducted by do-it-yourself
meal preparation company Dinner By Design, fully 98 percent of
respondents cited time savings as their reason for using Dinner By
Design, and 81 percent credited Dinner By Design for "less
stress" in their lives. The Grayslake, Illinois,
company--founded in 2003 by Julie Duffy--offers make-and-take meal
preparation at its 24 franchise locations throughout the
Midwest.
Then, too, there's the entertainment value of do-it-yourself
meals--and not just from the perspective of easier dinner parties.
At retail locations like Dinner By Design's, consumers can hang
out with friends while they prepare meals. "It's a really
good bonding time, especially if you take your children with
you," says Jorj Morgan, director of life-style content for
working-mom internet portal BlueSuitMom.com in Pompano Beach, Florida.
"And it can mean new ways of entertainment--[as a
get-together] for a group of new mothers, for instance. The
entertainment aspect is very popular."
According to Duffy, having fresh, quality food on hand for a
day, a week or a month-meals that go from the freezer to the oven
to the table in about 30 minutes-appeals to families and singles
alike. "People are really thinking about what they're
serving and what the ingredients are," says Duffy, 37, who
expects sales of $4.7 million in 2006, a dramatic increase over
last year's $1.4 million, with approximately 60 store openings
planned for 2006. "They have the control back in their
hands."
Naturally, if you're looking to start a do-it-yourself meal
preparation business, you'll need to have control in your own
hands first-by investigating your desired market and making sure
you have the makings of a successful enterprise. "You might
have a good product, but do you have the basis for a company?"
asks Seltzer. "One good lasagna doesn't mean you have
enough [inspiration] for 50 recipes."
It's questions like these that Duffy pondered endlessly in
the startup stages. "I literally couldn't sleep at
night," she says. "I would run numbers and marketing
strategies through my head 24/7. I just knew that it couldn't
fail."
That kind of passion will go a long way in any entrepreneurial
venture--but particularly one like this, where you need to be more
than a little inspired by food. "I enjoy cooking and
entertaining," says Duffy. "Additionally, I came from a
corporate working environment where my clients bemoaned the fact
that they couldn't get dinner on the table--and when they did,
it was often takeout or a less 'feel good' option. I knew
there was a niche."
Keri Willenborg, 34, knew it, too--as did her husband, Brett,
34. It was at a Super Bowl game that the Nebraska couple stumbled
upon the concept after chatting with some fellow game-goers.
"They told me they had a niece who did once-a-month cooking
somewhere around Seattle," says Keri. "I thought,
'What a neat idea.' I came home and did a bunch of
research, and I could not find anything like that [in my
area]."
Teaming up with their friends Cher and Jim Stenger, now both 38,
as well as a friend who owned a diner, the Willenborgs tested the
concept on a small scale with friends and family. "It was a
logistical nightmare," admits Keri. "We tried to keep
[ingredients] cold in tubs, and that didn't work."
Ultimately, the testers loved the concept and the recipes, she
says, but getting things to flow smoothly--and keeping the food at
the proper temperature--was a different story.
That didn't stop them from plowing forward, however. They
took out second mortgages, borrowed from savings and mutual funds
and bought a facility to open Omaha, Nebraska-based Supper Thyme
USA in 2003. "We put everything on the line," says Keri.
The payoff was a lot of free local PR upon opening the
facility--and within a few months, people were asking when they
were going to franchise. "That's when we took our second
leap of faith," she says. Now they have 20 franchises, with 40
more planned this year. The company brought in $3 million last
year, and they project $7.5 million in revenue for 2006.
Starting on Your Own
Franchising has turned out to be a viable option for a number of
do-it-yourself services that have cropped up in recent years--as
well as for the franchisees who buy them. "Franchises have the
brand recognition, and franchisees get ongoing support and
training," says Keri Willenborg of this option's
appeal.
However, both Duffy and Willenborg--along with Dinners By the
Dozen founder Tracy Elceser--are evidence enough that starting your
own meal preparation service is doable, as long as you are prepared
for tasks like finding a facility, purchasing equipment and
inventory, creating a website, hiring a chef and coming up with
recipes. "Finding a spot was a hurdle, not to mention getting
construction done and finding all the recipes," says Elceser,
39, who started her Davenport, Iowa, company in May 2005. "It
meant freezing a lot of meals, tasting them and seeing if they
retained their flavor."
Elceser, a busy mom who is also a registered nurse, prepared for
these hurdles by carefully researching simi-lar companies and
earmarking $60,000 in savings and business credit to finance the
venture. "I looked at some facilities doing this kind of
business to see what I liked and didn't like, and I researched
other businesses online," says Elceser, who projects 2006
sales of $400,000. She, too, has a few people interested in
franchising, so she's considering that growth strategy.
Most important to your startup success, these entrepreneurs
agree, is your willingness to roll up your sleeves and commit huge
amounts of time to your new business. "The food industry is a
lot of work-it's not a princess job. There's a lot of
standing on your feet and getting dirty," says Dinner By
Design's Duffy. "But the flip side is that this is hot.
The concept is hard to explain, but once you develop your client
base, they come back again and again."
Heading for Greatness
Whether you choose to purchase a franchise or strike out on your
own, the do-it-yourself meal concept is one that's bound to
succeed in coming years. "In most cases, it's a healthier
way to eat," says Morgan, who is also a home chef, cooking
instructor and author of several cooking and entertaining books.
"It's a great way to bring busy, time-constrained people
back to the idea of having dinner at home."
Indeed, the opportunities are seemingly endless for
entrepreneurs who have the right mixture of passion for cooking and
passion for entrepreneurship. "I see this trend expanding and
segmenting very quickly," says Seltzer. "This concept of
trying to provide additional [meal] solutions to [busy] people is
limited only by your own creativity."
For more information on franchises that offer do-it-yourself
meal preparation services, visit the websites of Dinner By
Design, Dream Dinners Inc., My Girlfriend's Kitchen, Super
Suppers.
Karen E. Spaeder is a freelance writer in
Southern California specializing in small business and
education.
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