Meal Kit Company Subscribers Buy Less Groceries

HelloFresh pic
HelloFresh
Image: hellofresh.com

Joann Baney, an associate professor, teaches in the executive master of public administration program at the Columbia University School of International and Public Affairs (SIPA). Apart from that, she also directs faculty members at the General Management Leadership Program and the Fire Department of New York Officers Management Institute. At home, Joann Baney enjoys cooking and utilizing the services of meal kit provider HelloFresh.

Meal kit companies are part of a booming new business industry. A meal kit consists of pre-measured ingredients, with instructions on how to cook a certain recipe. Companies deliver these meal kits to their subscribers every week.

Due to the affordable price of a complete meal kit, grocery stores may be earning less from consumers using these services. According to new research analyzing consumer credit card activities, people who subscribe to meal kit companies such as HelloFresh and Blue Apron spend less on groceries or forgo them altogether. High-end, specialty grocery stores like Trader Joe’s and Whole Foods seem to be particularly affected as the meal kits already include some of the more unusual ingredients that might require a trip to these markets.

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