The cost of subscribing to a meal-delivery service
For busy households looking to simplify their dinner routine, meal-delivery is one of many options. Various companies promise to save time on meal prep, help customers eat healthier, or simply deliver the convenience of prepared meals right to the door.
The Facts
- Meal-delivery companies are expanding throughout Canada
- They provide an essential service that comes at a price
- Having meals delivered may not be a way to stretch a food budget
Meals-on-Wheels is the meal-delivery service most Canadians are familiar with. For a cost-recovery fee the not-for-profit organization provides meals to anyone who is facing barriers to accessing nutritious food, regardless of income. They also provide free meals through a meal subsidy program.
Anybody else can delegate meal planning, shopping, and cooking to one of the for-profit meal-delivery services that are entering the market throughout Canada, such as Hello Fresh, Chef’s Plate, or Vector. These services are aimed at more affluent consumers, and the convenience comes at a price.
Types of meal services to choose from
Meal-delivery services offer a range of options and cater to different lifestyles, including families with children. They deliver pre-planned, pre-portioned, and sometimes pre-cooked nutritious and tasty meals.
- Meal kits provide all the ingredients needed to cook a meal at home, along with easy-to-follow instructions. They cut out the steps of meal planning and shopping and let customers cook the meals at their own convenience. They might also teach a few cooking techniques to rookie home-cooks.
- Fully prepared meals are ready to heat. They are ideal for anybody who wants to enjoy a 'home-cooked meal' without spending time in the kitchen.
Cost of having complete meals delivered to the doorstep
Budget is a crucial factor. Some services are relatively budget friendly, but none are as affordable per portion as home-cooked meals made from grocery-store ingredients.
The initial meals are often heavily discounted, but once the full price kicks in 30-40% of customers abandon the service immediately. While the promotional rate seemed appealing, paying $9 to $17 per portion, plus a $10 delivery fee per box, makes the service too expensive for many.
A family of four would be able to cook a nutritious dinner for much less than $36, even when occasionally using pre-chopped vegetables or marinated meats from the grocery store.
By the end of the first year, 85-95% of customers will have cancelled. This is due to price, but also to ‘subscription or menu fatigue’. The format starts to feel too repetitive and people may not be able to justify the ongoing expense. Two-thirds of customers also feel guilty over the amount of non-recyclable ice-packs and insulated packaging.
Meal-delivery services have their place
Meal-delivery services might not be cheap, but sometimes they are a valid option. For busy people, or anybody unable to cook, prepared meals are a healthier option than takeout, because meal-delivery services generally provide nutritious and balanced meals. This is especially important for long-term subscribers, but it is also essential in other situation when people need to rely on meal delivery.
New parents, people recovering from illness, or anybody going through a period of heavy work load are among the groups that may order meal delivery for a limited time. Also anybody who regularly orders take-out several times a week might find that the delivery fee alone already outweighs the cost per serving charged by a meal-delivery service.
Customization options are meant to offset menu fatigue, and the various providers generally offer flexible subscription plans, that allow pausing, skipping, or cancelling deliveries based on individual schedules.