What is Plated?
Plated is a meal kit subscription company specializing in the gourmet meal delivery. It gives customers a unique business model to order ingredients and recipes for their favorite dishes.
To achieve a genuine flavor, Plated meticulously measured the boxes before packaging.
All they have to do is prepare the dish according to the recipe’s instructions, and voilà! The supper has been prepared.
Plated is a gourmet food delivery service that made a Shark Tank pitch in May 2014. Mark Cuban and the three agreed to trade 5.6 percent stock for $500,000 later in the episode, but the agreement fell through after the episode aired.
Kevin O’Leary, a Shark Tank host, invested Plated after meeting the company’s founders, Harvard Business School students Nick Taranto and Josh Hix, during a Shark Tank update.
Plated simplifies, enhances, and diversifies home cooking. Subscriptions to this service provide all necessary materials to prepare an entire dinner, portioned correctly and accompanied by an elaborate recipe designed by a chef.
You receive a weekly box including the ingredients and step-by-step directions for the week’s meals. Seasonally-inspired dishes and ingredients keep things new and exciting.
Plated is an excellent alternative to the time-consuming and inefficient task of visiting the grocery store to purchase ingredients, frequently purchased in unusual proportions that result in wastage.
Plated allows you to take pleasure in preparing and enjoying a meal at home.
|Company Name||Plated: Meal Kit Subscription Service|
|Founder||Josh Hix and Nick Taranto|
|Product||Food delivery service that delivers healthy meals|
|Investment Seeking||$500,000 For a 4% stake in Plated|
|Final Deal||$500,000 For 5.6% + Advisory Shares|
|Shark||Mark Cuban, Kevin O’Leary (After)|
Who is the Founder Of Plated?
Josh Hix and Nick Taranto are the founders of Plated. Both are Harvard Business School graduates.
Nick worked for Goldman Sachs for seven months before establishing Plated and detested every minute of it.
John was an engineer who later earned a master’s degree in business administration from Harvard. Before co-founding Plated, he founded multiple enterprises.
John presently serves as President and CEO of Season, while Nick serves as Chairman and Founder of Hop WTR. John and Nick founded Plated as a result of their Wallstreet backgrounds.
Due to their previous careers, they rarely had time to prepare good meals, and cooking food in the microwave did not impart a genuine feeling. They also did not consider going to a restaurant.
Plated was born out of this problem. The pair spent $10 registering a domain name for their website. The company may supply pre-packaged materials and recipes to their customers upon request.
However, the concept did not instantly take off. The couple had depleted their funds and were on the verge of insolvency.
The duo acknowledged that they had few recurring customers and attributed this to the original items.
They indicated that certain materials would arrive at their clients degraded due to exposure to the outdoors.
They never gave up, though, since they believed in their business idea. As a result, Plated was not a viable venture when they went on Shark Tank.
Plated Before Shark Tank
Plated is a food delivery business started by Harvard graduates Nick Taranto and Josh Hix that enables customers to prepare nutritious meals.
The idea was hatched while they attended Harvard Business School since they wanted to eat healthily and incorporate cooking into their lives but did not have the time.
Recognizing that others faced the same issue, they decided to start the business in Nick’s kitchen.
They began by giving simple-to-follow recipes from well-known chefs. With business experience, they recognized the importance of marketing for brand exposure and leveraged social media to grow their following.
Plated swiftly grew in popularity within the first few months, and Nick and Josh decided to construct warehouses on the east coast to meet demand.
Their rapid expansion and established business model enabled them to raise funding at a relatively high valuation for a startup.
A Shark Tank invitation was extended for Season Five because they need more funding to continue expansion and strategic guidance.
How Was the Shark Tank Pitch Of Plated?
Nick and Josh appeared on Shark Tank requesting an investment of $500,000 for a 4% stake in Plated. They offered a backdrop on how people like to eat well, but it was costly, timely, and challenging to get decent food on the table.
They offered background on how their services, Plated, deliver the goods to the customer with the recipe card to create their nutritious dish.
Lori quickly questioned the premise because a customer could pay someone from the grocery store to buy food and deliver it to his home. Plated said that the consumer still had to find out what to eat and what to eat.
Nick told the Sharks that while they asked for the numbers, a plate would cost $ 10, and a consumer would likely purchase it.
Robert wondered what the margins were because he knew food stores had terrible margins.
Plated explained spoilage and overheads, why food retailers are having trouble, and how their business models avoid it because they purchase what they need and toss less than 1 percent of food away.
Robert was interested in expanding the business, and Josh said they had warehouses in the U.S., and they now had two operational ones.
Plated then discussed how they expand fast every month as their brand becomes famous and have collected $3,000,000 at a post-monetary valuation of $9,500,000.
The Sharks all saw the potential, but Robert questioned it again and feared the customers wouldn’t want to order the dish.
Josh and Nick did an excellent job supporting their company strategy, but they said that “cooking is faithful,” and they return when clients use the service.
But Robert didn’t view the merchandise himself and went out. Lori had the same issue as Robert and felt like those who cook don’t need this service, but Barbara and Mark pointed out that they don’t want to sell to everybody, don’t want to cook, and don’t know how. Lori did not see, however, how their clients would be able to cook and go out.
Kevin discussed the appraisal and felt he could do everything for $2,000,000. Nick and Josh informed Kevin that if he tried it, they would beat him and that Kevin would never find somebody like him.
Nevertheless, Kevin has gone out. Barbara inquired about their main competition, and Nick mentioned taking it out.
This was Barbara since the advantage of taking out is that consumers would have to wait for Plated to serve their food directly to their clients.
For this reason, Barbara went out. Mark was left and said he was not going to be a customer. However, he was interested in investing but needed to know how the company would grow.
Josh added that they have a growing subscription service, and because customers are still using the product, they don’t need many people to make that a huge business.
Mark impressed Nick and Josh but wanted consultancy shares, offering them $500,000 for 5.6 percent. Nick and Josh were thinking of going out to talk about the business.
Mark indicated, however, that he was offering them what they wanted and that nothing had to be discussed.
After a short conversation inside, Josh and Nick accepted the agreement, and Mark indicated that he knew he had invested in some intelligent guys with great ideas.
Final Deal: Mark Cuban agreed to invest $500,000 for a 5.5% stake in Plated.
Plated Shark Tank Update
Mark Cuban’s investment deal with Plated did not end as they asked for more money.
They met Kevin O’Leary, who was looking to invest in the company. Kevin invested in them because he liked their business model.
Plated has generated millions of dollars in sales but has not turned into a profitable business. The group has completed 23 deals regarding real estate and is launching regional fulfillment centers.
They had to suffer a robbery in their Chicago warehouse as they were planning to store food. The thieves took all the food they stored and gave it to thieves.
Kevin is very well connected in the food industry. He seems to have strong friendships. Kevin believes Plated has the potential to become a $2 billion company, and for their business to grow, the expansion of the operation is very necessary.
While the new fulfillment center in Chicago has faced some challenges, it was due to its commitment to having a fulfillment center that could handle its growth.
Kevin’s restaurant’s food and market reach are good, but the financial situation dissatisfies him. He wants to assist in reducing logistics costs, which overwhelm the business.
He believes it has the potential to be a $2 BILLION enterprise. The key to the business’s growth is the expansion of its fulfillment operation.
While their new primary fulfillment center in Chicago has encountered challenges, they attribute their growth to their commitment to a fulfillment center capable of handling their growth.
When they underestimate expansion, they incur significant costs associated with relocation. The guys believe they will be profitable within 12-24 months, but Kevin believes they must ensure that the new fulfillment center is a critical component of their success.
If they fail miserably in the new fulfillment center, the business will cease to exist. He encourages the men to travel to Chicago and test the system.
The Chicago center has performed well so far and can be expanded in the future. They are sending boxes, and everything is going smoothly.
Plated is still profitable; the challenge now is to make it profitable. Nick and Josh relocated operations permanently to Chicago to ensure the business’s continued success.
A segment on the update continues the Plated saga in episode 915. They reveal in the update segment that they sold the Plated for $300 million to Albertson’s Supermarkets!
What Happened To Plated After Shark Tank?
Plated has had a one-of-a-kind post-Shark Tank journey. Initially, the transaction with Mark fell through because Plated believed their company’s value had increased following Shark Tank and desired a bigger valuation than Mark gave.
On the other hand, Mark was adamant about not modifying his arrangement. Despite the deal falling through, Plated continued to develop, as stated on Shark Tank, opening many new stores around the United States.
However, to sustain this expansion, they elected to reinvest all profits into the business, necessitating an investment.
Nick ran into Kevin and informed him about how the agreement with Mark fell through. However, he wowed Kevin by demonstrating their progress since appearing on Shark Tank and their excellent business approach.
He then inquired as to whether Kevin desired to invest immediately. Kevin chose to invest after a few days of consideration. However, the amount of money and equity were never disclosed.
Kevin ended up visiting Nick and Josh at Plated’s offices, where they explained some of the difficulties they were having with expansion, such as someone breaking in and stealing $100,000 in food. They also opened a new warehouse.
Kevin thought Nick and Josh had not done enough to execute the logistics that were critical to their business model and urged Nick and Josh to fly down to the new Chicago warehouse’s opening to ensure everything went smoothly.
They could effectively open their new facility with the help of Kevin’s counsel and Plated’s hard work.
Since then, Kevin noted that they encountered additional logistical challenges that he wishes they had known about before making decisions, but that they overcame them and were on track to sell roughly $100 million in the future year!
Plated already has over 200,000 Facebook followers and regularly updates its clients on impending new meals.
Plated’s sole concerns are that several competitors with identical business models have grown bigger than them, and each of these businesses has some customer service issues.
However, the Plated company has proven that a novel idea protected by a patent is not required to build a $100 million firm if you possess the necessary skills and drive.
Kevin is undoubtedly pleased with the financial decision following the event, as Plated continues to grow.
Is Plated Still in Business?
Following their appearance on Shark Tank, the pair attempted to renegotiate an agreement with Mark Cuban. Mark Cuban effectively canceled the deal.
The other Shark, Kevin O’Leary, invested thanks to their efforts. Albertsons bought Plated for $300 million in 2017, but Plated suspended operations in 2017.
Albertsons ended the subscription service in 2019, intending to incorporate it into their food delivery service.
On the other hand, Albertsons began offering Plated meal kits in certain grocery stores in 2020.
What is the Net Worth of Plated?
The valuation of Plated was $12.5 million when it appeared on Shark Tank. The net worth of Plated was $300 million when Albertsons Supermarket acquired it in 2017.