Plated was a unique meal delivery service pitched to the sharks on Season 5 of Shark Tank. The company offered a simple and convenient solution for those who didn’t have the time, experience, or inspiration to prepare meals from scratch.
Plated did not merely provide ingredients and recipes; it offered an experience that rekindled the joy of cooking, even for those with busy schedules. Plated’s standout feature is its rotating menu of chef-designed recipes, offering various meal options.
This diverse menu catered to different dietary preferences, ensuring that vegetarian, gluten-free, and carnivorous customers had appetizing options. The meals were designed to be cooked in 30-60 minutes, thus fitting into a busy weeknight schedule, yet still producing gourmet-quality dishes.
Plated sets itself apart from many meal delivery services by focusing on the freshness and quality of its ingredients. The boxes contain responsibly sourced meats, sustainably caught seafood, and seasonal produce.
Customers also appreciated the pre-portioned ingredients, which helped reduce food waste, a growing concern in today’s society. Plated’s biggest strength was perhaps its flexibility.
Customers could choose the number of servings per meal and the number of meals per week, with no requirement to subscribe every week. This model puts the control back into the hands of the customer, allowing them to customize the service to their individual needs.
In essence, Plated aimed to deliver more than just food—it offered a culinary adventure that was both accessible and customizable.
Plated simplifies the process of home cooking by arranging shopping, portioning, and planning meals for those who want home cooking without the hassles.
Plated is a compelling choice for many customers because it offers a strong value proposition.
|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||Kevin O’Leary (After Shark Tank)|
|Plated Episode||Season 5, Episode 22|
|Plated Business Status||Acquired|
|Plated Website||Visit Website|
|Plated Net Worth||$300 Million|
What is Plated?
Plated is a highly innovative food delivery business that took center stage on the popular entrepreneurial television show “Shark Tank” in its 5th season. Harvard Business School graduates Josh Hix and Nick Taranto co-founded the firm.
Plated’s unique model involves subscription-based meal plans or “à la carte” options, with meals ranging from $10-$14 per plate. Plated is committed to sourcing its ingredients locally and ensuring each meal is as fresh as possible.
The business pivots on combining convenience and taste, hiring a professional chef to design healthy and delicious recipes that can be easily prepared and served.
Plated’s journey drew considerable attention when, after reaching sales up to the $10 million range, it was acquired by Albertsons – a major grocery store chain, for a substantial sum of $300 million. This acquisition opened access to over 2,000 physical stores and potentially reached 35 million weekly.
Plated’s founders remained intimately involved with the enterprise, continually driving their vision of making tasty, nutritious meals effortlessly accessible. As budding entrepreneurs, the Plated team brought their dream of revolutionizing home cooking to life, making healthy eating easier for millions.
Who is the Founder Of Plated?
Nick Taranto and Josh Hix are the co-founders of Plated. Both had diverse backgrounds that contributed significantly to the founding and success of Plated. Nick Taranto is a Harvard Business School graduate with an MPA from the Harvard Kennedy School.
Before starting Plated, Taranto served in the U.S. Marine Corps and worked in finance and consulting. He also worked at a private equity firm before entering the entrepreneurial world.
On the other hand, Josh Hix is an engineer by training with an MBA from Harvard Business School. Before Plated, Hix worked in investment banking and private equity. He also served as a consultant for multiple technology startups.
The idea for Plated came from a personal problem faced by the co-founders: they found it challenging to cook healthy and delicious meals amidst their busy schedules.
They realized that many others shared this problem and that the existing solutions on the market were inadequate. This led them to conceive of Plated, a service that would make home cooking easier by providing pre-portioned ingredients and recipes right to customers’ doors.
Before appearing on Shark Tank, Plated had already made significant progress. The company had established itself in the meal-kit delivery market and had built a solid customer base.
However, they faced stiff competition from other services and sought additional funding to scale their operations and reach a larger audience. The opportunity to pitch to the sharks provided a chance to secure this funding while giving them a platform to showcase their innovative product to millions of viewers.
How Was the Shark Tank Pitch Of Plated?
In the Season 5 episode of Shark Tank, the co-founders of Plated, Nick Taranto and Josh Hix, approached the sharks seeking an investment of $500,000 in exchange for a 3.5% equity stake in their business, valuing Plated at $14.2 million.
Nick and Josh’s pitch emphasized their service’s convenience, quality, and early success in the market. They started by explaining the concept of their product, underlining the value proposition and unique selling points.
They explained that their model allowed customers to cook gourmet meals at home without the hassle of shopping for ingredients, meal planning, or worrying about portion sizes.
To better illustrate their service, the founders even cooked one of their meals live on the set, demonstrating the simplicity and ease that Plated offered its users. The sharks were offered a meal taste, emphasizing the quality and taste customers could expect from a Plated box.
However, their pitch faced significant criticism from the sharks. Some sharks felt that the company’s valuation was too high, given the financials presented, while others were concerned about the operational complexities of the business, including the logistical challenges of shipping perishable ingredients.
Several sharks also expressed concerns about the highly competitive nature of the market, especially with other big players already having a considerable presence.
Despite these concerns, Mark Cuban and Kevin O’Leary expressed interest in Plated. Cuban initially offered $500,000 for 10% equity, significantly more than the 3.5% initially offered by the founders.
On the other hand, O’Leary offered a structured deal: a $500,000 loan at 6% interest, a 2% equity stake in the company, and a royalty of $1 per meal sold until he recouped his initial investment.
However, Kevin O’Leary ultimately struck a deal with the founders. After some negotiation, they agreed on a slightly revised version of his original offer: a $500,000 investment for 5.6% equity in Plated and a $1 per meal sold royalty, but without the loan component.
This appearance on Shark Tank undoubtedly brought greater attention to Plated, helping it further establish itself in the meal delivery market. Despite the initial skepticism, the founders secured a deal to support their growth plans and bring their innovative product to more households nationwide.
Final Deal: Mark Cuban agreed to invest $500,000 for a 5.5% stake in Plated.
Plated Shark Tank Update
After appearing on Shark Tank and receiving investment from Kevin O’Leary, Plated experienced significant growth and success. Their pitch on the show helped raise their profile considerably, leading to a rapid increase in their customer base.
In 2015, Plated raised $35 million in Series B funding, demonstrating investor confidence in its business model. They continued to expand their menu options, improve their logistics, and provide customers more flexibility in their orders.
Plated emphasis on providing high-quality ingredients and chef-designed recipes helped them stand out in the increasingly competitive meal kit market.
Plated journey culminated in 2017 when Plated was acquired by the supermarket giant Albertsons for approximately $200 million. This move was seen as a strategic attempt by Albertsons to innovate and bring more convenience to their customers while also giving Plated access to a vast retail network.
However, despite the initial success of the acquisition, Albertsons announced in November 2019 that they would be discontinuing the Plated subscription service to shift its focus to selling Plated meal kits in their stores instead.
This move was reportedly in response to changing consumer preferences and the challenges of maintaining a profitable subscription model.
Plated meal kits are available in select Albertsons stores. Despite the shift away from their original business model, the impact of Plated on the meal delivery industry remains significant.
Plated pioneered home cooking to be more accessible and convenient, influencing many of today’s meal kit services.
What Happened To Plated After Shark Tank?
After appearing on “Shark Tank” in 2014, Plated, a meal kit delivery service, underwent several changes and developments. Initially, they secured a deal with Mark Cuban, but it fell through, and Kevin O’Leary became the new investor in 2018.
Following the involvement of Kevin O’Leary, Plated experienced significant growth, with sales surpassing $100 million by 2018. This success led to the company’s acquisition by Albertsons, a grocery chain, for a substantial $300 million. The acquisition took place in 2018 as well.
However, after being acquired by Albertsons, Plated transformed. It shifted from being an independent meal kit delivery service to becoming an in-house brand under the Albertsons company.
This change occurred in late 2019. The co-founders of Plated, Josh Hix and Nick Taranto, left the company in 2019, post-acquisition.
Updates on Plated’s progress have been relatively scarce since its introduction in Albertsons’ Idaho locations in January 2020.
While the specific details of its performance in Albertsons stores haven’t been widely reported, it is known that the ready-to-cook gourmet meal delivery market, which Plated is part of, is expected to reach $2 billion. Given this market potential, Plated is positioned to capitalize on the trend.
Despite the change in ownership and some challenges, Kevin O’Leary remains positive about his experience with Plated. The company has faced ups and downs but still operates under the Albertsons umbrella as an in-house brand.
Plated’s focus on offering unique features like antibiotic and hormone-free meat and sustainable seafood likely contributes to its continued appeal to certain customers.
Plated experienced significant growth after its appearance on “Shark Tank,” leading to an acquisition by Albertsons, where it was transformed into an in-house brand.
While updates on its progress have been relatively limited, it continues to operate under Albertsons’ ownership and is positioned to thrive in the gourmet meal delivery market.
Is Plated Still in Business?
Plated, the meal kit delivery service, is still in business as of 2023. After appearing on “Shark Tank,” Plated faced some ups and downs, including failed deals and changes in ownership. However, it managed to adapt and continue operating under the Albertsons company.
Albertsons acquired Plated for $300 million and transformed it into an in-house culinary brand under their Own Brands line in late 2019.
Despite discontinuing Plated’s subscription service in November 2019, the company remains active, offering its meal kits through Albertsons’ outlets and online platforms.
Plated’s focus on providing high-quality ingredients and catering to “evolved eaters” has contributed to its success and growth. While some challenges and profitability concerns were mentioned, Plated continues to be operational and provides meal kit solutions to its customers.
In conclusion, Plated is still in business, operating as an in-house culinary brand under Albertsons’ ownership. It offers meal kit services and continues serving its customers with chef-designed dishes and convenient home cooking solutions.
What is the Net Worth of Plated?
According to our research, the net worth of Plated was $300 million when it got acquired by Albertsons in 2019. The valuation of Plated was estimated to be $9 million after securing an investment from Kevin O’Leary on Shark Tank.
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