PREP'IT Pitch

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prep’it

your personal grocer

CHRISOULA KAPELONIS



Let’s begin your new shopping experience.


Prep-it: the future of consumption Food-X




Food-x Accelerator


What is Food-x? FOOD-X is an international food startup accelerator that partners with early-stage food entrepreneurs to bring out their best potential and take them and their products and services successfully to market in areas of food & beverage, health, and environment that are ripe for disruption.


What does Food-x provide?

Funding

$10,000 + $40,000 loan in exchange for 7-10% eq.

Guidance

space + education + lectures + consulting

Exposure

FOOD-Xcel Day VCs, media, live stream


Three cohorts. Foodx has just introduced their third round of cohorts to enter the incubation space (Sept 2015). Since the incubator stives to push forward viable businesses, it is imperative to see the trends outside the walls and within to understand what the trends are within the collection.


Fall 2014

Spring 2015

Fall 2015

network + delivery

platform + food tech

platform + food inov


On a mission to create change throughout the food system, Food-X’s goals are lofty but admirable: How can we get more people eating better? How can everyone access healthy foods? How can we lower the carbon footprint of food production?


The Food-x Mission

Health

Distribution

Better eating

Local and fresh

Food-x

Sustainability Fixing the system



Food-x

But what problem lies within all?



Food Waste


Each year, there are 430 billion pounds of avaliable food supply in the U.S.


And each year, 40% of that is thrown out.


That’s 133 billion pounds of food.


100 subway cars of food each day.



About $400 per person each year.



But where is all this food wasted.


61%

17% 1. PRODUCTION

7%

2. PROCESSING

9%

3. DISTRIBUTION

imports processing

farms

6%

4. RETAIL

5. CONSUMER

markets

home consumer

restaurants

restaurant consumer

hunt’s point

The largest problem is at the consumer.


The home consumer wastes 86 billion pounds of food every year.


That’s 25% of all the food they purchase.


And this is what is wasted.

33 30 %

fish + seafood

%

roots + tubers

28

%

fruits + veg.

15 15 11 cereals

%

milk

%

meat

%


1/3

2/3 spoilage

of unused food

vs

too much food prepared


Majority from spoiling.


label confusion

food aesthetic

poor storage

food not prepped

wrong ingredients

out of sight


And these are causing all the waste.



How we deal with food waste now.


food and organics

grow more food

scraps

compost

soil amendments

collection

processing


resell/donate collect leftovers

distribute and sell or donate



But this doesn’t work.


Because there is a stigma to used food.


Since food is ingested, it can make us sick.


Instead of solving the problem at the end,


...why not start at the beginning?


How do we account for the 40%?


Not through reuse, but collaborative consumption.



Collaborative Consumption


Collaborative consumption leverages excess capacity. There are underutilized values that are inherent to certain assets. The leveraging of this latent value could provide capital that is currently not being used. The underutilized value is called the excess capacity.


The food system has 40% of its assets wasted. How can we consume efficiently?



What can we learn from the sharing economy?


airbnb and houses


fractional rent/income

People looking for cheap hotels. House empty when you’re away. Why not rent out your house?


uber and parked cars


surplus of nodes

People want rides Cars are 95% parked Why not share a ride?


And many others in different fields.


But, what these companies are really doing,



Is rethinking the idea of ownership.


sharing

=

access


If we don’t need to own our own cars, or houses...



Then why do we have to own our food?



Food is only valuable to us when it’s prepared. Because then it can be eaten.


We don’t store food well.

2/3


Stored food is a depreciating asset.



stored food = wasted food



Current Consumption


The three food storefronts

Restaurants

Markets

Delivery 2.0


ac

ce

ss

zo

ne

Past: Meal Distribution

Restaurant

This is the original meal distribution method of the urban territory. The pull was inward, as people drove their cars to access the restaurants in the center.


Market


Fast Food 2.0

Startup

With Fast Food 2.0, the nodes are every changing. Because the food is prepared mobily, they intertwine within the city and change the zone of delivery every minute.


ready meals

+ -

food variety

on-demand mobile

Restaurants

Markets

Delivery 2.0

expensive no control

large portions

little variety

+ -


What if...

Food Prep.

+

Storage

+

On-Demand



Welcome to Prep-It.


Shared material assets without ownership. The idea is that you can start to dissect the material of the food into portions that are appropriate for everyone, and also use up every single bit of organic material.


You only get the amount you need.


shop

measure

assemble

cook

eat

Traditional Supermarket

clean/trash


shop

measure

assemble

cook

Prep-It

eat

clean/trash


Not quantity.

10 February

10 strawberries

10 August

10 strawberries


Amount of material.

2lb

2lb

February

August

25 strawberries

10 strawberries


Collaborative consumption. From the start.


Bulk

12 eggs

Prep-It

3 eggs with 2 eggs (other) with 2 eggs (other)


How much? Consult the recipe. Recipe as instruction.


Wholesale at local scale.


There are already startups in this space. But there are issues.

ingredient dist.

meal dist.

Instacart

Blue Apron


variety

ingredient dist.

excess

limited

vs

meal dist.

exact


variety

supermarket?

+

exact

restaurant?


variety

+ existing

Prep-It

exact

+ local



The supermarket as storage + food preparation infrastructure


It already has the distribution network Trucks come with food every day through the service area of the supermartket. There is already infrastructure existing to support wholesale.


There are so many nodes and points of movement. Most of Manhattan is within at ten minute walk from any supermarket. And those that are not, are just a short bike ride away.


And smaller nodes such as bodega’s can help. The bodega is the corner convenience store that is very prevelant in many parts of the city that don’t have easy access to a supermarket.


There’s an assortment of food and variety. Supermarkets have been the storage kings for a while, so there is already the expectation of diversity in the products.


And they have space... Supermarkets have been the storage kings for a while, so there is already the expectation of diversity in the products.


But it’s wasted space.


The supermarket is full of billboards. It is the las vegas of food.


Why can’t the browsing be done digitally?


the supermarket


the Supermarket

the Prep-It



back storage

back storage

shelve storage

prep center

registers

storefront

the Supermarket

the Prep-It



How does it work?



wholesale distribution as normal.


3 eggs

customer browses inventory


+

+

and can order through recipes


order is received by Prep-it


items start getting gathered for prep


preps start cutting and assembling food


order is either picked up or delivered.



Let’s begin your new shopping experience.





What is the ritual of shopping?


the recipe

the list

the cart

the aisles

payment

transport


But prep’it disrupts these rituals.


CRANBERRIES

1 qty.

cup at

$1.15

unit

price

related APPLE

CANTALOUPE

add to cart

the recipe


your cart APPLE

BANANA

CANTALOUPE

CRANBERRIES

CRANBERRIES

CRANBERRIES

checkout $21.54

the list

2 cups $1.25

2 cups $1.25

2 cups $1.25

2 cups $1.25

2 cups $1.25

2 cups $1.25


produce fruits

vegetables

herbs

APPLE

BANANA

CANTALOUPE

CRANBERRIES

CRANBERRIES

5 items in cart

the cart

2


the aisles


your order has been

submitted

track my order

the payment


the transport



The space



The current supermarket


Type 1of the supermarket Anatomy dairy meat + ďŹ sh produce frozen food prepared foods stacks checkout


Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1

Type 1



meat

dairy bulk

produce dry

prep pick up

bulk produce dry


shop

measure

assemble

cook

eat

clean/trash


shop

measure

assemble

cook

Prep-It

eat

clean/trash


food

+

port


tion

+

process


supermarket

+

restaurant


food display

+

food craft



Craft and the Space



Raw Ingredients


The butcher shop and the butcher.


The bakery and the baker.


The fish market and the fisherman.


The cheese shop and the connoisseur.


The farmer’s market and the farmer.




Assembled Product


The sushi bar and the chef.


Chipotle and the servers.


Starbucks and the baristas.


Prep’it and pre-portioned groceries.


Amount of material. Not quantity.

10 February

10 strawberries

10 August

10 strawberries


Amount of material. Not quantity.

2lb

2lb

February

August

25 strawberries

10 strawberries


whole body unit

1 bag of apples

1 carton of eggs

cannot be cut or will brown

1 apple

eggs don’t break down into smaller units

2 eggs


measured unit

1 bag of flour1

scooped and measured

cup

1gallon of milk

poured and measured

1 cup


seperated unit

1 bag of flour1

1 ear of cauliflower

scooped and measured

broken off from main ear

/4 cup

1/8 cup


cut unit

entire chicken

cut into pieces

main cut of steak

2 lbs of chicken

2 lbs of steak



The digital interface


shop by item

shop by recipe

order history account







consumer app

+

data analytics



Shelf Life

Food has a life and a death. Unlike traditional delivery products, the time the produce has been cut off the branch matters, because shelf life isn’t infinite.


Distance

The distance between farms, warehouses and restaurants matters. Because it could take longer to get from the local farm than from the one across the country.


Supply and Demand There is often a discrepancy between what restaurants need, and what farmers can provide. This is why prices fluctate so fast on a daily basis.



Ordering Infrastructure

subscription

later in the day

on demand

anticipatory planned inventory planned routes know users data history

anticipatory planned routes slightly unpredictable

fast immediate unpredictable high demand


Delivery Fleet Infrastructure

owned by company

third party fleet

independent contractor

more control payroll pre-determined routes

establishment specific not controlled by company no payroll for company

location specific platform agnostic gray area


Inventory Infrastructure

warehouse

third party

mobile

more items longer storage longer delivery time expensive

no inventory no quality control no delivery time control cheap

fast small inventory hard to keep cold no cooking tools limited menu




The packaging


keep out dirt

keep cold

why packaging?

keep from spoil

stop mess


box with ind. pack

fabric bag

Blue Apron

Instacart



Because prep’it is local, no need for ice packs.



The final chapter.


Time, Money and Food Waste




30

shop

min

0

min

measure

3

min

assemble

40

cook

min

4

min

eat

5

min

clean/trash

Cooking Process Times with Prep-It


Store-bought apple pie.

$32.95


Shopping for ingredients in supermarket $2.48 $4.78

$5.34 $2.18

$32.37 $3.48

$2.50

$5.00

$2.48 $4.13



Shopping for ingredients in prep’it $0.41

$0.70

$0.01

$1.30

$6.02 $0.20

$0.17$ 0.17

$3.00

$0.06



prep’it

your personal grocer


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