Meal Prep Business

How Profitable Is A Meal Prep Business? (Updated for 2024)

Pat Walls

•

Updated: September 6th, 2024

How Profitable Is A Meal Prep Business? (Updated for 2024)

So you want to start a meal prep business?

And the first question that came to your mind was, “well, are meal prep businesses actually profitable?”

Especially considering:

You could start a meal prep business with as low as $500
Based on our data, meal prep businesses generate an average of $2.22M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a meal prep business.

Let’s dive in!

Is a meal prep business profitable?

Yes, a meal prep business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $2.22M per year with an estimated gross margin of 35%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your meal prep business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your meal prep business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a meal prep business worth it?

If you’re wondering if a meal prep business is worth it, the answer is a big YES. With meal prep businesses, you have the potential to earn $2.22M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a meal prep business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful meal prep businesses case studies.

Examples Of Profitable Meal Prep Businesses

Here are a few examples of profitable meal prep businesses, and a few more details about them:

1. MealPro ($600K/year)

Andy Sartori, the founder of MealPro, came up with the idea for his food delivery startup after seeing two friends on different diets order the same meal at a restaurant. Realizing that people have unique dietary needs, he launched MealPro to provide customizable, pre-cooked meals for health-conscious individuals. In just three years, MealPro has doubled in size annually, served over 5,000 customers, and achieved an annualized revenue run rate of one million dollars.

Is it profitable? Yes
How much money it makes: $600K/year

How We Started A Successful Food Delivery Business

MealPro, a food delivery startup that specializes in pre-cooked and pre-portioned meals, has doubled in size every year since its launch three years ago, serving about 5,000 customers across the US and hitting an annualized revenue run rate of one million dollars with plans to use new premises to support growth and ramp up its digital presence.

Read this case study

Read by 15,174 founders

2. Healthy Chew ($720K/year)

TJ, the co-founder and CEO of Healthy Chew, joined the company as a dishwasher and helped his partner Peter scale the business. They rebranded from PNF Meals to Healthy Chew and experienced tremendous growth, selling over 10,000 bowls each month. With a focus on delicious, calorie-friendly meals, Healthy Chew has generated over $1.8 million in sales in just over 3 years.

Is it profitable? Yes
How much money it makes: $720K/year
How much did it cost to start: $500

How We Started A Meal Prep Delivery Business And Did $1.8M In Sales

Healthy Chew is a profitable weekly meal preparation service that grew from 200 to 10,000 weekly bowls in just over 3 years, with an overall sales figure of $1.8 million, achieved through effective branding and personalised customer service.

Read this case study

Read by 39,966 founders

3. Eat Clean LLC ($3.6M/year)

Michael Martinez, the founder of Eat Clean, came up with the idea for his healthy meal delivery service out of his desire to enjoy healthy foods and help others live a healthy lifestyle. Despite not having a background in food preparation, he downsized and moved into a mobile home to afford the costs of starting the business. Now, with monthly revenue exceeding $300k per month, Eat Clean is looking to expand nationwide and become the biggest meal delivery service in the future.

Is it profitable? Yes
How much money it makes: $3.6M/year

On Moving To A Mobile Home To Save And Start A $300K/Month Healthy Meals Delivery Service

A meal delivery service that started with just $3,000 in savings and three friends now boasts monthly revenues of over $300k and a loyal customer base, thanks in part to social media and events, but also to the founder's willingness to sacrifice, learn and adapt the business as it grows.

Read this case study

Read by 9,313 founders

Learn more about starting a meal prep business:

Where to start?

-> How much does it cost to start a meal prep business?
-> Pros and cons of a meal prep business

Need inspiration?

-> Other meal prep business success stories
-> Marketing ideas for a meal prep business
-> Meal prep business slogans
-> Meal prep business names

Other resources

-> Meal prep business tips

How much can you make with a meal prep business?

With a meal prep business, you can make an average of $2.22M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a meal prep business make a week?

Based on our data, average weekly revenue for a meal prep business ranges around $46.3K. As such, you could see monthly revenues of $185K.

To know if your meal prep business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your meal prep business.

How much do meal prep businesses owners make?

The income of a meal prep business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established meal prep business is about $46.3K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a meal prep business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Meal Prep Business Profit Margins

Generally speaking, a meal prep business can expect profit margin of around 35%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a meal prep business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, meal prep business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, meal prep business owners can ensure long-term sustainability and profitability for their business.

Meal prep business owner salary

The salary of a meal prep business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established meal prep business, in a prime position, might see an average weekly salary around the ballpark of $16.2K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a meal prep business may be a promising business to start - but the success of your meal prep business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable meal prep business.

Part of

Starting A Meal Prep Business: Everything You Need To Know

‹

›