Why is the Meal Prep / Meal Assembly Kitchen Franchise Failing? Part 1
April 7, 2008 by Sean Kelly
Filed under Business
(FranchisePick.Com) It shouldn’t come as a big surprise that the Hot New Franchise concept called meal assembly kitchens or meal prep kitchens (or DIY dinners or Build-A-Meal Workshop) concept was served up to hungry franchisees like undercooked pork – and seems to be having the same effect. What is a big surprise is how such a far-flung concept even achieved Hot New Franchise status in the first place. There were many warning signs that would-be franchise owners can learn from and avoid the same trap – and failing meal prep franchisees can use if they need more reaons to feel worse than they already do (sorry):
Warning sign #1: No one knows what to call it.
It took me several lines just to give the various names of this thing. If one can’t easily name something, it might be an indication that the idea hasn’t been kicked around enough.
Warning sign #2: No one can satisfactorily explain it in a sentence or two.
As a marketer, I pride myself on not being too smart. That way, when I scratch my head after the third explanation and still don’t get it, I know I’ll have plenty of company. Like the majority of the American public (ie your customer base).
Warning sign #3: Friends say “Great idea” rather than “I’d pay that in a heartbeat!”
Great ideas are not great businesses. Great ideas are for spitballing at the bar to anyone who can’t get away fast enough (You know what would be GREAT? A peanut butter sandwich restaurant. No! A cereal restaurant! And everyone would dress in pajamas and watch cartoons!) and then forgetting completely the next day. That’s why our loving God gave us alcohol (sweet nepenthe, banisher of sorrow & grief and eraser of ludicrous plans).
Please share YOUR warning signs below, since I called this Part 1 and am almost out of warning signs, other than too much alliteration in cutesy names.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Sean, As always I love ya!
My
1# warning sign that a concept is in trouble-Here’s agood one, the only one making getting paid is the Zor.
2# The model doesn’t work as advertised-in fact it is constant flux and the Zor has no back-up plan
3# A zor losses stores to closure at a rate faster than ice cream melts
4# Zors start pumpingout nonsensical Hey Look at my “great new idea” News Releases that are neither, great, new and idea or News!
Could you please do part two about the horrible human/emotional toll this industry is visiting on hundreds of families?
I just heard that Supper Thyme is losing 2 more stores with one more up for sale……and the hemorrahging and misery continues
All right – this is a build-your-own post exercise. In order to illustrate “1# warning sign… the only one making getting paid is the Zor.” answer me this: What make & model car does your FR drive?
Supper Thyme?
Dream Dinners?
Super Suppers?
Others?
Supper Thyme-personal experience & talking to other former and current ST Zee’s.
or just take you pick-there are very few if any by my count from various
Dream Dinners ex and soon to ex or struggling Zees
The story is the same across the industry. The ONLY ones getting paid on a consistent basis are the Zor’s.
Not only do they get royalties, most of them get the mandatory advertising fee that they can then use for photo shoots with food stylists, fun pictures of babies in pots and pans with cute hats on and photo shoots with manufacturers of baby acruetaments. NONE of which benefitted the zees by bringing asses through the doors.
…fun pictures of babies in pots and pans with cute hats on…
What dish are they making? Is that legal? Can you make it without the hats?
Where can I get these photos? These must be blogged.
Please Sean, we need some help with what to do- I have been at this business three years nd losing money each month.
Darin Leonad & Stephaine flew around the country to preach that it is the Owners fault we are failing.
Question: Should I continue to pour money ito a business that has never had a ROI worth shit?
Please Sean, we need some help with what to do- I have been at this business three years nd losing money each month.
Darin Leonad & Stephaine flew around the country to preach that it is the Owners fault we are failing.
Question: Should I continue to pour money ito a business that has never had a ROI worth shit?
DreamDinnerOwner,
Sweetheart, I think you answered your own question. What business is going to continue in business for 3 years with no income going to the owner? The answer is NONE. DD, Supper Thyme, Super Suppers and all of the other smaller companies are peddling a failed concept, the fact that you still own one does not change the fact that it is indeed a FAILED CONCEPT.
I worked for a subsidiary of a major company for 15 months, it ceased operations because we didn’t make ENOUGH money.That subsidiary was less than 3 years old.
It wasn’t that our division wasn’t MAKING money, it was just not ENOUGH to justify keeping it going.
That is how REAL businesses work, and I don’t know what crapola DD HO et al has told you but the bottom line is they SOLD you a business and businesses exist to MAKE MONEY for all involved not just the head honchos at the top or those who work at HO. Please remember that all the HO employees and ZOR owners ares still collecting a paycheck on a regular and consistent basis whether you are profitable or not. Everyone including YOUR employees (if you can still afford them) are getting a paycheck. The store owners are the ONLY ones in this legal pyramid scheme that not getting paid. Being an asset to your community sounds really sweet and noble, but it does not pay the bills.
There is a business axiom that says “it takes a new business 3-5 years TO TURN A PROFIT.”
I want to define “profit” for you. It is the money you make over and above what your overhead costs are and YOUR PAYCHECK DEAR STORE OWNER, is part of your normal and regular overhead. So Profit is money made that is over and above normal operating overhead costs. That 3-5 year statistic assumes that all along the owner is grossing enough to pay themselves. That statistic IS NOT intended as a rationalization for marginal businesses to stay open in the hopes that in 3-5 years you can “take a paycheck”. I have heard people banter that statistic around as if it were an absolute, that all you have to do is wait out that 3-5 year period and all will be well.
Uh No,
IF your business is not trending up….has no signs of trending up…..(which this concept will not), IF you are not grossing enough money monthly to pay yourself a fair and equitable amount for the hours you work, Then you need to have an exit strategy. The longer you stay in the more financially precarious your situation becomes.
In answer to the Baby in pots and pans-go to Supper Thymes website & poke around I saw them on one of the pages, an example of how “national ad/marketing fund” money being used.-Also see kw blog (in the corner homepage)about it and info on more stupid ways kw used all the zees hard earned ad/marketing funds on crap that doesn’t benefit anything but kw’s ego. Such as a photo shoot with food stylists and kw’s ego getting massaged by these saged women entrepreneurs because they “got it” When asked by one zee to produce paperwork on where the marketing money went to, ST HO couldn’t hmmmm…… The only ones who continue to “get it” are the zees who keep getting money extorted from them-can everyone say bend over please?
while its a great idea, conceptually. i always thought more of a prep kitchen kind of scenario where i would prep the uncooked dishes and deliver them to the clients…. no walk in’s no pick up….rent space in a restaurant kitchen get a grocery license (uncooked food) and accept food stamps….. short name thought… U-Gourmet single sentence explaining the concept…. “WE make it YOU bake it….
Prep-n-Schlep….. “WE prep it, WE schlep it, You take ALL the credit”.