There's No Place Like Home... Bistro
You have to eat. I have to eat. We all have to eat. That’s why the food sector is referred to as consumer non-discretionary. We don’t have a choose in the matter.
The good news is you don’t have to eat bad tasting food prepared by someone like me. Trust me, you don’t want to eat any hash I’m slinging.
If COVID taught us anything, it’s life’s too short to eat bad food.
It’s not as simple as waving a magic wand or, in this case, a magic spatula. We have to plan our meals, prep our food, cook it, and clean up dirty pots, pans, and dishes after we’re done eating when all we want to do is relax.
If we want to avoid the mess, then we’re left ordering out from the same places over and over again, quickly tiring of the same food.
And after all that, eating at home still feels like eating at home.
COVID also taught us about the global food delivery market, all $200 billion worth. But we’re not talking about your local pizza delivery guy, Food Delivery 1.0, or the person bringing your DoorDash or Uber Eats, Food Delivery 2.0. We’re talking about the evolution of food delivery.
Food Delivery 3.0. The next generation of food tech courtesy of prepared food delivery. And the company that hosts the platform celebrity chefs are flocking to join to provide these means.
Premium branded, direct-to-consumer meals that can be shipped anywhere in the country, overnight.
People want a meal they can prepare quickly at home without the feeling of home, without the mess, without the cleanup, and without sacrificing taste or quality.
Don’t mistake this for a meal-kit service. Those ship you pre-portion ingredients along with a recipe. That doesn’t solve any of the challenges above except shaving a few minutes off of your prep time.
What we want is next level evolution. A company that can solve the problems plaguing the industry:
- Inconsistent Quality – Most meal delivery companies are locked in a race to the bottom in terms of price. This means they’re forced to make tradeoffs with the food quality to compete.
- Meal Fatigue – Eventually, people get bored eating the same meals over and over again, even if it’s their favorite dish from their favorite restaurant.
- Poor Experience – Even if you get a great meal delivered from a high quality restaurant – or you cook the meals yourself – eating at home is still eating at home.
Enter Home Bistro (HBIS), an online platform, www.homebistro.com, that provides for the creation, production, and distribution of direct-to-consumer, heat-to-eat, celebrity chef inspired gourmet meals, providing a variety of high-quality meal selections with simple prep and easy cleanup.
You may be shocked to learn exactly how big this market will be moving forward. Statista estimates the platform-to-consumer segment of the US food delivery market will reach $9.7 billion by 2024. Brandessence Market Research and Consulting estimates the global read-made meal delivery market will be more than $11 billion in 2027.
A large and growing Total Addressable Market (TAM) is a key component in our selection of names for Altucher’s Angels. This one checks that box.
Anyone can prepare a meal and ship it out. That’s true, so how do we separate quality from an average meal?
Home Bistro has done it by teaming up with well-known celebrity chefs, some of the best in their respective fields.
COVID created a problem for even the best chefs in the world. Maintaining existing brick and mortar restaurants became a challenge, and opening new ones an impossibility. A chef can only sell so many cookbooks and recipes, but serving folks your fantastic cuisine, fresh and in their homes, became a reality thanks to Home Bistro.
The first celebrity chef Home Bistro signed was Cat Cora. Don’t mistake “celebrity” with well-known but untalented. Cat Cora won the Iron Cheff on the Food Network’s hit show, Iron Chef America. She was the first female chef to win such a prestigious honor.
Since then, they’ve added Roblé Ali, Chef Claudia Sandoval, and Daina Falk.
Roble is one of the most recognizable chefs and one of the very few young African-Americans in the culinary world with national notoriety. He’s also been featured on Bravo’s docudrama, Chef Roble and Co.
Chef Claudia Sandoval, was the winner of the sixth season of MasterChef U.S., and has been a judge on two seasons of MasterChef Latino on Telemundo. She was most recently seen earlier this year as a judge on Food Network’s Easter Basket Challenge and is currently in production on a new series she will be hosting and producing for Food Network.
Diana Falk is the creator of Hungry Fan®, Fangating® and other brands that marry sports and food for the ultimate fan experience.
Home Bistro’s CEO, Zalmi Duchman, hinted to us there could be more celebrity chefs to come in the near future. This from an experienced CEO with a prior successful venture. Zalmi grew The Fresh Diet, an online meal delivery service from startup to over $30 million in annualized revenue before selling the company. Now, he’s bringing that experience and knowledge to Home Bistro. One of the first major chances he’s implemented is moving from frozen to fresh food.
Using a state-of-the-art plastics material, specially engineered to create an attractive and reliably sealed package, consumers can receive a celebrity chef inspired fresh meal good for 10-14 days in the refrigerator or up to 6 months when frozen. It’s called “vacuum skin-packaging”; Not only is it cheaper than many flash frozen processes, but it’s more environmentally friendly and easier to ship.
Vacuum skin-packaging seals the product like a second skin while eliminating air, providing package durability and optimal product presentation, and shelf-life extension.
Home Bistro expects to begin delivery of fresh, skin-packaged meals by July 2021, and could represent a significant opportunity to not only win new customers, but increase repeat purchases from existing customers.
But what’s the best part about eating out, rather than not having to cook or clean up?
It’s what elevates great food to a great eating experience.
Home Bistro has that too. The company recently announced a partnership with Red Velvet NYC, a subscription-based service specializing in DIY gourmet baking kits.
DIY may sound like work, and it is, but the Home Bistro offering will be fully-prepared desserts from recipes created and developed by Red Velvet!
All of this added up to record first quarter 2021 results. The company saw online meal orders skyrocket over 200% year-over-year as Home Bistro reported revenue of $350,474 for the quarter. That revenue number was twice last year’s number.
These results come prior to the company adding Chef Ali, Chef Claudia, rolling out Daina’s line of offerings, or the Red Velvet dessert line. They also don’t take into account the switch from flash frozen to vacuum-sealed fresh shipped overnight. The partnerships are delivering solid reports from day one. With more partnerships expected to come, Home Bistro is in prime position to scale this model with multiple chefs who can serve up a diverse portfolio of gourmet meals. Even better, these chefs are influencers with huge followings. The marketing practically takes care of itself with little to no cost for Home Bistro.
What the company really needs to grow and become profitable is cash, and they are getting that through their current Reg A+ offering, but we see values in the shares on the open market, currently trading for under $1 per share. As the company continues to partner with more and more chefs plus roll out food technology that will permit quality prepared food to be delivered fresh and overnight, the market and consumers will respond.
Put all this together and we believe investors should consider ordering up some Home Bistro shares of their own.
IMPORTANT NOTICE AND DISCLAIMER: All investments are subject to risk, which must be considered on an individual basis before making any investment decision. This paid advertisement includes a stock profile of Home Bistro Inc. (OTC: HBIS) Wasatch Investment Network is an investment newsletter being advertised herein. This paid advertisement is intended solely for information and educational purposes and is not to be construed under any circumstances as an offer to buy or sell, or as a solicitation to buy or sell, any securities. In an effort to enhance public awareness of OTC: HBIS, provided advertising agencies with a total budget of approximately one $25,000 dollars to cover the costs associated with creating, printing and distribution of this advertisement July 8, 2021 – August 5, 2021. Payor has represented to advertising agencies in writing that this advertising campaign is funded by OTC:HBIS, to be profiled in this advertisement after Wasatch Investment Network conducted an investigation of the company and its management. Retro Wall Street Consulting, LLC, a related entity of Wasatch Investment Network, was previously paid an ongoing consulting fee of $100,000 for a six-month contract by Home Bistro, Inc. The advertising agencies will retain any excess sums after all expenses are paid. During the period of time this advertisement is being disseminated, neither Wasatch Investment Network, the advertising agencies, nor their respective officers, principals, or affiliates (as defined in the Securities Act of 1933, as amended, and Rule 501(b) promulgated thereunder) and will, receive or sell such securities of Home Bistro, Inc. for not less than 90 days following the conclusion of this advertising campaign. The Payor has represented in writing to Wasatch Investment Network and the advertising agencies that neither it nor its officers, principals, or affiliates (as defined in the Securities Act of 1933, as amended, and Rule 501(b) promulgated thereunder) owns or beneficially owns any securities of the OTC:HBIS or will purchase, receive, or sell any such securities for not less than 90 days following the conclusion of this advertising campaign. If successful, this advertisement will increase investor and market awareness, which may result in an increased number of shareholders owning and trading the securities of OTC:HBIS, increased trading volume, and possibly an increased share price of OTC:HBIS securities, which may be temporary. This advertisement, the advertising agencies and Wasatch Investment Network do not purport to provide a complete analysis of OTC:HBIS’s financial position. They are not, and do not purport to be, broker-dealers or registered investment advisors. This advertisement is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a registered broker-dealer or registered investment advisor or doing your own research if you do not utilize an investment professional to make decisions on what securities to buy and sell and only after reviewing the financial statements and other pertinent publicly-available information about OTC:HBIS and its industry. Further, readers are specifically urged to read and carefully consider the Risk Factors identified and discussed in OTC:HBIS SEC filings. Investing in microcap securities such as OTC:HBIS is speculative and carries a high degree of risk. Past performance does not guarantee future results. This advertisement is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the advertising agencies and Wasatch Investment Network cannot guarantee the accuracy or completeness of the information and are not responsible for any errors or omissions. This advertisement contains forward-looking statements, including statements regarding expected continual growth of OTC:HBIS and/or their industry. The advertising agencies and Wasatch Investment Network note that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect OTC:HBIS actual results of operations. Factors that could cause actual results to differ include the size and growth of the market for OTC:HBIS products and/or services, the company’s ability to fund its capital requirements in the near term and long term, Federal and state regulatory issues pricing pressures, etc.
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