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Executive Summary
Prep Kitchen is a meal prep & delivery service based in Austin, Texas, USA. Prep Kitchen cooks fresh, portion-controlled meals in its own kitchen and delivers them to customers across Austin each week, offering a local, flexible alternative to national meal-kit brands.
Prep Kitchen is seeking $126,500 in equity investment to fund kitchen equipment, delivery vehicles, launch marketing and working capital in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $382,750 | $574,125 | $769,330 |
| Gross margin | 38.5% | 41.2% | 43.4% |
| Net profit / (loss) | ($31,219) | $18,909 | $61,600 |
Company Overview
Prep Kitchen is a meal prep & delivery service founded by Jordan Mills, operating as an LLC. Headquartered in Austin, Texas, USA, Prep Kitchen was established to serve the growing demand for healthy, ready-to-eat meals in the city.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, approach operational break-even by year end |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
Market & Customer Analysis
The meal prep & delivery service industry is growing, driven by busy households that want healthy food without the time spent shopping and cooking. Prep Kitchen targets a well-defined segment of this market where fresh ingredients and local service are valued over lowest price.
Customer analysis:
Prep Kitchen's core customers are busy professionals, gym-goers and families in Austin who want healthy, portion-controlled meals ready to heat and eat. They order weekly, read the nutritional information, and are willing to pay more than supermarket prices for fresh food and the time it saves them.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| HelloFresh | Established brand, wide reach | Higher price point, less personalised |
| Factor | Strong marketing, national presence | Generic offering, less specialist focus |
| Trifecta Nutrition | Competitive pricing | Standardised, less tailored service |
Prep Kitchen's competitive edge: Freshly cooked local meals, flexible weekly orders, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Prep Kitchen targets customers through a combination of digital marketing, referrals, and direct outreach. Year 1 revenue target: $382,750.
Operating Plan
Prep Kitchen operates from Austin, Texas, USA, with streamlined processes designed to deliver consistent, high-quality service. Standard operating procedures cover service delivery, quality assurance, and customer communication.
Management Team
Jordan Mills is the founder and CEO of Prep Kitchen. Jordan brings relevant industry experience and is supported by a small but capable team committed to Prep Kitchen's mission.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $382,750 | $574,125 | $769,330 |
| Direct Cost of Sales | $120,570 | $173,380 | $227,720 |
| Production Payroll | $91,800 | $130,950 | $163,850 |
| Other Cost of Sales | $22,970 | $33,300 | $43,900 |
| Total Cost of Sales | $235,340 | $337,630 | $435,470 |
| Gross Margin | $147,410 | $236,495 | $333,860 |
| Gross Margin % | 38.5% | 41.2% | 43.4% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Advertising/Promotion | $18,400 | $22,900 | $26,300 |
| Other Sales and Marketing Expenses | $3,600 | $4,100 | $4,700 |
| Total Sales and Marketing Expenses | $22,000 | $27,000 | $31,000 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $49,250 | $68,900 | $89,500 |
| Depreciation | $12,433 | $14,400 | $20,883 |
| Dues and Subscriptions | $1,250 | $1,320 | $1,390 |
| Professional Fees | $5,400 | $5,700 | $6,000 |
| Rent | $43,200 | $44,500 | $45,830 |
| Software Purchases | $6,600 | $7,800 | $8,600 |
| Insurance | $7,800 | $8,600 | $9,300 |
| Telephone and Internet Access | $1,560 | $1,680 | $1,800 |
| Utilities | $8,400 | $9,700 | $10,600 |
| Miscellaneous | $7,900 | $9,800 | $11,200 |
| Payroll Taxes | $12,836 | $18,186 | $23,055 |
| Total General and Administrative Expenses | $156,629 | $190,586 | $228,158 |
| Total Operating Expenses | $178,629 | $217,586 | $259,158 |
| Profit Before Interest and Taxes | ($31,219) | $18,909 | $74,702 |
| EBITDA | ($18,786) | $33,309 | $95,585 |
| Taxes Incurred | $0 | $0 | $13,102 |
| Net Profit | ($31,219) | $18,909 | $61,600 |
| Net Profit/Sales | (8.2%) | 3.3% | 8.0% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $344,475 | $516,712 | $692,397 |
| Cash from Receivables | $31,386 | $53,968 | $73,419 |
| Subtotal Cash from Operations | $375,861 | $570,680 | $765,816 |
| Additional Cash Received | |||
| New Investment Received | $126,500 | $0 | $0 |
| Subtotal Cash Received | $502,361 | $570,680 | $765,816 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $153,886 | $218,036 | $276,405 |
| Bill Payments | $230,314 | $317,521 | $405,223 |
| Subtotal Spent on Operations | $384,200 | $535,557 | $681,628 |
| Additional Cash Spent | |||
| Purchase Other Current Assets | $5,300 | $2,100 | $1,700 |
| Purchase Long-term Assets | $74,600 | $11,800 | $38,900 |
| Subtotal Cash Spent | $464,100 | $549,457 | $722,228 |
| Net Cash Flow | $38,261 | $21,223 | $43,588 |
| Cash Balance | $38,261 | $59,484 | $103,072 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $38,261 | $59,484 | $103,072 |
| Accounts Receivable | $6,889 | $10,334 | $13,848 |
| Inventory and Other Current Assets | $5,300 | $7,400 | $9,100 |
| Total Current Assets | $50,450 | $77,218 | $126,020 |
| Long-term Assets | |||
| Long-term Assets | $74,600 | $86,400 | $125,300 |
| Accumulated Depreciation | ($12,433) | ($26,833) | ($47,716) |
| Total Long-term Assets | $62,167 | $59,567 | $77,584 |
| Total Assets | $112,617 | $136,785 | $203,604 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $17,336 | $22,595 | $27,814 |
| Subtotal Current Liabilities | $17,336 | $22,595 | $27,814 |
| Total Liabilities | $17,336 | $22,595 | $27,814 |
| Paid-in Capital | $126,500 | $126,500 | $126,500 |
| Retained Earnings | $0 | ($31,219) | ($12,310) |
| Earnings | ($31,219) | $18,909 | $61,600 |
| Total Capital | $95,281 | $114,190 | $175,790 |
| Total Liabilities and Capital | $112,617 | $136,785 | $203,604 |
| Net Worth | $95,281 | $114,190 | $175,790 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $382,750 | $574,125 | $769,330 |
| Food, packaging, kitchen staff and delivery costs | $235,340 | $337,630 | $435,470 |
| Gross profit | $147,410 | $236,495 | $333,860 |
| Gross margin | 38.5% | 41.2% | 43.4% |
| Salaries, wages and payroll taxes | $62,086 | $87,086 | $112,555 |
| Marketing and advertising | $22,000 | $27,000 | $31,000 |
| Rent and utilities | $51,600 | $54,200 | $56,430 |
| Other operating costs | $42,943 | $49,300 | $59,173 |
| Total operating expenses | $178,629 | $217,586 | $259,158 |
| Income tax | $0 | $0 | $13,102 |
| Net profit / (loss) | ($31,219) | $18,909 | $61,600 |
Break-even analysis:
- Estimated monthly fixed costs: $14,900
- Monthly revenue required to break even: $38,700
- Break-even is projected to be reached within the first 12–18 months of trading.
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