The resumption of top-line gains may even stir up some of the buyout chatter that makes a lot more sense when its business is moving in the right direction for the first time since early 2018, but at the very least there's hope that the brand is finally starting to grow its hungry audience.Splendid Spoon's microwavable lunch offerings take prep work and cooking out of the equation. The red ink will continue, but the return to growth should excite investors this week. With the average order count per customer already on the rise in the first quarter, Wednesday morning's report should be solid. It started to scale up its operations, beef up its menu variety, and get back to spending on customer acquisition and retention strategies. We also embraced the art of cooking at home, and that's where Blue Apron has been able to regain its racing stripes.īlue Apron lost its COO in late May, but it offset the negative development by pointing out that it was experiencing heightened demand for its meal kits in light of the coronavirus pandemic. Into the blueĬOVID-19 has been brutal to most businesses, but some opportunistic trends have emerged in the process. Then the pandemic happened, and Blue Apron's model and business unboxed validation. There didn't seem to be much of an escape for Blue Apron, and by mid-March it was trading for less than half of where it was when the year began - for the fourth time in a row. The competitive nature of this niche keeps markups low. Profitability has been a problem for Blue Apron given the high input, customer acquisition, and fulfillment costs.
Scalability is a concern given the high variable costs.
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