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BurgerBox.com

by Chuck SolariLaunched 2016-08via Nathan Latka Podcast
See all Marketplace companies using word of mouth →
MRR$16k/mo
Growthword of mouth
Pricingother
The Spark

Chuck Solari was a lawyer and real estate developer who had spent years running a Boston restaurant on the side. Boston Burger Company opened in 2009 and grew into three locations with about $5.5 million in 2015 revenue. The restaurants, however, could only serve so many seats in so many hours. Many of the business's customers were tourists and college students who left Boston and kept asking for the burgers back home. That demand, along with a booming meal kit industry, pointed toward a product that could ship beyond Boston.

Building the First Version

Chuck began researching the idea around February 2016. The team built the processes and systems to package and ship the kits, using the burgers it was already making in-house. That kept upfront costs low, since the team did not have to finance new food production. Shipping required testing. Dry ice did not suit items that did not need freezing, so the company used gel packs in insulated liners and spent months working with its supplier to get the packaging right. Chuck described the team as having "the science down" by launch.

Finding the First Customers

The source does not describe the first purchases directly. Orders came in through the website, and the company sold about 100 kits in its first month and about 150 in its second. Chuck offered two options: a monthly box with a new, unusual burger each month, and individual kits such as the Hot Mess and Mac Attack burgers. The Mac Attack and Hot Mess had already been praised by Guy Fieri and Rachael Ray, which gave the kits a built-in story.

What Worked (and What Didn't)

The main advantage was that the product already existed. Chuck said the company was "selling stuff that we're already doing," so it did not have to front much money to make the kits. Chuck also used Hotjar to see what visitors did on the site, which helped the team find ways to keep people on the site longer and move them between pages. Early on, the team was still learning "what works, what doesn't work." The source does not describe any major problems beyond that.

Where They Are Now

About three months after launch, Chuck said the kits were heading toward roughly 400 orders in a month. At an average of about $40 per kit, the host estimated monthly revenue at about $16,000. Chuck was still expanding BurgerBox.com while running the restaurants.

Why It Worked
  • •Demand came from existing restaurant customers who had already asked for the product, so the first buyers were pre-qualified and the marketing cost was low.
  • •Using burgers the restaurant already made meant the kits required little new production capital, which is why the business could start quickly and cheaply.
  • •Built-in celebrity endorsements from Guy Fieri and Rachael Ray gave individual kits a credibility story that a new meal kit brand would not have had.
  • •Monthly subscription boxes with a new burger each month gave customers a reason to return, which supports recurring revenue.
  • •Strong unit economics from the restaurant, where food costs stayed under 30% of revenue, suggested the kit margins could support shipping costs.
How to Replicate
  • 1.Start with the product you already sell in a physical location, and identify customers who already ask for it in other places.
  • 2.Test your packaging and shipping for several months before launch, and pick cooling methods that fit each product's actual storage needs.
  • 3.Offer both a recurring subscription (such as a monthly box with a new item) and one-off purchases, so you can capture both loyal and occasional buyers.
  • 4.Use the endorsements and press you already have to frame each product, and track on-site behavior with a tool such as Hotjar to improve page flow.
  • 5.Track weekly order counts from launch and compare them with projected volume, as Chuck did when tracking the 100, 150, and 400 order months.

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