Re:Tell HN: Unicorns aren't ad-supported
by dllthomas on Tuesday October 13, 2015 @03:04AM
(#10378940)
"Typical margins in the restaurant business are around 3%"
But restaurants have much higher real-estate costs, typically need more staff, need to stock a wider range of product... plus, product that spoils in customers' fridges was still paid for.
"Also, given the rate at which HelloFresh is throwing around free boxes and discount coupons and special offers here in Australia, I would be astonished if they're profitable at all."
If they're a high growth company in a niche with high growth competitors and sticky customers, being profitable at all would be a horrible move.
But restaurants have much higher real-estate costs, typically need more staff, need to stock a wider range of product... plus, product that spoils in customers' fridges was still paid for.
"Also, given the rate at which HelloFresh is throwing around free boxes and discount coupons and special offers here in Australia, I would be astonished if they're profitable at all."
If they're a high growth company in a niche with high growth competitors and sticky customers, being profitable at all would be a horrible move.