MIAMI BEACH, Fla., April 27, 2020 (GLOBE NEWSWIRE) -- Gratitude Health, Inc. (OTCQB: GRTD) (the “Company”) through its recently acquired wholly-owned subsidiary, Home Bistro, Inc., today provided its outlook for the online food delivery market and Home Bistro’s growth objectives.
Industry Outlook
The overall meal delivery market is currently divided into three primary segments; restaurant delivery, meal-kits and prepared meals/diet plans. According to a leading, global financial services company, “Driven by these three trends – lower production costs, improved logistics and strong demographics – we estimate the global online food ordering market could grow more than tenfold over the next decade or so, to $365bn by 2030 from $35bn today [2018].”1
As consumers become increasingly time-starved and convenience-seeking, they have aggressively sought out alternatives to cooking at home or ordering take-out. While meal-kit providers and third-party restaurant delivery services have attracted the most attention over the last few years, raising substantial capital and achieving significant growth, prepared meal delivery services have begun to proliferate the market and fill yet another significant void within the sector.
Meal-kits vs. Third-Party Delivery vs. Prepared Meals
Business models for meal-kit providers, third-party delivery services and prepared “heat-to-eat” meal companies, differ vastly from one another. Meal-kit companies such as Blue Apron, Home Chef and Sun Basket, provide customers pre-portioned raw ingredients and recipes for a set number of meals every week. Utilizing the ingredients and following the recipes, customers create home cooked meals. On average, meals take anywhere from 30-60 minutes for preparation and cooking and another 15 minutes to clean up.
Third-party online delivery platforms such as Grubhub, Uber Eats and DoorDash, offer access to restaurants’ menus via a single online portal. By logging on to a website or mobile app, consumers can quickly compare menus, prices and reviews. Customers then order directly from the app and cooked meals are delivered - typically - within 60 minutes by the restaurant, third party delivery service or the app platform itself.
Lastly, the prepared, heat-to-eat, meal delivery segment (in which Home Bistro operates) ships fresh and fresh-frozen, fully-cooked meals direct-to-consumer. On average, these meals require heating for three to five minutes and they’re ready to eat. The experience is extremely convenient and requires very little cleanup. The meals can typically be purchased individually, as combo packages or monthly subscriptions.
The Company’s CEO, Zalmi Duchman, stated, “Favorable demographics have been helping fuel a positive trend toward convenience to satisfy dining habits of time-conscious consumers. Recent shopping and dining restrictions imposed by the COVID-19 crisis guidelines are further enhancing behavioral trends towards online, ready-made meal services. These trends could be the basis for a new and permanent segment of consumers who adopt online, ready-made meal services as a routine dining option.”
Home Bistro’s Growth Objectives
The Company has historically been focused on developing its “Home Bistro” brand (www.homebistro.com), a high quality, gourmet line of ready-made meals. He added, “While we will continue to focus on growing the Home Bistro brand, we believe opportunities to expand into several other areas exist and are exploring the following:
- Internally developing new verticals that can be readily and cost effectively launched. We believe there are interesting and distinct needs that are prevalent in the market that we can address without significant lead times or working capital.
- Evaluating potential acquisitions of existing brands that are mutually complimentary with Home Bistro. The prepared meal delivery segment is extremely fragmented with numerous, small providers servicing other “in-demand” niches, such as weight-loss/diet plans, high-protein, paleo, keto, etc.”
Mr. Duchman concluded, “Simply stated, our goal is to become a premier, online provider of high-quality, ready-made meal brands servicing in-demand niches and delivered direct-to-consumer.”
| 1 | “Is The Kitchen Dead?”, UBS, June, 18, 2018 |
About Gratitude Health, Inc.
On April 20, 2020, the Company announced that it completed the acquisition of Home Bistro, Inc. in an all-stock transaction. The Company plans to change its name to “Home Bistro, Inc.” and request a change to its ticker symbol as soon as possible and upon approval from the Secretary of State of Nevada and the Financial Industry Regulatory Authority.
Please refer to the Company’ Current Report on Form 8-K which contains more detailed information regarding the merger transaction and the Company which was filed with the Securities and Exchange Commission on April 22, 2020.
About Home Bistro, Inc.
Founded in 2014, Home Bistro provides high quality, direct-to-consumer, ready-made gourmet meals at www.homebistro.com and restaurant quality meats and seafood through its Colorado Prime brand.
Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “ expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the Company’s growth objectives and industry outlook (as described herein). Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among others, statements about Gratitude’s future financial performance, the impact of management changes, any organizational restructuring and the sufficiency of capital resources to fund its ongoing operating requirements; statements about Gratitude’s expectations regarding the capitalization, resources and ownership structure of the combined company; statements about the potential benefits of the transaction; and any other statements other than statements of historical fact. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Gratitude makes due to a number of important factors, including (i) risks related to the ability to realize the anticipated benefits of the transaction, (ii) risks related to the combined entity’s access to existing capital and fundraising prospects to fund its ongoing operations, and (iii) other business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Contact:
Zalmi Duchman, CEO
zalmi@homebistro.com
Ph: 631.694.1111