Episode #48 – Double your Money Instantly with this Gourmet Meal Delivery Service

 

I smell an investment opportunity. Home meal delivery services have grown incredibly since the start of the pandemic, and Americans have become accustomed to enjoying great food in their own homes. How can you cash in on this trend? I recommend adding a few dashes of celebrity influence (built-in marketing) and a patented method to deliver delicious food that arrives as it is intended to taste, with no meal prep.

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Double Your Money Instantly With This Gourmet Meal Delivery Service

Here’s the deal. This is going to sound way too good to be true. You got to pay attention to this one. Here’s the situation. This is no joke. Let’s just say that you could go on right now and buy a stock for $0.75, but it’s listed publicly. It’s being traded for $1.50. Would you do it? How much would you want to put into that? Here’s the only catch. You have to wait six months before you’re able to trade or sell the stock publicly.

What’s the risk? The risk would be that six months from now, the stock that you bought at $0.75 that’s publicly trading for $1.50 drops by 50% below $0.75. That’s your risk. What are the chances of that happening? Most stocks do not drop over 50%. That’s very rare. It can happen, but it’s pretty rare. Do I have your attention? This is something you’re going to have to act on pretty darn quickly. Right now, there’s only 25% left in the space to be able to buy this stock. I’m going to explain exactly how you do it.

Dream Team For Marketing

The rich and famous have always held the public’s imagination, from royal families to movie stars, but the rise of social media platforms has propelled the influence of celebrities and public figures to new heights. If you combine this huge reach with effective marketing, we’ve seen a mediocre rise in multi-billion-dollar celebrity back brands.

The rise of social media platforms has propelled the influence of celebrities and public figures to new heights. Click To Tweet

For example, in 2017, the singer, Rihanna, started her own cosmetic brand Fenty Beauty. As of 2021, the private brand is valued at over $2.8 billion. Rapper Kanye West launched his own shoe line, Yeezy, in 2013. As of 2020, the brand sold $1.7 billion in sneakers. You read that right. I was on a trip in Florida with these guys that had Yeezy on. They’re like $500 a pair, and people buy shoes for $500. Michael Jordan teamed up with Nike in 1984 to create one of the most iconic sports apparel brands in history. The Air Jordan brand is now worth more than $10 billion and has made billions of dollars in sales for Nike.

There’s a story here that the public doesn’t see. Each of these celebrity success stories comes from them partnering with a world-class company that can produce the celebrity’s vision and scale bigger as the brand takes off. For example, George Clooney started a tequila company with an established distiller in Mexico. Rihanna teamed up with Louis Vuitton to produce her makeup. Kanye West teamed up with Adidas to make a Yeezy line of sneakers a reality. These partnerships have proven to be win-win for brands and celebrities who partner with them.

On this show, I discovered a small Regulation A+ company, which means it’s pre-IPO, bringing the celebrity endorsement model to a business that’s been the same since it started. By pairing well-known faces with an established business, it’s gearing up for explosive growth. We’re talking about the food delivery business.

 

Food Delivery At Its Finest

When most people think of food delivery, they’re probably envisioning pizza or Chinese food, the same old offerings from local restaurants, but this company is delivering prepared gourmet meals from some of the most popular celebrity chefs in the country. It’s like fine dining but in the convenience of your own home and without the high cost of eating out. Plus, the shift in America’s habits from dining out to ordering delivery or takeout during the coronavirus pandemic is, of course, providing a huge tailwind. Americans doubled the use of food delivery apps. We all probably can say, “That was me.” For the Gibson family, that is the case.

Companies are now prepared to meet this increased demand. To set itself apart, it’s teaming up with some of the biggest culinary stars out there to deliver high-end meals quickly, easily, and affordably. I think about that for our own family. I keep saying to Carol, “We need to hire a personal chef to come in and cook nice meals for us. This whole HelloFresh thing sucks.” I posted on my Instagram story days ago how I was in charge and tasked with doing the HelloFresh meal. All the directions were awful. I crossed most of them out. I skipped steps. If I would’ve done it, it would’ve taken me a good 45 minutes to 1 hour to prepare that meal.

As a high earner, busy dude, that’s not what I’m looking for. I want somebody to cook something for me on the spot, or I want to be able to heat up something just right away in the convection oven, and I want it to taste great. This company has already signed high-caliber celebrity chefs like Ayesha Curry, Cat Cora, and Roblé Ali to bring their vision to life. I don’t know who any of those three are, but they’re big names.

Getting In Before The Door Closes

Combined, those three chefs alone of roughly 10 million social media followers, seven cookbooks, and more than 18 restaurants already under their brand names. Armed with these high-profile partnerships, I believe this company will change how people think of food delivery.  The opportunity could hand early investors the chance for up to 18 times gains as it expands its reach across the country via these strategic acquisitions.

Not only that. This pick has found a unique way to bypass one of the major pain points most Regulation A pre-IPO companies face. Instead of waiting months or years for a go-public event, this company is already trading on the stock market. That’s why I’m bringing this to you guys. I do not recommend to you most of the pre-IPO deals I personally invest in.

I do not even talk about them simply because they’re too risky. The lockup period is just too long for you. When you need to stay a little bit more liquid in the early stages of your investing career. Thanks to the quirk, we’re going to be able to buy in at almost a 50% discount on the share price. We don’t have to go through any lengthy share transfer process after the close of this pre-IPO round.

Here’s where it gets even better. This deal comes with free trading warrants, what I like to call lottery tickets. I’m going to explain what these are in a bit, but they’re very exciting. It’s not that complicated. When I say the free trading warrants, you don’t go like deer in the headlights on me right now. This isn’t that tough. You guys are all smart. You can handle this.

This is the smallest Regulation A+ pre-IPO opportunity that I’ve invested in. I’m in about 10 of them right now, or maybe more, maybe 12. Thanks to the unique and appealing structure of the deal, it’s already close to 75% full. Once these pre-IPO deals hit their funding limit, they must close their doors. There have been pre-IPO deals that I’ve wanted to invest in, but I just missed out. Once it’s closed, it’s closed. You can’t do it. I’m going to tell you all the details here below.

When The World Shifted

Before we dive in, I want to break down some of the numbers behind what we’ve all witnessed over the past, how COVID-19 changed the landscape of the restaurant industry. The pandemic hit businesses like retail outlets, hotels, and movie theatres hard, but we all can agree that none more so than the restaurant industry. Within the first six months of the pandemic, over 72,000 restaurants had permanently closed.

According to an industry newsletter called Restaurant Drive, more restaurants close due to COVID-19 than any other business. The carnage was incredible. Restaurants lost $240 billion in revenue in 2020. That’s revenue they’ll never be able to recover. Celebrities and establishments weren’t spared either. Iconic spots like Gotham Bar and Grill in New York City and Nobu in Las Vegas all had to close their doors, at least temporarily.

The restaurant business is already competitive and risky. It’s a low-margin business, but this just added fuel to the fire. They naturally began focusing more on takeout and delivery to survive. Anything to drive some revenue, right? We’ve seen meal deliveries skyrocket. Food delivery revenues increase by 27% from 2019 to 2020.

DoorDash and Grubhub saw revenue increase by 226% and 390%. We do expect this trend to continue. After all, now that we, as consumers, know we can enjoy meals of our choice in the comfort and safety of our own homes. We’re going to take this time and energy instead of cooking and preparing meals on our own to order the takeout or delivery.

This makes ready-made meals one of the fastest-growing segments of the $25 billion food and beverage eCommerce market. Unlike meal delivery kit services, these are like HelloFresh, which I was complaining about. These are prepared meals that are already cooked. You just have to heat them up. Up until a few years ago, this sector was dominated by frozen meal producers like Lean Cuisine and Stouffer’s or delivery chains like Pizza Hut and Domino’s, and your local Chinese takeout restaurant.

Now, not normally known for their delivery service, top-tier restaurants are now taking notice and moving into this market. Prior to COVID, they pretty much turned their noses up at the idea of meal delivery. As a matter of survival, they’re delivering gourmet meals and dining experiences similar to what you get at a three-star rated Michelin restaurant.

This would’ve been unheard of before the COVID-19 black swan event forced these changes, forcing them to stay alive. Technology now makes it convenient to order high-quality gourmet meals. Ongoing COVID influence on consumer behavior has sped up mass adoption quicker than the industry, or Wall Street could have ever imagined.

Technology makes it convenient to order high-quality gourmet meals. Click To Tweet

Home Bistro: Gourmet On The Go

This shift is here to stay. Unlike Stouffer’s lasagna or Papa John’s Pizza, prepared gourmet meals must come with special packages to retain their high quality. You won’t spend big bucks ordering prepared filet mignon only for it to taste like meatloaf when you heat it up. That’s the biggest problem with this whole model. People won’t show up big bucks on gourmet food just because it’s gourmet. It’s got to be tasting fresh and tasting good.

Not only that, like top-shelf liquor, you need celebrity endorsements to win over the consumer psyche. Sean “P. Diddy” Combs’ Ciroc liquor or Conor McGregor’s Proper No. Twelve Irish Whiskey sell like crazy. Why? It’s because of the celebrity endorsement attached to them. That’s why I’m going to recommend Home Bistro to you. This is a small Miami-based food innovator, and it came up with a solution.

Home Bistro developed an online platform celebrity chefs can use to post their favorite recipes, and then it pre-makes the meals as orders come in and ships them to customers all over the country. Most importantly, it created special packaging to keep the food fresh. We call this innovative new model Food as a Service or FaaS. It’s similar to the way platforms like YouTube, which is a platform as a service or PaaS. It offers its key content creators income and exposure opportunities.

Now the PAAS system is all the rage on Wall Street because once a platform gains enough users, it begins to grow exponentially with little marketing spend. Home Bistro is bringing this model to the gourmet food delivery industry. Their model gives popular chefs a platform to sell their meals, even if their physical locations are closed.

 

It allows consumers to order chef-inspired gourmet meals to their doorstep, regardless of what state they live in. This benefits both the company and the chefs that partner with it. It’s a win-win deal. Thanks to some key celebrity chef signings and strategic acquisitions, it has some big catalysts in line to send the shares high. While we get to lock in our entry price at a 50% discount to market prices.

The Deal Is For Real

For me, it’s enough to get excited about this, just knowing I can buy the stock, and it is guaranteed 50% below the market price. On top of that, it seems and appears from everything I’m telling you that we got a tremendous upside in the price to go up from here. Let’s talk a little bit about the structure of this and give you guys a little bit more detail.

As a refresher, the Regulation A+ deal lets private companies raise funds from everyday investors. We call these offerings pre-IPO deals. Home Bistro is doing things a little differently. As I said, it’s already a public exchange. It trades under the ticker symbol HBIS. I just go to my fidelity account. I put in HBIS. I thought this was too good to be true when I read this research from the Palm Beach Group, and it wasn’t. It’s trading when I looked it up at $1.47 a share.

We’ve seen public companies take private placements before, but these typically happen when a big institutional investor wants to take a sizeable position in a smaller company. It’s usually done at a discount to the publicly traded share price, along with a warrant attached. Let’s talk about the warrant. This is a favorite technique of legendary investor Warren Buffett. In 2011, Buffett stepped in to help the struggling Bank of America. He originally purchased $5 billion worth of stock and demanded another $5 billion worth of warrants.

In 2017, he exercised those warrants that allowed him to buy another $5 billion worth of stock for just $7.14 per share. At the time, the Bank of America was trading shares for $24 apiece. That means he locked in an instant profit of $12 billion, thanks to his warrants and free lottery tickets. This is the first time that we’ve ever seen a public company launch a Regulation A+ offering that’s fully qualified and approved by the Security and Exchange Commission. The minimum for this deal is also attractive. It was only $501.

The only downside is that there’s a six-month lockup period for the shares. This means anyone who purchases this Regulation A private share won’t be able to sell them for six months. The reason is simple. Home Bistro wants to make sure it’s attracting long-term shareholders. Let’s just say the shares didn’t have a lockup period. Big investors could buy up the entire Regulation A+ offering and then dump the shares on the public market instantly for a quick gain.

If you’ve got a few million dollars at your disposal and you could just go in and buy up all the private placement shares at $0.75, instantaneously drop them on the public market for $1.50, you just instantly doubled several million without any risk whatsoever. They’re trying to incentivize. They want long-term investors. They also have the other incentive, which is the warrants. Every share comes with a warrant to buy one additional share for $1.50 for up to 5 years after the initial period of purchase.

The warrants don’t have any lockup period. That’s because the publicly traded shares are trading below $1.50. To put it simply, it won’t make any sense for you to exercise them quite yet. Warrants are a great tool for investors and the company that’s issuing them. They allow investors to maximize their return if shares go up, and they don’t cost anything additional. If it delivers results, they help the company raise even more money in the future.

Think about this. This is so exciting. If shares hit our price target of $13 and 50% within the next few years, you could exercise your warrants to buy more for $1.50 per share. At that point, you could instantly sell your shares. You buy them. One minute later, you resell them and net $12 per share in profit or an 800% gain. That’s why we like to call these free lottery tickets. They don’t cost you anything extra, but if a company takes off, they can be incredibly lucrative.

What Makes It Work

Home Bistro is looking to raise up to 7.5 million. According to its website, $5.5 million has already been accounted for. I just invested in this company. Once the total amount fills up, the company will close the door on this pre-IPO round. This means we need to act quickly. This is the smallest pre-IPO deal that I’ve ever seen. It’s already attracting a lot of attention. Thanks to its high potential upside structure without the pain point. That’s why it’s filling up so fast.

Why are they offering if they’re already publicly traded? Why are they offering a private placement when they need to raise some more cash? We want to make sure that they use the funds to grow and scale the business. We want to make sure that the team has a clear usage plan for this cash infusion of $7.5 million. What are they going to do with it? Three things, increase marketing, sign more celebrity chefs, and acquire regional meal delivery services so that it can get to you and me quicker.

Make sure that your funds are used to grow and scale the business. Click To Tweet

Home Bistro’s marketing spending is relatively small. Management believes it can commit to less than $2 million in advertising to more than double sales. That’s a pretty small marketing budget for a company that’s already worth $44 million. That’s because its celebrity chefs do most of the work promoting Home Bistro. Think about this, 10 million social media followers just on the 3 chefs that they’ve signed. They’re getting money every time their meal is sold through the Home Bistro network. What do they want to do? They’re incentivized to push it out and promote it to their already huge following.

That perfectly ties in with how we can leverage the star power. This is also going to help Home Bistro. The cash is going to help them buy up small regional meal delivery services. Most meal delivery services never scale past a local or even a regional level at best. They find success within a city or metro area. With a steady cash flow of $2 million per year, they can’t break past that. The reason they can’t scale comes down to logistics.

Most of them rely on cooking meals fresh and having them delivered immediately. That means tight turnaround times and rush hours in the kitchen. Because these meals can’t stay fresh while in transit, they can’t be shipped to other areas. To expand a new area, they have to set up an entirely new operation. Since Home Bistro doesn’t face the same set of problems as these smaller operations, it can gobble them up. Since it’s already public, it can use its stock as currency in these merger and acquisition deals, as it did with its most recent buyout of model meals.

Simply put, buying a regional operation allows Home Bistro to seamlessly onboard all its customers and expand the offerings available to them. Taking another page out of Warren Buffett’s book, we want to see a company that has a durable, competitive advantage or a business moat before pulling the trigger. What’s a business moat? Think about what a moat is in medieval times. If you had a castle, they build a moat all the way around it with only one entry point, the drawbridge. This fended off and made it tough for people to invade your castle. They’d have to swim through the moat, and then all your soldiers are sitting up on the walls, just picking them off with arrows.

That’s what a business moat is. It’s a durable, competitive advantage. That’s what the partnership is with celebrity chefs. The secret sauce in this whole deal is a technology known as skin packaging. It helps keep the chefs’ gourmet meals fresh. That means it can ship a fresh gourmet meal right to your door. It’s ready to eat after just a few quick seconds in the microwave, or it can stay fresh in the fridge for up to two weeks. This is radically different from other ready-made meals.

Most competitors have two options, freeze their meals, or make them ready to order. Meals cooked to order are meant to be eaten within a very small window. If the driver runs late, the food may already be cold. Most of these meals won’t last more than a couple of days in the fridge. More importantly, freezing the food can negatively influence the flavor and texture of a meal.

With this skin packaging technology, they can ship to almost anywhere in the country and as little as a day. It’s going to be fresh the moment you open it up, and you eat it. This is pretty cool. Taking all this together, it all boils down to one thing. Home Bistro offers the best platform for chefs and celebrities to share their creations with the world. Because the names behind each disc get a cut of the sales, they’re incentivized to promote these out to their networks through Home Bistro’s platform. It’s a synergistic relationship.

Since 2018, Home Bistro has grown to over 5,500 active buyers on the platform in any given week. These customers can go to their website and choose from three options. These meals are geared towards affluent households that have active lifestyles. These are more expensive meals. They’re at least 10% more than a typical Blue Apron meal, one of its largest competitors. Their ingredients and meals are premia.

When I went to the site and looked at their meals, I was like, “I can’t wait.” I ordered ten of them right away. It’s not cheap, but you know it’s catering to the busy high-earning family that just doesn’t want to take the time to cook but loves eating gourmet food. You can have a celebrity gourmet chef-inspired meal within minutes of receiving it at your doorstep.

 

Let’s wrap all this right up. With Home Bistro, we see a massive tailwind through the strong, ongoing growth and online ordering, as well as consumers’ desire for healthier options from chefs they know and trust made available to them in the comfort of their homes. Home Bistros are already publicly traded valued at $44 million. The research that I’m reading believes that it’ll be able to double its sales growth annually and hit $30 million within 3 years. That’s almost the value of its entire market cap.

Thanks to its innovative packaging and overnight logistic system, the research believes that it’ll see roughly $63 million in sales by the 5-year mark. That’s about a 5% cut of the total meal delivery market. Using current average spend rates would translate around 63,000 active customers around the US, which would see potential returns of 1,700% over the next five years, and the shares climb to $13.50. That’s enough to turn every $1,000 into $18,000. Remember, every unit that we purchase comes with that 1 share and 1 extra warrant. The warrants give us the right to buy shares at $1.50 up to five years later.

The warrants will not expire until five years after the initial purchase date. You can buy shares of Home Bistro for $1.50 when it’s trading on the public market for $13. 50. That would lock in an additional instant gain of 800%. Let’s just say, though, that the company never grows. It never increases its share price years from now, it’s still trading at $1.50, and you bought in its $0.75 per share. Your warrants expire worthlessly, and all you do is end up selling your shares. You double your money. In five years, doubling your money equates to a 20% annualized return.

Warren Buffett historically has built his fortune on a 19% return on investment annually. That’s his rate of return, which is extremely strong. In my opinion, the worst-case scenario under this whole deal is that years from now, nothing happens, and the company never grows up. It just stays the same, and you just doubled your money, and there’s nothing wrong with doing it at all. The upside that we’ve showcased is significantly stronger than that.

If you’d like to get started in this, you just go to their website, InvestInHomeBistro.com. Since this report first came out and I read it, I was interested. For whatever reason, I read it and was excited about it, but I didn’t act. It was only at like $2.5 million a few months ago. Now it’s at $5.5 million of total funding out of the $7.5. I would anticipate that this is going to fill up pretty quickly. It could be even the next several days of the release of this show. If you’re wanting to get started in this, go now, act, get started, and get in for as little as $501.

How awesome am I giving you guys this incredible research for free? Please consider going to the Apple Podcasts, give me a five-star review and a write-up, and share the show. Who else is giving you this research for free? This is super expensive, valuable research that I just gave you for free. Who’s putting in the time, energy, and money to do that? Nobody. Share my show. That’s how you can give me a thank you, and a value exchange can take place here. Have a great day.

 

Important Links

• Home Bistro
• Apple Podcasts – Indestructible Wealth with Jack Gibson