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.
Listen to learn more.
About Indestructible Wealth: I’m Jack Gibson. I’m your wealth strategist and I’m here to help you make some money. The Indestructible Wealth Podcast is for young entrepreneurs who want to make, keep and grow wealth to enjoy now, and for years to come.
Episode #48 – Double Your Money Instantly with This Gourmet Meal Service
Podcast Episode Transcripts:
Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
The rich and famous have always held sway over 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.
Combine this huge new reach with effective marketing… And we’ve seen a rise in multibillion-dollar, celeb-backed brands. For example:
- In 2017, singer Rihanna started her own cosmetic brand Fenty Beauty. And as of 2021, the private brand is valued at $2.8 billion.
- Rapper Kanye West launched his own shoe line, Yeezy, in 2013. As of last year, the brand sold $1.7 billion in sneakers.
- Michael Jordan teamed up with Nike in 1984 to create one of the most iconic sports apparel brands in history: Air Jordan. Today, the Air Jordan brand is worth more than $10 billion and has made billions of dollars in sales for Nike.
But there’s a story here the public doesn’t see.
Each of these celebrity success stories comes from them partnering with a world-class company that can produce the celeb’s vision and scale bigger as the brand takes off.
For George Clooney, that started with an established distiller in Jalisco, Mexico.
Rihanna teamed up with Louis Vuitton to produce her makeup.
And Kanye West teamed up with Adidas to make his Yeezy line of sneakers a reality.
These kinds of partnerships have proven to be win-win deals for brands and the celebs who partner with them.
And on this podcast, I’ve discovered a small, Regulation A+ company bringing the celebrity endorsement model to a business that’s been more or less the same since its inception. By pairing well-known faces with an established business, it’s gearing up for explosive growth.
We’re talking about food delivery.
When most people think of food delivery, they probably envision 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 costs of eating out.
Plus, the shift in Americans’ habits from dining out to ordering delivery or takeout during the coronavirus pandemic is providing a huge tailwind.
According to Market Watch, Americans doubled their use of food delivery apps last year.
And today’s company is 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.
The company has already signed high-caliber celebrity chefs like Ayesha Curry, Cat Cora, and Roblé Ali to bring their vision to life. Combined, those three chefs alone have roughly 10 million social media followers, seven cookbooks, and more than 18 restaurants already under their brand names.
Armed with a slew of high-profile partnerships, I believe this company will change how people think of food delivery…
And the opportunity could hand early investors the chance for up to 18x gains as it expands its reach across the country via strategic acquisitions.
Not only that, but today’s 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 – and it’s why I’m bringing this to you. Most of the pre-IPO deals I personally invest in, I don’t recommend to my audience simply because they are too risky and the lockup period is just too long for you guys when you need to stay more liquid.
And thanks to today’s “quirk,” we’ll be able to buy in at an almost 50% discount to the current share price. And we won’t have to go through any lengthy share transfer process after the close of the pre-IPO round.
Even better, this deal comes with free trading warrants – what we like to call “lottery tickets.” I’m going to explain what these are in a bit, but they are very exciting.
This is the smallest Reg. A+ pre-IPO opportunity I’ve invested in. And 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 have to close their doors. I’ll tell you all the details below.
But before we dive into this month’s recommendation, let’s break down the numbers behind what we’ve all witnessed over the past year and a half: How COVID-19 changed the landscape of the restaurant industry.
The Hardest Hit Sector
The COVID-19 pandemic hit businesses like retail outlets, hotels, and movie theaters hard… But 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, Restaurant Drive, more restaurants had closed due to COVID-19 than any other business.
The carnage was widespread. The National Restaurant Association reports restaurants lost $240 billion in revenue last year. And celebrity establishments weren’t spared either. Iconic spots like Gotham Bar & Grill in New York City, Bäco Mercat in Los Angeles, and Nobu in Las Vegas all had to – at least temporarily – close their doors.
The restaurant business was already notoriously competitive and risky. But this added fuel to the fire.
Faced with their largest existential crisis in generations, many restaurant owners had to make hard decisions. They naturally began focusing more on take-out and delivery to survive… Anything that could drive revenue through the door.
And since the pandemic outbreak, we’ve seen meal deliveries skyrocket.
Food delivery revenues increased 27% from 2019 to 2020… And companies like DoorDash and Grubhub saw revenues increase 226% and 390%.
We expect this trend to continue. After all, now that consumers know they can enjoy meals of their choice in the comfort and safety of their own home, many will choose this option over going out – or taking the time and energy to cook and prepare meals on their own.
The global, ready-made meal delivery market is estimated to see sales of just over $5 billion this year. Estimates are it will grow to $11.32 billion by 2027 – an annual growth rate of 17.1%.
That makes ready-made meals one of the fastest-growing segments of the $25.4 billion food and beverage e-commerce market.
And unlike meal delivery kit services – which include recipes and pre-portioned ingredients you have to prepare and cook yourself – prepared meals 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… delivery chains like Pizza Hut and Domino’s… and your local Chinese take-out restaurant.
Not normally known for their delivery service, top-tier restaurants are now taking notice and moving into this growing market.
Prior to COVID, these restaurants turned their noses up at the idea of delivery services or shipping out meals. But as a matter of survival, they’re delivering gourmet meals and dining experiences, similar to what you’d get at a three-star-rated Michelin restaurant.
For example, Michelin-starred restaurants like Atera in New York and Naka in Los Angeles are now offering delivery services. Getting reservations at these restaurants often meant booking weeks in advance, dressing up, and making the trip to the venue. But now, you can order the same meal and enjoy it in your own home.
This would’ve been unheard of before the COVID-19 black swan forced these changes to stay alive. And there are countless examples of this shifting landscape.
Technology now makes it convenient to order high-quality gourmet meals. And ongoing COVID-influenced consumer behavior has sped up mass adoption quicker than the industry – or Wall Street – could’ve ever imagined.
This shift toward high-quality prepared food delivery is here to stay. But here’s the thing…
Unlike Stouffer’s lasagna or Papa John’s pizza, prepared gourmet meals must come special-packaged 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.
Plus, people won’t shell out big bucks on gourmet food just because it’s gourmet. Like top-shelf liquor, you need celebrity endorsements to win over the consumer psyche. (Think Clooney’s Casamigos tequila, Sean “P Diddy” Combs’ Ciroc liquor, or Conor McGregor’s Proper No. 12 Irish Whiskey.)
And that’s where Home Bistro shines. The small, Miami-based food innovator took notice of this problem. And it came up with a solution.
Home Bistro developed an online platform celebrity chefs can use to post their favorite recipes. It then pre-makes the meals as orders come in… And ships them to customers all over the country. Most importantly, it has 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 – a “platform as a service” (PaaS) – offer its key content creators income and exposure opportunities. PaaS is all the rage on Wall Street because once a platform gains enough users, it begins to grow exponentially with very little marketing spend.
Home Bistro is bringing this model to the gourmet food-delivery industry. Its FaaS model gives popular chefs a platform to sell their meals (even if their physical locations are closed)… And 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 – a win-win deal.
And thanks to some key celebrity chef signings and strategic acquisitions, it has multiple catalysts in line to send shares higher – all while we get to “lock in” our entry price at a nearly 50% discount to current prices.
For example, Home Bistro has already signed celebrities like Ayesha Curry, Cat Cora, Roblé Ali, Daina Falk, and Claudia Sandoval to bring its vision to life. Taken together, these five chefs cover traditional Americana, Hispanic, and Southern Country cooking flair.
This means a Home Bistro customer can choose between one or all these cuisines any given week. And these offerings and categories will continue to expand as Home Bistro signs more chefs to its FaaS platform.
We see the opportunity for 18x gains as it continues inking deals with more celebrities… and expands its reach across the country. And best of all, we get to buy in at a set price. (We’ll explain all about how this deal is structured below.)
As a refresher, Regulation A+ deals let private companies raise funds from everyday investors. We call these offerings “pre-IPO deals.”
But Home Bistro is doing things a little differently.
Home Bistro is already a public company. It trades under the ticker symbol HBIS on the over-the-counter (OTC) exchange.
We’ve seen public companies take private placements before. These usually happen when a big institutional investor wants to take a sizable position in a smaller company. And it’s usually done at a discount to the publicly traded share price… along with a warrant attached.
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, shares of Bank of America were trading for $24.32. That means he locked in an instant profit of $12 billion thanks to his warrants.
But this is the first time we’ve ever seen a public company launch a Regulation A+ offering that’s fully qualified and approved by the SEC.
Public shares of Home Bistro are trading around $1.50. But through the Reg. A+ offering, we can pick up shares for 75 cents. That’s a roughly 50% discount. And the minimum for this deal is ONLY $501.
There will be a six-month lock-up period for the shares. This means anyone who purchases the Reg. A+ shares won’t be able to sell them for six months. And the reason is simple: Home Bistro wants to make sure it’s attracting long-term shareholders.
Let me explain…
If the shares didn’t have a lock-up period, people could buy up the entire Reg. A+ offering and then dump the shares on the public market for a quick gain.
Plus, Home Bistro has another incentive for long-term investors: warrants. Every share comes with a warrant to buy one additional share for $1.50 for up to five years after the initial purchase.
The warrants don’t have any lock-up period. And that’s because the publicly traded shares are trading below $1.50. Put simply, it doesn’t make sense to exercise them yet.
See, warrants are a great tool for investors and the issuing company. They allow investors to maximize their return if shares go up – and don’t cost anything additional upfront. And, if it delivers results, they help the company raise even more money in the future.
For example, if shares hit our price target of $13.50 within the next five years, you could exercise your warrants to buy more for $1.50 per share. At that point, you could sell your shares and net $12 per share in profits – an 800% gain.
That’s why I like to call warrants “free lottery tickets.” They don’t cost anything extra, but if a company takes off, they can be incredibly lucrative.
Home Bistro is looking to raise up to $7.5 million through this initial Reg. A+ offering.
And according to its website, $5.5 million (almost 75%) has already been accounted for. Once the total amount fills up, the company will close the door on this pre-IPO round.
This means we need to act quickly. Again, this is the smallest pre-IPO deal we’ve featured. And it’s already attracting attention thanks to its unique, high-potential upside structure – without the pain points.
Let’s take a closer look at what it’s going to be using this cash for.
Private placements raise cash for a company. So we want to make sure they use the funds to grow and scale business. That’s why we look for companies with a proven business model. We want to see that the team has a clear use case and plan for this cash infusion.
Home Bistro is using the cash from this Reg. A+ offering for three things:
- Increasing marketing
- Signing more celebrity chefs
- Acquiring regional meal delivery services – like its recently acquired Model Meals which gives Home Bistro its first physical footprint on the West Coast
Home Bistro’s marketing spend is relatively small. Management believes it can commit to less than $2 million in advertising dollars to more than double sales.
That’s because – thanks to their vested interest – its celebrity chefs do most of the work promoting Home Bistro… Which ties in perfectly to our Advantage section on how Home Bistro can leverage its star-power.
Not only that, but the cash infusion from the Reg. A+ raise will also help Home Bistro buy up small, regional meal delivery services.
Most meal delivery services never scale past a local or regional level. They often find success within a city or metro area… with a steady cash flow of a couple of million dollars per year. But they can’t break past that.
And the reason these regional businesses can’t scale up 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.
And because these meals can’t stay fresh while in transit, they can’t be shipped to other areas. To expand to 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. And since it’s already public, it can use its stock as currency in these merger & acquisition (M&A) transactions, 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.
And well-timed strategic buyouts are more effective than marketing dollars because these regional operations can usually be bought for just 1x to 2x sales.
Taking another page out of Buffett’s book, we want to see that a company has a durable competitive advantage or business moat before pulling the trigger.
Home Bistro is a pre-order, ready-made meal delivery service where you can choose between high-end single orders and subscriptions throughout the week.
The most exciting thing about Home Bistro is its partnership with celebrity chefs. But its secret sauce 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 seconds in the microwave… Or it can stay fresh in the refrigerator for up to two weeks.
This is radically different from other ready-made meals.
Most competitors have two options: freeze their meals or make it ready-to-order.
Meals cooked to order are meant to be eaten within a very small window. If the delivery driver is running late, the food may already be cold… And most of these meals won’t last more than a couple days in the fridge.
More importantly, freezing the food can negatively influence the flavor and texture of a meal.
Home Bistro solves these issues thanks to the vacuum skin-packaging technology – and its ability to ship to almost anywhere in the country in as little as one day.
The combination of technology, speed, and convenience is paving the way for Home Bistro to attract signature celebrity dishes. See, prior to Home Bistro, celebrity chefs had few options to share their creations with the world.
- Open a signature restaurant
- Slap their name on frozen foods with inferior ingredients and taste
- Or sell cookbooks
And now in the wake of COVID and the threat of ongoing variants of the virus, opening a signature restaurant is even less appealing.
But Home Bistro is opening a new door for them.
Importantly, Home Bistro doesn’t compromise on ingredients. Thanks to key supplier contracts, Home Bistro has access to high-quality meat, produce, and seasonings.
Taken 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.
And because the names behind each dish get a cut of the sales, they’re incentivized to promote their own gourmet creations to their respective networks through Home Bistro’s platform.
It’s a synergistic relationship, like how game and app developers promote their offerings on the Apple and Google app stores.
And Home Bistro is cleverly leveraging this ability to rapidly capture market share.
That’s by attracting celebrity chefs and buying up regional meal delivery services.
Since 2018, Home Bistro has grown to over 5,500 active buyers on the platform on any given week.
All told, this customer base should generate around $5.8 million in revenue this year. That translates to an average spend of about $1,000 per year, or $80 per month (we’ll talk about the growth we see ahead in a moment).
These customers can go to Home Bistro’s website and choose from three options. These meals are geared towards affluent households with active lifestyles.
Overall, meals offered by Home Bistro cost around 10% more than a typical Blue Apron meal – one of its largest competitors. But the ingredients and meals are premium… And unlike Blue Apron’s meal kits, there is virtually no prep work or cleanup, which can take up to an hour or longer.
And since it implemented stricter quality control measures earlier this year, Home Bistro has experienced a more than 50% increase in its customer reorder rate, with a 20% increase for the month of August alone when it transitioned to fresh meal delivery.
With Home Bistro, you can have a celebrity gourmet chef-inspired meal within minutes of receiving it at your doorstep.
Speaking of celebrity chefs, let’s dig into the celebrity advantage by looking at the current line up…
Leveraging star power to build a brand is nothing new.
Just imagine where Nike would be without Michael Jordan. Or the George Foreman Grill without George Foreman.
Home Bistro is using a similar celeb-endorsement model for its prepared meal delivery service.
So far, Home Bistro has signed Ayesha Curry, Cat Cora, Daina Falk, Claudia Sandoval, and Roblé Ali. These are some of the most popular food-industry figures in the world… some of whom have been Food Network and reality stars on Fox and Bravo TV shows.
Combined, these celebrity chefs have 10 million social media followers, eight cookbooks, and over 18 restaurants bearing their names. And this is just the beginning…
As Home Bistro scales and grows, it’ll add more and more chefs with their own followings and specialties to its FaaS platform.
Leveraging the Right Trend
Home Bistro will see a massive tailwind through the strong, ongoing growth in 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 own homes.
With this level of experienced hands leading the ship, we’re confident Home Bistro will continue growing and deliver gains to early investors like us.
What’s It Worth?
Home Bistro is already a publicly traded company valued at around $44 million. The stock is trading around $1.50 per share.
Through the Reg. A+ offering, we can pick up shares for just 75 cents each. That’s about a 50% discount to where they’re trading now.
All told, we believe Home Bistro will be able to double its sales growth annually and hit $30 million within three years – that’s almost the value of its entire market cap now.
The chart below is our price forecast over the next five years.
Thanks to its innovative packaging, FaaS chef model, and overnight logistics system, we believe Home Bistro will see roughly $63 million in sales by the five-year mark.
That’s about a 5% cut of the total meal delivery market – and using current average spend rates, would translate to around 63,000 active customers across the U.S.
Our research shows we have the potential to see returns of 1,700% over the next five years as shares climb to $13.50. That’s enough to turn every $1,000 invested into $18,000.
But remember, every unit we purchase through this special Reg. A+ offering comes with one share and one warrant. The warrants give us the right to buy shares at $1.50… up to five years later.
As you can see in the chart, we predict the share price will break $2.51 within the next year. That means our warrants will be “in-the-money” and we’ll have nearly tripled our money from the 75-cent entry point.
Remember, the warrants won’t expire until five years after the initial purchase date. So we could buy shares of Home Bistro for $1.50 when it’s trading on the public market for $13.50. That would lock in an instant gain of 800%.
And since the warrants are freely trading, we can cash them in at any time. That’s why warrants are one of the tools insiders and Wall Street’s elite use to make outsized gains… And it’s part of our roadmap for 24/7 freedom.
Bringing It All Together
Combining celebrities with strong business trends has created some of the most enduring brands and companies in history. Casamigos, Nike, and Adidas have created vast business empires by building in conjunction with celebrity endorsers.
And we believe Home Bistro will grow to become the leading gourmet meal-delivery firm in the U.S. thanks to its innovative FaaS model – and its growing list of celebrity chefs.
By this time next year, tens of millions will have been exposed to the Home Bistro offering through its chef network. And only a small fraction of those need to become customers for Home Bistro’s share price to skyrocket – and our shares and warrants to be worth a fortune.
Investments in private placements are highly speculative and involve a high degree of risk. You should not purchase such an investment if you cannot afford the loss of all or part of your entire investment.
You should carefully consider the risks described below, as well as specific risks in the offering materials, when evaluating whether to make an investment. You may consider consulting with your financial advisor, attorney, and/or accountant about this investment.
- Visit the website at investinhomebistro.com.
Or, if you’d like to try the product out before investing, just go to homebistro.com and shop and place an order. I just did, and I’m excited to try gourmet, fresh meals that don’t go bad in 2 days!