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The Spoon

Daily news and analysis about the food tech revolution

FirstChop

Firstchop Shuts Down as COVID Crushed its B2B Pivot

Firstchop has a special place in my food tech journalist heart. I was there when the company first launched back in the Fall of 2017, and today, nearly three years later, I’m writing about its collapse.

Firstchop started its startup life amid the consumer sous vide mini-boomlet from a few years back. Unlike Anova and Chefsteps however, Firstchop gave away its sous vide wand to get you to subscribe to its protein delivery service. The company would send you a box of chef-prepared meats that you just had to heat up in the sous vide bath.

“Sous vide really caught fire and then collapsed,” Firstchop founder Ajay Narain told me earlier this year. “Unrealistic expecations were built around what sous vide could do. People thought it would be great for all of these different use cases, but it has a lot of limitations.”

So Firstchop abandoned that business to pivot to B2B, re-launching to sell prepared microwaveable meals to offices. At first, the switch to B2B was more fruitful for Firstchop. At the time of its official launch, Narain said that Firstchop sold three times as much product in the first month than it had the entire previous year of selling D2C.

In an email exchange this week, Narain said that Firstchop had also set up distribution through KeHE and Vistar (for offices), had brokers and had meeting scheduled with retail buyers at ExpoWest.

However, those good times quickly soured. Firstchop’s new debut was at the end of February, which is right as the pandemic was starting to hit the U.S. ExpoWest was cancelled. “Getting meetings became impossible,” Narain wrote to me in our exchange. “The office vending market absolutely collapsed. Not sure when it will ever recover as people get comfortable permanently or semi-permanently working from home.”

As a result, Firstchop has shut down.

In his email, Narain wrote that he kind of wished he had stayed in the D2C market as other players in that space like Blue Apron have rebounded. Indeed, direct to consumer channels have boomed across the food tech landscape during this pandemic. Of course, hindsight is 20/20 and all that.

Like any good entrepreneur, Narain isn’t done with the startup game. He said he’s already working on something new and still in the food tech space. Though he wouldn’t say more, I’m sure I’ll be writing about that when it launches.

Firstchop Abandons D2C Sous Vide Proteins for B2B Microwavable Meals

When Firstchop first launched towards the end of 2017, it was at the center of a couple of different trends then sweeping the food tech world. It was a direct to consumer mail order meal kit, kinda, it only provided vacuum-sealed frozen proteins (that were actually quite tasty). Those proteins were meant to be reheated at home with a sous vide machine wand, the hot kitchen device at the time, which Firstchop gave away as part of a customer’s subscription.

My oh my, how a couple of years can change an industry. Meal kits are still around but most of the growth is at retail, not mail order. And the consumer sous vide market has basically collapsed. Chef Steps laid off a bunch of staff before being acquired by Breville, Nomiku shut down, and Anova is expanding beyond sous vide wands and into a new steam oven.

Ajay Narain, Co-Founder of Firstchop told me by phone this week that he saw the the big sous vide collapse coming. “We knew by the end of 2018 that the D2C was dead and the luster of sous vide was gone,” Narain said.

“Sous vide really caught fire and then collapsed,” Narain said. “Unrealistic expecations were built around what sous vide could do. People thought it would be great for all of these different use cases, but it has a lot of limitations.”

So in January of 2019, Firstchop decided to abandon almost everything it started out doing. It was getting out of the direct to consumer business and out of the consumer sous vide game. Firstchop pivoted into refrigerated prepared meals sold through office vending machines. The company added veggies and carbs to its proteins and each meal is re-heated with a microwave.

Narain said that during an initial customer pilot of its new meals at the beginning of 2019, Firstchop sold three times as much product in the first month than it had the entire previous year of selling D2C.

Since that initial test, Firstchop has been developing its products and the company officially launched its menu of meals today, which include Chicken Tikka Masala, Korean Barbecue Beef, Grilled Chicken Breast, and Chicken Chili Verde. The company is in talks to sell its meals through different large foodservice companies that operate vending services for various companies.

Firstchop hasn’t completely abandoned its sous vide roots however. Narain said that the sous vide cooking just moved from the consumer to the back end, and that’s how all of its meals are prepared. “At a manufacturing level, sous vide cooking process on the backend is essential,” Narain said. “It delivers moistnenss and tenderness, and the microwave is like magic.”

What’s almost more impressive is that Firstchop has held on this long just by bootstrapping. While it survived the consumer sous vide implosion, we’ll have to see if this latest pivot will be Firstchop’s last.

FirstChop Flips the Script on Sous-Vide Meal Delivery

We are firmly in the second wave of prepared meal kit delivery. Companies are specializing, doing more of the work for you, and are even built around specific devices. Which is what makes FirstChop intriguing, as it combines all of these new wave trends in its forthcoming service.

Launching in December, FirstChop is looking to stand out in the competitive meal shipping space in few ways. First, it only does meal proteins: chicken, beef, lamb, etc.; no vegetables, no starches. Second, all those proteins are cooked, and then frozen and vacuum sealed, so you can eat them on your own schedule. And third, the Bay Area-based company is basically giving away a sous-vide wand so all customers have to do is put the frozen bag of meat in hot water to prepare it.

For $109 (during pre-order, then it goes up to $139), customers can order the Starter Kit, which includes a sous vide wand and 9 servings of protein. There’s also the Family Box for $119 ($129 post pre-order), for 24 servings, and Co-Founder and CEO Ajay Narain told me that a third option with 14 servings will sell for $79. There is no monthly commitment.

The sous-vide wand is a third party device from a “reputable” manufacturer that FirstChop is just putting its name on. When asked about the sous-vide prepared meal delivery players already available like Nomiku and ChefSteps, Narain told me, “We’re the reverse. We’re starting with food and giving away the sous vide machine.”

Narain, along with Co-Founder and Chef Marc Rasic are looking to avoid the pitfalls that have befallen some of the first gen meal delivery companies. Rasic worked as a chef for the royal family of Luxembourg, ran the kitchens at Google as the search giant went from 2,700 to 65,000 employees, and worked at Munchery as that company went to market.

What they learned from their own personal experiences with meal kits, as well as scaling up kitchen production is that FirstChop doesn’t need or want to ship items like broccoli. Fresh food spoils if you don’t cook it soon after it’s received. Plus, adding fresh food complicates the logistics of packaging and shipping, and most people already have easy access to broccoli.

What people don’t have access to, is braised short rib, cooked for 16 hours, or Black Garlic Pork Loin, Petite Beef Medallions, or Peruvian Grilled Chicken. Cooking such protein, Narain says, is the hardest part of making a meal. Additionally, Rasic learned from his time at Munchery that “A lot of people hate touching [uncooked] proteins.”

By pre-cooking and freezing the meats, FirstChop believes it can simplify the shipping process, while giving the user more flexibility as the ingredients last longer. Additionally, they can serve the whole continental United States at launch to introduce people across the country to new meals they normally wouldn’t get (and no touching raw chicken!).

FirstChop is privately funded and its service be available in early December of this year. We’re excited to try it, and see how this focused approach helps shape the next phase of meal kit delivery.