Close Ad

The Spoon

Daily news and analysis about the food tech revolution

home cooking

Shef Raises $20M for Home Cooked Meal Delivery

Shef, a startup that enables home cooks to sell their food for delivery, announced today that it has raised a $20 million Series A round of funding. The round was led by Andreessen Horowitz with participation from Craft Ventures, Y Combinator, Pioneer Fund, M13 and a bunch of celebrities including Padma Lakshmi, Tiffany Haddish, Katy Perry, Orlando Bloom, chef Aarón Sánchez and NBA player Andre Iguodala. This brings the total amount raised by Shef to $28.8 million.

Currently available in seven markets, including the San Francisco Bay Area, New York, Seattle, Chicago, Houston, and Austin, Shef’s online platform is a marketplace of independent cooks and chefs who either make meals out of their home or in a commercial kitchen. Shef has a rigorous application process that includes a food safety exam, food quality assessment, as well as standard sanitation practices such as hairnets and gloves.

Customers plug in their zip code on Shef’s website to peruse cuisine and cook options available in their area. Shef, however, doesn’t facilitate on-demand, hot food delivery. Meals must be ordered two days in advance and arrive cold for people to re-heat at home, so the service is more akin to a meal planning-type service. Since the cooks on Shef’s platform aren’t professional restauranteurs, this type of advanced ordering system allows them to better prepare inventories and schedules, rather than trying to anticipate demand on any given night. The advanced ordering also makes it easier for Shef to facilitate deliveries.

The legality of selling home cooked meals is still a bit of a grey area from state to state. In 2018, California signed AB-626 into law, making it legal to start a home-based food business in the state. Alvin Salehi, co-founder and co-CEO at Shef told me by video chat last week that there were 44 home cooking bills introduced during the last legistlative session across 29 different states. As part of today’s news, Shef also announced that it has hired Danielle Merida as its general counsel to collaborate with policy makers and advocate for the expansion of home cooking laws across the US.

The home cooking space has been relatively quiet since DishDivvy launched its service in California in 2018, but perhaps the pandemic will shift activity in the sector. The allure of the side hustle plus a reluctance to go back to an office could spur a wave of would-be cooking entrepreneurs to make meals out of their kitchen. Salehi said that the waitlist to be a cook on Shef swelled to more than 12,000 people.

Shef says that more than 85 percent of the cooks on its platform identify as a person of color. With its new funding, Shef will expand both the number of cooks on its platform, as well as the number of cities it serves.

As It Turns Out, Italians Are Making Lots More Bread (and Pasta) Too During Quarantine

Here in the States, there’s been lots of talk about how we’ve become a nation of bread bakers with the arrival of quarantine life.

As it turns out, bread baking is an international phenomenon. In a recent Medium post by the CookPad team, they analyze recipe usage data from their Italy team to show how interest in bread making has spiked in the Bel Paese an order of magnitude higher than before the pandemic.

According to the data, interest in the recipe for “pane di grano duro” (which translates to ‘durum wheat bread’ in English) jumped 12-fold, garnering more views during the lockdown than the entire top 10 recipe list did pre-lockdown.

Image Credit: CookPad

And also much like the States, Italians are also seeking comfort through food. Views for ice cream, torta, and fried rice balls were way up. And this being Italy, it should be of no surprise that pasta-making saw a huge increase: Fettuccine saw over a 700% jump in interest in during quarantine.

Italians are also sharing what they are making online too. According to Cookpad, “cooksnaps” (where cooks take photos of their creations) have jumped 3-fold in the app.

I guess it shouldn’t be any surprise that Italians (and Brits, Canadians and pretty much everyone else) are baking more bread and cooking more in general. The big question is what all this forced-home cooking will do to behavior in the long term and what it means for different participants in the food and cooking ecosystem. It will be a couple of years before we can gauge the staying power of new habits learned during this time, but my guess is all of this quarantine cooking is, at the very least, giving some of us skills that can better equip for life.

Comfort Food & Scratch Cooking: What the Data Tells Us About COVID-19’s Impact on Home Cooking Habits

While it’s hard to see the bright side of things during the dark days of the coronavirus pandemic, one potential silver lining is the fact most consumers are cooking more at home. Research has shown that home cooking not only often can lead to healthier overall lifestyles, but it’s also a good life skill to teach kids.

And whether you’re taking a casual tour of social media or looking at data from any number of sources, signs today definitely point to more of us making our own food. A lot more of us.

But what specifically do the numbers say? First, that a lot of people are learning to make certain types of food for the first time.

Whether it’s something as simple as making rice…

Or something a little more complicated like making bread, interest has spiked to all time highs.

But it’s not just Google searches that are shifting, but actual purchase data of cooking equipment. According to NPD analyst Joe Derochowski, demand for gear to make food at home has jumped significantly.

According to tracking data from NPD for the week ending March 21st, purchases of bread makers were up 800% when compared to the same week a year ago. Electric rotisseries were up nearly 4 times the previous year, while pasta makers were pacing at 3 times their normal sales when compared to a year ago.

While people are learning the basics and scooping up housewares to help them prepare more food at home, they’re also looking for recipes that lets them pinch a penny or two. Chicory, a shoppable recipe app platform used by recipe publishers, has seen a spike in interest for low-cost “bowl food” like soups and stroganoff.

The table below shows a snapshot in time look at the top daily recipe views near the end of March:

What the table data tells us is that people are making comfort food that can stretch a buck, which is not all that surprising since many of us have been thrust into financial uncertainty in relatively short order.

While there are many differences between the great recession and today’s crisis, it is instructive to look at what happened then to get an idea of how behaviors changed during the downturn. Data from NPD shows those categories that saw an increase between February 2007 (pre-crisis) and February 2010 (post-crisis) were pasta dishes, bread and cereal.

In other words, not only did we look to make food that was affordable such as pasta and casseroles then, but we also consumed more carbs, which tend to be cheaper than protein-heavy foods.

And while we are once again cooking more food that will feed us more affordably, unlike the 2008 and 2009 time frame, early indicators show that recent behavior shifts might be driven in part by a desire for food self-sufficiency rather than just saving a buck. Data from Chicory shows in the chart below there’s was a massive spike in mid-March in interest in scratch cooking.

Naturally, part of the interest in making things like corn bread and cookies is due to most of us having more time on our hands, but I also have to wonder if the rapid growth in interest in things like making things like tortillas and basic bread is because some consumers worry they might have to make these staples at home for the foreseeable future.

How permanent these behavior shifts will be depend in large part on how the COVID-19 crisis resolves itself over the course of 2020-2021. My guess is the lingering effects of the Coronavirus crisis will be longer and deeper than that of the great recession and, ultimately, result in more permanent behavior changes than we saw from the last big downturn.

DishDivvy Free to Connect Home Cooks and Customers with Passage of AB 626

DishDivvy has spent this year waiting. Waiting to see what would happen with California’s Homemade Food Operations Act (AB 626), which would make home based food businesses legal. With Governor Jerry Brown signing the bill into law this week, DishDivvy is no longer playing the waiting game and can fully launch its home cook marketplace.

Based in Glendale, CA, DishDivvy is a mobile app that connects hungry people with pre-approved home cooks selling food in their area. Right now, the app only works in certain parts of Southern California including Glendale and La Cañada.

Before cooks are allowed on to the platform, DishDivvy vets them with interviews and on-site inspections. Additionally, each cook must provide proof of food safety training and a California Food Handlers Card. There are additional health and safety regulations spelled out in AB 626 that home cooks must adhere to as well.

CEO & Founder Ani Torosyan told me she was inspired to start DishDivvy by her Armenian mom, who was always making food, and making way too much of it. For Torosyan, DishDivvy is a way to connect neighbors and communities through food, and to provide an authentic cultural alternative to many areas that only have generic chain restaurants as dining options.

Torosyan worked with COOK Alliance and was active in lobbying for the passage of AB 626. With the law in the books, DishDivvy is now free to scale up its operations.

DishDivvy currently has 45 cooks on its platform, which the company works with to help establish meal prices. When an order is placed, DishDivvy takes a 15 percent cut, leaving 85 percent for the home cook. The company also charges a five percent convenience fee to consumers on top of the order. Right now orders are only available for pickup from the cook’s home, but Torosyan told me that DishDivvy is partnering with DoorDash, which will soon facilitate delivery of home cooked meals to other homes.

As Spoon founder, Mike Wolf wrote in June:

“California often leads the country when it comes to forward-leaning legislation and if AB 626 passes it could open the door for nationwide legalization and give a framework for home food entrepreneurs (also known as the ‘cottage food’ industry), and b) I think home cooking is the next big micro-entrepreneur space to open up, much like home sharing and ride sharing did over the past decade.”

DishDivvy, which is currently hiring and closing its first seed round, has positioned itself nicely to ride any impending home cooking trend that AB 626 unleashes. And that was something worth waiting for.

Josephine Looks To Change Cottage Food Laws In Effort To Expand Home Cooking Marketplace

Today’s a big day for Josephine, the startup behind the ‘cottage food’ sharing platform and marketplace that enable home cooks to sell food to their neighbors.

That’s because today is the day a bill is being considered by the Health Committee of the California state legislature called the 2017 CA Homemade Food Operations Act (edit: the bills name was changed to “AB 626—The 2017 Homemade Food Act” in the form it went before the committee). The bill, which Josephine management helped craft and introduce, would expand California’s current cottage food law to allow aspiring home-based food entrepreneurs to sell home cooked meals to neighbors.

(Ed Update: The bill passed out of assembly on April 25th. You can read our story here). 

That’s naturally of interest to Josephine, which has built a platform which can more or less be described as an “Uber for cottage food” (although it should be noted the company resists the negative connotations associated with platforms like Uber). The problem for Josephine, which is based in Oakland, is that the sale of home cooked meals to neighbors is not allowed under current California law. As a result, about a year ago home cooks using Josephine received cease and desist letters, which eventually led the company to shutting down operations in the east Bay area.

The company, which has investments of about $2 million from Kapor Capital and angel investors, believes home cooks with the proper licensing should be able to sell food to their neighbors. And why not? Just as how Uber, Airbnb and other sharing economy platforms gave entrepreneurial folks a marketplace to rent their underutilized assets – whether that be a car, apartment or a person’s own time and labor – it’s logical that there’d also be demand to do so with home cooked food. In fact, it would be hard to argue there isn’t a large potential market of people on both sides of the equation – those who can cook and need to make some extra money, and those who like to eat – to make a marketplace like Josephine successful in the long run.

I caught up with Josephine cofounder Matt Jorgensen to ask him about Josephine’s efforts to change California’s cottage food law and also get a little backstory about Josephine.
You can keep up with the status of Josephine’s efforts and the California Homemade Food Operations Act at their blog.

When was Josephine forced to halt operations?

Jorgensen: In April of 2016, several of our cooks were served Cease and Desist warnings from local health regulators, which lead us to halt operations in the East Bay. This ultimately led to our good faith collaborations with State health regulatory coalitions in CA

With the Homemade Food Operations Act (Editor Note: Bill name was changed to “The 2017 Homemade Food Act:), when is a vote expected on this bill?

First the Bill must pass through Health Committee next Tuesday April 25th, and we expect the legislature to vote at some point in the early summer.

How does California compare to other states in terms of legality around cottage food as a business?

Jorgensen: California is essentially on par with the 30+ states that have passed Cottage Food laws.

Like many states, certain California cooks with the access and means can apply for cottage food permits as hobbyists, but the law doesn’t allow for the sale of most financially viable/ culturally relevant products… instead it’s focused on certain shelf-stable foods (jams, granolas etc). So we haven’t seen CA yet push beyond others in terms of the available food types. Several states go further, with Wyoming’s “Food Freedom” law being the most open.

Do you see this bill as the first in a push towards national rolllout? (And will other states follow suit)?

Jorgensen: We’re taking a different advocacy approach in each state– while we’re supporting Garcia’s legislation in CA, we’re actually looking at various administrative paths in other states. In Portland for example, we have strong support letter from the Mayor for a proposed pilot program. In other states like Wyoming the low-risk behaviors we are proposing are already legal.

How does Josephine business work? Is it similar to other sharing economy services that take a % of the overall bill? Charge a flat service fee?

Jorgensen: There’s no cost to set up a cook account or post meals. For each meal cooks serve, they keep 90% of your total sales and 10% of your sales will go toward covering credit card fees and the cost of our services. We also partner with values aligned non-profits for no cost.

How does Josephine find new cooks?

Jorgensen: Mostly through word of mouth and through offline communities. Many cooks are already partaking in the types of activities we support before choosing to partner with Josephine.

How does Josephine ensure people are going to be quality cooks? I assume getting a “cottage cook” license (as permitted by the bill) would be one step. But are there other things you do?

All cooks go through a vetting process from the masters of public health on our team and have access to our knowledge base before posting their first meal. We work with them to ensure a quality first experience, but all meals are also reviewed by customers (built-in accountability).

Is Josephine the only cottage cooking platform app, and if so why hasn’t this market taken off (is it legal restrictions, or something more as well).

Jorgensen: Some other companies have tried to make this business work, but we believe we are still in the early days of building the cook confidence and public trust necessary for this business to succeed.

How big is Josephine and what is your funding?

Jorgensen: We have a few hundred cooks across the country, a staff of 10 in Oakland, CA, and funding from a handful of different impact, angel, and venture capital investors. We’ve raised a little over $2m so far from angel and impact investors including Kapor Capital.