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Why Frichti's Business Model is so successful?

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Frichti’s Company Overview


Frichti is a pioneering force in the food delivery industry, committed to making quality meals accessible to everyone. With a mission to simplify everyday dining while promoting nutritious and delicious meals, Frichti stands out by cooking all items in its own state-of-the-art kitchen using fresh, locally-sourced ingredients. The menu offers an extensive array of options, including starters, main courses, desserts, and drinks, all meticulously crafted to cater to a variety of tastes and dietary preferences. By ensuring that each dish is prepared under stringent quality controls, Frichti guarantees an exceptional culinary experience delivered straight to the customer's doorstep.

Frichti’s business model distinguishes itself by integrating the entire food preparation and delivery process under one roof. Unlike traditional food delivery services that act as intermediaries between restaurants and customers, Frichti takes full ownership of the cooking and delivery processes. This vertically integrated approach allows Frichti to maintain high standards of food quality and safety while offering a diverse and seasonal menu. Customers can conveniently place their orders through the user-friendly Frichti app or website, ensuring a seamless and efficient process from meal selection to delivery.

The revenue model of Frichti is centered on direct sales of meals to consumers. By eliminating the middleman, Frichti benefits from higher margins on each order. Customers are charged per item, with options to purchase individual meals or curated meal bundles for greater value. Additionally, Frichti's loyalty programs and occasional promotional campaigns encourage repeat business, fostering a strong and dedicated customer base. This approach not only drives sustained revenue growth but also positions Frichti as a reliable and beloved provider in the competitive food delivery market.

http://frichti.co/

Headquater: Paris, France, EU

Foundations date: 2015

Company Type: Private

Sector: Consumer Services

Category: Food & Beverages

Digital Maturity: Digirati


Frichti’s Related Competitors



Frichti’s Business Model Canvas


Frichti’s Key Partners
  • Local Farmers and Producers
  • Logistics Partners
  • Packaging Suppliers
  • Technology Providers
  • Payment Processors
  • Marketing Agencies
  • Delivery Personnel
  • Compliance and Regulatory Bodies
  • Quality Assurance Services
  • Customer Support Outsourcing
Frichti’s Key Activities
  • Sourcing quality ingredients
  • Meal preparation and cooking
  • Logistics and delivery operations
  • Maintaining online platform
  • Customer service and support
  • Marketing and promotions
  • Supplier relationship management
  • Inventory management
  • Menu planning and development
  • Quality control and assurance
Frichti’s Key Resources
  • Sourcing partnerships with local farmers and suppliers
  • Food preparation facilities
  • Delivery fleet
  • Technology platform for orders and delivery tracking
  • Skilled culinary and logistics staff
  • Refrigerated storage units
  • Packaging materials
  • Customer service team
  • Marketing and branding assets
  • Financial capital
  • Quality control systems
Frichti’s Value Propositions
  • Healthy meal delivery
  • Fresh and high-quality ingredients
  • Convenient meal planning
  • Flexible subscription options
  • Fast and reliable delivery
  • Chef-designed recipes
  • Variety of meal choices
  • No cooking required
  • Affordable pricing
  • Eco-friendly packaging
Frichti’s Customer Relationships
  • Community Support
  • Online Customer Service
  • Email Newsletters
  • Loyalty Programs
  • Social Media Engagement
  • Personalized Recommendations
  • Customer Feedback Collection
  • In-app Notifications
  • Special Offers and Promotions
  • Content Marketing
Frichti’s Customer Segments
  • Busy professionals
  • Urban families
  • Health-conscious individuals
  • Fitness enthusiasts
  • Office workers
  • Millennials
  • Tech-savvy consumers
  • Young couples
  • Students
  • Time-poor individuals
Frichti’s Channels
  • Online Website
  • Mobile App
  • Social Media Platforms
  • Email Newsletters
  • Food Blogs
  • Partnerships with Influencers
  • Online Advertisements
  • Food Delivery Aggregators
Frichti’s Cost Structure
  • Ingredients procurement
  • Packaging materials
  • Logistics and delivery
  • Staff salaries
  • Marketing and advertising
  • Technology and platform maintenance
  • Rent and utilities for kitchen facilities
  • Customer support services
  • Food storage and refrigeration
  • Administrative and legal expenses
Frichti’s Revenue Streams
  • Direct Sales
  • Subscription
  • Delivery Fees

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Frichti’s Revenue Model


Frichti makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Experience selling
  • Experience
  • Lean Start-up
  • On-demand economy
  • Direct selling
  • Best in class services
  • Referral
  • Codifying a distinctive service capability
  • Aikido
  • Corporate innovation
Analytics


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Frichti’s Case Study


Frichti's CASE STUDY


Frichti's inception in 2015 was not just the birth of another food delivery service; it was the beginning of a culinary revolution. Situated in the bustling heart of Paris, our mission is simple yet profound: to make quality meals accessible to everyone. At Frichti, we are dedicated to simplifying everyday dining by providing nutritious and delicious meals prepared in our state-of-the-art kitchens using fresh, locally-sourced ingredients.

Our Unique Value Proposition


Unlike traditional food delivery services that merely act as intermediaries between restaurants and customers, Frichti controls the entire process from kitchen to doorstep. This vertical integration is our core strength, allowing us to ensure the highest standards of food quality and safety. We leverage this setup to provide a diverse, seasonal menu that caters to a wide array of tastes and dietary preferences. By managing everything in-house, we have a unique competitive advantage, as noted by Professor Michael Porter at Harvard University who emphasizes that "competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it" (Porter, 1985).

Business Model and Revenue Streams


Our revenue model revolves around direct sales of meals to consumers, eliminating the middleman and benefiting from higher margins on each order. We offer our customers the flexibility to purchase individual meals or curated meal bundles for greater value. Our loyalty programs and occasional promotional campaigns foster a robust customer base, encouraging repeat business and driving sustained revenue growth.
According to data (Frichti, 2022), customer retention rates have surged to over 70 percent since the introduction of our loyalty program in 2018. This incredible figure underscores our effective strategy in maintaining a dedicated and satisfied customer base.

The Seamless User Experience


Our user-friendly app and website streamline the entire process from meal selection to delivery, ensuring efficiency and convenience. Customers can easily place their orders via the Frichti app or website, benefiting from fast and reliable delivery. Our commitment to a seamless user experience is a significant reason why over 85 percent of our orders come from repeat customers (Frichti Internal Data, 2022).

Leveraging Local Partnerships


Key partners play a vital role in our operations. From local farmers and producers to packaging suppliers and logistics partners, our network ensures we consistently deliver on our promise of quality. We sourly believe in supporting local producers, and this synergy not only ensures the freshness of our ingredients but also boosts the local economy.
"Local sourcing can significantly shorten supply chains, reducing the risk of disruption and enhancing sustainability," notes logistics expert Yossi Sheffi in his book "The Resilient Enterprise" (Sheffi, 2005).

Frichti's Social Impact and Sustainability


One of our core value propositions is promoting eco-friendly practices. Sustainability is embedded in our business model; from sourcing ingredients to delivering meals in environmentally friendly packaging, we are committed to reducing our carbon footprint. According to a recent customer survey, 90 percent of our users appreciate our efforts toward sustainability and feel more inclined to support our business because of it (Customer Survey, 2022).
In addition to sustainability, we aim to create social impact by addressing customer needs at various levels—social, emotional, and functional. By offering high-quality, nutritious meals, we reduce anxiety around meal planning and diet quality. Our service also saves valuable time, which busy professionals and urban families prize.

The Future of Frichti: Innovation and Expansion


Innovation is at the heart of Frichti. Our state-of-the-art kitchen facilities and cutting-edge technology platforms ensure we stay ahead of the curve. Currently, we are exploring AI-driven meal recommendations and automated delivery solutions to further enhance customer experience.
Our expansion plans are also ambitious. We are excited to take the Frichti experience beyond Paris, aspiring to serve customers in other major European cities. With a solid foundation and an unwavering focus on quality and customer satisfaction, we are confident in our ability to replicate our success on a larger scale.
According to industry analysts, the food delivery market in Europe is expected to grow at a CAGR of 10.2 percent from 2021 to 2028, creating a fertile ground for our expansion (Market Research Future, 2021).

Conclusion


Frichti's journey thus far has been one of relentless pursuit of quality and customer satisfaction. Our unique value proposition, seamless user experience, strong local partnerships, and commitment to sustainability all contribute to making us special and unique. As we look to the future, we remain committed to innovating and expanding our footprint, all while maintaining the exceptional standards that our customers have come to love and trust.
In the words of renowned business strategist Peter Drucker, "The best way to predict the future is to create it." At Frichti, we are not just predicting the future of food delivery; we are creating it.
For more information, visit us at [Frichti](http://frichti.co/).
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References:
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage. MIT Press.
Frichti (2022). Internal Data.
Market Research Future (2021). "Europe Food Delivery Market: Industry Analysis, Growth Trends, and Forecast, 2021-2028."
Customer Survey (2022). Frichti Annual Customer Feedback Report.


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