Subscription Food Service Sifted Hits $10M in Annual Recurring Revenue

In less than five years, Sifted, a corporate catering and data-driven lunch provider, has achieved a major milestone – hitting $10 million in annual

Subscription Food Service Sifted Hits $10M in Annual Recurring Revenue

Source: Sifted

In less than five years,Sifted, a bootstrapped corporate catering and data-driven, experietial lunch provider, has achieved a major milestone – hitting $10 million in annual recurring revenue (ARR) in less than five years. Equally impressive is the companys three-year growth rate of 2,099%! Available in six U.S. cities (Atlanta, Austin, Denver & Boulder, Nashville, Phoenix and Seattle), Sifted provides chef-crated, catered meals to companies including Twitter, SugarCRM, Samsara, Uber, StitchFix, Box and theChive. To date, the company has catered over 1 million meals.

“Food tech has become a graveyard comprised of startups who launched with mega VC rounds but shuttered due to high burn rates and unprofitable unit economics. Sifted focused first on the fundamentals: building a profitable, high-growth business starting on day one, making us a standout in our space,” states Jess Legge, co-founder of Sifted, in aJuly 25 news release.

“This milestone represents an exciting future for Sifted as we look to further expand our national footprint, serving some of the nation’s most influential and disruptive workplaces,” Legge adds.

Subscription Food Service Sifted Hits $10M in Annual Recurring Revenue

Source: Sifted

Heres how it works. Companies chose daily or weekly subscription plans. Sifteds in-house chefs work with their clients to accommodate dietary preferences, restrictions and eight major food allergies. Then Sifted prepares their chef-crafted meals made with top quality ingredients, delivers the meals and even does the set up. No ordering, tipping or pick up required!

Sifted was founded in 2015 by Jess Legge and Kimberly Lexow, who use data analytics and customer feedback to provide corporate meal programs that are popular with clients. Sifted also strives to be a good community partner by targeting zero waste through composing programs and donating food to those in need. In 2019 to date, Sifted has:

  • Donated 51,400 pounds of edible food from leftovers
  • Donated 42,900 meals donated to local nonprofits
  • Saved 226,000 pounds of CO2 emissions
  • Saved 18.8 million gallons of water from the donations

Sifted quotes Harvard Business Review on its website, Employees that eat a balanced meal at lunch are happier, more engaged and more creative.

The company is proud of its unique niche.

“Studies show that offering gratis lunch isn’t just a perk, it’s culturally defining,” saysKimberly Lexow, Co-founder of Sifted. “Good food is powerful. It connects, strengthens community and fuels productivity.”

Insider Take:

This is a fascinating niche and clearly a much valued one, given the remarkable success Sifted has seen in just a few years in business. Companies – particularly those who cater to younger audiences – are looking for affordable perks to attract new employees. While a free lunch may not seem like a big deal, we can see the draw, particularly if Sifted is providing an experience and donating any leftovers so they arent wasted. Their environmental-friendly approach is also appealing. We hope they continue their upward trajectory and are able to expand into more markets as they scale their business model.

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