Farmhouse Delivery relaunches in Austin
Why it matters: Food delivery and meal kit providers have struggled to build sustainable business models because of the industry's high operating costs and variable margins. Farmhouse Delivery was no different, according to founder Stephanie Scherzer.
"We learned so many lessons in coming back," Scherzer says. "We're trying to pick our partners more selectively and work deeper with them... We're really doubling down on the curation aspect of the business."
Driving the news: After halting operations last May, a customer brought an investment firm, Palm Venture Studios, to help with funding and operations. Farmhouse slowly restarted deliveries to Austin homes in December and is fully back in operation now.
The company will no longer deliver to Houston, Dallas and San Antonio homes.
"We decided to just come back to our home base and start gradually and cautiously," Scherzer says.
The big picture: Food delivery and meal kit companies saw a surge in business during the pandemic as customers sought an alternative to dining out and in-store grocery shopping.
"We grew exponentially the year of COVID and 2021 as well, and then we did see a falloff," Scherzer says.
Zoom in: During their hiatus, Scherzer says, the company worked to improve their inventory management, strengthen partnerships with farmers and pivot to a new membership model.
The company is also rolling out 15-minute meal kits as part of their offerings.
How it works: Farmhouse, which was founded in 2009, sources produce, eggs, dairy and meat from over 100 Texas farmers.
Farmhouse delivers on Tuesdays and Fridays, and new items launch Wednesdays at noon.
The items arrive in reusable bins and bags, which are picked up during the next delivery, sanitized and reused.
What's next: Scherzer says she plans to double down on the company's Austin presence, including a possible storefront in the city.
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