Things are growing as fast as ever here at Munchery, and we’re eager to share with you an important change in our pricing model that will be coming soon.
Since we launched out of beta almost a year ago, we’ve been bringing greater value to all our customers, like the recent introduction of early bird pricing. We’ve also made a lot improvements in providing information about our food, even in terms of how it is priced. Seven months ago, we made a subtle but important change by separating out the delivery cost from the meal cost. There was more transparency, and the pricing model enabled us to expand into different Bay Area regions such as Marin and most recently, the Peninsula.
We want to take this a step further.
Currently, whenever you buy a meal from a chef, the bulk of the money goes directly to the chef. A small portion also goes to Munchery to handle logistics, meal packaging, operations, as well as everything else that makes Munchery the personal chef marketplace that it is.
Although the above financial calculation is simple to work out behind the scenes, we want to make this completely transparent to our customers.
Starting Wednesday, July 18th, the posted meal prices will no longer include Munchery’s revenue portion. Instead, it will reflect the full amount that the chef is being paid to cover ingredients, labor and facility costs. Munchery’s portion will be separated out as a Delivery & Service fee which will include the delivery charge as well.
What does this pricing change mean?
First, nothing changes in the net total of your meals since the Munchery Delivery & Service fee is simply called out separately from meal price, rather than being bundled in. In fact, there’s a good chance the total amount you paid for your meal will be even less than before (read on to find out how).
Second, the meal prices on our site will represent the actual proceeds that go directly to the chef who prepared it. By separating out the delivery and service fee from the meal price, you get a transparent ordering experience and are able to know the value of each part that makes the Munchery experience what it is. For us, this is actually a lot more important than it seems. Giving our chefs the ability to take ownership over their food, express their creativity, and be rewarded adequately for their talents is a high priority for us. The majority of chefs who cook professionally at restaurants don’t have this benefit. We think separating out Munchery’s portion from meal prices is the best way to accurately showcase the value of our chefs and the delicious food they make.
Third, with the new model, whenever two or more meals are ordered, your total order will actually be lower than before. A discount is automatically given on the service fee depending on the number of meals in your cart. The more meals you order, the greater the discount.
Here’s a comparison before and after this new service fee that shows you the savings:
How can I know what goes into the Delivery & Service fee?
When you add an item to your cart, you will see Munchery’s Delivery & Service fee calculated right in your cart. Just hover over it, and we’ll show you a complete breakdown of that fee, including delivery, the service fee that covers meal packaging, site operations, and any applicable discounts that you can get.
We hope you find these pricing modifications we’re making in the spirit of transparency as a refreshing change. As food is very personal, these efforts all go towards bringing the chef and the customer together. We’re eager to hear from you about what you think. Please send us your feedback.
Tri & Conrad
Switch to our mobile site