top of page
Search

Value Meals Just Got a Little Bit Greener

  • 22 hours ago
  • 3 min read

Vending Machine Salads Making Us Rethink the Value Chain

If you’re not familiar with Farmer’s Fridge you probably will be soon.  The vending machine salad company is reshaping the way we think about fast food and value chains. Founded in 2013, Farmer’s Fridge is taking grab-and-go nourishment to a whole new level with their unique pairing of healthy meals available in mobile machines. 


As conventional fast food brands scramble to keep customers, Farmer’s Fridge has managed to scale quickly and expand nationwide. They have all of the value, and more, with far fewer expenses. Is healthy vending machine food the future of fast food?


Are Value Meals Valuable Anymore?

McDonalds raised their prices by 40% between 2019 and 2023 bringing the meal total for a family of four to about $40.  Price increases were a direct result of minimum wage increases, food cost increases and the rising price of paper goods. The company had little choice but to pass costs onto consumers.  Cheap, convenient food suddenly became less affordable and the value equation no longer penciled.


Despite the fact that a fast food restaurant could be found on every corner, consumers began to weigh the cost of convenience against the cost of quality.  Loyal value meal customers decided their money was better spent on a sit down dining experience, with a higher quality menu where meal prices only experienced a 20% increase during the same timeframe. Popular chains once offering cheap convenient food now only offer the value of drive through speed.


But, speed, location and cost haven’t been the only shifting valuations. As inflation rates changed, so too did the average consumer’s perception of health and sustainability. Brands like McDonalds now contend with increased expenses and a consumer base wanting higher quality products. What they are supplying isn’t matching what customers are demanding.


Farmer’s Fridge Solves Value Chain Challenges

The Farmer’s Fridge business model is worth keeping an eye on.  Founder, Luke Saunders, weighed the cost benefit ratio of traditional fast food himself and saw a gap that could be filled. Even before COVID-19 supply chain strains and inflationary prices, Saunders had a tough time finding a healthy meal. If you have to travel too far off the beaten path to find vegetables then the value of convenience is lost.  If it is too pricey then the meal must taste good enough to warrant spending the money. His solution, a vending machine offering fresh salads made available in high trafficked locations.  


Even high quality salads can be kept affordable when the costs of staffing and maintaining a building are virtually non-existent. Farmer’s Fridge salads cost $8. And they can be purchased from one of the 1,900 operational vending machines at more than 1,500 locations across the country. But, the distinguishing factor is the vending machine itself along with Saunders’s belief that location matters most of all. Farmer’s fridge has succeeded because the machines are so easily transported to where the people are. 


Food courts and fast food franchises have suffered in business districts where employees still work remotely and only 58% of pre-pandemic workforces have returned to offices. Meanwhile, the vending machine model which can be housed in an office breakroom continues to thrive.  Focusing on high traffic areas like airports and factory warehouse settings has proved lucrative. As have strategic partnerships with established retailers like Aldi, Target and the Chicagoland grocery store, Jewel. Much like a Starbucks or Subway location found at the local Walmart and Target, you might soon find a Farmer’s Fridge up and running as a grab and go lunch option. Fast food got faster.


And, it also got greener. The vending machine salad business has managed to grow at a rate of 70% per year despite supply chain disruptions, market shifts, changing consumer demands and the challenges of transporting leafy greens with a one week shelf life from Chicago to California. Farmer’s Fridge might not appeal to kids chanting for chicken nuggets from the backseat after a youth soccer event, but their offerings are alluring to individuals who are looking for healthy, fresh food without having to make a special trip to get it.  


Farmer’s Fridge is redefining the value of fast food by combining convenience with health and innovation.  By delivering meaningful value and doing so with fewer operational expenses, the success of the company could signal a shift in consumer expectations.  Ultimately, it could represent a rebalancing of the value chain in the fast food sector. 


 
 
 

Comments


bottom of page