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Medium Profitability

Stayfit

#Food & Beverages
ProHub Comment

This case requires structured financial analysis combining customer economics (LTV/CAC) with operational optimization. The candidate must balance quantitative break-even calculations with qualitative insights about market dynamics, customer retention, and strategic trade-offs between growth and profitability.

Estimated Time 15 minutes
Difficulty Medium
Source ESADE
50 / 100
Stay Fit is a one-year old startup delivery healthy prepared meals directly to customer’s homes. Despite strong initial growth, customer acquisition costs are high, and profitability remains elusive. The CEO has approached you for advising on improving the financial performance.

Clarifying Information

  1. Typical Stay Fit customers are busy professionals (aged 25-45) with disposable income who are health conscious and are curious about new cuisines
  2. Various subscription plans are available with different meal frequencies, caters to dietary restrictions and also different calorie needs (e.g. 1500 or 2000)
  3. Stay Fit delivers pre-packaged meals in refrigerated containers directly to customer’s homes at predetermined schedules and customers can choose specific delivery window.