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My favorite type of business model: Turning expenses into profits. Example: • Roughly 1/3 of the world's food is wasted • That’s about 1.3 billion tons per year • Worth $230 billion globally Here are businesses turning that into $:
Ever heard of Too Good To Go? It's a slick concept: At the end of the day, restaurants have a ton of leftover food that ends up in the trash. But with this app, customers can buy leftovers in "magic bags," discounted up to 70%.
Jamie Crummie launched the app in 2016 after years in the food industry. He noted there was no sustainable way to dispose of food waste, so he & his friend launched Too Good To Go in Copenhagen. But it wasn't easy:
They spent the first 6 months knocking on restaurants' doors, being told the idea would never work. Eventually, people in Norway started downloading the app. They flew there to take advantage. One reason their biz model is so clever – they charge businesses, not consumers:
Restaurants don't pay unless they make a sale on the app. Once they do, they're charged an annual fee + a commission on each bag sold. It's a no-brainer: restaurants get to make money off products that would have otherwise been an expense. Their success is no surprise:
Since inception, they've: • Saved 200M meals from going to waste • Signed up 134,000 partners • Amassed 75 million users They've also been smart with marketing...
Too Good To Go is all over TikTok and IG. But largely not on their own accounts. They hack virality through UGC (user generated content) An influencer picks up a $5 Magic Bag, is amazed by the value, & posts a video that makes YOU want to buy a bag of donuts...
I'm a big fan of this Loss to Profit model. Here are a couple more food-based businesses that have tapped into it:
Oddbox Some fruits & veg look wonky but are nutritionally identical to pretty food. Grocery stores reject these ugly veggies. But there's a wave of companies saving them from waste by shipping direct to consumer: • Oddbox • Misfits Market • Imperfect Produce
Dash Water Dash uses the world's wonky and surplus produce to flavor their sparkling drinks. The global sparkling water market was estimated at $38B in 2023. Smart.
Toast Brewing Did you know 44% of bread is wasted? Toast Brewing buys this excess bread from bakeries... and uses it to brew beer. Would you try this??
"One man's trash is another man's treasure" becomes increasingly true (and profitable) in a world with so much waste. Feel free to follow @Codie_Sanchez, and share this here so others can read it: <a target="_blank" href="https://twitter.com/Codie_Sanchez/status/1757775243739877457" color="blue">x.com/Codie_Sanchez/…</a>
Read more business breakdowns here: <a target="_blank" href="https://contrarianthinking.biz/tw" color="blue">contrarianthinking.biz/tw</a>