Creating Sustainable Meal Kits Using Reusable Cooler Bags

Episode
With a lifelong interest in building things and solving problems, Dhruv Sood tried a lot of different work after...
Key takeaways
- Work on your business rather than in your business, as it's easy to get caught in day-to-day operations but essential to step back and focus on strategic growth.
- Fail fast when testing new ideas and don't let experiments drag on, which is easier to do when you're focused on strategic work rather than operational tasks.
- Cash management is critical in the early stages because you'll see countless investment opportunities when you have the least money available.
- Defend your business model by thinking it through and talking to many people, but ultimately trust your own conviction and commit fully rather than treating it as a side project.
- Being an entrepreneur is more emotionally and mentally challenging than conceptually difficult, so prioritize taking care of your mental and emotional state throughout the journey.
Transcript
Full transcript page · Interactive episode
============================================================ TRANSCRIPTION WITH SPEAKERS ============================================================ [00:00] SPEAKER_02: Welcome to Canada's podcast. [00:06] SPEAKER_02: Hello, I'm Mario Tonigusi and this is Calgary's podcast on Canada's podcast network. [00:12] SPEAKER_02: Joining me today is Drew Sud, who is co-founder and co-CEO of Fresh Prep. [00:18] SPEAKER_02: Thanks for joining us today, Drew. [00:20] SPEAKER_00: Thanks for having me. [00:21] SPEAKER_02: Well, I'm going a little out of the bounds here because I'm, you know, it's Calgary's podcast [00:28] SPEAKER_02: but I know you're based in Vancouver, but we're going to talk about the Calgary connection soon and the Alberta connection. [00:35] SPEAKER_02: But first of all, Drew, can you just explain what Fresh Prep is and what you do? [00:41] SPEAKER_00: Sure. Fresh Prep is a sustainable milk and company. [00:46] SPEAKER_00: We prep important all the ingredients for your dinner. [00:48] SPEAKER_00: We deliver you a kit. [00:50] SPEAKER_00: You can use it to quickly, conveniently make yourself dinner in about 30 minutes. [00:55] SPEAKER_00: Our take on the milk kit side, our milk industry is that we focus on sustainability, quality and convenience. [01:05] SPEAKER_00: Sustainability through our reusable programmers, their waste trades and our recycling program. [01:12] SPEAKER_00: Convenience through actually chopping ingredients for you. [01:15] SPEAKER_00: So we take it one step further to make your cooking process easier. [01:18] SPEAKER_00: And finally, we just focus on ingredient quality. [01:22] SPEAKER_00: We spend more on our ingredients to make sure you're having that quality dinner. [01:27] SPEAKER_00: And when did you just start this? [01:29] SPEAKER_00: 2015 January's when we first got started. [01:32] SPEAKER_00: We kind of found our fit by end of 2016. [01:37] SPEAKER_00: And that's when we really started to grow. [01:39] SPEAKER_02: Tell me a little bit about that growth. [01:41] SPEAKER_02: And obviously, the growth in this industry, why are we seeing, you know, [01:46] SPEAKER_02: I know that there's other competitors out there in the industry, competitors to you. [01:53] SPEAKER_02: Why are we seeing this growth in sort of meal kits and meal kit deliveries? [01:58] SPEAKER_00: Sure. [01:59] SPEAKER_00: The concept of meal kit really does make sense. [02:02] SPEAKER_00: I mean, when we had the idea, it was back in school and cooking for one. [02:08] SPEAKER_00: And, you know, when you're out trying to cook yourself a meal, especially a little adventurous and want to cook something, [02:14] SPEAKER_00: you don't always cook like there's a lot of pantry items involved. [02:17] SPEAKER_00: You have to manage that. [02:18] SPEAKER_00: You have to spend a lot of money on sauces and spices. [02:22] SPEAKER_00: And then there's, you know, the produce and meat that's involved often that, you know, it gets quite anxiety building. [02:29] SPEAKER_00: If it's going bad in your fridge. [02:32] SPEAKER_00: Yeah. [02:33] SPEAKER_00: And so there's management. [02:34] SPEAKER_00: There's a lot of management involved. [02:36] SPEAKER_00: And that's hard to do when you're doing it just for one person. [02:39] SPEAKER_00: It's a lot easier if you're doing it for a big family. [02:41] SPEAKER_00: But definitely difficult for one person. [02:44] SPEAKER_00: And so the meal kit idea helps solve that. [02:47] SPEAKER_00: You know, it takes that off your plate. [02:50] SPEAKER_00: So to speak. [02:51] SPEAKER_00: So the company does all the prep work. [02:54] SPEAKER_00: The company makes sure that you get exactly what you need. [02:57] SPEAKER_00: And all you're left with is the cooking, which we want to leave you with because that helps you get a fresh meal. [03:03] SPEAKER_00: Something that's nutrition. [03:05] SPEAKER_00: You control what goes into the meal. [03:07] SPEAKER_00: You know, you can set it to taste, to your diet, to your preferences. [03:11] SPEAKER_00: And so the solution really works in that regard. [03:16] SPEAKER_00: Right. [03:17] SPEAKER_00: And getting you a quick meal. [03:19] SPEAKER_02: Yeah. [03:20] SPEAKER_02: So tell me a little bit about the growth. [03:22] SPEAKER_02: I have expanded into the Alberta market. [03:26] SPEAKER_02: Tell me why you saw the opportunity here and why you have expanded here. [03:32] SPEAKER_00: Yeah. [03:32] SPEAKER_00: No, it's been really exciting. [03:35] SPEAKER_00: It's been the Alberta market. [03:37] SPEAKER_00: We've gotten a lot of traction. [03:39] SPEAKER_00: And we're really excited by it. [03:40] SPEAKER_00: Our thought around going to Alberta, of course, was we wanted to had east and Alberta's our neighbor. [03:46] SPEAKER_00: So there's a bit of comfort in the proximity as well. [03:49] SPEAKER_00: You know, it's our first time really going outside of our own base. [03:53] SPEAKER_00: And Alberta is a big market. [03:55] SPEAKER_00: And you know, everyone eats. [03:57] SPEAKER_00: And I think Alberta could really benefit from fresh prep as a milk at option. [04:06] SPEAKER_00: And overall, we wanted to test how we would do in a market outside of our home base. [04:12] SPEAKER_00: And you know, we don't want to go somewhere really, really enormous where it would be overwhelmed. [04:17] SPEAKER_00: So Alberta was a great option for us. [04:20] SPEAKER_02: Okay. [04:20] SPEAKER_02: Let's talk about being an entrepreneur. [04:22] SPEAKER_02: Drew. [04:24] SPEAKER_02: What do you like? [04:25] SPEAKER_02: Like, first of all, what do you like about it? [04:27] SPEAKER_02: What do you like about being an entrepreneur, being your own boss, so to speak? [04:31] SPEAKER_00: Oh, I absolutely love it. [04:33] SPEAKER_00: I love solving problems. [04:35] SPEAKER_00: And in the business that we chose, there's lots of problems all the time where challenges, as you can call it, are opportunities. [04:42] SPEAKER_00: And I just love solving problems. [04:45] SPEAKER_00: And so it's been really exciting. [04:47] SPEAKER_00: And you know, as we change, we grow. [04:49] SPEAKER_00: The problems change. [04:51] SPEAKER_00: And it just, it always keeps me. [04:54] SPEAKER_00: It gets me up in the morning, pretty. [04:55] SPEAKER_02: What have been some of your biggest challenges in setting up the business initially and then just throughout the journey? [05:04] SPEAKER_00: Yeah, setting it up initially, I guess, I mean, our growth quite a bit. [05:09] SPEAKER_00: So there's different stages of setting it up. [05:12] SPEAKER_00: There was, you know, at the very, very beginning, it was permitting. [05:15] SPEAKER_00: And it was all the equipment that we had to set up. [05:18] SPEAKER_00: But finally enough, we realized recently a big theme in terms of the types of problems we have through growth as people and space. [05:28] SPEAKER_00: And, you know, there's, there's a lot of high growth companies out there, a lot of tech companies out there where it's technical staff and maybe office space. [05:36] SPEAKER_00: But in our case, we're looking at facilities, we're looking at massive coolers and equipment. [05:42] SPEAKER_00: Yeah. [05:42] SPEAKER_00: All of these industries, the construction and all of these industries don't move at the pace that we've been moving at. [05:49] SPEAKER_00: So kind of trying to make that match has been the most, the most challenging. [05:55] SPEAKER_02: So when you say backtrack for a second here, back to when you first started the business, [06:01] SPEAKER_02: did you ever foresee all the, the, the number of things that I guess had to be done and still need to be done as an owner of a business? [06:14] SPEAKER_00: No, definitely not. [06:17] SPEAKER_00: I think our planning was a little limited when we started. [06:20] SPEAKER_00: And of course, our dreams were a bit limited as well. [06:23] SPEAKER_00: And we were definitely, we're definitely gone beyond where we thought we would get at the outset. [06:31] SPEAKER_00: We sort of just started it because we weren't just focused on the solution. [06:34] SPEAKER_00: We weren't so focused on the business side of it. [06:37] SPEAKER_00: We just thought we had the solution and we wanted to get it out there. [06:41] SPEAKER_02: So what, you know, throughout your journey as an entrepreneur, what has helped you? [06:45] SPEAKER_02: And what has helped the business? [06:49] SPEAKER_02: Has it been something you've read in a book? [06:52] SPEAKER_02: Has it, has it been a mentor or some advice that you receive from, from people above being an entrepreneur? [07:01] SPEAKER_00: Definitely received lots of good advice and learned lots of lessons that have helped. [07:07] SPEAKER_00: You know, one piece of advice, which is pretty cliche, I guess, is to work on your business rather than in your business. [07:15] SPEAKER_00: We spent the first year definitely working in our business and not on our business. [07:19] SPEAKER_00: And it was really easy to get into that cycle. [07:23] SPEAKER_00: And so trying to get ourselves out of it and, you know, it's a struggle, sort of non-stop. [07:28] SPEAKER_00: I mean, at this point, we definitely have a good base of staff that can help us leave us to work on our business. [07:36] SPEAKER_00: But that's a big one. [07:37] SPEAKER_00: And along with that goes failing fast, making sure that if you're going to try something, you want to do it quickly and not let it drag on. [07:48] SPEAKER_00: And when you're working on your business, it's easier to do that than if you're kind of stuck in it. [07:54] SPEAKER_00: And then the last one was definitely cash-esking. [07:58] SPEAKER_00: You know, when starting the business, there's lots of opportunity. [08:02] SPEAKER_00: I mean, all you have is an idea, the moment you start it. [08:04] SPEAKER_00: And then as you make it a reality, you see so many, so many different opportunities and investments you could make to make things better. [08:11] SPEAKER_00: You have all these, but that is also the moment in time where you have no money. [08:16] SPEAKER_00: Because you can start it. [08:17] SPEAKER_00: And so it's just making sure that you are aware of that. [08:22] SPEAKER_00: That you need the cash before you go into these really high return investments. [08:29] SPEAKER_00: Yeah. [08:31] SPEAKER_02: What would be your best piece of advice for somebody who may be coming to you and seeing some young person. [08:38] SPEAKER_02: Oh, I shouldn't even say young. [08:40] SPEAKER_02: Because being an entrepreneur, people start businesses at any age, really. [08:45] SPEAKER_02: But if somebody came to you and wanted to be an entrepreneur, what would you tell them? [08:49] SPEAKER_02: What advice would you give them? [08:54] SPEAKER_00: Definitely, I guess that. [08:55] SPEAKER_00: Think it through, talk to a lot of people, make sure you can defend your business model, a business model, something that definitely needs to be thought through before you go ahead. [09:07] SPEAKER_00: But you know, past that also make sure that you have connections, always you're convinced. [09:14] SPEAKER_00: You don't have to listen to what everybody says about the business or about the idea. [09:19] SPEAKER_00: You just need to have your own conviction and then go forward, give it everything you have. [09:25] SPEAKER_00: I think doing it off the side of the table is there's something I'm not experienced with and I wouldn't recommend it because of that. [09:33] SPEAKER_00: I would say can go and two feet and feel fast if that's what's going to happen. [09:37] SPEAKER_02: And we all know that, you know, that many businesses fail in the first year. [09:41] SPEAKER_02: I can't remember the exact number, but I know that it's quite a high rate. [09:50] SPEAKER_02: Did you ever have a point initially where you wonder, geez, should we be doing this? Is it worth going through? [10:00] SPEAKER_00: Yeah, definitely. [10:02] SPEAKER_00: That first year, for example, I think in about 18 months, we collected about 100 customers. [10:11] SPEAKER_00: We do more than that in a day now. [10:14] SPEAKER_00: And so it felt in those 18 months that we weren't really accomplishing much. [10:19] SPEAKER_00: But at the same time, that was the time where we really got into the details of the business. [10:23] SPEAKER_00: You know, we were doing every part of it and figured out the packaging, the sustainable solutions. [10:28] SPEAKER_00: And so in retrospect, it was a useful time, but you know, in the moment when you're there, it was there were times that we were wondering about the business and then what it should look like. [10:42] SPEAKER_01: So what kept you going? [10:47] SPEAKER_00: We really believed in the products that that was one thing. [10:50] SPEAKER_00: And then the people that are there that are not part of the team. [10:55] SPEAKER_00: And then it's also, I guess, proving people. [10:58] SPEAKER_02: Yeah. [10:59] SPEAKER_00: Excellent. [11:00] SPEAKER_02: You have any, I'm just wondering about your background, you know, prior to starting this, what, what was your background? [11:08] SPEAKER_00: Sure. I went to school for finance and logistics. [11:12] SPEAKER_00: Finance was kind of my main interest. [11:15] SPEAKER_00: And I went that route. I never thought logistics would be a big part of my future. [11:19] SPEAKER_00: But it is the bigger part at this point. [11:23] SPEAKER_00: Yeah, so I worked in finance for about a year. [11:26] SPEAKER_00: I love numbers. I love solving problems with numbers. I love data. [11:30] SPEAKER_00: And so, you know, when I'm fresh, the finance team, the data team and the revenue team, I help guide. [11:37] SPEAKER_00: So that portion of fresh, pretty closely. [11:42] SPEAKER_00: So yeah, that was my background. [11:44] SPEAKER_02: Okay. So, you know, we all know that being an entrepreneur is in many ways a 24 or 7 job, right? [11:52] SPEAKER_02: It just seems to be never ending tasks to do. [11:56] SPEAKER_02: And thinking about your company and your business, right? [12:00] SPEAKER_02: So how do you find balance in your life? [12:03] SPEAKER_00: How do I find balance? [12:05] SPEAKER_00: Do you have that? [12:09] SPEAKER_00: Yeah, I guess for starters, it doesn't feel like work. [12:13] SPEAKER_00: It just feels like my life. So there's nothing really to balance. [12:18] SPEAKER_00: But yeah, in some ways. [12:21] SPEAKER_00: But it's just a matter of making time and think I have the flexibility to do that a bit more now than I did before. [12:29] SPEAKER_00: But there's definitely a period right now or everything else in my life. [12:32] SPEAKER_00: Just for work. [12:34] SPEAKER_00: But it's been so exciting that it doesn't feel like work, right? [12:37] SPEAKER_02: So yeah, I hear you. Yeah. [12:39] SPEAKER_02: So what do you do besides work? [12:41] SPEAKER_02: What are some of your interest hobbies? [12:44] SPEAKER_00: Yeah, I work. [12:46] SPEAKER_00: Well, I play squash and tennis, just usually not nothing too serious. [12:51] SPEAKER_00: But I do like to rack its boards table tennis as well. [12:56] SPEAKER_00: I spend time with family and friends. [13:00] SPEAKER_00: A lot of encourage go hiking a lot and that's a common hobby. [13:04] SPEAKER_00: But that's not really for me. [13:05] SPEAKER_00: I love the nature. [13:07] SPEAKER_00: But I like things a little bit more extreme either I'm active or I'm not active. [13:11] SPEAKER_00: I don't like half of it. [13:12] SPEAKER_00: I don't like that. [13:13] SPEAKER_00: You know, a stroll. [13:15] Speaker UNKNOWN: And so. [13:17] SPEAKER_00: Yeah, not much for hiking, but I definitely enjoy rackets boards and kind of hanging out with friends. [13:23] SPEAKER_02: Interesting to mention squash because that's used to be the the rave, right? [13:27] SPEAKER_02: I was like eight years ago, but I just don't see here too many people playing squash anymore. [13:32] SPEAKER_00: Yeah, same my co-founder introduced me to it. [13:37] SPEAKER_00: It was a pro in the past. [13:40] SPEAKER_02: Okay, let me ask you some sort of rapid fire questions. [13:43] Speaker UNKNOWN: [13:44] SPEAKER_02: Okay, what's your favorite book? [13:46] SPEAKER_00: Favorite book. [13:49] SPEAKER_00: I'd say outliers. [13:51] SPEAKER_00: I definitely enjoyed the read. [13:54] SPEAKER_01: Yeah, outliers. [13:55] SPEAKER_01: Favorite movie? [13:57] SPEAKER_01: Oh. [14:00] SPEAKER_00: There's too many to pick from, but probably between Cass B if he can and Google hunting. [14:09] SPEAKER_02: Oh, cool. [14:10] SPEAKER_00: What about TV show? [14:13] SPEAKER_00: Oh. [14:16] SPEAKER_00: I'm probably between Seinfeld. [14:19] SPEAKER_00: No, probably Seinfeld. [14:21] SPEAKER_02: Yeah, I hear you. [14:22] SPEAKER_02: I'm not one favorite favorite food. [14:25] SPEAKER_02: Favorite food probably sushi. [14:27] SPEAKER_02: Oh, cool. [14:28] SPEAKER_02: Anything in particular, sushi or you like it all? [14:32] SPEAKER_00: I like it all, but usually go for like the Toro Nigeri, the tuna belly. [14:36] SPEAKER_02: Oh, cool. [14:37] SPEAKER_02: And you're in your great place for sushi too. [14:40] Speaker UNKNOWN: Oh, definitely. [14:41] SPEAKER_02: Yeah, probably favorite drink. [14:44] SPEAKER_00: Favorite drink. [14:47] SPEAKER_01: I've got a maricano. [14:50] SPEAKER_02: Okay, and what about a favorite vacation spot? [14:53] SPEAKER_02: Do you have one? [14:54] SPEAKER_00: Oh, um, we've been to Mexico a few times only because it's the easiest vacation. [15:01] SPEAKER_00: So it's not, you know, nothing, uh, nothing outside of that is just the easiest thing to do. [15:07] SPEAKER_00: And so next go. [15:08] SPEAKER_00: Okay, super. [15:10] SPEAKER_02: So, uh, do if I had any parting words for fellow entrepreneurs or would be entrepreneurs, what would that be? [15:17] SPEAKER_00: Uh, it's, you know, it's definitely going to feel like a grind. [15:23] SPEAKER_00: I found that being an entrepreneur wasn't conceptually very difficult. [15:28] SPEAKER_00: It's just very difficult on your emotional mental state. [15:32] SPEAKER_00: And so if you're experiencing that, definitely just, uh, you have to grind through it. [15:38] SPEAKER_00: There's not much else that you can do. [15:41] SPEAKER_00: And uh, pick up or take care of your mental and emotional state, uh, through it all. [15:45] SPEAKER_02: Yeah. Okay, super. Well, thanks very much for joining us today. [15:49] SPEAKER_02: Yeah. No, thanks for having me. [15:51] SPEAKER_02: Okay, super. That was Drew Sud, who is co founder and co CEO of FreshPret. [15:57] SPEAKER_02: I'm Mario Toneguci. And this has been Calgary's podcast on Canada's podcast network. Thanks for joining us today.
