Loss of active customers. Decreased income. Elimination of positions. By the very admission of its co-founder and CEO, Marché Goodfood, known for its ready-to-prepare meal boxes, is going through difficult times. To “reconnect with growth”, Jonathan Ferrari is banking on its new service allowing delivery in 30 minutes.
Posted at 7:00 a.m.
In addition to meal boxes, the company sells groceries and ready-to-eat meals online. This shift putting Goodfood directly in competition with supermarkets like IGA or Metro, which have recently invested to maximize their online ordering and delivery services, is far from guaranteeing the company’s success, believes Jordan LeBel, full professor in food marketing. at Concordia University. He says he is “unconvinced” by the effectiveness of this new strategy.
For Jonathan Ferrari, this 30-minute delivery service for groceries, ready-to-eat and ready-to-prepare meals, all offered on the Goodfood site, embodies the “future” of the company , he explained during an interview with The Press Tuesday, following a speech given at the invitation of the Canadian Club of Montreal. Everything can be done without subscribing to a weekly subscription as was the case before. The service is currently offered in Toronto, Montreal and Ottawa through eight micro-centres located in the three cities. Ultimately, Mr. Ferrari wants to extend it to the whole country.
“Right now there is a macroeconomic storm affecting us: we have gone from a pandemic to a war, to a level of inflation that we have not seen in 40 years, to global supply chains who are confused, lists Jonathan Ferrari. In this context, it creates a lot of pressure on our team, ”he underlines.
hard to predict
In the last quarter ended March 5, GoodFood Market experienced a 27% decrease in revenue compared to the same period last year. The company has also lost active customers, dropping from 254,000 in the same quarter in 2021 to 249,000. According to figures provided by the company on Tuesday, there are now 246,000. Nearly 70 workers have also lost their jobs. at facilities in Quebec and Ontario. In recent months, changes have also been made to the Board of Directors and to senior management.
If he suspected that the easing of sanitary measures would cause a loss of momentum in the demand for ready-to-prepare meal boxes, Mr. Ferrari had a hard time predicting how consumer habits would change. “It was difficult to predict how many and when, but we knew there would be an impact,” he admits. The important thing is to continue to innovate and serve customers in a way that is different from that of our competitors. That’s why we really focused on Goodfood On Demand, which is experiencing quite rapid growth. »
“It removes the whole notion of subscription management,” he adds. It gives you the opportunity to order things at the last minute. »
In more than three months, the number of customers who have used the on-demand service has increased from 13,000 to 27,000. Currently, the company offers a total of 1,200 products. By the end of the year, that number will jump to 2,000.
Will this business model, which is beginning to resemble what traditional supermarkets do, be profitable for society? Jordan LeBel doubts it. “The offer does not seem attractive enough [pour rallier des consommateurs], he believes. I don’t think that’s motivating enough. I find that the value proposition they are trying to develop opens us up to another form of competition. And they already have a lot of competition. So why do this? »
Year of foundation: 2014
Total number of employees: 3000
Number of active customers: 246,000