We Turned Leftover Restaurant Food Into A $162 Million/Year Business

Summary

Too Good To Go is an innovative app that helps reduce food waste by offering discounted, leftover food in 'surprise bags' from restaurants, bakeries, and grocery stores. Launched in Denmark and expanded globally, the app allows businesses to sell unsold food, while offering consumers affordable meals. The company’s impact has been significant, with millions of surprise bags sold worldwide. Despite facing challenges such as market saturation and competition, Too Good To Go continues to grow, forming partnerships with large retailers and contributing to sustainability efforts by saving tons of food and reducing greenhouse gases.

Takeaways

• 😀 Too Good To Go is an app that helps reduce food waste by allowing businesses to sell surplus food at discounted prices through surprise bags.
• 😀 Customers can buy surprise bags for as little as $3.99, often receiving discounts of up to 70% on leftover food from local restaurants and grocery stores.
• 😀 In 2023, Too Good To Go facilitated over 102 million transactions, reducing food waste and saving millions of tons of food from going to landfills.
• 😀 The app has a global reach, with a presence in 33 major U.S. cities and operations across North America, Europe, and Australia.
• 😀 Too Good To Go partners with various food establishments, including bakeries, restaurants, and supermarkets, to offer surplus food at a discount.
• 😀 Businesses that use Too Good To Go can prevent significant food waste, reducing daily losses of hundreds of dollars by selling leftover food rather than throwing it away.
• 😀 Too Good To Go's revenue primarily comes from transaction fees, with 96% of its income generated through customer purchases.
• 😀 The app charges retailers an annual membership fee of $89 and a transaction fee of around $1.79 for each order made.
• 😀 The app not only saves food but also helps reduce greenhouse gas emissions, contributing to environmental sustainability by reducing waste in the food supply chain.
• 😀 Despite facing competition from similar platforms like Olio and Karma, Too Good To Go remains a market leader and continues to grow, aiming for a global impact on food waste reduction.

Q & A

What is Too Good To Go and how does it work?

Too Good To Go is a mobile app that helps reduce food waste by allowing businesses to sell surplus food at a discounted price. Users can reserve 'surprise bags' of food, which they pick up from participating retailers, often with discounts of up to 70% off the original price.

How did Too Good To Go start and what was its original goal?

Too Good To Go was founded in 2015 by a group of Danish entrepreneurs with the initial goal of reducing food waste in buffet-style restaurants, where excess food would be thrown out. The app quickly expanded to include bakeries, retailers, and grocery stores.

How does Too Good To Go help businesses?

Too Good To Go helps businesses by providing a platform to sell surplus food that would otherwise be discarded. This helps reduce waste and generate revenue from food that is still perfectly good but past its prime.

What impact has Too Good To Go had on food waste?

Too Good To Go has made a significant impact by reducing food waste globally. In 2023, the app sold over 102 million surprise bags, saving millions of tons of food from being thrown away. This also reduces greenhouse gas emissions, equivalent to taking 900,000 cars off the road.

How much does Too Good To Go charge for a surprise bag?

Surprise bags on Too Good To Go are priced between $3.99 and $9.99 in the U.S., offering consumers significant discounts of up to 70% on food that would otherwise be wasted.

What challenges has Too Good To Go faced as it expands?

Some of the challenges Too Good To Go faces include market saturation, competition from other food waste apps, and the potential for large retailers to create their own surplus food bundles, bypassing the app. Additionally, different countries have varying food safety regulations, which can present barriers to expansion.

How has Too Good To Go performed financially?

In 2023, Too Good To Go generated $162 million in revenue, and the company expects at least a 10% growth in 2024. Despite operating at a loss in its early years, the company reached its first profitable month in October 2022 and has shown consistent revenue growth.

What kind of partnerships has Too Good To Go formed to expand its offerings?

Too Good To Go has formed several key partnerships, including with Whole Foods Market, which offers surprise bags of prepared food and bakery items. These partnerships help expand the variety of products available on the app, enhancing the appeal for consumers.

What is the pricing structure for businesses on Too Good To Go?

Retailers on Too Good To Go pay an $89 annual membership fee and can set their own prices for surprise bags. The value of each surprise bag must exceed its selling price by a certain amount to ensure businesses are offering a fair deal.

What is the future outlook for Too Good To Go?

The future of Too Good To Go involves continued expansion, both geographically and in terms of the variety of food offered on the platform. The company aims to reduce food waste on a global scale while balancing growth and profitability. It also plans to explore additional solutions across the value chain to further tackle food waste.