How to Start a Meal Prep Business
Build a profitable subscription meal prep business from a commercial kitchen. Learn batch cooking strategies, pricing models, packaging, and delivery logistics that UK operators use to achieve 40-60% gross margins.
Quick Answer
A meal prep business prepares pre-portioned, ready-to-eat meals in batches (50-200+ at a time) and delivers them weekly to subscribers. UK meal prep businesses charge £6-12 per meal and typically break even with ~42 weekly customers. The key to profitability is batch cooking efficiency (reducing labour cost per meal) and subscription retention (reducing customer acquisition costs). Start from a commercial kitchen with £5,000-15,000 initial investment.
Subscription Pricing Tiers
Most successful UK meal prep businesses offer 3 tiers with volume discounts. Larger subscriptions have lower per-meal prices but higher total revenue and better retention.
5 Meals/Week
Light subscribers, trying service
10 Meals/Week
Most popular tier, busy professionals
15 Meals/Week
Full meal replacement, fitness enthusiasts
Pro tip: The 10-meal tier is typically most popular (60% of subscribers). Price it as your “anchor” tier, with 5-meal slightly premium and 15-meal offering best value to encourage upgrades.
Mega Prep Day Schedule
Most successful operations run 1-2 mega prep days per week rather than daily cooking. A team of 2-3 can produce 250-500 meals in a single session using this schedule.
Receive ingredients, verify quality, organise prep area
Equipment sanitation, staff briefing, inventory check
Ingredient prep (washing, chopping, portioning)
Cooking (batching multiple dishes simultaneously)
Rapid cooling (blast chiller operation)
Portioning, labelling, packaging
Critical: Blast chilling from 70°C to under 5°C within 90 minutes is essential for food safety. This extends shelf life from 3 days to 7-10 days and meets HACCP requirements.
Meal Prep Business: Pros & Cons
Advantages
Predictable revenue
Subscription model means recurring weekly income you can forecast
Batch efficiency
Cook 200+ meals in one session, dramatically reducing per-meal labour costs
Lower food waste
Know exactly how many meals to prepare each week
Growing market
UK meal prep market growing 11% annually, reaching £24.5B by 2033
Flexible scaling
Start with 20 customers, scale to 500+ from same kitchen
High retention
Dietary-specific customers (vegan, gluten-free) have excellent retention
Challenges
Delivery logistics
Must maintain 2-4°C throughout delivery - requires refrigerated transport
Customer churn
12-15% monthly churn typical - constant acquisition needed
Packaging costs
£0.50-2.00 per meal adds up quickly at scale
Menu fatigue
Subscribers get bored - need constant menu rotation
Equipment investment
Blast chiller essential (£2,000-5,000) for food safety
Shelf life pressure
Fresh meals last 3-5 days - tight delivery windows
Profitability at Scale
| Customers | Weekly Revenue | Monthly Costs | Monthly Profit | Status |
|---|---|---|---|---|
| 25 customers | £1,000 | £4,800 | -£800 | Loss |
| 42 customers | £1,680 | £6,720 | £0 | Break-even |
| 100 customers | £4,000 | £12,800 | +£3,200 | Profitable |
| 200 customers | £8,000 | £22,400 | +£9,600 | Highly Profitable |
*Based on 5-meal subscription at £40/week, 40% food cost, 25% labour, 15% overhead. Margins improve at scale due to batch cooking efficiencies.
Common Mistakes to Avoid
- Menu too complex: Keep to 8-15 rotating items that scale well in batch cooking. Avoid dishes requiring individual preparation.
- Underestimating packaging costs: At £0.75/container for 500 meals/week, that's £1,500/month. Budget carefully.
- No blast chiller: Without rapid cooling, meals only last 3 days. Invest £2,000-5,000 in a blast chiller for 7-10 day shelf life.
- Scaling too fast: Perfect your processes with 50 customers before scaling to 200. Systems that work at small scale often break at larger volumes.
- Ignoring churn: 12-15% monthly churn is normal. If you're not constantly acquiring new customers, subscriber count will decline.
Written by
James Mitchell
Ghost Kitchen Operations Director & Industry Expert
Frequently Asked Questions
How much does it cost to start a meal prep business in the UK?
Starting a meal prep business in the UK costs £5,000-25,000 depending on scale. This includes commercial kitchen rental (£500-2,000/month), equipment like blast chiller (£2,000-5,000), packaging supplies (£500-1,000 initial), food business registration (free), insurance (£300-600/year), and initial ingredient inventory (£500-1,000). Using a shared commercial kitchen reduces startup costs significantly.
How many customers do I need to break even?
Most UK meal prep businesses break even with 40-50 weekly customers ordering 5+ meals each. At £8 per meal with 5-meal subscriptions (£40/week), 42 customers generates £1,680 weekly revenue. With typical 40% food costs, 25% labour, and 20% overhead, this covers costs. Profitability improves dramatically at 100+ customers due to batch cooking efficiencies.
What equipment do I need for a meal prep business?
Essential equipment includes: commercial convection ovens, large stockpots (20-40L), blast chiller (critical for food safety), walk-in refrigerator (2-4°C), food processor, commercial scales, vacuum sealer (extends shelf life), and packaging/labelling equipment. Most of this can be accessed through shared commercial kitchen rental rather than purchasing outright.
How long do meal prep meals last?
Properly prepared and stored meal prep meals last 3-5 days refrigerated at 2-4°C, or 30-60 days frozen at -18°C. Using a blast chiller (cooling from 70°C to under 5°C within 90 minutes) extends safe refrigerated shelf life to 7-10 days. All meals must have clear use-by dates and storage instructions on labels.
Do I need special licences for a meal prep business?
Yes. In the UK you need: food business registration with your local council (free, 28 days notice), Level 2 Food Hygiene certificate (£30-100), public liability insurance (minimum £5M), and your kitchen must have a Food Hygiene Rating. If delivering, you also need appropriate vehicle insurance. Operating from a registered commercial kitchen simplifies compliance.
What is a good profit margin for meal prep?
MapPin 40-60% gross margin and 10-18% net profit margin. Food costs should be 30-40% of price, labour 20-25%, packaging 5-8%, and overhead (rent, utilities, insurance) 15-20%. A £8 meal with £2.80 food cost, £1.60 labour, £0.60 packaging, and £1.40 overhead leaves £1.60 profit (20% net margin).
How do I price meal prep subscriptions?
UK meal prep typically prices at £6-12 per meal. Offer tiered subscriptions: 5 meals/week at £8-10/meal (£40-50/week), 10 meals/week at £7-9/meal (£70-90/week), 15 meals/week at £6-8/meal (£90-120/week). Volume discounts incentivise larger orders while maintaining margins. Premium positioning (organic, macro-counted) supports £10-12/meal pricing.
What meals work best for meal prep businesses?
Best meals for prep businesses: grain bowls, curries, stews, roasted proteins with vegetables, pasta bakes, chilli, and soups. These scale efficiently in batch cooking and maintain quality after refrigeration and reheating. Avoid: dishes requiring precise cooking (steaks), crispy items that go soggy, or highly customised meals. Keep menus to 8-15 rotating options.