{"id":3373,"date":"2015-12-08T18:07:01","date_gmt":"2015-12-08T23:07:01","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/revolution-foods-solving-americas-food-crisis\/"},"modified":"2015-12-08T18:08:30","modified_gmt":"2015-12-08T23:08:30","slug":"revolution-foods-solving-americas-food-crisis","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/revolution-foods-solving-americas-food-crisis\/","title":{"rendered":"Revolution Foods: Solving America\u2019s Food Crisis"},"content":{"rendered":"

\"logo\"<\/a><\/p>\n

Image sourced: revolutionfoods.com<\/em><\/p>\n

 <\/p>\n

Business Model<\/strong><\/p>\n

Obesity rates for children in America have gone from 5% in 1980 to 21% today[1]. Revolution Foods, a California based company, aims to address this problem through a healthy school lunch program.\u00a0 Today, most schools buy inexpensive, unhealthy foods from large manufacturers and reheat them when it is time to serve lunch.\u00a0 Revolution Foods differentiates itself by producing kid and nutritionist approved lunches for students that are delivered daily, sourced locally, and cooked fresh. \u00a0To ensure access for all populations, Revolution\u00a0keeps the price of each lunch under the amount allotted by the National School Lunch Program, a federal meal assistance program. \u00a0This increases adoption without forcing schools to bear extra cost. \u00a0They are able to achieve this vision\u00a0through\u00a0their efficient supply chain and creative menu.<\/p>\n

Additionally, beyond the school lunch program Revolution has expanded into ~400 local stores by creating healthy and affordable lunch kits for adults and kids outside of the school setting [3].<\/p>\n

Revolution Foods Mission<\/a><\/p>\n

The growing business is supported by a unique operating model that effectively delivers on the company\u2019s mission.\u00a0 Although the operating model is robust, there are three key elements that allow the business to be differentiated: Supply Chain, People\/Culture, and Product Development.<\/p>\n

 <\/p>\n

Operating Model<\/strong><\/p>\n

Supply Chain:<\/u><\/p>\n

Revolution Foods locally sources the ingredients for their meals. This helps them to control costs while still offering healthy options.\u00a0 Additionally, it allows them to cater to regional tastes [6].\u00a0 They have built seven culinary centers where they put the meals together and try to grow scale in each of the nearby markets to increase the efficiency of these centers [4].\u00a0 They then use these central facilities to deliver the meals daily to local schools.\u00a0 Additionally, their usage of\u00a0central facilities has helped them expand in a sustainable way.<\/p>\n

Since they are using healthier ingredients, meals do not preserve well or last very long. \u00a0 This is why delivering the food daily is a unique competitive advantage for Revolution. \u00a0Additionally, many of the schools do not have the facilities to cook in-house so Revolution must deliver the meals hot and ready to eat.\u00a0 The structure of this supply chain, cooking and delivering food daily, generates a large amount of working capital for Revolution.\u00a0 Since they don\u2019t get paid until the school receives funds through the National School Lunch program they use working capital loans to bridge the gap [4].<\/p>\n

 <\/p>\n

People\/Culture:<\/u><\/p>\n

Revolution focuses on building a culture around its social mission. \u00a0They view their business model as solving the food crisis in America versus cooking school lunches.\u00a0 To execute on this mission, they hire many local and inner city workers who are passionate about\u00a0this cause as well.\u00a0 Additionally, they have created nutrition programs that help school administrators and lunch staff transition to the new menu\u00a0and understand the advantages [4].\u00a0 These relationships make Revolution\u2019s model hard to replicate.<\/p>\n

\"kds\"<\/p>\n

Image sourced: revolutionfoods.com<\/em><\/p>\n

Product:<\/u><\/p>\n

Revolution has used their innovative supply chain and sourcing to\u00a0differentiate their product and ensure a commercially viable price point. \u00a0They have created a menu that satisfies regional preferences, kid\u2019s tastes, and nutritionist\u2019s plans.\u00a0 They are able to do this through their regional facilities and suppliers.\u00a0 Additionally, after they scaled their business\u00a0they expanded their products to include lunch kits available in stores. \u00a0These kits required innovative new packaging to ensure the products stayed fresh, such as\u00a0separate packaging for meat to keep it safe\u00a0without having to use preservatives [4].<\/p>\n

\"product\"<\/a><\/p>\n

\u00a0Image sourced:\u00a0http:\/\/www.flavofit.com\/food-companies-changing-kids-eat\/<\/em><\/p>\n

The alignment of Revolution\u2019s business and operating model has resulted in both impressive financial and social\u00a0impact.\u00a0 Revolution now delivers over 1 million meals a week to the 20 million kids who lack access to other healthy options [2].\u00a0 Additionally, financially they have grown from $18 million in revenue to over $80 million in five years\u00a0[6]. \u00a0I\u2019m looking forward to seeing Revolution Foods continue to grow.<\/p>\n

 <\/p>\n

\u00a0Sources<\/strong><\/p>\n

    \n
  1. http:\/\/www.cdc.gov\/healthyschools\/obesity\/facts.htm<\/li>\n
  2. http:\/\/revolutionfoods.com\/<\/a><\/li>\n
  3. http:\/\/www.bloomberg.com\/bw\/articles\/2013-09-19\/revolution-foods-takes-on-kraft-to-get-into-kids-lunchboxes<\/a><\/li>\n
  4. http:\/\/impactalpha.com\/revolution-foods-healthy-food-for-healthier-students\/<\/a><\/li>\n
  5. http:\/\/revolutionfoods.com\/wp-content\/uploads\/2014\/06\/Revolution-Growth-Invests-in-Healthy-Meal-Provider-Revolution-Foods_6.4.14.pdf<\/a><\/li>\n
  6. http:\/\/www.fastcompany.com\/3039619\/most-innovative-companies-2015\/revolution-foods<\/a><\/li>\n
  7. http:\/\/www.economist.com\/news\/united-states\/21577098-new-company-trying-make-school-meals-healthier-biting-commentary<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

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