Meal kit subscription Dinnerly freezes prices for six months to tackle cost-of-living pressures

Affordable meal kit brand Dinnerly says its decision to introduce a six-month price freeze on its core menu offering is part of its mission to help Australian families better manage their weekly food costs, tackle cost-of-living pressures and reassure consumer confidence.

Dinnerly, which is part of the Marley Spoon group, on Monday launched its Price Freeze, which will go until September 30, 2023. To date, grocery price freezes have mostly been offered by supermarkets, which Dinnerly says means it is the first meal kit brand in Australia to make this commitment.

The price freeze will apply to the company’s core menu range, which starts at $5.49 per portion. Dinnerly meal plans are designed for two or four people, with the option to select between two to six meals per week.

Following massive success and rapid expansion after launching in July 2017 in the US, the meal kit subscription launched in Australia in March 2018.

Dinnerly claims that, compared to other meal kits, its customers save an average of $1,890.20 per year for those on weekly four-person plans. Compared to ordering a similar takeaway meal, Dinnerly customers save $26.25 on a meal for two people.

Dinnerly Australia CEO and Marley Spoon COO Rolf Weber says he wants to help customers through the current tough economic climate and beyond.

“We are really proud to be able to help our customers budget better while delivering exceptional value with Dinnerly. We’ve worked very hard to make every dollar spent on food go further with Dinnerly,” he told SmartCompany. 

“With our Price Freeze in addition to our Saver and Feed A Crowd meals, we again set the benchmark to make our customers’ lives easier with affordable, easy, tasty and healthy meal solutions. In these tough times, we are committed to supporting our customers and their families and will continue to find ways to lower the cost of getting dinner on the table while keeping our high standards of quality.”

Meal kits not a ‘luxury’

Weber says cooking with Dinnerly is up to 35% cheaper, with customers saving $3.77 on a meal for two, compared to buying the same ingredients at the shops. And Australian families are getting more comfortable with ordering their grocery items online. 

“The meal kit space is competitive. The food in general is competitive,” he says. 

Dinnerly Australia CEO and Marley Spoon COO Rolf Weber. Source: Supplied

“Post-COVID we have seen growth in the category kind of coming off a little bit where people are obviously going back to the shops. But overall this shift from offline to online is continuing. Overall the food and grocery category is really lagging substantially in online spend versus other categories. So we expect that the shift offline to online will continue.”

“But in addition to that is the value proposition of new kits and Marley Spoon and Dinnerly specifically have rapidly improved over the last couple of years. You know we have a record choice of meals on offer. There is the opportunity to customise specific meals so you can switch to healthy options.”

Weber said in addition, Dinnerly has a Market where customers can add other essential items or quick meals and snacks to the weekly order, which makes it more convenient. 

“So there’s a lot going on and what we’re really trying to do, which I think makes Dinnerly really competitive, is that we’re actually on a mission to bust the myth that we are more expensive than supermarkets,” says Weber.

“Meal kits are often thought to be more of a luxury item, however we’re on a mission to bust this myth, because Dinnerly is not only a tasty and convenient meal solution, but also 35% cheaper than the supermarket.”

The brand’s latest research of 1000 Australians revealed ‘good value for money’ is the number one driver when it comes to putting meals on the table, ahead of ease, freshness, health and quality.

This article was updated at 3pm on Wednesday, April 19, 2023.