Jul 29, 2016 · 20m · top-founders

Ep 370: $120k 2015 Revenue, Private Chefs for Elderly with Kate Toews of Chefs for Seniors

Kate Toews · 9m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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In this episode of 'The Top' podcast, host Nathan Latka interviews Kate Toews, CEO of Chefs for Seniors, to examine the startup's unit economics, 97% retention rate, and business model providing customized in-home meal preparation for older adults. Toews outlines how the company bootstrapped to $120,000 in revenue, secured 500 Startups funding, and maintains disciplined focus on the eldercare market.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 47.8% of the talking time here. How this is scored →

Nathan as informed peer 3.6 Guest teaching 1.0 Guest disagreement 0.4 Nathan pushing back 1.3
05100:0010:0020:000:29–4:19 · Nathan as informed peer 3/10 Weekly Giveaway Announcement and Upcoming Episode Preview Nathan introduces Kate and inquires about the founding story and operating model of Chefs for Seniors. Kate explains their high 97% monthly retention and regional expansion plans.4:20–6:35 · Nathan as informed peer 5/10 Financial Metrics, Unit Margins, and 500 Startups Funding Nathan drills into the unit economics, margins, and funding structure. He immediately recognizes the standard 500 Startups accelerator terms while Kate details their partnership channel with Home Instead.6:35–9:08 · Nathan as informed peer 6/10 Monthly Recurring Revenue, Pricing Structure, and Customer Acquisition Nathan catches an arithmetic discrepancy between the reported MRR, customer count, and stated ARPU. Kate clarifies that early legacy clients are billed on a lower pricing structure than new cohorts.9:08–12:33 · Nathan as informed peer 4/10 Long-Term Market Positioning: Horizontal Growth vs. Senior Specialization Nathan playfully pushes for horizontal expansion into younger consumer markets while making a joke about senior lifespans. Kate outlines why maintaining a specialized senior focus provides stronger defensibility.12:33–14:47 · Nathan as informed peer 5/10 On-Demand Chef Predecessors and Down-Market Discussions Nathan brings up failed on-demand chef startups like Kitchit to question category viability. Kate notes she monitored their shutdown to recruit talent, and shares an anecdote about entering Uzbekistan.14:49–18:11 · Nathan as informed peer 2/10 Sponsor Message: HostGator Website Hosting Nathan delivers sponsor announcements before transitioning into the Famous Five questions. Kate shares her negotiation background and low-tech operational style.18:11–20:16 · Nathan as informed peer 0/10 Interview Wrap-Up and AppZen Episode Teaser Nathan delivers an outro monologue recapping the metrics of Chefs for Seniors alongside sponsor promos and next-episode teasers.0:29–4:19 · Guest teaching 1/10 Weekly Giveaway Announcement and Upcoming Episode Preview Nathan introduces Kate and inquires about the founding story and operating model of Chefs for Seniors. Kate explains their high 97% monthly retention and regional expansion plans.4:20–6:35 · Guest teaching 1/10 Financial Metrics, Unit Margins, and 500 Startups Funding Nathan drills into the unit economics, margins, and funding structure. He immediately recognizes the standard 500 Startups accelerator terms while Kate details their partnership channel with Home Instead.6:35–9:08 · Guest teaching 2/10 Monthly Recurring Revenue, Pricing Structure, and Customer Acquisition Nathan catches an arithmetic discrepancy between the reported MRR, customer count, and stated ARPU. Kate clarifies that early legacy clients are billed on a lower pricing structure than new cohorts.9:08–12:33 · Guest teaching 2/10 Long-Term Market Positioning: Horizontal Growth vs. Senior Specialization Nathan playfully pushes for horizontal expansion into younger consumer markets while making a joke about senior lifespans. Kate outlines why maintaining a specialized senior focus provides stronger defensibility.12:33–14:47 · Guest teaching 1/10 On-Demand Chef Predecessors and Down-Market Discussions Nathan brings up failed on-demand chef startups like Kitchit to question category viability. Kate notes she monitored their shutdown to recruit talent, and shares an anecdote about entering Uzbekistan.14:49–18:11 · Guest teaching 0/10 Sponsor Message: HostGator Website Hosting Nathan delivers sponsor announcements before transitioning into the Famous Five questions. Kate shares her negotiation background and low-tech operational style.18:11–20:16 · Guest teaching 0/10 Interview Wrap-Up and AppZen Episode Teaser Nathan delivers an outro monologue recapping the metrics of Chefs for Seniors alongside sponsor promos and next-episode teasers.0:29–4:19 · Guest disagreement 0/10 Weekly Giveaway Announcement and Upcoming Episode Preview Nathan introduces Kate and inquires about the founding story and operating model of Chefs for Seniors. Kate explains their high 97% monthly retention and regional expansion plans.4:20–6:35 · Guest disagreement 0/10 Financial Metrics, Unit Margins, and 500 Startups Funding Nathan drills into the unit economics, margins, and funding structure. He immediately recognizes the standard 500 Startups accelerator terms while Kate details their partnership channel with Home Instead.6:35–9:08 · Guest disagreement 1/10 Monthly Recurring Revenue, Pricing Structure, and Customer Acquisition Nathan catches an arithmetic discrepancy between the reported MRR, customer count, and stated ARPU. Kate clarifies that early legacy clients are billed on a lower pricing structure than new cohorts.9:08–12:33 · Guest disagreement 1/10 Long-Term Market Positioning: Horizontal Growth vs. Senior Specialization Nathan playfully pushes for horizontal expansion into younger consumer markets while making a joke about senior lifespans. Kate outlines why maintaining a specialized senior focus provides stronger defensibility.12:33–14:47 · Guest disagreement 1/10 On-Demand Chef Predecessors and Down-Market Discussions Nathan brings up failed on-demand chef startups like Kitchit to question category viability. Kate notes she monitored their shutdown to recruit talent, and shares an anecdote about entering Uzbekistan.14:49–18:11 · Guest disagreement 0/10 Sponsor Message: HostGator Website Hosting Nathan delivers sponsor announcements before transitioning into the Famous Five questions. Kate shares her negotiation background and low-tech operational style.18:11–20:16 · Guest disagreement 0/10 Interview Wrap-Up and AppZen Episode Teaser Nathan delivers an outro monologue recapping the metrics of Chefs for Seniors alongside sponsor promos and next-episode teasers.0:29–4:19 · Nathan pushing back 0/10 Weekly Giveaway Announcement and Upcoming Episode Preview Nathan introduces Kate and inquires about the founding story and operating model of Chefs for Seniors. Kate explains their high 97% monthly retention and regional expansion plans.4:20–6:35 · Nathan pushing back 1/10 Financial Metrics, Unit Margins, and 500 Startups Funding Nathan drills into the unit economics, margins, and funding structure. He immediately recognizes the standard 500 Startups accelerator terms while Kate details their partnership channel with Home Instead.6:35–9:08 · Nathan pushing back 4/10 Monthly Recurring Revenue, Pricing Structure, and Customer Acquisition Nathan catches an arithmetic discrepancy between the reported MRR, customer count, and stated ARPU. Kate clarifies that early legacy clients are billed on a lower pricing structure than new cohorts.9:08–12:33 · Nathan pushing back 2/10 Long-Term Market Positioning: Horizontal Growth vs. Senior Specialization Nathan playfully pushes for horizontal expansion into younger consumer markets while making a joke about senior lifespans. Kate outlines why maintaining a specialized senior focus provides stronger defensibility.12:33–14:47 · Nathan pushing back 2/10 On-Demand Chef Predecessors and Down-Market Discussions Nathan brings up failed on-demand chef startups like Kitchit to question category viability. Kate notes she monitored their shutdown to recruit talent, and shares an anecdote about entering Uzbekistan.14:49–18:11 · Nathan pushing back 0/10 Sponsor Message: HostGator Website Hosting Nathan delivers sponsor announcements before transitioning into the Famous Five questions. Kate shares her negotiation background and low-tech operational style.18:11–20:16 · Nathan pushing back 0/10 Interview Wrap-Up and AppZen Episode Teaser Nathan delivers an outro monologue recapping the metrics of Chefs for Seniors alongside sponsor promos and next-episode teasers.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 62.2% · guest 37.8%0:00 · Nathan 62.2% · guest 37.8%3:00 · Nathan 22.1% · guest 77.9%3:00 · Nathan 22.1% · guest 77.9%6:00 · Nathan 31.8% · guest 68.2%6:00 · Nathan 31.8% · guest 68.2%9:00 · Nathan 25.7% · guest 74.3%9:00 · Nathan 25.7% · guest 74.3%12:00 · Nathan 34.1% · guest 65.9%12:00 · Nathan 34.1% · guest 65.9%15:00 · Nathan 75.9% · guest 24.1%15:00 · Nathan 75.9% · guest 24.1%18:00 · Nathan 94% · guest 6%18:00 · Nathan 94% · guest 6%
Sharpest disagreement ▶ 13:07 Deadpan reaction to down-market pitch

When Nathan claims he is secretly trying to pitch her on serving younger audiences, Kate dryly retorts that his intention is not secret at all.

Hardest push from Nathan ▶ 7:41 Challenging ARPU and MRR math

Nathan refuses to gloss over the figures and explicitly challenges Kate on why dividing $16k MRR by 65 customers yields $246 instead of her stated $583 ARPU.

Biggest teaching moment ▶ 7:59 Clarifying legacy versus modern pricing tiers

Kate explains that half the existing customer base remains grandfathered under older pricing tiers, resolving Nathan's confusion about the blended revenue numbers.

Nathan holds their own ▶ 7:41 Rapid calculation of unit revenue discrepancy

Nathan demonstrates sharp financial command by instantly computing the per-user monthly revenue from the raw MRR and customer totals.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Weekly Giveaway Announcement and Upcoming Episode Preview 3100 Nathan introduces Kate and inquires about the founding story and operating model of Chefs for Seniors. Kate explains their high 97% monthly retention and regional expansion plans.
Financial Metrics, Unit Margins, and 500 Startups Funding 5101 Nathan drills into the unit economics, margins, and funding structure. He immediately recognizes the standard 500 Startups accelerator terms while Kate details their partnership channel with Home Instead.
Monthly Recurring Revenue, Pricing Structure, and Customer Acquisition 6214 Nathan catches an arithmetic discrepancy between the reported MRR, customer count, and stated ARPU. Kate clarifies that early legacy clients are billed on a lower pricing structure than new cohorts.
Long-Term Market Positioning: Horizontal Growth vs. Senior Specialization 4212 Nathan playfully pushes for horizontal expansion into younger consumer markets while making a joke about senior lifespans. Kate outlines why maintaining a specialized senior focus provides stronger defensibility.
On-Demand Chef Predecessors and Down-Market Discussions 5112 Nathan brings up failed on-demand chef startups like Kitchit to question category viability. Kate notes she monitored their shutdown to recruit talent, and shares an anecdote about entering Uzbekistan.
Sponsor Message: HostGator Website Hosting 2000 Nathan delivers sponsor announcements before transitioning into the Famous Five questions. Kate shares her negotiation background and low-tech operational style.
Interview Wrap-Up and AppZen Episode Teaser 0000 Nathan delivers an outro monologue recapping the metrics of Chefs for Seniors alongside sponsor promos and next-episode teasers.

Statements from this episode (12)

Assertion Not checkable as stated
Chefs for Seniors Maintains 97% Monthly Client Retention
“We have almost a hundred percent. We have 97% client retention.”
Kate Toews Jul 29, 2016 ▶ 3:09
Assertion Not checkable as stated
Primary Churn Driver After Two Chef Visits Is Client Death
“Basically after your first two chef visits, if you make it past those two chef visits, the relationship is incredibly sticky. And the most common reason that people leave us after that is actually when they pass away.”
Kate Toews Jul 29, 2016 ▶ 3:17
Assertion Not checkable as stated
Chefs for Seniors Currently Serves About 65 Customers in Wisconsin
“We're only currently serving about 65 customers. We've historically only been in Madison, Wisconsin.”
Kate Toews Jul 29, 2016 ▶ 3:38
Assertion Not checkable as stated
Chefs for Seniors Generated $120k Top-Line Revenue in 2015
“One 20, top line.”
Kate Toews Jul 29, 2016 ▶ 4:24
Assertion Not checkable as stated
Chefs for Seniors Maintains a 40% Gross Margin on Retail
“For a retail consumer, we've got about 40% margin. Nathan Latka: Net or gross? Kate Toews: Ah, gross.”
Kate Toews Jul 29, 2016 ▶ 4:28
Disclosure
Chefs for Seniors Pays In-Home Chefs $16 to $18 per Hour
“We pay them 16 to 18 an hour.”
Kate Toews Jul 29, 2016 ▶ 4:53
Disclosure
Chefs for Seniors Executes Partnership with In-Home Care Giant Home Instead
“So we work with right now, home instead, which is the biggest In-home care company in the country, they have a thousand franchises, respectively. We just executed a partnership with them.”
Kate Toews Jul 29, 2016 ▶ 5:37
Disclosure
Chefs for Seniors Raises First Outside Capital from 500 Startups
“Self-funded to date we about four weeks ago were accepted into a 500 startup, so we took our first outside capital from them.”
Kate Toews Jul 29, 2016 ▶ 6:01
Assertion Not checkable as stated
Chefs for Seniors Averages $7,000 in Annual Revenue per Customer
“On average, it's about seven K a year.”
Kate Toews Jul 29, 2016 ▶ 6:44
Assertion Not checkable as stated
Chefs for Seniors Has Spent Only $700 Total on Paid Ads
“We've spent like 700 dollars ever on Facebook and nothing on Google.”
Kate Toews Jul 29, 2016 ▶ 8:51
Assertion Not checkable as stated
Recruiting High-Caliber Chefs Is Harder in Wisconsin Than Florida
“In Wisconsin, our chefs are a little bit trickier to find. The hospitality industry is just a lot smaller there, and so it's been more challenging to find the kind of caliber chefs.”
Kate Toews Jul 29, 2016 ▶ 12:00
Disclosure
Chefs for Seniors Recruited Talent After Kitchit and Kitchensurfing Folded
“I've actually talked with a couple of the folks that worked there, because when they folded along with kitchen surfing, I was, I had stars in my eyes about how I could get some talent on board.”
Kate Toews Jul 29, 2016 ▶ 12:41
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