Internet Enables Product Scale

Shaan Puri shares his perspective on how the internet has transformed the distribution model for food businesses, enabling the best products to achieve nationwide scale through digital channels rather than being limited by physical locations.

• The Internet Changes Distribution Rules:

  • Before: Businesses limited to local radius (5-10 miles)
  • Now: Best products can be distributed everywhere
  • Result: Best brands win on the internet, regardless of location

• Modern Food Business Model:

  • Operates as "cloud bakeries/kitchens"
    • No physical storefront needed
    • Everything runs through online orders
  • Direct-to-consumer approach
    • Build direct relationships with customers
    • Communicate through text messages
    • No need for traditional retail placement
    • Instant sales through "drops"

• Success Formula:

  • Build cult following on Instagram
  • Zero marketing spend possible
  • Can ship worldwide
  • Potential to become next major food brand
    • Could replace traditional brands like Mrs. Fields or Ben & Jerry's

• Real World Example:

  • My Cookie Dealer:
    • Does weekly cookie drops
    • Sells out within seconds
    • $200,000 per week in revenue
    • $10M annual revenue
  • Business Model:
    • Take orders first
    • Ship nationwide few days later

This model represents a fundamental shift in how specialty food businesses can scale, removing traditional geographic limitations and enabling direct relationships with customers worldwide.