Like many recent business school graduates, Ahmed Ali was looking for a start-up idea that catered to an unmet need. He found it in his Muslim and Somali community in Minnesota.
Ali, 23, was born in South Africa and raised in northeast Minneapolis. After graduating last year from the University of Minnesota’s Carlson School of Management, he brainstormed with his friend Badraddin Abdi, 25, about what service they could offer to the community that raised them — especially the mothers.
Last September, Ali and Abdi co-founded Bundle Halal, the first grocery delivery service in the state that specifically caters to those seeking halal-certified meat and staples.
Ali says that the concept and business model of Bundle Halal was initially inspired by a deep appreciation for mothers who are the heart of the community but quickly broadened to the whole family.
“This is targeting everybody, the fathers that don’t have time and don’t have the energy to go outside, people [for whom] it’s tough for them to go outside, and even for the young generation that are just getting married and that want to make it easier to experience halal meat. We tailor it for everybody, but one of the core reasons we started is for the mothers,” Ali said.
Customers place orders on the Bundle Halal website. Categories include oils, spices and seasonings, grains like basmati rice, sauces and dips, drinks and desserts, and a “Bundle Box” an assortment of meats prepped for cooking.
There are more than 90 halal grocery stores in the state serving as many as 150,000 Muslim customers, according to a 2020 University of Minnesota study.
For most animal products to qualify as halal for Muslims, they must be raised, treated and slaughtered according to strict criteria that ensures the animal is treated with care and mercy. Animal products that are prohibited entirely include pork and its byproducts, blood and carrion.
Halal grocery stores also tend to stock ingredients used in many African, Asian and Arab cuisines.
Abdi, who lives in California, maintains the website and handles advertising, and marketing. Ali manages the day to day operations in the metro area.
In the early days, Ali says, it took a while for orders to start coming in. He remembers checking his phone and hitting refresh a lot, wondering if there was something wrong with the system.
“Even getting a couple orders … was the hardest thing ever,” said Ali.“[Now] we get lots of orders every single day. There’s definitely a need and a want for it. Once people get comfortable and familiar, then things start going good.”
The entrepreneurs also faced a learning curve around the business’ marketing and the speed of deliveries.
“When we first started, we were doing next-day orders, then we sped up to same-day orders, and then we sped up to one-hour delivery. That was a logistical nightmare because you have to tell each and every part of the business A to Z to work on going faster. For example, the people that prepare the meat and everything, they had to cut the meat faster and be ready, and the driver has to be on standby. And then marketing [another challenge] showing yourself out there and having people trust us with their online groceries,” Ali said.
The decision to speed up deliveries came from both customer feedback and overall market demand, Ali says.
“We noticed many customers wanted halal meat and groceries delivered faster and more conveniently, especially busy families, students and working professionals. One common thing we heard was that people wanted an easier way to access halal products without having to drive long distances or spend extra time shopping in-store. That pushed us to focus heavily on convenience and fast delivery.”
Social media marketing has been a key component of Bundle Halal’s reach. The goal of being on platforms like Instagram and TikTok is to educate people about the convenience of halal grocery delivery and helping people discover that this type of service exists in Minnesota.
Bundle Halal sources primarily from Plymouth Halal Market, which opened last year and serves the west metro. One of the most popular proteins from this site is the pre-diced chicken because of the convenience, Ali says. The market can serve orders within a 60-mile radius.
In its first six months, Bundle Halal has expanded from a two-person team to nearly two dozen people, according to Ali. That includes the store staff that help package the order, vendors and drivers. It has delivered several thousand orders, the co-owners say.
Feedback from customers on the quality of the packaging and timing of the delivery has helped accelerate their growth.
“It keeps everybody in check,” Ali said. “I think one of the biggest things is getting better, getting fresher, getting quicker, and also giving a good experience overall.”
Ali says Bundle Halal can help businesses like Plymouth Halal, which may be too small for bigger online grocery platforms, to scale up.
“These [halal market owners] are our uncles and aunts. Technology is getting so advanced that we would love for them to keep up with us too so they can keep growing,” he said. Bundle Halal also passes on whatever market trends they see to the grocery stores. “One thing we love to do is whenever something’s popular in the city, we also tell all the stores to carry it,” he said. One example of a trendy item Ali has noticed is the Milaf date cola, a soft drink made of date extract instead of added sugar and artificial sweeteners.
Safiya Mohamud, co-owner of Plymouth Halal Market, says that the partnership with Bundle Halal has increased their sales because they are now tapping into a market of customers that would rather order online. In addition to seeing a positive impact on their sales, Mohamud also says the connection to the broader community has been strengthened.
“We have a lot of diversity that comes here — Indian, Pakistani, Somali, Arabs — a lot of people who are looking for halal especially. We sell a lot of fresh goat meat, that is one of our biggest sales.” Mohamud said her customers live in western suburbs like Plymouth, Maple Grove, Eden Prairie and New Hope.
Bundle Halal provides the businesses with the boxes, plastic and ice, and the staff in the store package the orders. The deliveries are carried out by drivers on the Bundle Halal team including Ali himself and third-party services.
Seth Ketron, associate professor of marketing in the Opus College of Business at the University of St. Thomas, says that Bundle Halal’s niche focus could take them far.
“There’s a big market for it,” Ketron said. “Globally, Islam is the second largest religion and there might be other communities where there’s some overlap [in their need] for halal certified food. The fact that there’s really nothing that caters toward this need, like this service, it’s a great opportunity. If Bundle Halal does well, it could capture market share from established players such as DoorDash, Instacart and Uber Eats,” he said.
The next big goal for the business is to expand their network of halal grocery suppliers and delivery areas in greater Minnesota.
“For example, [places like] Willmar, Mankato, we want to reach those areas. Halal stores in Minnesota are limited by the store’s reach, but when you add an online website to it, there’s no limit to it. Our ultimate goal is to make halal foods accessible in every area of Minnesota,” Ali said.
