Meal Kit Growth Investment Tradeoff

Scenario

You are a Product Growth Analyst at a US-based meal kit subscription company with $1.1B in annual revenue, 4.2 million quarterly active customers, and slowing new-customer growth from 18% to 6% year over year. The core web and app signup funnel converts 7.8% of visitors to first order, and analysis suggests targeted improvements to landing pages, plan selection, and checkout could raise conversion to 8.6% within two quarters. In parallel, the company is considering a new growth opportunity: launching a lower-commitment ready-to-heat weekly offering sold through the existing app and CRM channels, aimed at lapsed customers and convenience-focused households; the pilot would require $12M in product, operations, and marketing investment and is forecast to add 180,000 customers in year one at lower gross margin. Competitors in meal kits are discounting heavily, while grocery delivery and prepared-meal players are growing faster in adjacent convenience segments.

Question

How would you decide whether to prioritize optimizing the existing acquisition funnel or investing in the new growth opportunity, and what would you recommend?