I think pricing is a big problem. The ones in local shops are close to restaurant pricing ($7 per person) for home-cook quality food.
This basically collapses the market to a small demographic-- singles and couples who are affluent and time starved and willing to pay $3 per meal extra to save 20 minutes of prep work in a 60 minute recipe. A family of four with a blue-collar salary will sail right past that and go for frozen meals if they want an easy option. I think this is also what killed the ready-made meals trend of a few years ago.
I wonder if there's a way to repackage the product to fit a more frugal audience. Something like "we're doing one recipe per day, in huge quantities, with minimal waste, simple packaging, and efficient prep" -- get the cost of the kit comparable to buying the ingredients loose.