- Awards Season
- Big Stories
- Pop Culture
- Video Games
Stress-Free Meal Planning Made Easy with Giant Eagle Delivery Groceries
In today’s fast-paced world, finding time to go grocery shopping can be a challenge. With long work hours, family commitments, and other responsibilities, it’s no wonder that many people struggle to find the time to plan and prepare meals. Thankfully, Giant Eagle has come to the rescue with their convenient delivery service. In this article, we’ll explore how Giant Eagle delivery groceries can help you achieve stress-free meal planning.
The Convenience of Online Shopping
Gone are the days of navigating crowded aisles and waiting in long checkout lines. With Giant Eagle’s online shopping platform, you can browse through a wide selection of groceries from the comfort of your own home. Whether you’re in need of fresh produce, pantry staples, or specialty items, Giant Eagle has got you covered.
Once you’ve added all your desired items to your virtual cart, simply choose a delivery time that works best for you. Whether it’s next-day delivery or scheduling for later in the week, Giant Eagle gives you the flexibility to plan your meals on your own terms.
One concern many people have when it comes to grocery delivery is the quality and freshness of the products they receive. However, with Giant Eagle’s commitment to excellence, you can rest assured that every item delivered to your doorstep will be of the highest quality.
From fruits and vegetables to dairy products and meats, Giant Eagle takes great care in selecting only the freshest and finest ingredients for their customers. Their team of expert shoppers hand-picks each item with precision and attention to detail so that you can enjoy meals made from top-notch ingredients.
Customized Meal Planning
One of the biggest advantages of using Giant Eagle delivery groceries is the ability to customize your meal planning according to your dietary preferences and restrictions. Whether you’re following a specific diet like keto or paleo or have food allergies or sensitivities, Giant Eagle offers a wide range of options to accommodate your needs.
Their online platform allows you to filter products based on various categories such as organic, gluten-free, or vegan. This makes it incredibly easy to find the right ingredients for your meals without having to spend hours reading labels in the grocery store. With Giant Eagle, meal planning becomes a breeze, and you can rest easy knowing that every item in your cart aligns with your dietary goals.
Time-Saving and Stress-Reducing
Perhaps the most significant benefit of using Giant Eagle delivery groceries is the time-saving aspect. By eliminating the need for physical shopping trips, you can free up valuable hours in your week that can be better spent on other activities or simply relaxing.
Additionally, with Giant Eagle’s reliable delivery service, you no longer have to worry about running out of essential items or making last-minute trips to the store. By having groceries delivered right to your doorstep, you can say goodbye to unnecessary stress and enjoy a more convenient and efficient way of meal planning.
In conclusion, Giant Eagle delivery groceries offer a stress-free solution to meal planning. With their convenient online shopping platform, freshness guarantee, customizable options, and time-saving benefits, Giant Eagle is revolutionizing the way we approach our grocery shopping and meal preparation. Give it a try today and experience the ease and convenience for yourself.
This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.
MORE FROM ASK.COM
Ultimate Guide on Online Food Delivery Business Plan
- Last Updated: November 3, 2023
As a food delivery service, you will be expanding convenience and choice for your existing and potential customers. You will be working towards making it easier for them to order a wide variety of food from various restaurants.
In the last few years, there have been huge changes in the food delivery market . These changes have come into effect due to:
- Increasing demand and competition;
- Competitive prices;
- The rise of digital technology;
- Evolving customer behavior; and
At the time of creating a food delivery business plan , you may be required to consider several aspects in advance. In this blog, we will help you create an effective food delivery plan for small businesses in the online food delivery sector.
Table of Contents
Why Do You Need a Food Delivery Business Plan?
Key statistics to observe before entering the food delivery market, different food delivery business models, how to write a food delivery business plan, let upper help you grow your own food delivery business.
The customers have evolved. Their demand for food options, types of food delivery, and behaviors have changed. These points show how:
- Offer great speed of delivery and boost customer retention rate;
- Most meals are ordered from & delivered to homes;
- High volume of orders on Friday, Saturday, and Sunday.
In order to tackle these challenges and many others, you need to formulate a detailed food delivery business plan and affordable prices. The plan is not only an executive summary or roadmap, it is much more than that, incorporating advanced technology to meet these evolving needs.
Here’s how a well-developed winning business plan can help you:
- Offers an understanding of your industry, key competitors, target audience, food delivery platforms, and trends.
- Conducting a SWOT analysis for the food industry and getting insights on your strengths, weaknesses, opportunities, and threats.
- Works as a benchmark on how to conduct the business and know average prices for your products.
- You can find out the requirements of new members, tools, and equipment to help you reach any major goals or business goals.
- Helps with cash flow statements, financial statements, competitive strategies, and revenue models of the food business along with investment strategy.
- The global revenue in the online food delivery segment has doubled since 2017.
- 57% of millennials prefer to have restaurant food delivered.
- 33% of consumers are willing to pay higher fees for faster delivery services.
- 60% of restaurant owners & operators said that offering delivery generated incremental sales.
- Joining hands with third-party delivery services has raised restaurant sales volume from 10% to 20%.
- 70% of consumers prefer to place delivery orders online for a seamless robust experience .
- Ghost kitchens or cloud kitchens are going to be an office food delivery industry worth $1 trillion by 2030.
When you are ready to create a plan, you must know which business model you will acquire and how it will benefit you. Business models should be considered based on what are your requirements. Basically, it helps you choose which services you will offer to your target audience including strategic locations and operational cost. While doing so, you should decide whether you will run a food store or an online food delivery service business.
Here are different types of popular food delivery business models .
1. Order Only
This type of food delivery is followed by food delivery companies like Grubhub. These services only function as a software layer between the standard restaurant and the customers. Order-only platforms like Grubhub & Postmates have experienced remarkable growth.
This model becomes ideal for those who want to provide on-demand services. In fact, it is the best way to customer contact more easily. This business model will act as a medium between your restaurants and online services. Hence, making it easier for online users to take benefit of online purchase of food. This is why so many food business owners prefer to consider online order requests.
By opting for an order-only business model, your main job will be to deliver food to the buyer. In this process, the business cum restaurant will earn a commission of 10-15% for every order request they receive.
2. Order & Delivery
Apps like DoorDash , UberEats, and Deliveroo are food delivery platforms that bring in extra orders to restaurants in the form of takeaway and delivery. The apps manage the deliveries for these restaurants using their fleet of independent drivers.
It is quite different than what we understood in the previous model. In simple terms, the delivery process is not directly connected to restaurants. In fact, you need to hire a third-party delivery service that can provide timely delivery to the customer’s doorstep. Delivery service providers jointly work with the local restaurants to provide quicker meal deliveries or drinks to customers, but they also put on extra charges for received orders.
This order and delivery model also comes up with challenges that you should look at before acquiring it completely. Since you are handing over the delivery duties to another party, they should store the food at a consistent temperature. If not done, food may not have the same taste and freshness. Thus, you need to put a systematic delivery system.
3. Fully Integrated
Fully Integrated delivery businesses develop their apps using which customers can get meal deliveries from cloud kitchens to the ideal location. These popular food delivery apps focus on convenience and direct experience to consumers.
It is usually preferred by startup restaurants or family businesses where they can prepare meals and deliver them to the food buyer. Business owners opting for a fully integrated model only serve in a specific service region. They also collaborate with chefs to provide a different range of foods and a better quantity of food. Going for this model, you need to pay for the cost of equipment which means your operational cost may raise.
With this model, you are likely to provide quicker deliveries and may find it easier to adjust the delivery schedule as per consumers’ requirements. Moreover, in the competitive delivery market, the ability to optimize delivery routes can give your business a significant edge.
Here are the handy tips to apply while creating a new plan to make a successful food delivery business.
Do In-depth Industry Analysis
Identifying your usp.
Make something memorable: A good USP is one that is memorable, makes a case against existing products, and offers valuable interaction with customers. How will you embody your USP in your products, services, user experience, and office food delivery brands?
What are you doing differently?: In order to identify your USP, look at the direct competitors, and indirect competitors and find out what you are doing differently from your major competitor. An on-demand delivery market analysis, customer analysis, and knowing the relevant market size will be helpful.
Notice patterns in the market: If you notice a pattern in the market about features or aspects missing in the competitors, note that down and see if you can offer those features or food services.
Talk to your customers: Conduct a thorough survey of the food delivery market. Talk to your loyal customers or different types of customers and see what they have to tell you. It will help you find out what’s working for your food delivery model and what’s not working.
Developing your USP
Don’t try to be the best: Don’t try to be the best brand or product out there. Just carve out a niche for your own business in the food delivery industry and stick to it. You will not be concerned about the competition once you make the rules yourself.
Who are you targeting?: Be particular about who your target market is. Focus on that particular audience. It will help you achieve corporate sales goals and keep your brand image consistent because you can’t be everything to everyone.
Develop a personality: Incorporating a strong personality into your USP will make your product more memorable. Once you infuse a personality into your brand or product, it will be difficult for others to not notice you.
Create your USP
Write things down: Create a list of all potential differentiators. You will find these points if you do a thorough actual market trends. Wrap these points around your advertising strategies, business strategies, and detailed strategies.
What are your unique angles?: Pitch your most unique angles against the customer’s needs. Learn about their pain points as it will help set long-term goals.
Compile data: Collect all the data you receive from your consumer and market research and integrate it with your product, service, marketing plan, and business idea.
Prepare a Financial Plan
Your budget will be dependent on your approach and the food delivery business model you choose. Your approach to market and growth strategy will also be an important factor in the total operational costs or key costs you incur.
As an office food delivery company, you can choose if you will be building an in-house tech platform and support or whether you will be dependent on third-party services for the same. It is an expensive thing to integrate advanced technology in-house. You need a great amount of investment just to get started. Figure out a budget considering all the major factors of your business model, revenue model, and food delivery marketing plan. You will have several financing options to choose from:
- PayPal Working Capital Loan: PayPal offers short-term loans to help small businesses grow. The application process for a PayPal Working Capital Loan is quick and easy and there are no extra fees and prepayment penalties.
- Credit Cards/Personal Loans: Business credit or personal loans can be acquired to fuel the daily functions of your business. Small business owners can easily qualify for credit cards and personal loans.
- SBA Loans: You can apply for a small business loan under the Small Business Administration advantage program. SBA offers small business financing with lower interest rates compared to other options. SBA Microloans can be used for inventory, supplies, working capital, and machinery.
- Government Grants & Subsidies: There are several State and Federal Government grants and subsidies available to businesses. In recent times, the government has helped several small and medium-sized businesses to revive their existing food delivery business or any type of meal kit delivery startups.
- Crowdfunding: Reach out to investors and financial institutions to see if you are eligible for a loan. There are great opportunities for businesses with innovative ideas. An online platform where innovative businesses are identified and valued is KickStarter and Indiegogo .
Resource and team management
- Acquiring New Equipment & Vehicles: Decide which major sources and equipment or standard kitchen utensils you will require for your standard food delivery company, considering cash flow. Do you need bikes, box trucks, or cargo vans? Depending on your business model and budget, plan out the lease or acquisition of vehicles and new equipment to gain a competitive advantage.
- Hiring Drivers: You will have to choose whether you want to hire contract drivers or full-time drivers. It will depend on your delivery business model. Look for drivers on industry-specific job boards. Make use of social media platforms to search for suitable drivers, while considering payroll expenses.
- Training Drivers: A thorough training will have to be provided for your newly hired drivers, whether they are involved on a full-time basis or a contract.
- Train your entire staff for your last mile delivery process;
- State their responsibilities as a delivery driver;
- Form a strong management team to work with a customer-centric mindset;
- Give access and train management staff for the tools and equipment they will be using on the job;
- Help them establish excellent customer service culture;
- Train drivers to prioritize their health and safety over the package from time to time.
Generate an operations plan
- Plan Your Last Mile Process: Your last mile delivery process is the front-end process that is often trackable and visible to the customers. Try to make this process as efficient as possible. A month of operation on customer-facing troubles always be crystal clear and should be carried out without any uncertainty.
- Simplify the Process by Employing the Right Tools: One major way of simplifying your last mile delivery process is to cut down planning and optimization time by eradicating a manual procedure. In order to automate these steps, you will have to integrate a food delivery planner and route optimization software in your last mile delivery process.
- Executive Summary: As a food business owner, you will be employing multiple drivers and creating multiple routes for them daily. You will need to be prepared for every unexpected challenge. Create a summary of how your food delivery operations will take place. You can give an overview and discuss the business model with your delivery team. Address your marketing team to work on key issues that help them attract target customers.
Developing a meal delivery business plan can be challenging. There are quite a few aspects that need to be considered seriously. The increasing competition in the office food delivery services industry only makes it more difficult for new entrants to make space for themselves.
With a reliable food delivery business plan, you can never go wrong. Make sure you consider all the important pointers mentioned above before setting up your own online food delivery system.
One of the most important aspects, as mentioned above, is planning and optimizing your delivery routes. Without proper optimization and a strong last mile delivery setup, you will not be able to gauge an audience in the market.
Use a route planning and optimization software like Upper to make sure your routes are optimized and you save the delivery time. It keeps an eye on your personal savings while achieving more deliveries per route.
Utilize Upper to Automize Food Deliveries
Preparing a food delivery business plan? Why not include the best route optimization for getting faster delivery routes. Start using Upper for better delivery management and timely deliveries.
Offices food delivery services are booming currently. The rise in quarantine and lockdown restrictions has people locked up in their houses. It has given a huge boost to online food ordering. Most businesses recorded the highest revenue only because of online food ordering and delivery.
Food delivery businesses either prepare the cooked food on their own or partner with the entire restaurant to handle food deliveries on behalf of them. These are the two main ways in which food delivery businesses operate. A food business that prepares and delivers on its own either receives orders through its website, third-party mobile app, or phone call.
You can start accepting orders for your homemade food online through your social media platforms, website, or phone calls. Many small businesses that sell homemade food accept orders through phone calls or online business plan software that helps them sell and deliver their food to the customers.
Food delivery services businesses like DoorDash, Grubhub, and Postmates are some of the most popular food delivery services having the potential market share in the online food delivery service industry.
If you are new to the food industry, it means you need to work hard for business planning. We discussed significant factors that should be considered while making your own business plan. So, all in all, you must analyze the current market statistics that may help you make a robust operations plan. For a new player like you, it becomes necessary to understand business models before implying them to your business.
Successful online business may not even if you finish your food delivery business plan template as you may need support from online tools. Upper is one of such tools that streamlines your food delivery services and helps you reach the food buyers’ locations easily. You can manage unlimited food deliveries with the help of a fully automated delivery process. Import your data, optimize them, and hit the dispatch button with just a few clicks. Book a demo with us to get more insights into Upper Route Planner.
Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.
Sign Up Now!
Get weekly updates from Upper Route Planner.
How to Start a Meal Kit Delivery Service Business?
How to Grow Your Customer Base Through Meal Prep Business Marketing?
The Top 10 Meal Kit Delivery Business Statistics & Trends 2023
What is Food Delivery Scheduling? – Meaning & It’s Importance
A Complete Guide on How to Start a Catering Business in 2023
How Does Route Planning Software Help Businesses To Schedule Food Delivery?
Sign Up with Upper Route Planner and automate your daily business process route planning, scheduling, and optimizing!
Stress-Free Route Planning Plan. Dispatch. Track.
Streamline your delivery business operations with Upper Route Planner.
Grab a FREE Trial of Upper
- Plan routes with hundreds of stops in a minute
- Schedule routes months in advance
- Collect reliable proof of delivery
- Track drivers live for real-time updates
- Experience unparalleled customer support
Grab a FREE Trial of Upper TODAY!
- Schedule routes in advance for weeks
- Collect proof of delivery to maintain accountability
- Experience 24/7 customer support
- Smart reporting to get real-time insights
Food Delivery Business Plan Template
Food delivery business plan.
You’ve come to the right place to create your Food Delivery business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Food Delivery companies.
Below is a template to help you create each section of your Food Delivery business plan.
Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.
The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.
Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.
Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.
Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.
Dig In will target all residents living in and around San Diego. It will appeal to students, families, retirees, white collar, blue collar, and government employees. Because our fees are moderately priced compared to other delivery apps, all income levels will be able to enjoy our delivery services.
With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.
The following success factors will set Dig In apart from the competition:
- Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
- Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
- Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
- Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.
Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:
- Platform Development: $150,000
- Marketing and Brand Development: $100,000
- Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
- Working Capital: $100,000
The following graph outlines the pro forma financial projections for Dig In:
Who is dig in.
The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.
Dig In’s History
John Hutchinson has spent the last 2.5 years creating the food delivery online platform. As a tech entrepreneur, he knows how to map, develop, and implement an online platform. He has been instrumental in creating other apps and platforms for ecommerce companies and has created attractive and efficient apps for numerous Fortune 500 companies.
During the COVID-19 pandemic, John was on lockdown and working from his home. He used other food delivery services, but they were all slow, got his order wrong, or didn’t have a good selection of restaurants and establishments. It was then that he started developing his food delivery business and would implement and perfect all of the things that the competition suffered at.
Since incorporation, the company has achieved the following milestones:
- Mapped out the online platform for the food delivery business
- Developed the company’s name, logo, and website
- Approached multiple local restaurants, grocery stores, and bakeries to be a part of Dig In’s platform
- Determined necessary insurance and legal requirements
- Began recruiting key employees
- Written and developed the Delivery Driver processes and procedures.
Dig In’s Services
The Food Delivery industry has grown substantially in the past five years. The convenience of ordering food from home has appealed to large demographics and now nearly everyone orders through a food delivery app at some point. Food delivery apps became a necessity during the COVID pandemic and now they are a mainstay in modern society.
According to Grand View Research, the Food Delivery industry is set to grow at a CAGR of 18.7% from now until 2030. What helps this growth is the increasing popularity of smartphones and the expansion of these services overseas. Food delivery apps are becoming an essential tool in modern society, which makes this a great time to create a new food delivery service.
Demographic profile of target market.
Dig In will target millennials, young professionals, and college age students as this demographic is more comfortable with online delivery services and regularly use other similar apps such as Uber and Tasty.
However, we expect Dig In will appeal to other demographics as well as it will be a convenient and moderately priced option to get food delivered quickly. For example, we expect working parents will enjoy our app as well as elderly residents who have trouble leaving their home to go grocery shopping or go to a restaurant.
The precise demographics of the San Diego area are as follows:
Dig In will primarily target the following customer profiles:
- Young professionals
- College students
- Working parents
Direct and indirect competitors.
Dig In will be competing with other popular food delivery apps. A profile of each competitor is below.
Food at Your Door
Food at Your Door is an online and mobile platform for restaurant pick-up and delivery orders. The company is known for connecting over 30 million customers and processes on average about 500,000 daily orders in most cities around the United States. Customers are able to search for restaurants, order directly through the website or app, and then await their delivery from independent contractor drivers.
The company generates revenue from delivery fees paid by consumers as well as commissions paid by participating restaurants. Food at Your Door’s other offerings include a program for corporate food ordering, website design and hosting for participating restaurants, and point-of-sale integration services. The company is continuously updating its platform with innovative technological advancements to stay on top of the competition.
Fast Foodie is a technology company that connects people with the most popular food establishments in their neighborhoods. They enable local businesses to meet consumers’ needs of ease and convenience while enabling their independent contractors to generate an additional source of income. The company is passionate about transforming local businesses and dedicated to enabling new ways of working, earning, and living. They empower their local economies by ensuring that people have equal access to opportunities to reach their full potential.
Fast Foodie has expanded their database to include not only restaurants, but convenience stores, pet stores, grocery stores, and drug stores.
Ding Dong is an operator of an on-demand goods delivery platform that is intended to facilitate smooth delivery of essential goods. The company’s platform offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials. This enables users to select items from their favorite grocery stores and get them delivered almost instantly.
Ding Dong was the first online platform to expand their services and products by including anything that can be purchased at a local grocery store, convenience store, or drug store. The drivers/shoppers are required to ensure delivery during the selected timeframe that the user selects.
Dig In offers several advantages over its competition. Those advantages are:
Brand & value proposition.
Dig In will offer the unique value proposition to its clientele:
- Comprehensive list of restaurants and grocery stores
- Membership rewards and specials
- Faster delivery times
- Moderately priced fee structure
The promotions strategy for Dig In are as follows:
Dig In will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of food options that are available for delivery.
Dig In will develop numerous collateral materials to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.
Dig In will invest heavily in developing a professional website and app that displays all of the restaurant and store options the company will be able to deliver for. The company will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Dig In will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.
Dig In’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.
Operation Functions: The following will be the operations plan for Dig In.
- John Hutchinson will operate as the CEO of Dig In. In addition to running the general operations, he will oversee the app development and provide app support.
- John will hire 2-3 additional web engineers to run the website and app.
- John will hire 20-30 delivery drivers to work on an independent contractor basis.
- John will also hire an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.
Dig In will have the following milestones complete in the next six months.
- 8/202X – Finalize app development
- 9/202X – Hire and train initial staff
- 10/202X – Kickoff of promotional campaign
- 11/202X – Launch Dig In
- 12/202X – Reach break-even
Key revenue & costs.
Dig In’s revenues will come primarily from the fees it receives from the food delivery orders.
The delivery driver commissions, website platform fees, supplies, marketing, and labor expenses will be the key cost drivers of Dig In.
Funding Requirements and Use of Funds
The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.
- Initial Number of Orders Per Day: 100
- Average Order per Customer: $25.00
Income statement, balance sheet, cash flow statement, food delivery business plan faqs, what is a food delivery business plan.
A food delivery business plan is a plan to start and/or grow your food delivery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Food Delivery business plan using our Food Delivery Business Plan Template here .
What are the Main Types of Food Delivery Businesses?
There are a number of different kinds of food delivery businesses , some examples include: Restaurant Delivery, Meal Kit Delivery, Grocery Delivery, and Veggie Box Delivery.
How Do You Get Funding for Your Food Delivery Business Plan?
Food Delivery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Food Delivery Business?
Starting a food delivery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Food Delivery Business Plan - The first step in starting a business is to create a detailed food delivery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food delivery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food delivery business is in compliance with local laws.
3. Register Your Food Delivery Business - Once you have chosen a legal structure, the next step is to register your food delivery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your food delivery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Food Delivery Equipment & Supplies - In order to start your food delivery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food delivery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful food delivery business:
- How to Start a Food Delivery Business
Food Delivery Business Plan Template
Written by Dave Lavinsky
Food Delivery Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their food delivery businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a food delivery business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your food delivery business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a food delivery business, or grow your existing food delivery business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your food delivery business in order to improve your chances of success. Your food delivery business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Food Delivery Businesses
With regards to funding, the main sources of funding for a food delivery business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a food delivery business. Personal savings and bank loans are the most common funding paths for food delivery businesses.
Finish Your Business Plan Today!
How to write a food delivery business plan.
If you want to start a food delivery business or expand your current one, you need a business plan. Below are links to each section of your food delivery business plan template:
Your executive summary provides an introduction to your food delivery business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of food delivery business you are operating and the status. For example, are you a startup, do you have a food delivery business that you would like to grow, or are you operating a food delivery business in multiple regions?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the food delivery industry. Discuss the type of food delivery business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of food delivery business you are operating.
For example, you might operate one of the following types of food delivery businesses:
- Restaurant Delivery : this type of business delivers food prepared by a restaurant to the consumer.
- Meal Kit Delivery: this type of business delivers pre-made meal kits.
- Grocery Delivery: this service delivers grocery orders, and may or may not include personal shopping.
- Veggie Box Delivery : this type of service delivers boxes of vegetables and other produce, either as part of a CSA or another type of program.
In addition to explaining the type of food delivery business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of meals or orders delivered, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the food delivery industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the food delivery industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your food delivery business plan:
- How big is the food delivery industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your food delivery business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your food delivery business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: working professionals, university students, families and retirees.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of food delivery business you operate. Clearly, working professionals would respond to different marketing promotions than retirees, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most food delivery businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Finish Your Food Delivery Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other food delivery businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores and restaurants. You need to mention such competition as well.
With regards to direct competition, you want to describe the other food delivery businesses with which you compete. Most likely, your direct competitors will be food delivery businesses located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What types of food do they deliver?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide better food delivery services?
- Will you offer features or services that your competitors don’t offer?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a food delivery business plan, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of food delivery company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to food delivery, will you provide personal shopping services or any other services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your food delivery company. Document your location and mention how the location will impact your success. For example, is your food delivery business located in a busy retail district, restaurant district, etc. Discuss how your location might be the ideal location for your operations.
Promotions : The final part of your food delivery marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to local websites
- Social media marketing
- Local radio advertising
While the earlier sections of your food delivery business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your food delivery business, including processing orders, delivering orders, marketing, and maintaining fleet vehicles.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to deliver your 1,000th meal, or when you hope to reach $X in revenue. It could also be when you expect to expand your food delivery business to a new city.
To demonstrate your food delivery business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing food delivery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing food delivery businesses or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you deliver 100 meals per day or per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your food delivery business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a food delivery business:
- Location build-out (if applicable) including design fees, construction, etc.
- Cost of equipment and supplies, including company vehicles
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your company vehicle lease or timetables for delivery days you are working on.
Putting together a business plan for your food delivery is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the food delivery industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful food delivery business.
Food Delivery Business Plan FAQs
What is the easiest way to complete my food delivery business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Food Delivery Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of food delivery business you are operating and the status; for example, are you a startup, do you have a food delivery business that you would like to grow, or are you operating a chain of food delivery businesses?
Don’t you wish there was a faster, easier way to finish your Food Delivery business plan?
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan advisors can give you a winning business plan.
Other Helpful Business Plan Articles & Templates
- Small Business
- Tips & Tricks
Online Food Delivery Business Plan for Startups: Step-by-Step Guide
Table of Contents Hide
Step 1: draft a business strategy for food delivery, step 2: decide what makes you special, step 3: plan the logistics, step 4: budget , step 5: assemble the team of your dreams, step 6: a package choice should reflect your brand, step 7: conduct a practice run, step 8: get your food delivery business off to a good start, step 9: expand and build your business, step 10: applications for restaurants, customers, and delivery personnel.
The customer base has evolved. Their eating patterns, food distribution systems, and food demand have all changed. These stats show how to Increase client retention rates and offer timely delivery; most meals are delivered to homes. There were many orders on Friday, Saturday, and Sunday. To overcome these difficulties, you must develop a comprehensive Online Food Delivery Business Plan for Startups . The strategy is much more than just a blueprint or executive summary.
The following are some ways that a well-written, effective online food delivery business strategy may help you:
- Reveals information about your industry, primary competitors, target market, food delivery platforms, and trends.
- The food sector should analyze SWOT to learn more about its opportunities, threats, and strong points.
- It is a benchmark for managing a business and choosing the appropriate product price.
- You could learn about the need for additional team members, resources, and equipment to help you achieve any key aims or corporate goals.
- Supports the food industry’s financial accounts, cash flow statements, revenue models, competitive tactics, and investment strategy.
Pay close attention to these critical figures before joining the food delivery sector.
The market for Internet food delivery has quadrupled in size since 2017. 57% of millennials favor having a restaurant deliver their food. Customers are willing to pay more for services with faster delivery in 33% of cases. According to 60% of restaurant owners & operators, offering delivery increases income. Restaurant sales volume grew from 10% to 20% due to working with outside delivery companies. Due to the easy and pleasant experience, 70% of consumers prefer to buy deliveries online. The office food delivery market’s “ghost kitchens” or “cloud kitchens” segment will be worth $1 trillion by 2030.
Steps for Online Food Delivery Business Plan
Craft a food delivery startup business plan before menu creation. A solid blueprint ensures success and guides your special dish development. These are the essential components for creating a successful food delivery business plan ; flavor or changes may always be added when you have an idea.
Choose a unique approach to help your business stand out. Local Roots For instance, the farm delivery service in New York City only provides food from “hyper-local” farms, which are two hours from the city. Researching the market is necessary. Use meal delivery services to get takeout from local restaurants and to investigate your rivals. Find out where they fall short so you may make up for it by offering a particular dish, quicker service, or a different cuisine.
A significant aspect of running a food delivery business is logistical management. This step will tell you how to start a food delivery business . Take the following steps right away:
- Find a kitchen : Your local laws must allow you to make meals in your home to hire a commissary or commercial kitchen. If you’re adding restaurant delivery to an already-existing eating establishment, reserve a particular kitchen area for delivery orders. You’ll require a spot where delivery personnel may take orders without interfering with dine-in activities.
- Make a map of your neighborhood : Start subtly. You can always increase once you know how long deliveries take and how many orders your drivers can handle simultaneously. If you’re starting a weekly subscription service, like a meal prep or grocery delivery business, consider dividing your territory into manageable zones. For instance, Tomato Mountain Farm distributes to each zone on a specific day of the week. Consequently, deliveries are more efficient and have a lower carbon footprint.
See Also: Why is White Label Food Delivery App Ideal for your Business?
- Select a fleet: You can brand or wrap the outside if you have your delivery truck or vehicles. Owning a car also makes paying for repairs and gas easier. But the expense is significant. You can use your driver’s car if you cannot acquire or rent a delivery vehicle immediately. To ensure that the food is transported securely, the only thing left to do is outfit them with accessories like insulated bags or ice packs.
- Know when reverse logistics are necessary : Reverse logistics collects customer items and transports them to your location or elsewhere. Meal delivery services like Oco Meals employ reverse logistics to gather recycled food containers.
Investigate competitors in the industry for logistical insights, take note of their processes, take advantage of their flaws, look for mentorship from seasoned food entrepreneurs, and consult our food warehousing guide for storage ideas.
Once you understand your market and logistical requirements, budgeting, income, and demand forecasting are necessary. Using your expected earnings as a guide, calculate your revenue. Projection aids risk assessment, break-even analysis, and upfront expense tolerance. Sum expenses: supplies, vehicles, upfront and 3-year costs, petrol, tolls, maintenance, licenses, payroll. Comprehensive financial planning is crucial.
Maintain financial records and monitor billing cycles. If 30-day expenditures exceed 30-day revenue, cash flow becomes an issue. To relieve concerns about cash flow, think about paying for meals weekly in advance for three months.
The key to starting a successful food delivery company is assembling a committed staff that shares your goals. Put happy employees first since they produce more effectively and will help you maintain profitability during the break-even phase. Choose delivery workers with strong customer service backgrounds crucial for effective client interactions. Communication abilities are more valuable than map-reading skills when using route optimization technologies. Drivers frequently represent your company in person, so choosing ones who can make an excellent first impression is crucial.
If the packaging and style of your deliveries match your brand, it could help you get more return customers. Suppose your market analysis showed an absence of sustainably produced food that could be supplied locally. You start a delivery service for meal packages made with organic and sustainable ingredients. Choose recyclable or biodegradable cartons because they align with your business’s positioning and marketing strategies.
Even if you’re not building an eco-focused business, most clients prefer to place orders from delivery services that utilize recyclable or biodegradable packaging. Even the containers you use to transport food should contribute to building a recognizable brand for your business.
Start your business with a modest clientele so your crew may practice and work out any issues in your physical operation.
Observe how long it takes the drivers to deliver to different places and how much time they require at each stop. Utilize the knowledge you gain from conducting a test run to enhance your routing and scheduling. The more detailed information you have, the better your capacity plan will be, and the easier it will be to scale operations when demand rises. Ask potential customers for feedback on the costs, features, menu options, and services they value throughout your trial run.
Want to know how to start a food delivery business? The best way is to initially spend less money on marketing but get the word out. According to Nielsen’s Global New Product Innovation Report, 50%+ % of consumers discover new goods via friends and family. Make it easier for happy customers to tell their friends about your company since word-of-mouth promotion is a powerful tool. Include a “refer a friend” button on your website, app, and emails. You may inspire your target market to tell their friends about your business by offering a referral discount or rewards program.
Leverage social media for engagement. Pose quick, thought-provoking questions to spark conversations and excitement among your audience. Consider the case when you provide Mexican food. “Taco Tuesday or Torta Tuesday? ” or something like that. I can only display text; I cannot display photos. Which one do you prefer? Increased visibility due to possibilities for comments. Attract a larger audience. Cooperate with regional influencers to effectively promote your business.
An app will be your most valuable weapon in this conflict. Therefore, developing the best mobile app for online or home food delivery business plans should be one of your top priorities. However, the mobile app paradigm for online food delivery differs substantially from others. Your food delivery app business plan must outline three distinct versions of your organization.
As well as a dashboard for management for the principal business owners. Another proposal for a food delivery solution is being developed through Cloud Kitchen. It enables individuals with modest business ideas to prepare meals at home and assist neighborhood residents.
Creating mobile apps with cloud integration helps giant corporations access the largest audience, as it helps small businesses. Thanks to the development of cloud kitchen applications , you can efficiently oversee the operations of your restaurant.
Newcomers to the food industry face time-consuming planning key components explored for drafting a robust business strategy. Understand industry stats before applying business principles; grasp online resources’ importance for running a profitable food delivery venture despite using templates. Newcomers to the food industry face time-consuming planning. Key components explored for drafting a robust business strategy. Understand industry stats before applying business principles; grasp online resources’ importance for running a profitable food delivery venture despite using templates. If you are looking for a SaaS-based Food Delivery App Solution ? At DeOnDe, we offer the best readymade food delivery app solution to provide you with an amazing app built for your food business.
Leave a Reply Cancel reply
Your email address will not be published. Required fields are marked *
- On-Demand Delivery Solution
The Food Delivery Business Model – A Comprehensive Guide
Top 10 Food Delivery Apps in South Africa
How to Start Your Own Alcohol Delivery Business: Step-by-Step Guide
Online Food Delivery Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business ideas » Food Industry » Food Delivery Business
If you are interested in starting a business in the food cum restaurant industry, then one of the ways you can enter the industry is to create your niche or choose a niche that you can effectively maximize.
Starting food delivery services to homes and offices (corporate organizations might just be the door into starting something thriving and profitable. No doubt if you want to start a new business, it is required that you have a good business plan in place before launching out if indeed you don’t want to run your business as a mediocre.
Below is a sample homes and offices food delivery services business plan template that can help you to successfully write your own with little or no difficulty;
A Sample Online Food Delivery Business Plan Template
1. industry overview.
Players in the homes and offices food delivery services industry are involved in delivery foods to any destination within their coverage area as ordered by their clients. Basically, the process of ordering food from a local restaurant or food cooperative is through their telephones, website or customized mobile app.
It is same process when ordering goods from online stores, and many of these food delivery services companies allow customers to keep accounts with them in order to make frequent ordering convenient. Payments are usually done either by credit card or cash, with the restaurant returning a percentage to the online food company if they are not the owners of the restaurant.
The food delivery services industry is indeed a thriving and profitable industry so much so that, in 2008, Papa John’s International announced that its online sales were growing on average more than 50 percent each year and neared $400 million in 2007 alone.
A recent research conducted by TechCrunch reported that “of the $70 billion [ takeaway and delivery market ], only about $9 billion (roughly 13 percent) is online. The established delivery infrastructure of these franchises was well suited for an online ordering system.
The home and office food delivery services industry much active in the United States of America, Canada and European countries.
The industry generates several millions of US dollars annually from several registered and unregistered small – scale, medium scale and big home and office food delivery services businesses scattered all around The united states of America.
This line of business is responsible for the employment loads of people directly and indirectly all around the world. The recent trends in the food delivery services industry is that, local companies have started teaming up with e-commerce companies to make ordering quicker and more precise.
Some restaurants have embraced online ordering despite their lack of delivery systems, using it to manage pick-up orders or to take reservations.
If you are contemplating opening a home and office food delivery services business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies so you that you will be able to get the ideal location with the right demographic composition.
The truth is that, if you get some key factors wrong before starting your own home and office food delivery services business, then you are likely going to struggle to stay afloat.
2. Executive Summary
Food @ Your Door Step® LLC is a standard and registered home and office food Delivery Company that will be based in Boston – Massachusetts, USA. We will cover a wide range of clients both individual and corporate clients. We have been able to lease a suitable restaurant facility with kitchen permit from the appropriate authorities.
The facility is centrally located in the heart of Boston and little minute drive to Harvard University Community. We have put plans in place to also sell our franchise and offer consultancy services in line with our area of business.
Food @ Your Door Step® LLC is established by the Massachusetts awarding winning food nutritionist and caterer – Ms. Clara Brown who has B.Sc. in Food Science Technology and a Master’s Degree in Business Administration (MBA) from Harvard Business School.
She has a robust experience in the food and confectionaries business having worked both in the public sector and the private sector prior to starting her own business.
As a company, we are willing to go the extra mile to invest in some of the finest professionals (chefs, delivery officers and back office staff members) we can find and also we have set plans in place to acquire the best of equipment when it comes to setting up a standard and first class restaurant / kitchen.
When it comes to hygiene and proper packaging, we have put plans, process and structures in place that will ensure that we are always at the top of game when it comes to that. We have been able to secure permits from all relevant departments in Massachusetts.
The demand for foods, snacks and drinks is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where our restaurant is going to be located and ensure that we create a wide range of distribution channels via franchising. With that, we know that we will be able to maximize profits in our business.
Our strongest selling point at Food @ Your Door Step® LLC is the unique taste of the different type of foods, snacks and drinks that we will make and sell. There is hardly any customer that will taste any of our food who would not want to come back and make more purchase or order more– we take great delight in welcoming repeated customers over and over again.
Food @ Your Door Step® LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Our plan is to position Food @ Your Door Step® LLC to become one of the leading brand in the home and office food delivery services industry in the whole of Massachusetts, and also to be amongst the top 10 home and office food delivery services brand in the United States of America within the first 10 years of starting our business.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Boston – Massachusetts is the right place to launch this type of business before spreading to other cities all across The United States of America.
3. Our Products and Services
Food @ Your Door Step® LLC is in the home and office food delivery services industry for the purpose of making profits and we will ensure we do all that is permitted by the law of the United States of America to achieve our business aims and objectives. Here are some of our products and services;
- Takeout and delivery
- Sit-down service
- Trainings, consulting and advisory services
4. Our Mission and Vision Statement
- Our vision is to be amongst the top 10leading home and office food delivery service companies in the United States of America before our 5 th anniversary.
- Our mission is to build a home and office food delivery services business that will meet the needs of all our customers and potential customers in the regions / cities where we have our delivery network.
Our Business Structure
Food @ Your Door Step® LLC do not intend to start a home and office food delivery services business that can only cover only households within our community of operations; our intention of starting a home and office food delivery services business is to build a standard business with active presence in strategic locations in Boston, Massachusetts and of course other key cities spread across the United States.
We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Food @ Your Door Step® LLC;
- Chief Executive Officer
Human Resources and Admin Manager
- Sales and Marketing Officer
- Accountants / Cashiers
- Cook / Chef
- Drivers / Deliverers
- Customer Service Executives
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the restaurant
- Parts of the team that determines the quantity of foods that are to be produced per day
- Map out strategy that will lead to efficiency amongst workers in the restaurant
- Responsible for training, evaluation and assessment of the entire workforce
- Ensures that the steady flow of both raw materials / ingredients to the shop and easy flow of cooked and well packaged foods and drinks to customers as demanded
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the restaurant and kitchen meets the expected safety and health standard at all times.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily office and restaurant activities.
- Responsible for preparing delicacies
- Makes lists and budget for kitchen supplies
- Oversees the entire kitchen staff
- Responsible for training new cooks
- Makes sure that the meals being whipped up tastes really good
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, execute and initiate new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant / Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Distribution Van Drivers:
- Delivers customer’s orders promptly
- Runs errand for the organization
- Any other duty as assigned by the sales and marketing executive and restaurant manager
Client Service Executive
- Responsible for taking orders from clients when the call or email the organization
- Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the shop manager in an effective and timely manner
- Consistently stays abreast of any new information on Food @ Your Door Step® LLC products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
- Responsible for cleaning the entire restaurant / kitchen facility at all times
- Washes plates and other kitchen utensils
- Ensures that toiletries and supplies don’t run out of stock
- Any other duty as assigned by the restaurant manager.
6. SWOT Analysis
Due to our desire and drive for excellence when it comes to running a home and office food delivery company, we were able to engage some of the finest business consultants in Boston – Massachusetts to look through our business concept.
Together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard food delivery company that can compete favorably compete with other leading brands in the industry.
In view of that, we were able to take stock of our strengths, our weakness, and our opportunities and also the threats that we are likely going to be exposed to if we launch our home and office food delivery services business in Boston – Massachusetts and even in the United States of America as a whole. Here is a of what we got from the critically conducted SWOT Analysis for Food @ Your Door Step® LLC;
Our strength lies in the fact that we have a wide range of foods, snacks and drinks that can meet the needs of a wide range of customers including vegetarian et al. We have state of the art kitchen facility and equipment that has positioned us to meet the demand of products even if the demand tripled overnight or if we have a massive order to meet and emergency need.
Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight professionals in the United States of America.
We are not ignoring the fact that offering consultancy services and running a standard and accredited training center is definitely going to count as a positive for us.
The fact that we are setting up a home and office food delivery business in a city with other leading restaurants and food delivery businesses might likely pose a challenge for us in breaking into the already saturated market in Boston – Massachusetts.
In essence our chosen location might be our weakness. But never the less, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on already gather momentum.
The opportunities available to us are unlimited; everybody in our chosen location consume foods, snacks and soft drinks on a daily basis and all what we are going to do to push our products to them is already perfected. There are also loads of people who would want to learn how to cook different delicacies and they will readily find our government approved cooking training center highly ideal for them to fulfill that goal.
The threat that is likely going to confront us is the fact that we are competing with already established home and office food delivery businesses in Boston – Massachusetts and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.
Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face, is unfavorable government policies and of course economic downturn. Usually economic downturn affects purchasing / spending powers.
7. MARKET ANALYSIS
- Market Trends
The Home and Office Food Delivery industry has risen slowly over the last five years while combating lackluster consumer spending and changing preferences and eating pattern. Extreme external competition from loads of new food-services concepts and an increase in health consciousness among consumers is also working against the growth of the industry.
In the face of these challenges, many players in the industry have performed extremely well, adjusting their menus and investing in advanced technology which over time has become trendy. As a matter of fact, sophisticated web-based ordering systems are responsible for boosting efficiency and improving profit margins in the home and office food delivery industry.
Going forward, the home and office food delivery industry will continue to experience growth especially as the economy improves and consumers spend more on eating out.
Another trend in the home and office food delivery industry is that despite the fact that foods and drinks are usually delivered in specially designed boxes or in delivery bags, with the aid of an automobile, motor scooter, or bicycle. Some leading home and office food delivery companies have started perfecting plans to employ the use of drones to deliver foods and drinks.
Lastly, local restaurants / office and home food delivery companies have started teaming up with e-commerce companies to make ordering quicker and more precise. Some restaurants have embraced online ordering despite their lack of delivery systems, using it to manage pick-up orders or to take reservations.
8. Our Target Market
When it comes to foods and soft drinks, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love the kind of foods, snacks and soft drinks that we prepare and of course those who would want to try it out.
In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our pizzas to;
- Corporate Executives
- Government Officials
- Business People
- Military Men and Women
- Sports Men and Women
- Everyone who resides in our target locations.
Our competitive advantage
Our aim of starting Food @ Your Door Step® LLC is to build a business that can grow within the first 5 years of establishing the business to be listed amongst the top 10 home and office food delivery companies in the United States of America and also to sell our franchise.
With that in mind, we have been able to come up with competitive strategies that will help us compete favorably in the industry. We are going to be one of the very few home and office food delivery companies that will also run a standard restaurant, training school and a consultancy services.
Another competitive advantage that we have is our wide range of foods and drinks that can meet the needs of a wide range of customers including vegetarian et al. We have state of the art kitchen facility and equipment that has positioned us to meet the demand of foods even if the demand tripled overnight or if we have a massive order to meet and emergency need.
One more factor that counts to our advantage is the background of our Chief Executive Office and management team. Our Chief Executive Officer has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight professionals in the United States of America.
Our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups restaurants / home and office food delivery companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Food @ Your Door Step® LLC is established with the aim of maximizing profits in the home and office food delivery industry in the United States of America and we are going to go all the way to ensure that we do all it takes to sell a wide range of foods, snacks and soft drinks to a wide range of customers. Food @ Your Door Step® LLC will generate income by offering the following products and services;
10. Sales Forecast
One thing is certain; there would always be corporate organizations, households, schools and government agencies in Boston, Massachusetts and in the United States of America who would always need the foods and drinks from home and office food delivery companies.
We are well positioned to take on the available market in Boston, Massachusetts and in the United States. We are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Boston, Massachusetts to other cities in the United States where we intend marketing our services.
We have been able to critically examine the home and office food delivery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Boston, Massachusetts.
Below are the sales projection for Food @ Your Door Step® LLC, it is based on the location of our business and the wide range of foods, snacks and drinks that we will be offering;
- First Fiscal Year-: $240,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to launch Food @ Your Door Step® LLC and also the types of foods and snacks to prepare, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in the cities where we intend positioning our business.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading home and office food delivery brands in Boston – Massachusetts and the whole of the United States of America.
We hired experts who have good understanding of the home and office food delivery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market Boston – Massachusetts and throughout the United States of America where we intend selling our franchise.
In other to continue to be in business and grow, we must continue to sell our foods, snacks and soft drinks to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.
In summary, Food @ Your Door Step® LLC will adopt the following sales and marketing approach to sell our pizzas and soft drinks;
- Introduce our business by sending introductory letters to residence, schools, corporate organizations and other stakeholders both in Boston – Massachusetts and in other cities in the United States of America
- Open our business cum restaurant with a party so as to capture the attention of residence who are our first targets
- Engage in road show in targeted communities from time to time to promote our business
- Advertise our business in community based newspapers, local TV and radio stations
- List our business and services on yellow pages ads (local directories)
- Leverage on the internet to promote our home and office food delivery brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our home and office food delivery company is a standard one with a wide range of foods, snacks and soft drinks that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Food @ Your Door Step® LLC
Food @ Your Door Step® LLC has a long term plan of opening outlets in various locations all around the United States of America and also to sell our franchise which is why we will purposefully build our brand to be well accepted in Boston – Massachusetts before venturing out to other cities in the United States of America.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Food @ Your Door Step® LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations all around Boston – Massachusetts
- Engage in road show from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our foods and drinks.
- Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
When it comes to pricing for products such as food and snacks, there are no hard and fast rules, the prices depend on the size and packaging. Generally, the prices for cooked food and soft drinks are affordable especially in the United States hence there is no need to employ any detailed strategies when it comes to pricing.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our foods and snacks are sold a little bit below the average prices of various restaurant / home and office food delivery brands in the United States of America.
We have put in place business strategies that will help us run on low profit margin for a period of 6 months; it is a way of encouraging people to buy into our brands.
- Payment Options
The payment policy adopted by Food @ Your Door Step® LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Food @ Your Door Step® LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our foods, snacks and soft drinks.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a home and office food delivery business; it might differ in other countries due to the value of their money.
When it comes to starting a home and office food delivery business the major areas that you should look towards spending the bulk of your cash is in the purchase of standard kitchen equipment, delivery vans, bikes and of course renting or leasing well located facilities.
Aside from that, you are not expected to spend much except for paying of your employees and the purchase of supplies. These are the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in Boston – Massachusetts – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Food @ Your Door Step® LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for construction of a standard kitchen – $100,000.
- Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (food ingredients and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for yogurt making equipment – $20,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase of distribution vans – $50,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our home and office food delivery company in Boston – Massachusetts. Please note that this amount includes the salaries of the entire staff member for the first month of operation.
Generating Funds / Startup Capital for Food @ Your Door Step® LLC
Food @ Your Door Step® LLC is a family business that is owned and financed by Ms. Clara Brown and her immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Food @ Your Door Step® LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our well prepared foods, snacks and soft drinks at affordable prices.
Food @ Your Door Step® LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard kitchen: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers of food ingredients, event planners, and transportation companies: In Progress
- Purchase of delivery vans: Completed
- Salad Delivery Service Business Plan [Sample Template]
- Catering Business Plan [Sample Template]
- Snow Cone Business Plan [Sample Template]
- Shawarma Stand Business Plan [Sample Template]
- How to Start a Food Delivery Business from Home
- Milk Delivery Business Plan [Sample Template]
- Deli Business Plan [Sample Template]
Delivery Service Business Plan: Guide and FREE Template
Did you know that the delivery service industry is expected to reach $658.3 billion by 2031 ? If you’ve been thinking about starting a small business like food delivery or grocery delivery, there has never been a better time. Customer demand is at an all-time high and startup costs are under $10,000 on average.
The first step to creating a successful delivery service business is — no surprises here — writing a business plan. In this guide, we’ll outline everything you need to know to turn your business idea into reality, and provide a free template for you to get started.
💡If you’re already done your homework and just want to get started, go ahead and start filling out our free delivery service business plan template .
Six reasons to create a business plan for your delivery service
Did you know that 71% of fast-growing companies have a detailed business plan? And entrepreneurs who have a written plan are 260% more likely to actually start their business and see success.
That’s because your business plan is your blueprint for getting started, and then guiding you to success in your new business. It will help you:
- Decide if your business idea is viable.
- Conduct a market analysis to understand your competition, customers, and growth ability.
- Set your goals, and create strategies for achieving them.
- Make important decisions about products, marketing, staffing and funding.
- Raise funding from banks or other investors.
- Track your progress, growth and profitability.
The main components of a delivery service plan
A business plan is a summary of all your business’s potential operations, so it includes multiple components. Here they are:
1. Executive summary
This section is an introduction to your business, so you want to make it appealing. Answer the following questions:
- What’s going on in the delivery service industry?
- What type of delivery service business are you opening?
- What sets your business apart from well-known delivery options, like FedEx and USPS?
- Who are the key members of your team? If you are just starting out, your only team member might be you. In this case, list your experience and commitment to success.
- What are your financial projections showing? What are your operating margins and tentative profitability?
You don’t want to bore the reader in this section. Make it engaging, and outline key points and advantages of starting your business. Don’t include any negative information. For example, you shouldn’t say that the delivery service market is oversaturated. If it was, opening a new business wouldn’t be very successful, would it?
Another common mistake to avoid is understating the qualifications of your team. Don’t say you lack the capital to hire team members, or that you don’t have the necessary experience to run the business. Instead, stay positive with words like “the (company) plans on hiring additional help once we enter a growth phase.”
2. Company overview
The company overview is a deeper dive into the fundamentals of your delivery service. Here, you will pinpoint the type of business you will operate. For example, will you be a pure delivery company, like a courier or express messenger? Or will you be delivering your own products, like food, beverages or flowers? Or maybe you’ll deliver on behalf of other producers, like many grocery delivery services that work with different farmers. Will you offer same-day delivery?
A courier service business plan will be different in some ways from a plan for a grocery delivery service company, but you’ll need to answer all the same questions.
It’s not uncommon for delivery service businesses to engage in more than one service. List all services that you plan on operating.
In the company overview, you will also outline your “why” for starting the business, important milestones you have already achieved, and information on the legal structure of your business. You may also want to include a mission statement here.
3. Industry analysis
Now, it’s time to get down to the facts. Include industry growth facts, such as that the compound annual growth rate in the United States is 5.7% or that there are currently over 250,000 courier and local delivery companies .
Properly completing this section will require some industry and market research. Great research starting points include IBISWorld , the Small Business Administration (SBA), and your state’s website, if you are offering local courier services. This is not only beneficial to show the opportunities in the market, but you will also develop insights into how to set yourself apart from competitors.
Be sure you include information on market conditions, main competitors, key suppliers, current trends, and where the industry is headed.
4. Customer and market analysis
Who is your primary customer? Are you looking to work with individuals or businesses? What types of businesses or individuals are your ideal potential customers? Identifying your target market, and how will you win new customers, is critical to developing accurate marketing strategies.
Try to be as detailed as possible. Pinpoint the age, gender, geographic location, income levels, and needs of your target market.
5. Competitive analysis
The competitive analysis section will highlight your competition and how you plan on setting your business apart. You should uncover data to back up your claims. For example, recent studies show that 73% of customers have had bad delivery experiences , and 16% have advised friends or family to avoid the retailer.
Statistics like these can help to show that prioritizing customer service is how your business will shine. You might choose to include a chart or graph on common traits that your business and competitors have. Identify weaknesses, strengths, pricing differences, and the target market of competitors as well.
Could you offer local delivery to companies in your area to boost their revenue? How about delivering outside of normal hours, such as overnight? Do you have the capabilities to specialize in fragile package delivery? These are all ways that you can differentiate yourself from competitors.
6. Marketing strategy
Using all of the information and data you have accumulated, you will piece together a marketing strategy. Going through the four Ps can give you a comprehensive marketing plan:
- Product: Discuss the type of services you are providing again, including the specifics, like late night delivery or fragile package options.
- Price: Reinforce your pricing structure and make a comparison with competitors.
- Place: Identify where you will be delivering. This could be local, regional, or national.
- Promotions: Put together a general strategy for how you will attract customers. Will you advertise in local papers, or go for a pure e-commerce model? How about social media or email marketing? Talk about how your delivery service website will use SEO, how you’ll build relationships with local businesses, or how you’ll search for jobs on courier listing sites.
Your marketing strategy is very important for displaying how you will attract customers using your competitive edge.
6. Operating strategy
This section of your delivery service business plan will outline both the day-to-day operations and the long-term goals of your business. In the executive summary, you touched on a few of your main goals. In this section, you will elaborate on those items.
Common day-to-day operations might include listing the tasks of your team, like answering calls, scheduling, and dispatching routes to delivery drivers. How will you plan your deliveries? Will you hire your own drivers, or use contractors? What about a vehicle fleet? What software will you use to track deliveries, customer requests, and costs?
Long-term goals might be increasing revenue by a certain percentage each year, or adding a specific number of trucks every few months. Maybe you want to grow revenue by 3% each year. What can you do to get your business there? Will you increase prices to match inflation, win new customers or hire additional staff?
Both your short-term and long-term goals need to be reasonable. Don’t say you’ll grow revenue by 50% in your first year, or have 20 delivery team members right from the start. Reasonable goals are easier to work toward and can keep you and your team motivated.
7. Management team
Your team is essential to the success of your delivery business. If you have a partner with years of industry experience or a manager with a stellar record, incorporate that expertise and experience into this section.
You should have a clear management structure and chain of command. Keep in mind that job roles can overlap, especially if you only have a few team members. Identify who will handle hiring, day-to-day operations, high-level decisions, and customer service.
Also, be sure that you include any mentors that are guiding you along the way. This could be an advisor in the industry, a family member, or a friend.
8. Financial projections
A key component of your delivery business plan is projected financial statements. If you are just starting out, you might not have years of historical financial information. This is why you need to project your expected revenue, operating expenses, assets, and profit based on industry research and your specific business characteristics.
Your financial plan should include at least five years of financial projections. This helps you determine your business’s chance of being successful and profitable. Prospective lenders and investors will also want to see this information. Here are the main financial statements you will develop:
- Income statement : This outlines your revenue, expenses, and bottom-line number, known as net income. A positive net income indicates a profitable business, while a negative number suggests you are losing money.
- Balance sheet : The balance sheet tracks your overall financial health by outlining assets (what you own), liabilities (what you owe), and equity (what you’ve earned, contributed, and taken out of the company).
- Cash flow statement : This tracks the movement of money in your business. The three main categories found in this document are cash earned or spent from operations, financing activities, and investments.
It can be hard to plan out all of these expenses, which is why many delivery service businesses use an accountant to help.
Don’t just hire the first accountant you come across. Interview a few to confirm that you feel comfortable with them and can develop a good working relationship. Also check that they have experience helping startups, especially in the delivery service industry. This is because the business model that delivery service businesses follow isn’t the same as other industries.
Accountants will usually list the clientele they work with directly on their websites. Otherwise, don’t be afraid to reach out and set up a consultation.
The appendix will contain additional schedules, financials, graphs, maps, and supporting information for your delivery service business plan.
Top things to know before writing your delivery service business plan
Before you create your delivery service business plan, you will need to think about the big picture. This includes evaluating the following components:
1. What delivery service model will you choose?
In your delivery business plan, you will need to decide exactly what kind of courier or delivery service you want to offer.
First, consider how you will run your daily delivery operations . Will you do it all in-house , including hiring and managing your own drivers? This is how Walden Local in New England does it, using their own branded vehicle fleet and drivers to deliver local meat and fish directly from farms to customers. This gives you total control over delivery operations, but you will need your own delivery vehicles. This can increase the costs, especially when you factor in vehicle maintenance.
Alternatively, you could outsource your actual deliveries via a gig economy app like DoorDash or Uber Eats. Many restaurants and ghost kitchens choose this operating model, preferring to focus their effort on the actual product they’re delivering.
Second, what delivery time frames will you offer? The three main options here are:
- On-demand delivery: This literally means you will deliver (or pick up and deliver, in the case of a courier service) as soon as the customer places their order. Depending on the exact product, this could be the same day (groceries) or the same hour (restaurants). This is highly convenient for customers, but expensive to operate.
- Batched delivery: If you expect very high volumes, or if you choose to offer next-day delivery or later, you have the option of creating delivery batches so you can create more efficient delivery routes and schedules. This makes it easier to deliver profitably, but isn’t suitable for a business like a restaurant.
- Scheduled delivery : This is a favorite delivery model for subscription services like meal prep companies, and it can make delivery operations much easier. It means pre-planning deliveries to specific areas on specific days — for example, I subscribe to a flower delivery service that means I get fresh blooms on my doorstep every second Wednesday. You will need to be very clear upfront with your customers about how their deliveries will work, but if you manage expectations clearly this can be an excellent option.
You can read more insider tips for starting your own delivery business here .
2. How will you set up and staff your business?
During the business planning process, you should form a legal business structure. This entails registering your business name with your state and applying for an Employer Identification Number. You will need to pick out a business structure, such as a single-member LLC, a partnership, or a corporation. Talking with an accountant can help you find the most favorable structure.
Keep in mind that staffing can take some time, especially with talent shortages. Before you can accept your first delivery order, you need to go through the hiring and training process with staff members. Knowing how to hire and retain delivery drivers , in particular, can help you save a lot of time and money.
Do your research on a competitive wage, determine how you will process payroll, pinpoint the benefits you will offer, and create job listings. The right team members working alongside you can help your business thrive.
3. What delivery management software will you use?
If you want an efficient, profitable delivery service business , sooner or later you’ll need proper delivery management software . Plenty of delivery businesses have started out using nothing but Excel spreadsheets, but that can quickly become a brake on your growth. Considering your delivery software while you’re making your business plan can give you an edge. Look for software that will make it easy to:
- Upload orders
- Use route optimization to plan efficient delivery routes
- Dispatch to a mobile driver app
- Track delivery progress in real time
- Send customer notifications
- Manage driver timesheets and payroll
The right delivery management software can help you achieve profitability, offer a great customer experience, and ensure on-time deliveries.
How to use the template
Now that you know what to include in your delivery service business plan, it’s time to get started. You can open a copy of the template right now and start writing. Here are some tips we’ve learned along the way:
- Don’t jump around: Work on your delivery business plan section by section, starting at the top. Jumping around results in missed information and confusion.
- Re-read Sections – It’s helpful to read through each section a few times before you create your own.
- Be Thorough – The more thorough you are, the more beneficial your plan will be. After all, the goal of a delivery business plan is to provide you with guidance for starting your business.
- Be Honest – Oftentimes, delivery service business owners adjust their plans to make their business look more attractive. You want to be honest throughout the plan to give you an accurate roadmap of what you need to do to become successful.
If you are still struggling to piece together your business plan after reading this guide, don’t hesitate to reach out to an expert for help.
Final Thoughts and Access to Your Free Template
A delivery service business plan is a resource that can bolster the success of your new delivery business. Take the time to conduct research and put thought into your plan. You don’t want to start your business and scramble to figure out who your target market is or how to display your competitive advantage. Here is our free template .
If you’re in the market for delivery management software, Routific has you covered. We infuse accuracy and efficiency into our platform, giving you the tools to increase profit, meet customer demands, and ensure your team maximizes productivity. Reach out to schedule your free consultation.
Frequently Asked Questions
Liked this article? See below for more recommended reading!
Starting Your Own Delivery Business In 2023: Insider Tips
4 Best Practices For Local Grocery Delivery In 2023
Best Last Mile Delivery Software 2023: Reviews & Guide
Online Food Delivery Business Plan [Cost, Requirements]
Table of Contents:
1. How to Start Online Food Delivery Business?
2. food delivery business plan- how to fund, 3. marketing your online food delivery business plan, 4. tips for promoting food delivery business, 5. how to start a food delivery business- maintaining accounts., 6. types of food delivery business model, 7. food delivery business plan types.
Do you like trying out new cuisines but afraid to go out during the pandemic? Does recreating those dishes for your friends and family make you happy? Why confine your talent within the family? Use it to start an online food business and watch it grow by leaps and bounds.
In order to stay safe at home, people are now opting for doorstep food delivery services. What can be more exciting than turning your own passion for cooking and baking into an online business? Having your own food business set up can make you an entrepreneur, too.
For a food lover, what can be more comforting than earning money by exploring your passion for food? But before you start living your dream, it is very important to know that online businesses require research and planning. Make your food service different from the others, by establishing your uniqueness and getting a good grip of the market. Today, online businesses face stiff competition.
1- Assess the Demand in the Market
The food and catering industry is booming, contributing significantly to the economic growth of the country. There is always a huge demand for home-cooked food. However, it doesn't mean that you can simply jump into the business without gauging the market. An online business is still quite a new thing which requires some sort of technical help. You also need to set up your business in an area where people are used to ordering food online. Setting up your online food business in an area where people don't use their smartphones that often, is definitely not the best thing to do.
2- Stand Out In the Crowd By Carving Your Niche
You might be an expert in preparing all sorts of food. No matter what the cuisine is, the ultimate goal of a food business owner should be to make people lick their fingers clean after having your dish. But does that mean you will make everything under the sun for your cloud kitchen services? No, experts always rock the market. So, carving out a niche is very important to get noticed and gain a competitive edge in the era of food online business. Here are some ideas:
- You can prepare quick snacks and target teenagers and college students.
- You can opt for full course homely meals for couples and families.
- You can serve lunch tiffins for corporate employees.
If you are an expert in a particular niche in cooking food, then why not showcase yourself as an expert? And, remember who does not love to buy from an expert?
3- Get Reliable Delivery Persons
You need to realise that the online food business is all about home delivery. Just preparing delicious and lip-smacking food is of no use if you cannot deliver it to your customers. For this, you need to hire reliable delivery personnel who will be responsible and deliver the food to the doorstep of your customers so that they can enjoy the food while it is still smoking hot. Make sure you can trust your delivery persons who can deliver food in the perfect condition. It is good if they have a two-wheeler of their own. Otherwise, if funds permit, you can also buy a vehicle for your food delivery.
Customers want timely delivery of their food as hunger can create the nastiest emotions in humans. After all, who likes to wait for hours anticipating the arrival of their food? Take care to satisfy the demands of your customers. In this technological advancement era, you can even partner with food delivery agents who will take care of the delivery, menu handling, payment, and customer complaints on your behalf. This will not only reduce your responsibilities and also ensure that you get a regular flow of orders if you serve quality food.
While starting a new business, the first worry is always about the arrangement of funds and investment in the initial stages. Put all your tensions aside because all you need is your skills and food to cook. You don't even need to set up a restaurant and spend thousands of bucks on its maintenance. A cloud kitchen service is the latest trend which can transform your home into your workplace. You can do this with a minimum investment by cutting the cost of a new set up, hiring employees, etc. Even if you need some money, you can always take a loan from a trusted bank. However, try not to take credit by going beyond your capacity because the profits might take some time to flow in.
You may prepare the best food in the world but remember, just starting your business takes time to flourish. Be patient because it takes time for the customers to start coming in. You cannot expect the world to know about your food business as soon as you're listed on the internet. Proper marketing is the key if you wish to take your food startup to great heights. Having an attractive and consistent social media is the second step after entering the world of the online food business. These days, people spend a lot of time on various social media platforms. Maintaining an active presence on social media goes a long way in promoting your brand.
1. Spend some money on developing your Instagram page and give regular updates about your food business.
2. Add pictures of the mouthwatering dishes that will make everyone drool.
3. It also provides you with the opportunity of keeping in touch with your existing customers while reaching out to potential new customers at the same time.
4. Indulge the viewers through some giveaways to attract followers.
The best thing is that you can do it at a minimum cost. Digital marketing can take your online food business to unimaginable heights. So, get started without further ado. As your business starts growing, you can consider other options for promoting your business. Spending a few bucks and getting a newspaper or television ad might give your business the much-needed boost.
When your food startup starts growing, it will be a daunting task to maintain all your records and accounts manually. OkCredit will help you in storing all the information conveniently in one place to prevent chaos and confusion. Keep records of your orders, revenues, and payments of your staff at one go and keep the headache aside. Staying organised also helps to take your business in the right direction of progress.
We know that the process is not simple but worthwhile. The online food business is one of the booming industries, and this is the right time to get hands-on. We at OkCredit, have helped numerous businesses get established and flourish in a few months' time. So, the time is ripe for you to transform your passion into a successful profession today. You can always take feedback from your customers, and when your food startup starts receiving good reviews from customers, it will give you immense joy and satisfaction. What is more, you will also become financially independent. Start feeding those mouthwatering dishes to the world and become a successful online food business owner.
Do you still have some questions about setting up your online food startup? Read out the FAQs to find all your answers.
While curating your food delivery business plan you must be clear about the type of deliveries you want to operate with. While brainstorming you might get over hundreds of food delivery business ideas but staying clear on your niche will help you manage the delivery gap between the restaurant and customers. The main aim of every food delivery business model is to market restaurant to the masses.
There are two phases in every food app business model which are:
- For Delivery- A delivery boy appointed by the restaurant delivers food to customers doorstep, in case of communication, a mobile number is made available to the delivery boy.
- For Order Allocations- Placing orders via app or websites, orders are received via fax, email or mobile notification. Order will be confirmed by the restaurant and send an instant message to the customers. With the help of POS, System orders are also printed directly into the kitchen.
The major types which work in India answering your question to how to start a food delivery business are:
- The Order & Delivery Model- For this, you'll need the help of the most popular food delivery apps like Zomato, Swiggy, etc.
- The Order Only Model- Works for direct restaurant websites and apps, for eg: Mojos Pizza, Oven Story, Behrouz Biriyani, Faasos, etc.
- The Fully Integrated Model- This process mainly orbits around the meal delivery startups. For example, Food Darzee, Eat Purely, etc.
Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more! Download OkCredit now & get rid of your bookkeeping hassles. OkCredit is 100% Made in India.
Q. How do I start an online food delivery business?
Ans- For starting an online food delivery business you need to follow these simple yet effective steps:
- Understand Customers Food Needs
- Figure out your Niche
- Be Tech-Savvy
- Market Research & Analysis
- Hire reliable Delivery people
- Manage Cashflow
- Develop your App/Website
- Choose the correct online delivery model
Q. How much does it cost to start a food delivery business?
Ans- For starting an online food delivery startup business an initial investment of anywhere between 4 to 7 Lakh Rupees will be needed for the Indian market. This will include your monthly operational costs, materials, and delivery boy salaries.
Q. Is online food business profitable?
Ans- Yes. Online food delivery business is a profitable business idea in India, especially since the pandemic. Online ordering and demand for the same have raised over 50% since 2020 and it has become important for every entrepreneur, restaurant, and brand to have a strong online presence.
Q. How do online food delivery make money?
Ans- Some ways that help online food delivery services make money are:
- Charging a nominal fee for restaurants you're representing
- By charging a delivery fee to customers
- Can also charge convenience fees
- Sometimes you can add packaging charges to the bill
- Placing online ads to generate extra money
- You can ask eateries for a share of every order placed over the food delivery system.
Q. How does online food delivery works?
Ans- Your customers can place their orders via your website, food delivery apps (Zomato, Swiggy, etc.) or use your restaurant's Facebook page. The order is instantly notified on your phone, tablet, or business laptop you're using.
Q. What are the benefits of online food ordering?
Ans- Some of the benefits of online food ordering are:
- Makes ordering and decision making easier
- Helps in managing customers and orders more efficiently
- Real-time expense monitoring advantage
- Cost-effective plus free business marketing
- Transparent Customers data and transaction
- The convenience of ordering via multiple gadgets
- Staying ahead of your competitors
- Grow your Finances via online ordering
- Larger target audience
- Contactless delivery options available
Q. How much does it cost to make a food ordering app?
Ans- To make a food ordering app plus website, the average costing can range from anywhere between 3,00,000 to 10,00,000 Lakh rupees in India. It depends on various softwares used and the web designers' charges along with taxes.
Q. How do I start a food business from home?
Ans- Online food delivery business a profitable business idea. These pointers will help you start a food delivery business from home:
- Select a Business Model
- Market Research
- Create a Meal Delivery Business Plan
- Obtain Valid License, Insurance, and Permissions
- Gather Resources
- Create a Marketing Plan
- Assess Your Resources
Q. How can I sell my homemade food online?
Ans- Sell home cooked food online is a very popular trend since the Pandemic. You can use various methods like-
- Flyers, Pamphlets of Food Menu and Offers put inside local newspapers
- Word of Mouth Marketing
- Offering attractive offers and discounts like buy one get one
- Using food delivery apps like Zomato and Swiggy
- Advertise online via Facebook, Instagram, Google Ads, etc.
Q. Which social media platform is best to promote online food services?
Ans: Choose Facebook, Instagram, and WhatsApp mainly for the promotion. People tend to use these frequently to find out the local food outlet near them.
Q. Can I use apps to accept online food orders?
Ans: Yes, you can. There are several popular apps that are now used by customers to order food online. These apps are convenient for the sellers as well as the customers.
Q. How can I register my business?
Ans: First of all, registering your business with MSME. After your company is registered, it hardly takes a few minutes to get online. You need to click on "Add your restaurant" in any app. Entering your mail ID is all you need to do. Add details to make customers interested in buying your food.
Q. Is the Shop Act License required for starting an online food business?
Ans: No matter what your business is, getting a Shop Act License is a must. You must apply for the license within 30 days from the day you start selling your products online.
Q. How to open a bank account for my online food business?
Ans: Opening a bank account for your food business is a must. You can do it fairly easily. Just visit your nearest commercial bank and fill-up the form for opening up a new current account in the name of your business. You can even fill-up the form online on the bank's website.
We bring you some of the best small business tips, ideas & tricks to grow your business & more.
Cable manufacturers in india [5 best manufacturers], air compressor manufacturer in india [top 11 manufacturers], pet bottle manufacturers in india [top 7 manufacturers], paint manufacturers in india [6 best manufacturers], silk saree manufacturers in india [best manufacturers], you might be interested in, foreign direct investment(fdi) 101: a complete guide, series funding [types, how it works and more], sustainable architecture ideas that can improve our lives.
Food Delivery Business Models: Which One to Choose for Maximum Gains?
Food delivery Industry is growing at a massive scale. People are more likely to order their food online within the comfort of their home. And this gave rise to online food delivery startups. The fact is the food industry is an evergreen business which will remain till humans are present on the earth. Here is a well-known quote for the same.
“Food is a necessary component to life. People can live without Renoir, Mozart, Gaudi, Beckett, but they cannot live without food.” – Grant Achatz
Starting an online delivery business with the perfect food delivery business plan can be successful at a time of crisis. To give you a better idea, we have mentioned a few statistics on the online food ordering business model.
A Few Important Stats on Food Delivery Business Model
- 60% of US consumers order food online at least twice a week.
- 57% of millennials want to get food delivered home so they can watch movies and TV shows at home.
- Revenue in the Online Food Delivery market is projected to reach US$231.30bn in 2023.
- 60% of restaurants have agreed to the fact that online order and the delivery thing has resulted in incremental sales.
- Delivery sales are resulting in the rise of annual average by 20% .
- Here is a percentage graph which shows the people planning to increase their food delivery services.
So, are you one of those who is looking for a perfect online food delivery model for your business? In this article, we will be discussing a few types of food delivery business models and their challenges. Let’s proceed.
Types of Food Delivery Business Model
Basically, there are three types of food delivery models present in the market. Let us go through all of them one by one. But remember most online food delivery businesses follow the marketplace business model .
1. The Order Only Model
Grubhub, JustEast, and more follow this type of food delivery business plan. In this type of food delivery business ideas , you will act as a bridge between the users and the local restaurants through your online platform. You will facilitate the users and restaurants to connect with each other to place and deliver orders. The main aim behind creating the best online food delivery business model is to provide convenience in letting restaurants reach out to a larger audience base. On the other hand, let customers easily order food from their favourite restaurant.
The two-phase of this food app business model works like,
For Order Allocations:
- Customers can place the order from the website or applications.
- Restaurants will receive the order through fax, mail or mobile notification.
- They will confirm the order and send a message to the customers.
- In some cases, the orders are directly printed into the kitchen with the help of the POS system.
- A restaurant delivery boy delivers the order at the customer’s doorstep.
- In case of any issues, a customer mobile number is made available to the delivery boy.
Advantage of Order Only Food Delivery Model
In such a type of business model canvas for food delivery service, you being the owner, do not have to face any issues regarding food delivery. You can charge flat commission fees from the restaurants on every order placed.
Challenges of Order Only Model
In the beginning, attracting eateries to your platform might be a challenging thing with this delivery business opportunity. Therefore, you need to research what exactly you need to offer to eateries. You need to work more on the marketing of your online platform in order to make your business successful. And the fact is for this food delivery model; your success highly depends on the services that restaurants are giving to its customers.
2. The Order & Delivery Model
This food delivery app business model can handle restaurants, customers, and delivery all at the same time. It is one of the most common marketplace solutions used by businesses. Most of the eateries would register themselves with this type of food delivery platforms as they don’t need to deal with the delivery thing. Some of the most popular food delivery apps for this model are UberEats, DoorDash, Zomato, etc. To operate this type of food delivery business, you need more resources than the first one. The working of order and delivery business model goes like,
- Restaurants can register on your online platform.
- Customers can place the order from the restaurant through your platform.
- The orders are received by the restaurant through website or app notifications.
- The customers can either pay online or cash on delivery as per their choice.
- The delivery boy nearest to the restaurant will get the notification to receive the order and deliver it to the customer’s place.
- A delivery fee will be applicable to the customers based on the distance.
- Customers can even add instructions for the delivery like don’t ring the doorbell, place an order outside, and more.
Advantage of Order and Delivery Model
For this food delivery business model, your success will rely upon user experience that they get from the restaurants and delivery boys. You can charge a flat commission to the restaurants on every order and even charge a delivery fee to the customers if the order is below a certain amount or far from the customer’s delivery location. You can provide a flexible and instant delivery to the customers’ by training delivery boys. This will help you to get the higher ratings for your food delivery business. All you need to do here is keep an eye on activities going around your business and work on any issues if found.
Challenges of Order & Delivery Model
The biggest challenge of this food delivery logistics is to deliver the order on time. The delivery time matters for most customers; therefore, you must look into the ways to deliver food on time. And the order delivery time is crucial, especially for the lunch order due to the working time. Another challenge here is to manage all the resources of your business.
3. The Fully Integrated Model
The third food delivery model revolves around the meal delivery startups, which is quite different from the above two. This model is a complete meal delivery business plan to start your own venture. A few examples of such types of meal delivery startup are RocketFood, Extra Plate, Eat Purely, and more. Here everything starting from cooking on delivery should be taken care of by you being the owner. Either you can cook the meal at your place or can hire a chef for the same. This type of prepared meal service usually partners with the chefs. The working of a fully integrated model goes like,
The order allocation is this type of meal delivery business plan that usually occurs in two ways mentioned below.
- The first one has zero involvement of the admin i.e; the order will be directly notified to the nearest driver.
- For the second one, there is some involvement of the admin for the order allocation. When a customer places the order, it will first go to the admin panel, and then the admin will allocate it to the nearest driver.
- Food delivery here is done by drivers that a company hires.
- There can be either a scheduled delivery or an instant delivery as per the customers’ requirements.
- Every driver is given a set of meals to deliver at the customer’s doorsteps.
Advantage of Fully Integrated Model
The main advantage here is you don’t need to rely on the third party for user experience. As in this type of meal delivery startups, everything is operated by your company. If everything goes right with your meal delivery business plan then you can earn huge and enhance your business.
Challenges of Fully Integrated Model
The biggest challenge faced by this food delivery business model is the operational cost. Many meal delivery startups need to shut their doors because of the operational costs. This happened especially with those who tried to cook their own food. One way to save the business from such failure is to try for multiple deliveries at a time and enhance the user experience.
Editor’s Note: Please do not get confused with all three models, as in the first model restaurant have their own delivery boy whereas for the second model restaurant, delivery boy and owner of the business model all three are separate working individuals. That is, the restaurant will get the order, the delivery boy will deliver it and the owner of a business model i.e application owner will get a commission. For the third model, everything will come under the owner, whether it is a restaurant or delivery boy. From cooking food to delivery everything is to be done by the website owner.
Food Delivery Business Model Canvas
Get updates of the latest tech news
Register with your email ID to get the first bite of the most trending news.
- Phone This field is for validation purposes and should be left unchanged.
Which Food Delivery Business Model To Go For?
Building an online food delivery business will help you in the present as well as the future.
You can choose any of these three food delivery business model as per your needs. All three food delivery service business model comes with its own pros and cons. Make deep research on your business and choose the one which suits best for your food delivery startup. If you are looking for more guidance on how to start a food delivery business, then we are here to help you out. Our experts will help you to get the best solutions for starting an online food business . So, let’s connect!
About the Author
Mayur is the CTO of Excellent WebWorld and a Web & Mobile App Development Company. He is updated with all the latest trends in the mobile app technology field. He writes blogs which are helpful for businesses to implement technology in the operations. You will find him swimming whenever he is free.
- Apps & Software
- Trending Technology
We believe in turning ideas into impactful products.
- Dedicated Team & Agile Approach
- Team of 200+ Developers
- Long Term Liability
- Competitive Pricing
- Technology Skills
- Useful Suggestions from Experts
Extending Our Services to Countries Around the Globe
- iOS App Development
- Android App Development
- Flutter App Development
- Mobile App UI/UX Design
- React Native App Development
- Software Development
- Website Development
- MVP Development Guide
- How to Patent an App Idea
- How to Raise Funds Guide
- Mobile App Development Guide
- Social Media App
- 30 Best Web App Ideas
- Fashion eCommerce App
- Liquor Delivery App
- Health & Fitness App
- On-Demand Marketplace
- Smart Parking – Mall & Buildings
- Smart Switches – Control Devices
- Smart Helmet – Worker Safety
- Sports Betting App Development
- Insurance Mobile App Development
- How to Make A Fintech App?
- Healthcare App Development
- How to Create A Dating App?
- Make an App Like WhatsApp
- Food Delivery Business Models
Meet us at Dubai GITEX 2022
Solving Business Challenges
Helping businesses grow, how to start a food delivery business: from business plan to expansion.
February 4, 2022
When you picture your future food delivery business, you probably envision yourself engulfed in sweet aromas as you stir your signature dish over a hot stove. But if you want to light up the taste buds of swooning patrons, you’ll need to have more than a love for culinary innovation. You need a solid understanding of business procedures, like budgeting and delivery driver routing, too.
This guide is designed to help you conquer all of the non-food related parts of your business. Whether you’re just starting out, ready to launch, or looking to expand an existing food delivery business, these tips and strategies will help you grow your business successfully. Plus, learn how OptimoRoute streamlines routing, scheduling, and planning, so you can focus on the fun part — the food.
Jump to your step:
Step 1: Formulate a Food Delivery Business Plan
Step 2: purchase equipment and hire your team, step 3: take a test run, step 4: open your food delivery business with a bang, step 5: scale and expand your business.
Before you design a menu or perfect your signature dish, you need to form a food delivery business plan (or business recipe ). You can always spice it up or modify it when you feel inspired, but these are the essential steps for creating a successful business model.
Find your differentiator
Choose a unique approach to make your business stand out. Local Roots NYC ’s differentiating factor, for example, is that their farm delivery business only sells food from “hyper-local” farms — ones that are within a two-hour radius of NYC. Domino’s Pizza sets themselves apart in a highly competitive market by offering unparalleled convenience and unique delivery options.
How do you find your differentiating factor? You’ll have to conduct market research. Explore your competition — order takeout from local restaurants and food delivery services . Look for gaps in their offerings so that you can offer something they don’t, whether it’s a particular dish, shorter delivery time, or a different type of food.
Recommended Reading: How to Do Market Research: A 6-Step Guide ; How to Differentiate Your Restaurant and Stand Out From the Crowd ; How Can I Find Customers in a Competitive Market?
Plan your logistics
Logistics management is a large part of running a food delivery business. We’ll dive into software you can use to simplify route planning and order management in step 2. For now, here’s what you need to do:
- Find a kitchen. Unless your local laws allow you to cook in your home kitchen, you’ll need to rent a commissary or commercial kitchen. If you’re adding restaurant delivery to an existing dining establishment, make sure you set aside dedicated kitchen space for delivery orders. You’ll need a space for drivers to gather delivery orders without interrupting your dine-in workflow.
- Map out your territory. Start small. You can always expand once you have a firm understanding of how long deliveries take and how many orders your drivers can handle at one time. Software such as OptimoRoute can help with this. If you’re starting a weekly subscription service, such as a meal prep or grocery delivery business , consider dividing your territory into manageable zones. For example, Tomato Mountain Farm offers delivery to each of their zones on a specific day of the week. This makes deliveries more efficient and cuts down on their carbon footprint.
- Choose your fleet. If you buy your own delivery vehicle(s), you’ll have the freedom to wrap or brand the exterior. Owning your own vehicle also simplifies maintenance and gas expenses. But it’s a large investment. If you aren’t able to purchase or lease a delivery vehicle right away, you can have your drivers use their own vehicles. You’ll just need to outfit them with extra supplies, such as ice packs or insulated bags, to ensure the food is safely transported.
- Know if you need reverse logistics. Reverse logistics is the process of picking up items from customers and bringing them back to your establishment or to another location. Meal delivery businesses such as Oco Meals use reverse logistics to pick up reusable food containers. Oberweis Dairy uses reverse logistics to pick up empty milk bottles. Reverse logistics solutions can help you differentiate your business by providing a unique customer experience.
Check out the competitors you identified in your market research and see how they handle logistics. You may be able to learn from their systems, or you may find gaps in their systems that you can capitalize on to get an advantage. It can also be very helpful to find a mentor — a restaurant owner or someone who has set up their own food delivery business and can give you guidance. Finally, if your food delivery business requires warehousing, check out our guide to food warehousing for tips on how to optimize storage.
Recommended Reading: How Delivery Planning Can Grow Your Business in 2020 ; Renting a Commercial Kitchen or Commissary: What You Need to Know ; The 6 Best Cargo Vans For Your Business
Once you’re armed with an understanding of both your market and your logistics requirements, it’s time for budgeting, revenue forecasting, and demand forecasting . You must calculate:
- Projected earnings – Estimate what you think your revenue will be. You need this projection to determine your risks, when your business will break even, and how much upfront cost you can sustain.
- Expenses – Add up the cost of supplies, vehicles, etc., you will need to buy upfront, as well as those you will need to buy in the first three years you are in business. Don’t forget to include payroll expenses, business licensing fees, vehicle maintenance, gas, and tolls.
You also need to create a balance sheet and pay close attention to billing cycles. If you have more money going out in one 30-day period than coming in, you’re going to have a cash flow problem. If you offer weekly meal deliveries, you may want to consider billing clients at the beginning of each three-month season, rather than billing each week. This can help mitigate cash flow concerns.
Recommended Reading: Calculate Your Startup Costs ; How to Finance a Small Business ; Sales Tax by State: To-Go Restaurant Orders
Now that you have a plan, it’s time to arm yourself with essential tools and hire your team. Make thoughtful decisions about both, and you’ll set yourself up for long-term success.
Get an edge with the right tech stack
You have to take advantage of the most advanced technology. If you don’t, one of your competitors will — and they will deliver a superior customer experience because of it.
Route optimization software is an absolute must-have for delivery businesses because customers have high expectations. Thanks to companies like Amazon, fast and free delivery is considered a standard offering, not a luxury, and manual planning is obsolete.
At OptimoRoute, we help businesses maintain a competitive edge, drive revenue, and scale quickly and efficiently. Our software automates delivery route planning , driver scheduling, customer notifications, and more, which has empowered food delivery businesses like Hardie’s Fresh Foods to increase their on-time delivery rate from 89% to 94%. Using OptimoRoute, Tomato Mountain Farm quadrupled their subscriber volume and added two new delivery vehicles to their fleet while remaining profitable.
Try for free
Reduce your operational costs by 30% Increase delivery capacity by 43% Plan 7x faster
In addition to route optimization software, you will need a website. We recommend using a POS (Point of Sale) system to accept and track payments as well as creating your own mobile application. According to Omnivore , “70% of restaurant’s digital orders come through its mobile app or website.” This does not include third-party food delivery platforms like Grubhub, Postmates, or Uber Eats, so it’s important to have your own online and app presence.
Recommended Reading: The Ultimate Guide to Route Optimization ; The Ultimate Guide to Choosing a POS System ; Restaurant App — Complete Guide
Assemble your dream team
As a startup, it’s vital for you to hire the right team. You’ll be working closely with your employees, and smart hiring decisions drive revenue , so make sure you hire like-minded individuals who share your vision. Happy employees who enjoy their work are more productive , which is especially important when your food delivery company is striving to break even.
Choose delivery drivers with customer service skills. You can easily provide your drivers with turn-by-turn navigation using route optimization software, so mapping skills aren’t as important as communication and people skills. Delivery drivers will be the only representative many of your customers meet in person. Choose drivers who are most likely to make a positive impression.
Pro Tip: OptimoRoute can reduce your payroll expenses by cutting down the work hours needed to plan and route deliveries. Businesses like Telgian have reduced planning manpower by as much as 66%.
Recommended Reading: How to Hire ; Hire Delivery Drivers — 10 Sites for Hiring Drivers Fast ; 5 Delivery Driver Interview Questions and Answers
Choose packaging that is in-line with your brand
Delivery packaging and presentation can go a long way toward earning you repeat sales, but only if it’s in-line with your brand. Say your market research showed a gap in sustainable food delivery in your area. You decide to open an organic and eco-friendly meal kit delivery business. It would be smart to choose biodegradable or reusable cartons because they are in-line with your brand image and marketing strategy.
Even if you’re not building an eco-centric brand, most consumers prefer to order from delivery businesses that use biodegradable or recyclable containers. Regardless, every piece of your business should form a cohesive brand — including the packaging you transport your food in.
Recommended reading: Food Packaging Design Tips ; The 4 Packaging Supplies That Meal Prep Delivery Services Need ; Why Compostable Containers Make Sense Even If You Can’t Compost Them
Open your business to a limited client base, so your whole team can practice and work out kinks in your physical workflow.
Track how long it takes drivers to deliver to different areas and how much time they require at each stop. Use the insights you glean from taking a test run to finesse your routing and scheduling . The more concrete information you have, the better your capacity plan will be, and the easier you will be able to scale operations when demand picks up. You can also use your test run to get feedback from potential customers regarding pricing and which features, food options, and services they most enjoy.
Pro Tip : OptimoRoute automatically tracks information, including actual routes taken by drivers vs. planned routes, the time each delivery was made, and on-time delivery rates. You can access these delivery statistics at any time in your advanced analytics dashboard and use these insights to adjust delivery zones, see how each of your drivers is performing, and know exactly what it will take to scale your business when you want to expand.
You don’t have to spend a ton of money on marketing right away, but you will need to get the word out about your business. More than half of the respondents surveyed for Nielsen’s Global New Product Innovation Report said that they learn about new products from friends and family. Referral marketing is a powerful tool, so make it easy for happy customers to tell their friends about your business. Add a “refer a friend” button to your emails, website, and app. You can even incentivize your target audience to tell their friends about your business by offering a referral discount or rewards program.
Use social media to create a buzz and interact with your target market in a meaningful way. You can boost engagement without spending money by creating a post with a simple question — one that won’t take long for a consumer to answer, but they’re likely to have an opinion about it.
For example, let’s say you serve Mexican food. You could post a photo of your tacos next to a photo of tortas and say something like, “Taco Tuesday or Torta Tuesday? What do you prefer?” These types of posts can garner a lot of comments that will organically boost that post’s visibility and open your business up to a wider audience. You could also get the word out about your business by partnering with influencers in your area.
Pro Tip : Use OptimoRoute’s customizable customer notifications to encourage your patrons to share their experiences with friends.
The key to successfully growing a business is to optimize it — to make sure every process is running at peak efficiency . Optimization is how successful businesses maximize revenue, reinvest, and scale. Tomato Mountain Farm was able to expand their client base from 300 to 1,200 subscribers in 30 days by optimizing deliveries with OptimoRoute. Local Roots NYC optimized their delivery procedure to overcome COVID-19 restrictions and scale from 50 to 1,000 weekly deliveries in just one month.
When you’re operating at peak efficiency and you know exactly how much money, time, and manpower every process takes, scaling and expanding are easy.
Learn how to optimize your food delivery business by type:
- Meal Prep Business
- Catering Business
- Grocery Delivery Business
- Farm Delivery Business
- Alcohol Delivery Business
Grow Fast and Efficiently With OptimoRoute
Whether you’re thinking of starting a catering business , a meal-prep business, or anything else with food delivery, OptimoRoute can help.
At OptimoRoute, we’ve helped hundreds of food delivery businesses at all stages, from launch to scaling and adding new territories. We understand the struggles facing delivery teams, and we want to help you reach your goals. We offer a 30-day free trial (no credit card info required), so you can truly experience all our software has to offer. Our support team is available to help you get started, walk you through our features, and answer questions.
Try OptimoRoute ™ for Free
No installation or credit card required
Make Your Mobile Workforce 43% More Productive. Optimize Driver Routes in Just 7 Minutes.