Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

How to Start a Food Delivery Service?

Business Startup Checklist

Free Business Startup Checklist

September 04, 2023

8 Min Read

Table of Contents
Writing a business plan?

People all over the world are crazy about food from different cuisines. In constant search for appetizing dishes, they are willing to spend lots of money and time on the perfect dish. Good food is something everyone is missing big time, especially amidst the pandemic. Now, instead of waiting for someone to cook or visiting a nearby restaurant, people naturally prefer to order food online, and in such a scenario, starting a food delivery business makes a lot of sense.

The question is how to start a food delivery service. In this pandemic situation where restaurants are shut down, people are looking for a food delivery service that they can count on.

Demand for Food Delivery Service

The demand for food delivery services is increasing rapidly simply because people prefer the convenience and variety available at their doorstep over all else. People prefer online shopping and ordering food over physically visiting someplace. Even the most time-consuming tasks are easily accomplished online with increased efficiency. You can completely avoid the hassle of occupied seats or moving back and forth waiting for your favorite dish.

Customized applications enable people to experience flexibility in ordering food online and enjoying it without disturbing their schedule. Isn’t that the perfect case scenario? In the current pandemic situation, there is a huge scope for a food delivery business. If you had one running at the back of your mind or a physical restaurant that is sitting close, now is the best time to transform your food startup into a flourishing food tech startup.

Steps to Start a Food Delivery Service

So, you’re not exactly sure where to begin ideating and how to start a food delivery business? If you are planning to start a food delivery business, then follow these steps to get yourself in order:

1. Choose a Niche

The first step is finding your niche. What kind of cuisines will you be specifically focusing on? Competition is stiff, so think of what will be the one thing to make your food startup unique. Let’s say Chinese or Italian are your specialty cuisines. You can make these two cuisines your strength for reaching out to people.

With quality and taste in your food, crowds are bound to bring flowing business to your food startup. Nowadays, safety and hygiene are major concerns. Try prioritizing these two aspects to be at par with your competition. Additionally, thorough research is a must for identifying your competitors.

What will help you stand out? How is your niche different and more popular? An answer to these questions can help you head in the right direction.

2. Identify Your Target Audience

The second important thing you want to demarcate beforehand is your specific target audience. Who are you going to serve?. What age group is this audience?

Try to understand what your target audience is looking for and design your menu accordingly. This will help in increasing your ROI in the long run. A hyperlocal food delivery model can be great to start with. Your focus should be more on local areas so that you can serve hot cooked food without an extended staff.

Before setting a target audience, first, consider what you can deliver efficiently. Then check for specific areas where you can relay orders while still serving fresh food. Ensure your target circle can be achieved while keeping food safety and quality in mind.

3. Create a Website

A food delivery business that is here to stay needs a good website. Your website is your face value to your customers. No matter where you are located or whether or not you have a physical restaurant, you can always convey your aesthetic through a well-structured website.

Now, your website should be easy to use and responsive with a great user interface. Remember not to make it too complicated with features – ordering food shouldn’t be rocket science. You can add images of food items, detailed descriptions of quantity and pricing, as well as offers and specials on your menu. Whatever you do, ensure your site fast loading and has good performance.

4. Develop a Mobile App

A must-have in today’s age is a mobile app for your food delivery business. As great as your website can be, sometimes one can’t be bothered to log onto their desktop to order a meal. A good mobile app will take quite some time to develop and test, so it needs to be considered at the earlier stages.

Different tabs for tracking orders, recommending new offers on the user’s most ordered food item, and providing discount coupons can be integrated to make it a great experience for customers. How good your mobile app is and how often users will hop on it to make an order.

5. Make a Bullet-Proof Business Plan

With a target niche and audience in mind and work for your brand website and/or mobile app underway, what remains is pretty much all other groundwork. These could be macro details like – What are the staffing requirements? What kind of chef will you hire? Or What cooking equipment will you need to invest in?

Some micro details always get left out to the end. These include ideas like – How will you price the menu? What profit margin do you expect in the first few months? And the list goes on. All major and minor details for your food delivery business need to be listed in a bulletproof business plan.

With exact details and role delegations, a business plan has layered benefits for your team members. A good business plan also has many financial and investment benefits with easy loans and prompt investments directed your way. Refer to the Food Delivery Business Plan template to get started with building a custom plan.

6. Build a Strong Network

Your business plan can take care of detailed aspects like financing, budgeting, and hiring the right talent. But, for working with a team and suitable business partners, you need a strong network. Reach out to professionals who have already worked in the culinary or food service industry or those who can be an asset to your business. This can effectively help build your brand.

It is also important to have trusted delivery partners as 60% of the business will depend upon them. They should follow guidelines and provide on-time delivery that converts one-time customers into long-term loyal customers. Networking with the right people or those running similar businesses of their own can help sort your requirements in this domain.

7. Obtain a Mandatory License

Let’s talk about another factor that takes a lot of time and becomes the reason for many food businesses not starting outright. For any startup, obtaining a soft license and registering the startup is necessary. You need to get a Food Safety license that notifies your operations are in order with food safety regulations in the area.

While this might seem simple, it can take a lot of time to obtain a license, and hence this should not be left for the final months. You also need to file registration for tax returns, a shop act license, and a trade registration. Having these documents in order helps steer away from legal issues in the future. All security permissions and compliance regulations must be adhered to in the operation of your business.

8. Market your Food Delivery Service

Finally, think about how you will market your business. There are several food delivery services, some probably in the exact location you have considered. A successful business can’t ride merely on quality or service. If you don’t market your service right, it might fade away eventually. So, what is the right marketing strategy?

While budgeting for your business, allocate a healthy share for marketing and related activities. You can collaborate with marketing professionals to target the exact demographics, age groups, and sensibilities of your target audience. Marketing isn’t limited to food; it conveys your brand values, aesthetic, and exactly what your business stands for. With similar service brands around the corner, this is what will draw in customers eventually.

Summing Up

So, starting a food delivery business isn’t child’s play. A lot has to go right for your business to even see the day of light. While your passion might not have a plan B, there should be several plans B’s within your business operations.

Chalk out all necessary alternatives within your business plan to be prepared for any situation that arises. Upmetrics can share your burden to formulate effective business plans, finance plans, and marketing plans, and get every possible detail in order before you can step out to get your business running. When you have a plan for every step, your business will be sure to emerge with great success.

About the Author

Sudeshna                                                        Ray

Sudeshna Ray

Avid writer and content marketer, Sudeshna Ray, has created content for diverse premises including technical niches, business and marketing, finances, creative character sketches, and much more. Engineer-turned-Writer-turned-Marketer, she has explored several aspects of performance, lead generation and establishing a brand presence in the digital domain.

Upmetrics logo

Reach Your Goals with Accurate Planning

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee