Online Food Delivery Business Plan [Cost, Requirements]

. 13 min read
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

1. How to Start Online Food Delivery Business?

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.

2. Food Delivery Business Plan- How to Fund?

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.

3. Marketing Your Online Food Delivery Business Plan

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.

4. Tips For Promoting Food Delivery Business

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.

Food Delivery Business Plan

5. How To Start A Food Delivery Business?- Maintaining Accounts.

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.

6. Types Of Food Delivery Business Model

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:

  1. 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.
  2. 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.

7. Food Delivery Business Plan Types

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.
We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
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Online Saree Business Coaching Centre Business Cosmetic Business Cold Drink Distributorship

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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:

  1. Understand Customers Food Needs
  2. Figure out your Niche
  3. Be Tech-Savvy
  4. Market Research & Analysis
  5. Hire reliable Delivery people
  6. Manage Cashflow
  7. Develop your App/Website
  8. 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:

  1. Makes ordering and decision making easier
  2. Helps in managing customers and orders more efficiently
  3. Real-time expense monitoring advantage
  4. Cost-effective plus free business marketing
  5. Transparent Customers data and transaction
  6. The convenience of ordering via multiple gadgets
  7. Staying ahead of your competitors
  8. Grow your Finances via online ordering
  9. Larger target audience
  10. 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-

  1. Flyers, Pamphlets of Food Menu and Offers put inside local newspapers
  2. Word of Mouth Marketing
  3. Offering attractive offers and discounts like buy one get one
  4. Using food delivery apps like Zomato and Swiggy
  5. 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.