Did you know that the food delivery business idea is experiencing a sudden rise in the marketplace due to digitalisation and globalisation? According to the recent survey on online food ordering statistics, in 2020, the online food delivery business generated revenue of 9,207 million USD in 2020. Anticipations are that the meal delivery business idea will reflect an annual growth rate of 9.5% in the CAGR 2020-2024 and contribute revenue of 13,233 million USD by 2024 to the global market. So, the meal delivery business idea is indeed a profitable business idea to start.
Benefits of Meal Delivery Business Idea
Meal delivery business is considered to be one of the profitable business ideas. We have listed down a few well-researched pointers that answer why to invest in the meal delivery business idea.
- Flexible Business Setup – You can set up the meal delivery business either online or at home. The business idea doesn’t require a considerable amount of space, resources, staffing, and other supplies to start the business. For opening a home-cooked meal provider and delivery business, you start from your home and hire a few delivery persons to get started. To open an online meal delivery business, you will require a consolidated list of meal providers – restaurants, hotels, tiffin service providers, a robust and user-friendly mobile app and website, and a group of delivery men to get started. You can easily manage and handle both meal delivery business models from home or online.
- Maximum Customer Reach – Meal delivery business offers higher customer reach as it connects local customers more than physical restaurants or food chains. As per a recent survey, it is observed that around 67% of customers prefer to order online from their favourite food bars or new food options rather than going and having meals there.
- Lesser Investment Rate – You may start the meal delivery business with limited capital and investment. A significant portion of the business can be managed online, saving time and money on various resources such as space, maintenance, staff, and more.
- Instant Pay Cycle – The online food delivery business allows the customers to order and pay for food online within a couple of seconds. Due to the online payment module in the meal delivery business, there are lesser chances of missing payment, calculation error, or low payment related issues.
How to Start the Meal Delivery Business Idea?
Isn’t the food delivery business a profitable business idea? Well, if you are thinking of starting your meal delivery business idea, check out the pointers listed to know how you can open a meal delivery business idea in your preferred city or town.
- Select a Business Model – You must pick the apt food delivery business model to initiate the steps related to open the food delivery business idea. If you want to cook and deliver meals across the city, you must opt to cook and deliver a home-cooked meal business. If you want to provide food across the city with prominent and quality food chains in the city, you can go for an online food delivery business model.
- Market Research – Once you have decided on the business model, you must follow the rule of thumb to start any business idea to do comprehensive market research. You should research the nearby market demands, customer food ordering pattern, top-selling and most loved restaurants. Identify small food business owners or meal providers, quality workforce for delivering food, and a competent app and website development company.
- Create a Meal Delivery Business Plan – Once you have done thorough market research and analysed the results around various resources and factors required for opening a meal delivery service. Then you should create a delivery service business plan to execute multiple strategies related to opening a food delivery business. Pen down and maintain a meal delivery business plan with a checklist to ensure you have all the required resources, permissions, supplies before executing the trade.
- Obtain Valid License, Insurance, and Permissions – Food delivery business requires a business licence, insurance, and permits to open a business in a city. Ensure that you have all the approved certificates of food and hygiene quality checks and required legal documents before opening the food delivery business in a town.
- Gather Resources – Once you have the valid permits and certifications, you must start working on gathering the resources required to open your business. The resources may be a user-friendly and trusted app or website, a consolidated list of food bars, meal providers in the city, a skilled group of delivery people, and more.
- Create a Marketing Plan – A marketing plan is necessary to aware people about your newly opened business. Create a well-structured marketing plan to execute online and offline marketing activities regarding the promotion of your business. It is imperative to have an excellent social media presence for your business. In that case, you can also plan out to execute your food delivery business promotion on various social media platforms with a business page.
- Assess Your Resources – Once you have all the required resources, plans, and license to start your business, ensure all the gathered resources are working fine and suitable for release in the market. It is recommended that you plan an assessment and maintenance cycle of your resources to avoid any mishaps and maintain your business quality.
So, after going through the above-detailed write-up, it must have resolved all your queries around the meal delivery services idea. The demand and the growth of the food delivery business are indispensable, and it will experience a great boom of opportunities and profits in the coming future. If you are a food enthusiast and want to open a meal delivery business, then create a structured meal delivery business plan and start working on it.
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Q. Is a food delivery business idea profitable?
Ans. Food is the most basic need. The opportunities in the food business are vast. In globalisation and digitalisation, meal delivery services experienced a sudden boom in recent years. The food delivery business idea is profitable if you follow a detailed and structured meal delivery business plan to move ahead.
Q. Can we open a meal delivery business idea from home?
Ans. Yes, you can open a meal delivery business idea from home. Most of the meal delivery services start from home.
Q. Do we need to have a considerable amount of capital to open a food delivery business?
Ans. The amount of capital required to open a meal delivery business depends upon the type of meal delivery business model you want to open. Suppose you want to open a home-cooked meal delivery business to provide food and manage the workforce to deliver the meal. In that case, you will require a limited to a considerable amount of capital based on the size of your business. Suppose you want to open a meal delivery business to coordinate with different restaurants, hotels, and meal providers. You can start the business with a limited amount of capital.