Online Food Delivery Business Plan – A Strategic Guide

Paresh Sagar
blog updated dateUpdated Date: May 9, 2024

how to start a food delivery business

Are you looking for guidance on online food delivery business plan? Well, you’ve found the right article, keep reading.

The food delivery business has become one of the most in-demand services in recent years, with strong growth potential that suggests it may continue to thrive even in challenging economic conditions. There have been several successful online food delivery apps like UberEats, Zomato, DoorDash, GrubHub, etc.

You can follow their footsteps or build your own business plan to start your own food delivery business and successfully run it. Until you find a strong business plan, how about developing one from ours?

How To Start Your Own Food Delivery Business? – Simple & Effective Steps

1. Research Your Target Market First

You can start and expand your food delivery service by following the UberEats or Doordash. But, in the most likely case where you don’t have large resources or connections to start a large-scale operation in the beginning, limit your service base.

Learn what the most profitable user base or cuisine to offer delivery service in is. Whether your delivery points are closer to offices or homes? And whether the people in your localities prefer a certain kind of cuisine.

For example, if you decide to offer delivery service in an educational area with the majority of students living, your focus should be on offering lite and heavy snacks instead of authentic Italian cuisine. And, if you decide to serve in a wall street type locality, then serving fresh and cold ice cream may not be that profitable.

2. Prepare Your Needed Inventory

By inventory, I mean any and all things you need for starting an online food business. It could be anything from the material to cook the food, a vehicle to make the deliveries, a cook, a delivery guy, and even the app that people will use to order your food.

We’ll talk in detail about the app later in the blog.

Some of the most common inventory would be:

  • The numerous and cost-effective meal containers used for delivery.
  • Large utensils are needed to cook big batches of food.
  • A somewhat larger than usual kitchen space to cook with multiple cooks.
  • Vehicles for making food deliveries.

Know More: On-Demand Food Delivery Business Model

3. Create a Meal Delivery Business Plan

Any business can only be as good as two things: the product and the plan. We’ll consider that your product is top class, and people will love it. So, what remains is a plan, or So, what remains in a business plan is how to start an online food ordering business.

The food delivery business plan to run a successful online business consists of several moving parts and a few clear goals to achieve at predefined intervals.

All of this is built by first answering a few questions like:

  • How much would be the one-time investment like cooking space, and vehicles for delivery?
  • What would be the investment in daily items like groceries and other cooking ingredients?
  • How much will be the other necessary monthly costs, such as gas, electricity, and labor?
  • What will you set the cost of selling each pack of food or per meal?

Know More: Start a Meal Prep Business from the Scratch

4. Accomplish Your Licenses and Permits

To start any business needs you to get registered and get some licenses and permits. Here are the few essential ones to apply for:

  • Business permits
  • Tax payments
  • Sanitary permits
  • Food handling seminar and permits

5. Digitization Is the Ultimate Answer

An app will be your most powerful weapon in this war. So, developing the best online food delivery mobile app should be one of the first things you do. But, the mobile app model for online food delivery is quite different than the other apps.

With other apps like Instagram, PUBG, Google Maps, only a single app for the potential audience does the job. But that is not the scene with on-demand food delivery apps.

To build a food delivery app business plan, you must include 3 versions of your food delivery app startup:

  • Customer App
  • Restaurant App
  • Delivery Guy App

And also an admin dashboard for the main business owners.
Another food delivery business plan is to build through Cloud Kitchen. It allows people with a small-scale business idea to prepare food from home and cater to people to nearby locations.

Similarly, it also helps large-scale businesses to reach out to maximum audiences with the help of mobile app development with cloud integration. The cloud kitchen app development enables you to manage your restaurant business operations efficiently.

Know More: Cloud Kitchen App Development: A Guide To Expand Your Food Truck Business

On Demand Food Delivery App Features

How to Hire the Best Food Delivery App Development Company?

There are several app development companies out there, and by several, I mean tens of thousands. So, choosing the right app development team is a lot more difficult than you may think. Still, while looking up for app developers, you can ask a set of questions we’ve designed to help you find the right candidate.

Questions to ask an app development company that you plan to hire:

  • What is their experience in handling the food delivery app development model?
  • Do they follow the Agile App Development process?
  • Are the developers following a standard format of coding with the latest frameworks?
  • What technologies are they following?

Read also: Why aPurple is the Best Food Delivery App Development Company?

If all of this seems too technical or difficult to carry on your own, there is always the option of going with the ready-made app clone solution.

Launch Your Own Food Delivery App

Why Go for a Ready-Made App Clone Solution?

There is a vast majority of startups that go with the ready-made clone app solution, and the two main reasons for it are time and money. UberEats clone and Grubhub clone are the top trending food delivery clone in the market now.

The app development from scratch approach may take months or even more than a year, while clone solution will be up and running in a week or even less. The cost of app development is also quite high for a new startup, while the clone solution can be done in the 10-15% budget of the complete app development approach.

aPurple has been in the clone app development game for several years, and our quick-to-launch solutions have been very beneficial to hundreds of startups across the world, especially in the US, UK, and Africa.
CTA Food

Conclusion

We had begun with what shouldn’t you miss while making an online food delivery business plan, and now we’ve answered a dozen questions that arise from this one.

While starting a food delivery business, you must keep two things in mind, one is the app’s flexibility and the other is user-friendliness.

Paresh Sagar
Author
Paresh Sagar, the innovative CEO of aPurple, is renowned for his passion for experimenting with new business models, technological aspects, and software solutions. His knowledge and insights are a must-read for entrepreneurs, tech experts, and avid readers alike, offering valuable perspectives on the ever-evolving landscape of business and technology. With a keen eye for innovation and a dedication to sharing his expertise on business digitalization, Paresh continues to inspire and inform professionals across the globe.

Related Post

To top