Nowadays people are on an endless race, just to meet deadlines, complete exams, get a better job, etc. They hardly get time to cook and eat. This situation presented an opportunity for entrepreneurs in the hospitality industries to kick start home delivery services.
However, the evolution of online food delivery industry did not stop there. More people began to venture into food delivery businesses. “Why leave to get food available nearby when you can receive the food of your choice at your desk?” attitude of people was one of the major reasons for the success of food delivery businesses.
To make things easier, entrepreneurs began to develop online services where you don’t have to wait for someone to answer your calls. Ordering your meals became as simple as watching television.
So, here are some tips which you need to keep in mind before you begin your online food delivery business:
1) Identifying Your Niche
Identifying your business niche or target audience helps to plan your business strategies. It helps to understand their needs and requirements better. For instance, if you are targeting a particular group of working people, understanding their working conditions help to design better meal plans.
If it is an IT zone, you need to concentrate more on lunch and dinner plans. If you target a university, you need more snacks and beverages. Incorporate more cuisines according to the demands of the target audience.
2) Market Research
Without proper market understanding, your business may end up as a failure. The main objective of market research is to gain insight into user requirements. Conducting surveys to identify the requirements of different users can give you valuable insights that can help avoid failure or launch yourself successfully.
Making use of a barebones app (MVP) in the beta testing model to know the pulse of a market can be a good idea. It can help improve your strategic planning for developing your business. It becomes a valuable tool for market research.
3) Strategic Planning and Branding
Once you have identified your niche and done your market research, it’s time to strategize. For your online food delivery business to be successful, your business should stand out from the ones that are currently available. For example, you can have the strategy of delivering food within a specific time. If not delivered within the said time, the user can be reimbursed.
Devising unique selling points (USPs) such as delivering good food within a minimum timeframe, or offering tasty dishes at most affordable rates with discount coupons, etc, will help grab the attention of users and improve your food delivery business.
While planning, branding your food delivery business should be of great consideration. You should have a name that is appealing, and catchy to your target audience. Names related to food and cutlery is an obvious idea.
Be sure that it is not similar to some other popular brands as it can either turn out to be a boon or bane. Designing a logo in an eye-catching color can make the brand more noticeable and easily identifiable.
4) Develop Online Food Delivery Business Website and App
With the increasing usage of smartphones, developing a user-friendly mobile app increases the accessibility of your online food delivery business among users. Add menu cards from the restaurants you tie-up with. Incorporating mouth-watering images of food on the menu will tempt users to order more frequently.
Have a homepage for the app where you gather the required details. List your food products according to categories such as meals, veg/non-veg, offer plans, etc.
Highlight the specials/bestsellers. Including a section to view previously ordered items is useful. The homepage gives the users the first impression of your business, so keep that in mind while you design your app or website homepage.
While the app is important, don’t forget to create a website for your business. Make sure that the signup is an easy procedure so that a new user can register quickly and get on to ordering their meals.
Try to include offers and coupons to attract more users. Try to incorporate “how to use” the app or website feature for new or inexperienced users.
A delivery boy app should be made to notify the delivery boy about an order placed by the customer as well as to notify when the order is ready at the restaurant. It should be GPS tracking enabled for the customer to receive real-time tracking details.
A restaurant app should be made to place the order at the food joint and for them to alert the delivery boy. In short, you will have to make a website, customer app, delivery boy app, as well as a restaurant app.
For the success of any business, it needs to be popular. To gain popularity, you need to market your business. Social media marketing plays a key role in online marketing, as it is very famous among the new generation users.
Create a catchy quote for your online food delivery business, it serves as your business reminder. Publishing your food delivery business advertisements on other popular online sites is one of the key tips.
Post your flyers in restaurants which are collaborated with your business. Providing discounts and offers on special occasions will help increase your sales.
Marketing is in fact, one of the most important factors for start-up success that is often ignored by new entrepreneurs at their own peril.
6) Registration and Legal Formalities
You need to make sure that you have all the essential permits required, especially permits and licenses from
- FSSAI registration
- Fire and safety department
- Tax department
- NOC from municipality
- Sanitary permits
- Clearance from the pollution department
- Business permits
- Shops & Establishments Acts License
- Health or Trade License
- E-commerce agreement
- Trademark Registration
- GST registration etc.
Functioning without proper permits and licenses can lead to penalties and imprisonment or shutting down your business. So, don’t forget to keep them handy.
7) Physical Resources
Even if you plan to start an online food delivery business, you require physical resources like an office building, human resources, vehicles, etc. Human resources include office staff as well as delivery boys.
You can either hire delivery boys with own vehicle for delivery and provide a fuel allowance, which will be more practical as they have to collect the ordered food from different restaurants. Or else provide a vehicle for the delivery.
Always remember to train all your staff according to the positions they hold. Make sure that the delivery boys have their driving license with them when they are out for delivery.
8) Collaboration with Food Joints & Restaurants
For an online food delivery business, collaboration with food joints is one of the major tips achieve to success. Meet up with managers of major restaurants, food joints, snack bars, etc, and discuss the delivery partnership.
Fix a commission rate that suits both the people and tie-up with them. They should know that you are not simply taking their money but increasing their sales and taking a commission for that. Ensure that the ordered food will be made within the time specified so it can be out for delivery on time.
9) Budget, Finance and Fixed Delivery Charges
Have a budget planned according to the magnitude you wish to develop your business initially. If the budget is low, try with a small-scale start-up. If required, arrange for financial support or find investors.
Fix a price for delivery, it can be based on the distance or for the amount the user orders. You can provide free delivery for nearby deliveries or huge orders.
After your business is launched and starts reaching users, you can gain revenue via online advertisements. Tie up with Google ads to enable this feature.
10) Payment Gateways
Enable different payment gateways like debit cards, credit cards, online banking, mobile wallets, cash on delivery, etc. which makes your business more popular among the users. Limiting it to one or two gateways will make it difficult for the user, making it less appealing to them.
Read Also: 24 Best Online Food Delivery Apps 2020
With the increasing opportunities in online food delivery business, if you deliver good quality, budget-friendly food, your business is sure to be a guaranteed success. Streamlining orders from the same restaurant out for delivery to the same locality can reduce your expenses. Tipping the delivery boys will encourage them to work more enthusiastically. Hope these tips will help you to start your own online food delivery business.