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Out of the Box Online Food Delivery Business Plan For Restaurant Startups

Out of the Box Online Food Delivery Business Plan For Restaurant Startups

Wednesday November 20, 2019,

6 min Read

If you are already running a restaurant in your locality, then the time is ripe to supplement your business with an online food delivery system. Before starting your restaurant, you would have definitely made a business plan. Repeat the same before venturing into the online food delivery so that, the transition is seamless and less cumbersome. Below I have mentioned what are all the things that should be in a business plan. This is useful even for aggregator on demand food delivery app business. Drafting the business plan after knowing the available finances is also a better option.

Food Delivery Business Plan


This section should be elaborate since you have to shell out all the details you have in your mind. You should specify whether you are going to start an aggregator online food delivery or a food delivery system along with a restaurant, The location of the restaurant and the type of cuisine popular in that locality, What are all the other type of cuisines that can be offered? Demographic of your target area, the Purchasing power of the people in the locality, Culture of the people, and many more. All of these should be answered perfectly.

Market research and analysis

The eating habits of people are changing fast and you should be flexible enough to accommodate new menus. To find this it would be apt to do market research. Current trends and possible trend of food should be identified and it is best to analyze the existing players and their offerings. Market research is also done to estimate the future prospects and scope of the industry. The scope and prospects are different for macro and micro markets.

Stats and data are spread across the internet and you can use it for research and analysis. The on-demand market is continuously evolving and it should be constantly subjected to innovation. Market analysis and competitor research is done to implement new or hot trend in the food delivery business. Also, you know how to establish the business in a culturally diverse geographical area if your business operation is on a large scale. 

Competitor analysis must include their pricing, operation, revenue model, functional area, concept, etc. Competitor analysis is also done to devise a plan to go ahead of them.

Marketing and outreach

Whatever you do. At the end of the day, only proper marketing is going to decide the fate of the business. The way we convince people matters a lot. The marketing should go hand in hand with the culture and ethnicity of the people. For this, you can get the data from market research. Analyze the marketing strategy followed by the competitors and device a marketing plan that can overcome them.

Delivery person and people management

There are two ways to employ delivery agents. One is to hire them based on per order commission. Another is by employing them for monthly salary. The former is always recommended since the overall cost involved is less. Also, the delivery agents use their own vehicle and so there is no money invested in vehicle maintenance and fuel.  A background check must be made on the delivery persons before they are admitted to work. The delivery persons should possess proper licenses and necessary vehicle documents. A threshold is set on the rating for the delivery agents. The operation license of those who fail to maintain the rating above the threshold is revoked.

Money management

Probably this is the most important segment of the business plan. By keeping in mind the description and marketing, you may now have a slight idea about the funds required to start and run this business. If you see good potential in your business, VCs and angel investors can be approached. Before approaching them, compute the estimated cash flow of the startup and financial statements for the next two years.

The financial statements should also include break-even analysis, ROI, and CAGR. Bootstrapping your startup may not work all the time in a scenario where the competition is high. Many startups have shut down owing to lack of funds.

Use your own funds as a buffer during emergency times. Scaling the business too fast is also detrimental to startup health. So, expand step by step and not just focus on customer acquisition. Major financing in this startup include, kits for delivery agents, marketing, and app development.

App development

More than 40% of the financing will be for app development. The number of apps required depends on the no. of stakeholders involved like customers, restaurants, delivery agents, etc. If you have a skilled developer team, then developing an app from scratch will not be a problem. But, developing from scratch involves big time frame and a lot of money. If you are bootstrapping the business, I would recommend you to try app clone scripts. There are software solution vendors who have ready-made app clones. They can cut your developing cost by half. Choose a better method based on your budget. 

Choosing the right online delivery models

Sometimes choosing the right model is more profound than drafting a business plan. There are many restaurant delivery models and choosing one of them depends on the region, local demographic dividend, cultural diversity, local government rules, and some more. Below I have mentioned some trending models, choose them by keeping in mind the above-said factors.

Office food delivery service: Customized one person meal for office goers can be provided. Office goers in metropolitan cities have little to no time for cooking and ordering specific foods. This model is best suited in cities.

Night food delivery:  This model is also mainly aimed at office goers who work till late at night. Healthy and customized foods can be offered to the starving office people. Also, some people who do late night parties can do bulk orders.

Online food ordering for parties and functions: Business meetings, family functions, and small get-togethers are increasingly happening in many places. This model is adapted by a few startups and the profit margin is high. So, the probability of success is good in this model. The catch here is to get orders from clients.

Enough said, now it is upto you to draft the food delivery business plan for your startup by following the above procedures. Also, don’t forget to select the food delivery model. It would be better to draft the plan after selecting the model. Quickly start your work and be excited to enter the on-demand market.