How to Start a Local Food Delivery Service for Restaurants

Posted 4 years ago by Max Komonov

According to桂statistical projections, the桂online food delivery service market is桂. So桂the桂question on桂everyone�셲 mind is: is桂this the桂right time for桂my桂restaurant to桂start a桂local food delivery service?

Our answer: yes!

A桂food delivery service will open your restaurant to桂lots of桂customers looking for桂a桂new place to桂grab a桂bite. At桂least, when the桂delivery service is桂properly managed.

One big effect of桂COVID-19桂was a桂reduction in桂the桂number of桂people that physically patronize restaurants. Consequently, many restaurants shut down in桂2020桂or桂at桂least closed their doors to桂eating-in options. To桂correct for桂the桂lack of桂foot traffic, many restaurant owners started food delivery services to桂keep up桂their sales. Starting a桂local food delivery service can be桂a桂challenge if桂you have no桂prior experience. However, to桂help restaurants, we桂have highlighted a桂few steps on桂how to桂start a桂local food delivery service and桂make it桂work for桂your existing (or up桂and桂coming) business.

Step One: Research the桂Market

You need to桂research the桂market to桂understand the桂dynamics of桂the桂food delivery service industry and桂to桂figure out the桂most suitable entry point for桂your restaurant or桂food business. Below are some key aspects of桂the桂field you should research:

Analyze your competitors

Analyze and桂compare your emerging business with your competitors to桂know your strengths and桂weaknesses, and桂assess potential opportunities. For example, you should study your competitors�� pricing patterns, online menus, and桂marketing strategies. Incorporate what you find into your business plan to桂position your business favorably against theirs.

Choose the桂right partners

Depending on桂your location, you might need or桂want to桂partner with third-party delivery platforms to桂ensure effective delivery. For example, in桂the桂United States, reputable delivery platforms include Uber Eats and桂DoorDash. Choosing the桂right partners can affect how efficient and桂effective your delivery services will be. However, note that you will have to桂pay commission, listing, and桂delivery fees.

Get to桂know the桂market Gaps

Depending on桂your location, you might find out that there is桂a桂market gap. For example, with proper research, you can learn the桂number of桂restaurants that deliver to桂a桂particular location, and桂the桂menu options they offer. Are you the桂only vegan restaurant within a桂ten-mile radius of桂a桂hip new business park? Score! Using the桂information you gather, you can then use it桂to桂make the桂right plan of桂action for桂getting your food delivered.

Step Two: Define Your Target Audience

Your restaurant already has an桂audience�쫦our regular customers. However, your food delivery service is桂a桂different entity entirely. So桂look into the桂ways in桂which this new target audience might be桂similar or桂different to桂the桂one you already have.

Defining your audience should be桂relatively simple since you already know your brand and桂you have an桂existing relationship with it. However, it桂should also be桂based on桂research conducted according to桂step one.

When defining your target audience, you should take note of桂the桂following:

Make sure that the桂location you are aiming to桂serve has enough potential customers.
Aim for桂a桂location with working families, college students, hostelers, and桂millennials.
The demographics you are working with will also determine your delivery menu. For example, most families will like healthy food options; students will like fast food that isn�셳 expensive, while working-class people will fancy something hearty that can hold them over during working hours. Take note of桂that when making your business plan.

Step Three: Determine Your Budget

The budget for桂starting up桂a桂restaurant delivery service is桂normally between $3,000桂and桂$25,000. Make sure that your investment and桂research support such a桂huge figure. Below are the桂major expenses that you should be桂including in桂your food delivery service budget.

Website development expenses

Taking orders via text (either phone texts or桂chatting apps) or桂calls is桂ideal for桂receiving orders when you just started a桂local food delivery service. However, if桂you have a桂wide customer outreach, you should have a桂website.

You can build a桂website yourself if桂you cannot afford the桂professional fee. However, for桂better website creation, you should hire a桂professional.

Logistics

Logistics is桂the桂most important part of桂food delivery services. However, the桂price tag for桂setting up桂a桂working delivery system depends on桂your customer outreach and桂your location. If桂your restaurant has a桂vehicle, delivery becomes a桂little bit easier, as桂you can save in桂terms of桂the桂commission you pay to桂third parties. However, in桂the桂absence of桂a桂working vehicle that you can designate for桂deliveries, you should hire a桂delivery service in桂your location.

Marketing expenditure

Marketing expenditure is桂another thing you must have a桂budget for桂when writing your business plan. You can promote your food delivery service by桂using email marketing, social media marketing, pamphlets, hoardings, or桂participation in桂events.

Step Four: Ensure You Have the桂Necessary License

While your restaurant already has a桂license, you cannot say the桂same for桂your delivery services. Depending on桂the桂location, you might need to桂contact the桂required office to桂see if桂you need any桂additional licenses for桂food delivery services. For restaurants in桂the桂United States, you can visit the桂U.S. Small Business Administration (SBA) for桂information on桂state licenses and桂permits.

Step Five: Set Up桂How You Want to桂Be桂Receiving Orders

There are many suitable options for桂receiving orders. Popular methods include phone calls, text messages, social media, or桂websites.

Each method has its advantages and桂disadvantages. For example, phone calls, texting, and桂sending WhatsApp messages have a桂low cost when compared to桂other channels. However, there might be桂a桂mix-up when taking orders from many people. Social media offers ease of桂operation, and桂you can also promote your business at桂the桂same time. However, there might be桂issues managing it. The right channel for桂receiving orders depends on桂your budget and桂the桂number of桂customers you serve.

Step Six: Market your Service

The last step is桂to桂let your customers know about your food delivery service. You can promote your business in桂many ways. For example, by桂using social media, a桂website, word of桂mouth, etc.

While marketing your food delivery service, inform your potential customers about things like the桂deal of桂the桂day, the桂chef�셲 special, discounts, etc. This will further entice them, and桂if桂your service is桂quality enough, a桂recommendation (which is桂a桂pure organic promotion) follows.

Conclusion

The coronavirus pandemic has had a桂lot of桂effects on桂the桂global economy, especially on桂restaurants. To桂keep sales up桂and桂restaurants open, many have looked towards offering their services to桂a桂wider audience. For restaurants, a桂food delivery service is桂one of桂the桂easiest ways to桂make that happen. But creating a桂functional food delivery service from scratch can be桂challenging. We�셶e highlighted a桂few steps on桂how to桂start a桂local food delivery service here, which we桂hope is桂helpful. Endeavor to桂keep these steps in桂mind as桂you go桂on桂to桂make something of桂value to桂yourself and桂your community.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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