Why is it profitable to start a food delivery service business? Here is the reason why. Food.
Food business is a multi-billion dollar industry. Every year, more and more restaurants, fast food chains are gaining massive amounts of revenue/ profit by serving food – in house. That is, they put up fast food chains, restaurants, food shops and spend huge investments in marketing and advertising to attract customers and get their brand “branded” to every consumer’s tummy and subconscious.
To find your place in this very competitive area of the food industry would only mean you need to stay in the kitchen and take the heat of the competition.
But what if there is an untapped corner of this multi-billion business where you can start small, with no huge marketing or advertisement needed and earn huge profit still?
Here is where food delivery service business comes in. Listed below are top 5 reasons why it is possible to start a food business even when you do not have any experience in the food industry. Why it is profitable and how you can earn good profit in this food business opportunity.
Why Start a Food Delivery Service Business
1.Food delivery service is still an untapped food business opportunity.
The idea of restaurant meal delivery is only starting to stir and it is not yet been fully utilized by huge investors, corporation or established food businesses. Delivering meals from multi-restaurants is still a bit of a new idea for most in the food industry.
And since this is a new idea, more consumers would be thrilled to try this service if they have one in their area. Especially if they would be able to get their favorite restaurant meals or dishes without leaving their home or office.
2.You can run this delivery service part time or full time
Running your own restaurant, food chain or a simple food stall, requires you spend most of your time managing all aspects of the business. Once you put up your own food shop or restaurant, your time would be mostly spent on your business location.
On the other hand, food delivery service is flexible when it comes to the hours you spend on managing it. You can do it full time, but you can still make this business work for you even if you have another business, a day job or you simply just want to limit your hours spent on your business.
3.Not too many paper works to pile up.
This business is not really hard to handle in terms of tracking your receivables and payables. Restaurant delivery service works by having your customers pay the food delivery first before you pay the restaurant. However, not all restaurants would allow this system and you need to get into a good understanding or agreement about payments and orders. A professional system and a clear proposal will help you get into negotiation with your chosen restaurants.
4.No huge investment necessary.
For those thinking to put up their own business, especially during these times of recession, they worry mostly about one thing – investment. There are run-of-the-mill businesses that allows you to start a business with little to no investments but it would not necessarily guarantee that you will get you a sound ROI within a year or at least get a leverage. You may only be wasting your time doing it.
Investment in food delivery service business compared to other areas of the food industry, is comparatively smaller. You do not need a restaurant location, you do not have to hire a number of employees, and you do not need to buy food equipments at all.
You can even start running your food delivery business without employees. The plus factor in this type of business is you can get contractors, or if you insist on getting employees, you can hire 2 and you are all set.
5.No huge advertising or marketing campaigns.
Food delivery service business works best per area/ location. And you can easily give out flyers or brochures or have your mini van painted with your business name, logo and contact number and that’s it.
What You Need to Consider When Starting a Restaurant Food Delivery Company
Busy lifestyles characterize urban living. As a result, it is hard for a person to have some free hours to have a meal at a hotel. This in turn affects most hotels because they can only run effectively if they have sufficient customers. For that reason, some hotels come up with a service to help them deliver orders in houses. This is a common feature in the fast food joints such as the pizza joints. However, this will prompt the hotel to employ more staff for this department, yet they are almost making up for job cuts due to a reduced customer base. This gap has led to the rise of another business venture called the restaurant food delivery business. It is a service that acts as the intermediary between the hotel and the customers. For such a service to be efficient, it needs strategies to help it be there when and where the client wants the package.
When a person is considering joining this industry, the most important thing is to find out whether the service will have a niche or not. Having a niche will help the company to deal with hotels that are only in that line of foodstuffs. For instance, if a service wants to convey pizzas, then it will only associate with the pizza joints. This objective should be guided by the availability of hotels in that line and also the number of customers. If the idea is still practical, the next step is to collect a substantial list of hotels that are in that niche. Most of the big hotels and chain of hotels have their restaurant food delivery service, so it would be misplaced to think that they are potential clients. The best way is to scout for hotels that run on their own and possibly, they have quality meals.
Some legal obligations have to be met. These vary from one state or region to the other. In order to avoid penalties due to ignorance, the viable option is to seek advice from the department concerned. For instance, will the company drivers need a different license because the vehicles are for a business purposes? It is also important to register the company and get the tax identification number. When approaching the hotels suggested in the list, it is advisable to come up with some inducement strategies because they may be adamant. One way to go about it is by stating that the hotel will not be getting any charges; instead, the restaurant food delivery company will be earning from the fees placed on the customer. However, avoid over-charging the customer as this may not do the business justice.
Third Party Food Delivery Services in the City
If you work and live in a big U.S. city, your time is likely very precious. You are constantly on the go – you have a demanding job and a frustrating commute. You barely have time to eat. Your cooking skills are limited, and you barely have time to cook even if you could. Picking up food from your favorite restaurant is often times a pain. Additionally, you can easily get sick of having the same few places deliver food to you over and over again.
This is where third party food delivery services come in to play. These food delivery services can save you a ton of time and allow you to eat food from your favorite restaurant any day of the week in the comfort of your own home. Third party food delivery services are business that essentially pick up food from local restaurants and then bring the food to you. With these services, you can get food from your favorite restaurant any time you want – even if the restaurant does not normally deliver. By using these services, you are no longer limited to pizza, Chinese food, and the same old boring food that you are used to. These services allow you to order food for delivery from your favorite Italian restaurant, your favorite Steakhouse, or your favorite sandwich shop.
In a major U.S. city, these services usually charge a fee of $4-$9 dollars. The service/delivery fee may depend on the restaurant that you want to get food from and the time of the day that you want the food to be delivered. Delivery via one of these services usually takes about 1-2 hours. Typically, they take slightly longer than standard delivery from a restaurant does. So, if you use one of these services, be sure to leave plenty of time and to plan accordingly.
Overall, these services are great and allow you a great deal of freedom when it comes to your time and meals. However, there are a couple potential downsides. First, each third party service usually has a different set of restaurants that it deals with. So, not every service will be able to deliver food to you from every restaurant you want. Second, sometimes delivery can take a bit longer than usual. Because these services add another party to the mix, there is a potential delay involved. Also, depending on what city you live in, these services can be a bit on the expensive side. This is the price that you will pay for a great convenience.
A handful of these delivery services are now located in just about every major U.S. city. They can be found by searching the internet, looking in the yellow pages, or by calling directory assistance. Once you are able to locate a service that works out well for you, your dining options will never again be limited.
How Online Food Delivery Service Functions
Online food delivery is fast and convenient and saves time. You simply make a choice of what you would like to have and put in your address and time of delivery. The meal is brought to you at the destination specified on the online form. The kinds of destinations they service vary from homes to offices as well as university residencies. They also service places such as army barracks and schools and parks. Therefore they service almost any place that is possible to reach by car.
The first type of online food delivery is a system where you find online delivery companies specializing in this service. They have a database of shops and restaurants that you can choose from. The shops and restaurants register with them and they are put on the online list easily accessible by customers. Therefore they connect customers with the different shops and restaurants. After the ordering has been done and the address put up the delivery company will bring the food to you. You then pay the delivery company for their service.
A second type is where you use a search application to locate the shop or restaurant you would like to buy from. You are given options of shops and restaurants that operate in your area. Then you find out if they do deliveries in your specific area then order from them and then they deliver your order.
There are websites especially dealing with hosting the search engines. You can browse for things such as shop and restaurant menus and those shops that do deliveries. You can even rate shops and restaurants as well as read reviews. You are even able to choose a shop or restaurant according to a particular cuisine you like. Whether it be Chinese food or sea food or a simple pizza and chips. You can also browse according to their distance from where ever you need the delivery done.
The orders are written down instead of communicated through the phone. This improves the chances of cooks or waiters getting them right. It is easy referring to something which is written down and the information can be used as evidence should there be a need to prove that the order was messed up.
One can also keep a record of past orders you have done which will save time. This enables you to go back and copy and paste information you might want to use again. Alternatively you can simply use the same information and just change the date.
The fact that you can chose from an expansive menu list means you can also get new ideas on meals to try out. It will also allow you to mix and match orders and try different combinations. Some advanced systems also allow you to specify exact amounts of food you want.
You are able to use credit card to pay before delivery is made. When the food arrives you would have paid and so eliminated the trouble of still having to pay to the delivery person. Your payment history is also recorded online so that it is easy to identify you as a disciplined payer if you are.