In a fast-paced world, everyone wants everything at a distance of clicks. Enjoying the yummiest food prepared in another corner of the city at the dinner table is not an exception. Busy executives, travelers, startups, senior citizens, students, or others, everyone prefers to avoid traveling, especially for everyday meals.
Food delivery apps and websites provide a great opportunity for the restaurant businesses to explore the market and reach a wider audience. Further, Statista reports also reveal that the food market is predicted to reach US$29,222 million in 2024. Therefore, food delivery businesses embrace lucrative market opportunities for existing as well as new market players.
Since you are also planning to start a food delivery business in the Nigeria. The write-up is worth reading for you to clear all doubts. Let’s check out the details:
Fulfill Legal Formalities
Completing all the legal formalities helps your business to eliminate troubles. Therefore do not forget:
- Business license and a business plan
- Incorporation Certificate
- Tax Identification Number
- Non-Disclosure Agreement (NDA)
- Registration for Commercial Vehicle Operator
- Food and Drink Handlers Certificate
- Health Inspection Certificate
- Proof of ownership for Vehicle and Vehicle license
- Commercial Driver’s Licence
- Operating Agreement for LLCs
- Insurance Policy
Once you have done with these, step ahead with your food delivery business plan.
- Choose a Perfect Business Name
Choosing a business name is a big decision because you will be going to allow people to call your business by name. Therefore, think of unique names that people can easily identify your business purpose. Suppose your business name does not represent your business purpose. It will be hard for customers to engage with your brand.
As the perfect name is not always easy to find, if you can get it, it’s worth investing time. Probably you have heard about Subway, Starbucks, and McDonald’s. Just hearing their name, plenty of dishes served there come to mind. This is the power of a brand name. You can take an idea from them, but consider something different for your business.
- Research the Market
Conducting complete market research can offer success in the first phase of your food delivery business. Therefore, go with a complete SWOT (Strength, Weaknesses, Opportunities, and Threats) Analysis. These will involve finding out who will be your partners and competitors in business, what their strategies are, and how you can fill the gap between customer demand and supply.
For example, Dominos, KFC, McDonald’s, Burger kings have their business apps. Still, offer them partnership to take your delivery services. The best option is to launch a food delivery app like uber eats or doordash and enroll them to offer their services and allow people to order from your app. Many food delivery app development team have ready to go solution. Contacting them is affordable solution.
- Define Your Target Audience
If you already have a restaurant and are now going to cover customers sitting at their homes or offices. Remember, most of these customers can be your existing customers and are aware of taste and menu. Offer them the same quality with an additional bonus to encourage sales.
You can also tweak the delivery menu based on customer demographics. These include working families, college students, hostelers, and millennials. Like most of the families choose healthy food whereas millennials appreciate snacks at affordable cost. Plan menu to pricing details to get the best deal to get repeat orders.
- Determine Initial Investment And Related Costs
Starting a food delivery business involves lots of expenses. From renting an office to paying salaries to staff, all these need to be set in a budget. Let’s discuss some of the major expenses:
- Website/app development cost: Initially, you can plan to receive orders via calls or messages. But the solution is not feasible in the long run, especially in a competitive era. You have to invest in a website and app development company sooner or later. Choosing it in the early stage can eliminate customer hassle and help you to get more customers.
- Software purchase/subscription: while developing an app that involves POS software (for payment) and GPS tracker (to track order) are basic software. It helps in hassle-free delivery. A free version of the software gives limited access. So you have to buy it or go with the subscription model.
- Marketing expenditures: You have to set a separate budget for social media marketing, Email marketing, pamphlets, hoardings, participation in events, or more. Online and offline promotions promote your food delivery business.
- Logistics overheads: Delivery cannot be completed without a fleet. Set a separate budget to purchase delivery vehicles and spend some amount on printing your brand name on them, just like Dominos.
- Develop food delivery business app and website
In the food delivery business, it’s hard to imagine flawless delivery without a significant app or website, especially when you choose an aggregator model. It brings restaurant owners and customers to one platform. Both parties can enjoy advanced features such as an in-detail menu, real-time tracking, online payment, sharing feedback, and more with an app and website.
Restaurants can update offers and menu prices from restaurant apps and receive orders from distant locations. Even if the food business wants to deliver in a specific area, customizing the radius can help them. Most importantly, your Food delivery app development company integrates GPS tracking and POS systems. Therefore you don’t have to look outside to acquire them.
- Hire Your Delivery Team
As you are into the delivery business, hiring a delivery team right away is significant. You should also focus on people who are eager to share your vision for the company.
Keep in mind, your business is customer-oriented, and the delivery person is the median between restaurant and customers to deliver food. Therefore hire friendly, open to learning, and have solid communication staff.
A survey revealed that a friendly and knowledgeable customer experience is more appreciated than price and convenience. So, pick the best people from the industry.
- Test Your Food Delivery App
It is crucial to test your delivery practice in shorter areas rather than targeting a larger audience and facing disappointment over some factors. Ask few and loyal customers to place orders and share their valuable feedback. Fix flaws faced by customers immediately before sharing on social media sites or spreading at large areas.
With this, do not forget to ask your delivery persons to motivate people to share feedback on every order. One more thing, there must be different feedback forms for Delivery boys and restaurant owners. It defines a better scope for improvement.
- Promote Your Food Delivery Business
Once you are happy with the app’s performance, it’s a perfect time to launch your food delivery app and website to accept distant orders. To reach a wider audience, market your app in the local community and among local businesses.
A few things that do not cost prove unmatchable results:
- Building customers’ trust through the delivery of an app.
- Add banners and delivery information on social media, website, and in-app.
- List your business on top platforms like Google, Yelp, and more.
- Offer special discounts, festivals vouchers, promo codes, and free deliveries to boost app usage.
If you start getting a handful of orders from the limited areas and planning to flourish your business. Expanding your reach is enough!
Starting a food delivery business is a perfect option that eliminates nine to five jobs or plans to expand restaurant reach. In both cases, technology always proves to be your strongest point. It keeps you one step ahead of competitors with a cost-effective solution. You just need to choose the right platform that ensures the safest POS system and accurate GPS tracking details. Testing it and working on feedback will help you to enjoy a healthy delivery business.