business plan food delivery

Delivery Service Business Plan Template

Written by Dave Lavinsky

Delivery Service Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their delivery service companies. 

If you’re unfamiliar with creating a delivery service business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a delivery service business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your delivery service business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan

If you’re looking to start a delivery service business or grow your existing delivery service company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your delivery service business to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Delivery Businesses

With regards to funding, the main sources of funding for a delivery service business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for delivery service companies.

How to Write a Business Plan for a Delivery Service Business

If you want to start a delivery service business or expand your current one, you need a business plan. The sample below details the necessary information for how to write each essential component of your delivery service business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of delivery service business you are running and the status. For example, are you a startup, do you have a delivery service business that you would like to grow, or are you operating a chain of delivery service businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the delivery service industry. 
• Discuss the type of delivery service business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of delivery service business you are operating.

For example, you might specialize in one of the following types of delivery service businesses:

• Courier Delivery Services : This type of business provides air, ground, or combined courier delivery services.
• Express Messenger Services : This type of business provides express messenger and delivery services.
• Package Delivery Services : This type of business delivers parcels, documents. and packages.
• Packing and Sorting Services : This type of business prepares items to be delivered.
• Transporting and Trucking Services : This type of delivery business transports items via truck. 

In addition to explaining the type of delivery service business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of delivery drivers you employ, the number of items delivered, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the delivery service industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the delivery service industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the delivery service industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your delivery service business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your delivery service business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of delivery service business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other delivery businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other third-party delivery services, ship-to-store services, and other types of delivery services. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of delivery service business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

• Will you provide options for local and long distance delivery?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a delivery service, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f delivery service company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide express delivery, air transit courier services, or long distance delivery services? 

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your delivery service company. Document where your company is situated and mention how the site will impact your success. For example, is your delivery service business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your delivery service marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your delivery service business, including answering calls, scheduling pick up and delivery of items, managing drivers, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your X number of deliveries made, or when you hope to reach $X in revenue. It could also be when you expect to expand your delivery service business to a new city.  

Management Team

To demonstrate your delivery service business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing delivery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a delivery service business.   

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you schedule 5-10 deliveries per driver per day and have 6 drivers ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your delivery service business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a delivery service business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of geographic locations you serve.   

Writing a business plan for your delivery company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert delivery service business plan; download it to PDF to show banks and investors. You will understand the delivery service industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful delivery service business.  

Delivery Service Business Plan FAQs

What is the easiest way to complete my delivery service business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your delivery service business plan.

How Do You Start a Delivery Service Business?

Starting a delivery service business is easy with these 14 steps:

• Choose the Name for Your Delivery Service Business
• Create Your Delivery Service Business Plan
• Choose the Legal Structure for Your Delivery Service Business
• Secure Startup Funding for Your Delivery Service Business (If Needed)
• Secure a Location for Your Business
• Register Your Delivery Service Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Delivery Service Business
• Buy or Lease the Right Delivery Service Business Equipment
• Develop Your Delivery Service Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Delivery Service Business
• Open for Business

Learn more about how to start your own delivery service business . 

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business planning advisors can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Food Delivery Business Plan Template

Food delivery business plan.

You’ve come to the right place to create your Food Delivery business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Food Delivery companies.

Below is a template to help you create each section of your Food Delivery business plan.

Executive Summary

Business overview.

Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.

The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

Product Offering

Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.

Customer Focus

Dig In will target all residents living in and around San Diego. It will appeal to students, families, retirees, white collar, blue collar, and government employees. Because our fees are moderately priced compared to other delivery apps, all income levels will be able to enjoy our delivery services.

Management Team

With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.

Success Factors

The following success factors will set Dig In apart from the competition:

• Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
• Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
• Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
• Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.

Financial Highlights

Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:

• Platform Development: $150,000
• Marketing and Brand Development: $100,000
• Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
• Working Capital: $100,000

The following graph outlines the pro forma financial projections for Dig In:

Company Overview

Who is dig in.

  The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In’s History

John Hutchinson has spent the last 2.5 years creating the food delivery online platform. As a tech entrepreneur, he knows how to map, develop, and implement an online platform. He has been instrumental in creating other apps and platforms for ecommerce companies and has created attractive and efficient apps for numerous Fortune 500 companies.

During the COVID-19 pandemic, John was on lockdown and working from his home. He used other food delivery services, but they were all slow, got his order wrong, or didn’t have a good selection of restaurants and establishments. It was then that he started developing his food delivery business and would implement and perfect all of the things that the competition suffered at.

Since incorporation, the company has achieved the following milestones:

• Mapped out the online platform for the food delivery business
• Developed the company’s name, logo, and website
• Approached multiple local restaurants, grocery stores, and bakeries to be a part of Dig In’s platform
• Determined necessary insurance and legal requirements
• Began recruiting key employees
• Written and developed the Delivery Driver processes and procedures.

Dig In’s Services

Industry analysis.

The Food Delivery industry has grown substantially in the past five years. The convenience of ordering food from home has appealed to large demographics and now nearly everyone orders through a food delivery app at some point. Food delivery apps became a necessity during the COVID pandemic and now they are a mainstay in modern society.

According to Grand View Research, the Food Delivery industry is set to grow at a CAGR of 18.7% from now until 2030. What helps this growth is the increasing popularity of smartphones and the expansion of these services overseas. Food delivery apps are becoming an essential tool in modern society, which makes this a great time to create a new food delivery service.

Customer Analysis

Demographic profile of target market.

Dig In will target millennials, young professionals, and college age students as this demographic is more comfortable with online delivery services and regularly use other similar apps such as Uber and Tasty.

However, we expect Dig In will appeal to other demographics as well as it will be a convenient and moderately priced option to get food delivered quickly. For example, we expect working parents will enjoy our app as well as elderly residents who have trouble leaving their home to go grocery shopping or go to a restaurant.

The precise demographics of the San Diego area are as follows:

Customer Segmentation

Dig In will primarily target the following customer profiles:

• Young professionals
• College students
• Working parents

Competitive Analysis

Direct and indirect competitors.

Dig In will be competing with other popular food delivery apps. A profile of each competitor is below.

Food at Your Door

Food at Your Door is an online and mobile platform for restaurant pick-up and delivery orders. The company is known for connecting over 30 million customers and processes on average about 500,000 daily orders in most cities around the United States. Customers are able to search for restaurants, order directly through the website or app, and then await their delivery from independent contractor drivers.

The company generates revenue from delivery fees paid by consumers as well as commissions paid by participating restaurants. Food at Your Door’s other offerings include a program for corporate food ordering, website design and hosting for participating restaurants, and point-of-sale integration services. The company is continuously updating its platform with innovative technological advancements to stay on top of the competition.

Fast Foodie

Fast Foodie is a technology company that connects people with the most popular food establishments in their neighborhoods. They enable local businesses to meet consumers’ needs of ease and convenience while enabling their independent contractors to generate an additional source of income. The company is passionate about transforming local businesses and dedicated to enabling new ways of working, earning, and living. They empower their local economies by ensuring that people have equal access to opportunities to reach their full potential.

Fast Foodie has expanded their database to include not only restaurants, but convenience stores, pet stores, grocery stores, and drug stores.

Ding Dong is an operator of an on-demand goods delivery platform that is intended to facilitate smooth delivery of essential goods. The company’s platform offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials. This enables users to select items from their favorite grocery stores and get them delivered almost instantly.

Ding Dong was the first online platform to expand their services and products by including anything that can be purchased at a local grocery store, convenience store, or drug store. The drivers/shoppers are required to ensure delivery during the selected timeframe that the user selects.

Competitive Advantage

Dig In offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Dig In will offer the unique value proposition to its clientele:

• Comprehensive list of restaurants and grocery stores
• Membership rewards and specials
• Faster delivery times
• Moderately priced fee structure

Promotions Strategy

The promotions strategy for Dig In are as follows:

Social Media

Dig In will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of food options that are available for delivery.

Collateral Material

Dig In will develop numerous collateral materials to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.

Website/SEO

Dig In will invest heavily in developing a professional website and app that displays all of the restaurant and store options the company will be able to deliver for. The company will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Billboards/Signage

Dig In will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.

Dig In’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.

Operations Plan

Operation Functions: The following will be the operations plan for Dig In.

• John Hutchinson will operate as the CEO of Dig In. In addition to running the general operations, he will oversee the app development and provide app support.
• John will hire 2-3 additional web engineers to run the website and app.
• John will hire 20-30 delivery drivers to work on an independent contractor basis.
• John will also hire an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.

Milestones:

Dig In will have the following milestones complete in the next six months.

• 8/202X – Finalize app development
• 9/202X – Hire and train initial staff
• 10/202X – Kickoff of promotional campaign
• 11/202X – Launch Dig In
• 12/202X – Reach break-even

Financial Plan

Key revenue & costs.

Dig In’s revenues will come primarily from the fees it receives from the food delivery orders.

The delivery driver commissions, website platform fees, supplies, marketing, and labor expenses will be the key cost drivers of Dig In.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

• Initial Number of Orders Per Day: 100
• Average Order per Customer: $25.00

Financial Projections

Income statement, balance sheet, cash flow statement, food delivery business plan faqs, what is a food delivery business plan.

A food delivery business plan is a plan to start and/or grow your food delivery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Food Delivery business plan using our Food Delivery Business Plan Template here .

What are the Main Types of Food Delivery Businesses?

There are a number of different kinds of food delivery businesses , some examples include: Restaurant Delivery, Meal Kit Delivery, Grocery Delivery, and Veggie Box Delivery.

How Do You Get Funding for Your Food Delivery Business Plan?

Food Delivery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Food Delivery Business?

Starting a food delivery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Delivery Business Plan - The first step in starting a business is to create a detailed food delivery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food delivery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food delivery business is in compliance with local laws.

3. Register Your Food Delivery Business - Once you have chosen a legal structure, the next step is to register your food delivery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food delivery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Food Delivery Equipment & Supplies - In order to start your food delivery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food delivery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food delivery business:

• How to Start a Food Delivery Business

Solving Business Challenges

Helping businesses grow, how to start a food delivery business: from business plan to expansion.

February 4, 2022

When you picture your future food delivery business, you probably envision yourself engulfed in sweet aromas as you stir your signature dish over a hot stove. But if you want to light up the taste buds of swooning patrons, you’ll need to have more than a love for culinary innovation. You need a solid understanding of business procedures, like budgeting and delivery driver routing, too.

This guide is designed to help you conquer all of the non-food related parts of your business. Whether you’re just starting out, ready to launch, or looking to expand an existing food delivery business, these tips and strategies will help you grow your business successfully. Plus, learn how OptimoRoute streamlines routing, scheduling, and planning, so you can focus on the fun part — the food. 

Jump to your step:

Step 1: Formulate a Food Delivery Business Plan

Step 2: purchase equipment and hire your team, step 3: take a test run, step 4: open your food delivery business with a bang, step 5: scale and expand your business.

Before you design a menu or perfect your signature dish, you need to form a food delivery business plan (or business recipe ). You can always spice it up or modify it when you feel inspired, but these are the essential steps for creating a successful business model.

Find your differentiator

Choose a unique approach to make your business stand out. Local Roots NYC ’s differentiating factor, for example, is that their farm delivery business only sells food from “hyper-local” farms — ones that are within a two-hour radius of NYC. Domino’s Pizza sets themselves apart in a highly competitive market by offering unparalleled convenience and unique delivery options.

How do you find your differentiating factor? You’ll have to conduct market research. Explore your competition — order takeout from local restaurants and food delivery services . Look for gaps in their offerings so that you can offer something they don’t, whether it’s a particular dish, shorter delivery time, or a different type of food.

Recommended Reading: How to Do Market Research: A 6-Step Guide  ; How to Differentiate Your Restaurant and Stand Out From the Crowd  ; How Can I Find Customers in a Competitive Market?

Plan your logistics

Logistics management is a large part of running a food delivery business. We’ll dive into software you can use to simplify route planning and order management in step 2. For now, here’s what you need to do:

• Find a kitchen. Unless your local laws allow you to cook in your home kitchen, you’ll need to rent a commissary or commercial kitchen. If you’re adding restaurant delivery to an existing dining establishment, make sure you set aside dedicated kitchen space for delivery orders. You’ll need a space for drivers to gather delivery orders without interrupting your dine-in workflow.
• Map out your territory. Start small. You can always expand once you have a firm understanding of how long deliveries take and how many orders your drivers can handle at one time. Software such as OptimoRoute can help with this. If you’re starting a weekly subscription service, such as a meal prep or grocery delivery business , consider dividing your territory into manageable zones. For example, Tomato Mountain Farm offers delivery to each of their zones on a specific day of the week. This makes deliveries more efficient and cuts down on their carbon footprint.
• Choose your fleet. If you buy your own delivery vehicle(s), you’ll have the freedom to wrap or brand the exterior. Owning your own vehicle also simplifies maintenance and gas expenses. But it’s a large investment. If you aren’t able to purchase or lease a delivery vehicle right away, you can have your drivers use their own vehicles. You’ll just need to outfit them with extra supplies, such as ice packs or insulated bags, to ensure the food is safely transported.
• Know if you need reverse logistics. Reverse logistics is the process of picking up items from customers and bringing them back to your establishment or to another location. Meal delivery businesses such as Oco Meals use reverse logistics to pick up reusable food containers. Oberweis Dairy uses reverse logistics to pick up empty milk bottles. Reverse logistics solutions can help you differentiate your business by providing a unique customer experience.

Check out the competitors you identified in your market research and see how they handle logistics. You may be able to learn from their systems, or you may find gaps in their systems that you can capitalize on to get an advantage. It can also be very helpful to find a mentor — a restaurant owner or someone who has set up their own food delivery business and can give you guidance. Finally, if your food delivery business requires warehousing, check out our guide to food warehousing for tips on how to optimize storage.

Recommended Reading: How Delivery Planning Can Grow Your Business in 2020 ; Renting a Commercial Kitchen or Commissary: What You Need to Know ; The 6 Best Cargo Vans For Your Business

Budget 

Once you’re armed with an understanding of both your market and your logistics requirements, it’s time for budgeting, revenue forecasting, and demand forecasting . You must calculate:

• Projected earnings – Estimate what you think your revenue will be. You need this projection to determine your risks, when your business will break even, and how much upfront cost you can sustain.
• Expenses – Add up the cost of supplies, vehicles, etc., you will need to buy upfront, as well as those you will need to buy in the first three years you are in business. Don’t forget to include payroll expenses, business licensing fees, vehicle maintenance, gas, and tolls.

You also need to create a balance sheet and pay close attention to billing cycles. If you have more money going out in one 30-day period than coming in, you’re going to have a cash flow problem. If you offer weekly meal deliveries, you may want to consider billing clients at the beginning of each three-month season, rather than billing each week. This can help mitigate cash flow concerns.

Recommended Reading: Calculate Your Startup Costs ; How to Finance a Small Business ; Sales Tax by State: To-Go Restaurant Orders

Now that you have a plan, it’s time to arm yourself with essential tools and hire your team. Make thoughtful decisions about both, and you’ll set yourself up for long-term success.

Get an edge with the right tech stack

You have to take advantage of the most advanced technology. If you don’t, one of your competitors will — and they will deliver a superior customer experience because of it.

Route optimization software is an absolute must-have for delivery businesses because customers have high expectations. Thanks to companies like Amazon, fast and free delivery is considered a standard offering, not a luxury, and manual planning is obsolete.

At OptimoRoute, we help businesses maintain a competitive edge, drive revenue, and scale quickly and efficiently. Our software automates delivery route planning , driver scheduling, customer notifications, and more, which has empowered food delivery businesses like Hardie’s Fresh Foods to increase their on-time delivery rate from 89% to 94%. Using OptimoRoute, Tomato Mountain Farm quadrupled their subscriber volume and added two new delivery vehicles to their fleet while remaining profitable. 

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In addition to route optimization software, you will need a website. We recommend using a POS (Point of Sale) system to accept and track payments as well as creating your own mobile application. According to Omnivore , “70% of restaurant’s digital orders come through its mobile app or website.” This does not include third-party food delivery platforms like Grubhub, Postmates, or Uber Eats, so it’s important to have your own online and app presence.

Recommended Reading: The Ultimate Guide to Route Optimization ; The Ultimate Guide to Choosing a POS System ; Restaurant App — Complete Guide

Assemble your dream team

As a startup, it’s vital for you to hire the right team. You’ll be working closely with your employees, and smart hiring decisions drive revenue , so make sure you hire like-minded individuals who share your vision. Happy employees who enjoy their work are more productive , which is especially important when your food delivery company is striving to break even.

Choose delivery drivers with customer service skills. You can easily provide your drivers with turn-by-turn navigation using route optimization software, so mapping skills aren’t as important as communication and people skills. Delivery drivers will be the only representative many of your customers meet in person. Choose drivers who are most likely to make a positive impression.

Pro Tip: OptimoRoute can reduce your payroll expenses by cutting down the work hours needed to plan and route deliveries. Businesses like Telgian have reduced planning manpower by as much as 66%.

Recommended Reading: How to Hire ; Hire Delivery Drivers — 10 Sites for Hiring Drivers Fast ; 5 Delivery Driver Interview Questions and Answers

Choose packaging that is in-line with your brand

Delivery packaging and presentation can go a long way toward earning you repeat sales, but only if it’s in-line with your brand. Say your market research showed a gap in sustainable food delivery in your area. You decide to open an organic and eco-friendly meal kit delivery business. It would be smart to choose biodegradable or reusable cartons because they are in-line with your brand image and marketing strategy.

Even if you’re not building an eco-centric brand, most consumers prefer to order from delivery businesses that use biodegradable or recyclable containers. Regardless, every piece of your business should form a cohesive brand — including the packaging you transport your food in.

Recommended reading: Food Packaging Design Tips  ; The 4 Packaging Supplies That Meal Prep Delivery Services Need  ; Why Compostable Containers Make Sense Even If You Can’t Compost Them

Open your business to a limited client base, so your whole team can practice and work out kinks in your physical workflow. 

Track how long it takes drivers to deliver to different areas and how much time they require at each stop. Use the insights you glean from taking a test run to finesse your routing and scheduling . The more concrete information you have, the better your capacity plan will be, and the easier you will be able to scale operations when demand picks up. You can also use your test run to get feedback from potential customers regarding pricing and which features, food options, and services they most enjoy.

Pro Tip : OptimoRoute automatically tracks information, including actual routes taken by drivers vs. planned routes, the time each delivery was made, and on-time delivery rates. You can access these delivery statistics at any time in your advanced analytics dashboard and use these insights to adjust delivery zones, see how each of your drivers is performing, and know exactly what it will take to scale your business when you want to expand.

You don’t have to spend a ton of money on marketing right away, but you will need to get the word out about your business.  More than half of the respondents surveyed for Nielsen’s Global New Product Innovation Report said that they learn about new products from friends and family. Referral marketing is a powerful tool, so make it easy for happy customers to tell their friends about your business. Add a “refer a friend” button to your emails, website, and app. You can even incentivize your target audience to tell their friends about your business by offering a referral discount or rewards program.

Use social media to create a buzz and interact with your target market in a meaningful way. You can boost engagement without spending money by creating a post with a simple question — one that won’t take long for a consumer to answer, but they’re likely to have an opinion about it. 

For example, let’s say you serve Mexican food. You could post a photo of your tacos next to a photo of tortas and say something like, “Taco Tuesday or Torta Tuesday? What do you prefer?” These types of posts can garner a lot of comments that will organically boost that post’s visibility and open your business up to a wider audience. You could also get the word out about your business by partnering with influencers in your area. 

Pro Tip : Use OptimoRoute’s customizable customer notifications to encourage your patrons to share their experiences with friends.

The key to successfully growing a business is to optimize it — to make sure every process is running at peak efficiency . Optimization is how successful businesses maximize revenue, reinvest, and scale. Tomato Mountain Farm was able to expand their client base from 300 to 1,200 subscribers in 30 days by optimizing deliveries with OptimoRoute. Local Roots NYC optimized their delivery procedure to overcome COVID-19 restrictions and scale from 50 to 1,000 weekly deliveries in just one month.

When you’re operating at peak efficiency and you know exactly how much money, time, and manpower every process takes, scaling and expanding are easy.

Learn how to optimize your food delivery business by type:

• Meal Prep Business
• Catering Business
• Grocery Delivery Business
• Farm Delivery Business
• Alcohol Delivery Business

Grow Fast and Efficiently With OptimoRoute

Whether you’re thinking of starting a catering business , a meal-prep business, or anything else with food delivery, OptimoRoute can help.

At OptimoRoute, we’ve helped hundreds of food delivery businesses at all stages, from launch to scaling and adding new territories. We understand the struggles facing delivery teams, and we want to help you reach your goals. We offer a 30-day free trial (no credit card info required), so you can truly experience all our software has to offer. Our support team is available to help you get started, walk you through our features, and answer questions.

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Ultimate Guide on Online Food Delivery Business Plan

• Last Updated: June 21, 2023

As a food delivery service, you will be expanding convenience and choice for your existing and potential customers. You will be working towards making it easier for them to order a wide variety of food from various restaurants.

In the last few years, there have been huge changes in the food delivery market . These changes have come into effect due to:

• Increasing demand and competition;
• Competitive prices;
• The rise of digital technology;
• Evolving customer behavior; and 

At the time of creating a food delivery business plan , you may require to consider several aspects in advance. In this blog, we will help you create an effective food delivery plan for your business.

Table of Contents

Why Do You Need a Food Delivery Business Plan?

Key statistics to observe before entering the food delivery market, different food delivery business models, how to write a food delivery business plan, let upper help you grow your own food delivery business.

The customers have evolved. Their demand for food, types of food delivery, and behaviors have changed. These points show how:

• Offer great speed of delivery and boost customer retention rate;
• Most meals are ordered from & delivered to homes;
• High volume of orders on Friday, Saturday, and Sunday.

In order to tackle these challenges and many others, you need to formulate a detailed food delivery business plan and affordable prices. The plan is not only an executive summary or roadmap, it is much more than that. 

Here’s how a well-developed winning business plan can help you:

• Offers an understanding of your industry, key competitors, target audience, food delivery platforms and trends.
• Conducting a SWOT analysis for food and getting insights on your strengths, weaknesses, opportunities, and threats.
• Works as a benchmark on how to conduct the business and know average prices for your products.
• You can find out the requirements of new members, tools, and equipment to help you reach any major goals or business goal.
• Helps with cash flow statements, financial statements, competitive strategies, and revenue model of the food business along with investment strategy.

Source: Statista

• The global revenue in the online food delivery segment has doubled since 2017.
• 57% of millennials prefer to have restaurant food delivered.
• 33% of consumers are willing to pay higher fees for faster delivery services.
• 60% of restaurant owners & operators said that offering delivery generated incremental sales.
• Joining hands with third-party delivery services has raised restaurant sales volume from 10% to 20%.
• 70% of consumers prefer to place delivery orders online for a seamless robust experience . 
• Ghost kitchens or cloud kitchens is going to be an office food delivery industry worth $1 trillion by 2030.

When you are ready to create a plan, you must know which business model will you acquire and how it will benefit you. Business models should be considered on the basis of what are your requirements. Basically, it helps you choose which services you will offer to your clients including strategic locations. While doing so, you should decide whether you will run a food store or an online food delivery service business. 

Here are different types of popular food delivery business models .

1. Order Only

This type of food delivery is followed by food delivery companies like Grubhub. These services only function as a software layer between the standard restaurant and the customers. Order-only platforms like Grubhub & Postmates have experienced remarkable growth.

This model becomes ideal for those who want to provide on-demand services. In fact, it is the best way to customer contact more easily. This business model will act as a medium between your restaurants and online services. Hence, making it easier for online users to take benefit from online purchases of food. This is why so many food business owners consider preferring to consider online order requests.

By opting for an order-only business model, your main job will be to deliver food to the buyer. In this process, business cum restaurant will earn a commission of 10-15% for every order request they receive. 

2. Order & Delivery

Apps like DoorDash , UberEats, and Deliveroo are channels that bring in extra orders to restaurants in the form of takeaway and delivery. The apps manage the deliveries for these restaurants using their own fleet of independent drivers. 

It is quite different than what we understood in the previous model. In simple terms, the delivery process is not directly connected to restaurants. In fact, you need to hire a third-party delivery service that can provide timely delivery to the customer’s doorstep. Delivery service providers jointly work with the restaurants to provide quicker food deliveries or drinks to customers, but they also put on extra charges for received orders. 

This order and delivery model also comes up with challenges that you should look at before acquiring it completely. Since you are handing over the delivery duties to another party, they should store the food at a consistent temperature. If not done, food may not have the same taste and freshness. Thus, you need to put a systematic delivery system. 

3. Fully Integrated

Fully Integrated delivery businesses develop their own apps using which customers can get meal deliveries from cloud kitchens to the ideal location. These apps focus on convenience and direct experience to consumers. 

It is usually preferred by startup restaurants or family businesses where they can prepare meals and deliver them to the food buyer. Business owners opting for a fully integrated model only serve in a specific service region. They also collaborate with chefs to provide a different range of foods and a better quantity of foods. Going for this model, you need to pay for the cost of equipment which means your operational cost may raise. 

With this model, you are likely to provide quicker deliveries and may find it easier to adjust the delivery schedule as per consumers’ requirements.

Do In-depth Industry Analysis

Identifying your usp.

Make something memorable: A good USP is the one that is memorable, makes a case against existing products and offers valuable interaction with customers. How will you embody your USP in your products, services, user experience, and office food delivery brands? 

What are you doing differently?: In order to identify your USP, look at the direct competitors, and indirect competitors and find out what you are doing differently from your major competitor. An on-demand delivery market analysis, customer analysis and knowing relevant market size will be helpful. 

Notice patterns in the market: If you notice a pattern in the market about features or aspects missing in the competitors, note that down and see if you can offer those features or food services.  

Talk to your customers: Conduct a thorough market survey. Talk to your loyal customers or different types of customers and see what they have to tell you. It will help you find out what’s working for your food business and what’s not working.

Developing your USP

Don’t try to be the best: Don’t try to be the best brand or product out there. Just carve out a niche for your own business in the food delivery industry and stick to it. You will not be concerned about the competition once you make the rules yourself. 

Who are you targeting?: Be particular about who your target market is. Focus on that particular audience. It will help you achieve corporate sales goals and keep your brand image consistent because you can’t be everything to everyone. 

Develop a personality: Incorporating a strong personality into your USP will make your product more memorable. Once you infuse a personality into your brand or product, it will be difficult for others to not notice you.

Create your USP 

Write things down: Create a list of all potential differentiators. You will find these points if you do a thorough actual market trends. Wrap these points around your advertising strategies, business strategies and detailed strategies.  

What are your unique angles?: Pitch your most unique angles against the customer’s needs. Learn about their pain-points as it will help set long-term goals.

Compile data: Collect all the data you receive from your consumer and market research and integrate it with your product, service, marketing strategy, and business idea.

Prepare a Financial Plan

Your budget will be dependent on your approach and the food delivery business model you choose. Your approach to market and growth strategy will also be an important factor in the total operational costs or key costs you incur. 

As an office food delivery company, you can choose if you will be building an in-house tech platform and support or whether you will be dependent on third-party services for the same. It is an expensive thing to integrate advanced technology in-house. You need a great amount of investment just to get started. 

Figure out a budget considering all the major factors of your business model and food delivery marketing plan. You will have several financing options to choose from:  

• PayPal Working Capital Loan: PayPal offers short-term loans to help small businesses grow. The application process for a PayPal Working Capital Loan is quick and easy and there are no extra fees and prepayment penalties. 
• Credit Cards/Personal Loan: Business credit or personal loan can be acquired to fuel the daily functions of your business. Small business owners can easily qualify for credit cards and personal loans. 
• SBA Loans: You can apply for a small business loan under the Small Business Administration advantage program. SBA offers small business financing with lower interest rates compared to other options. SBA Microloans can be used for inventory, supplies, working capital, and machinery.
• Government Grants & Subsidies: There are several State and Federal Government grants and subsidies available to businesses. In recent times, the government has helped several small and medium-sized businesses to revive their existing food delivery business or any type of meal delivery startups. 
• Crowdfunding: Reach out to investors and financial institutions to see if you are eligible for a loan. There are great opportunities for businesses with innovative ideas. An online platform where innovative businesses are identified and valued is KickStarter and Indiegogo .

Resource and team management

• Acquiring New Equipment & Vehicles: Decide which major sources and equipment or standard kitchen utensils you will require for your standard food delivery company. Do you need bikes, box trucks, or cargo vans? Depending on your business model and budget, plan out the lease or acquisition of vehicles and new equipment.  
• Hiring Drivers: You will have to choose whether you want to hire contract drivers or full-time drivers. It will depend on your delivery business model. Look for drivers on industry-specific job boards. Make use of your brand’s social media platform to search for suitable drivers.
• Training Drivers: A thorough training will have to be provided for your newly-hired drivers, whether they are involved on a full-time basis or on a contract.
• Train your entire staff for your last mile delivery process; 
• State their responsibilities as a delivery driver;
• Form a strong management team to work with a customer-centric mindset;
• Give access and train management staff for the tools and equipment they will be using on the job;
• Help them establish excellent customer service culture;
• Train drivers to prioritize their health and safety over the package time to time.

Generate an operations plan

• Plan Your Last Mile Process: Your last mile delivery process is the front-end process that is often trackable and visible to the customers. Try to make this process as efficient as possible. A month of operation on customer-facing troubles always be crystal clear and should be carried out without any uncertainty. 
• Simplify the Process by Employing the Right Tools: One major way of simplifying your last mile delivery process is to cut down planning and optimization time by eradicating a manual procedure. In order to automate these steps, you will have to integrate a food delivery planner and optimization software in your last mile delivery process. 
• Executive summary: As a food business owner, you will be employing multiple drivers and creating multiple routes for them daily. You will need to be prepared for every unexpected challenge. Create a summary on how your food delivery operations will take place. You can give an overview and discuss the business model with your delivery team. Address your marketing team to work on key issues that help them attract target customers.

Developing a meal delivery business plan can be challenging. There are quite a few aspects that need to be considered seriously. The increasing competition in the office food delivery services industry only makes it more difficult for new entrants to make space for themselves.

With a reliable food delivery business plan, you can never go wrong. Make sure you consider all the important pointers mentioned above before setting up your own online food delivery system. 

One of the most important aspects, as mentioned above, is planning and optimizing your delivery routes. Without proper optimization and a strong last mile delivery setup, you will not be able to gauge an audience in the market. 

Use a route planning and optimization software like Upper to make sure your routes are optimized and you save the delivery time. It keeps eye on your personal savings while achieving more deliveries per route.

Utilize Upper to Automize Food Deliveries

Preparing a food delivery business plan? Why not include the best route optimization for getting faster delivery routes. Start using Upper for better delivery management and timely deliveries.

Offices food delivery services are booming currently. The rise in quarantine and lockdown restrictions has people locked up in their houses. It has given a huge boost to online food ordering. Most businesses recorded the highest revenue only because of the online food ordering and delivery.

Food delivery businesses either prepare the cooked food on their own or partner with entire restaurant to handle food deliveries on behalf of them. These are the two main ways in which food delivery businesses operate. A food business that prepares and delivers on its own either receives orders through its website, third-party mobile app, or phone call.

You can start accepting orders for your homemade food online through your social media platforms, website, or phone calls. Many small businesses that sell homemade food accept orders through phone calls or online business plan software that help them sell and deliver their food to the customers.

Food delivery services business like DoorDash, Grubhub, and Postmates are some of the most popular food delivery services having the potential market share in the online food delivery service industry.

If you are new to the food industry, it means you need to work hard in business planning. We discussed significant factors that should be considered while making your own business plan. So, all in all, you must analyze the current food delivery market statistics that may help you make a robust plan. For a new player like you, it becomes necessary to understand business models before implying them to your business.

Successful online business may not even if you finish your food delivery business plan template as you may need support from online tools. Upper is one of such tools that streamlines your food delivery services and helps you reach the food buyers’ locations easily. You can manage unlimited food deliveries with the help of a fully automated delivery process. Import your data, optimize them, and hit the dispatch button with just a few clicks. Book a demo with us to get more insights into Upper Route Planner.

Rakesh Patel is the founder and CEO of Upper Route Planner , a route planning and optimization software. With 28+ years of experience in the technology industry, Rakesh is a subject matter expert in building simple solutions for day-to-day problems. His ultimate goal with Upper Route Planner is to help delivery businesses eliminate on-field delivery challenges and simplify operations such as route planning, scheduling, dispatching, take a proof of delivery, manage drivers, real time tracking, customer notifications and more. He loves sharing his thoughts on eliminating delivery management challenges via blogs. Read more.

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How to Start a Food Delivery Business in 2023

Consumers love the convenience of food delivery. Tap into the market by learning how to start a food delivery business of your own.

Food delivery service can be a lucrative business. One tool you’ll want to make sure of its success? Circuit for Teams .

Almost anyone can start a food delivery business. You don’t need a college degree, large bank account, or corporate experience.

The only thing you need is a great idea, the right systems, and the drive to make it happen. 

In learning about how to start a food delivery business, chances are you already have an idea and the drive. All you need is a reliable business model that’s sure to be in high demand.

Since demand for food delivery has increased dramatically in the COVID-19 pandemic, odds are you have a broad target audience to appeal to.

Food delivery apps alone more than doubled their business during the pandemic. Other types of food delivery, like grocery delivery, have also become more popular .

If you want to take advantage of the booming food delivery market, now’s a great time to do it. That said, starting a food delivery service needs some planning. 

This article tells you what you need to know.

Food delivery 2-minute cheat sheet

Before we dive into the details, here’s a quick look at how to get a food delivery business off the ground. The exact steps will vary depending on the type of business and your location, but this will give you a rough idea of what to expect. 

• Write a business plan. This means doing market research, defining your services, and sketching out how your business will be structured and operated. It’s your guidebook to running your business.
• Calculate your costs and get funding. Adding up all your expected startup expenses allows you to determine overall costs. You can then raise the capital needed to cover those costs.
• Legally establish your business. Forming a legal business entity like a limited liability company (LLC) or corporation has perks like streamlining your bookkeeping and protecting your personal liability. You have to register your business entity with your region for this step.
• Get the right licenses and permits. Depending on the type of food delivery you offer and the region, you may need certain licenses and permits to operate legally. For example, you might need a food-vending license.
• Establish your delivery region. Figuring out your delivery region allows you to better anticipate capacity needs. You can then determine how many drivers and vehicles you need to meet demand based on population and competition in the area.
• Build a reliable and responsible team. Your delivery drivers are the basis of your business success. You want people who are reliable, trustworthy, and have a knack for customer service. Hiring a strong team from the beginning will improve your odds of success.
• Optimize delivery routes for food orders. You can make life easier for your drivers by optimizing their delivery routes. This gives them the fastest path to get their deliveries done, making sure food is still hot when it reaches customers. This can also keep your customers happy!

Is food delivery a profitable business?

A food delivery service can be a reliable and profitable business.

Since 2019, consumer demand for food delivery has steadily grown. The market reached a value of $18.5 billion in 2020 and is expected to reach a value of $33.7 billion by 2026. People have embraced online ordering and the convenience of getting food brought to their doorsteps.

Not only is food delivery in high demand, it’s also far-reaching — with many different types of food delivery business models possible!

You’re likely already aware of food delivery apps like Uber Eats, Grubhub, Doordash, and Postmates. There are also food delivery services that bring consumers groceries instead of ready-made restaurant meals, like Instacart.

A food delivery service can also cater to a business-to-business (B2B) customer base instead of individual consumers. For example, you might handle produce delivery for restaurants.

It’s clear that food delivery is in-demand, versatile, and holds potential for great profits. But, it’s impossible to say exactly how much you’ll earn.

The profits of a food delivery business depend on many factors — from what kind of business you have to where you’re located. 

For example, if your delivery service is in a large city, you may see higher demand and greater earnings potential than less populated areas.

Can you start a food delivery business with no money?

One benefit of a food delivery business is its scalability. 

You can start small and, depending on how it goes, expand your operations later to meet the rising demand.

This means that you generally don’t need to invest a lot of money to get your business off the ground. 

However, it won’t be free. You will need some money to cover basic startup costs.

For example, depending on the area where you plan to make deliveries and the type of business you have, you might be able to start with just a bicycle and a cellphone. 

If you already have a bike and a phone, you might think you’re all set!

Not so fast.

You’ll also need to handle some administrative things, like getting the right business licenses and insurance. Depending on where you operate, this will likely cost you some money, for example, in processing fees.

We go into all the nuts and bolts of what you need to start a food delivery business below.

Should restaurants start their own food delivery business?

If you’re already in the food service industry as a restaurateur, congratulations! Then expanding your business by offering delivery makes sense. 

While you can rely on other food delivery companies like Uber Eats to get food to your customers’ doorsteps, this needs you to pay the restaurant delivery platform a delivery fee.

When you set up your own online food delivery service , you have full control. You won’t have to pay a cut to an external service provider, which can mean more money in your pocket.

Even if you already offer takeaway or takeout services — where customers pick up their food — delivery can be a plus. 

Takeout isn’t super convenient for consumers, so adding your own delivery service allows you to broaden your target market and reach potential customers you might otherwise miss.

How to start a food delivery business

Have you decided that a food delivery business is the right choice for you? Great! 

Now, read on to find out how to get started.

Step 1. Write a business plan

A business plan provides a guide to how your company is run and structured. The first step in writing a plan is to conduct market analysis to determine the competition for delivery businesses in your area. 

Ask yourself what other businesses are in your area and how you’ll stand out from the competition. For example, maybe you’ll provide faster delivery or cheaper service.

Your business plan should also include a company description, organization and management overview, description of your services, marketing and sales plans, and financial projections.

The U.S. Small Business Administration (SBA) has a detailed guide to writing a business plan.

Step 2. Calculate your costs and get funding 

Before getting started, make a list of all the things you’ll need to run your food delivery service. You can then tally up the total to get an idea of your startup costs.

Common startup costs include:

• Administration fees, like fees to register your business (more on that below) plus business licenses and permits
• Market research expenses, for example, conducting surveys
• Equipment like delivery vehicles and driver uniforms
• Technology like computers, mobile phones, and software
• Office space, if you plan to have a central headquarters, plus utilities 
• Marketing and advertising costs, like social media, pay-per-click (PPC) advertising, email marketing, and pamphlets
• Website development and hosting fees. 
• Insurance costs, like general liability insurance

The costs will vary significantly based on factors like how large of a delivery company you want to start and your business strategy.

For example, if you plan to provide your drivers with delivery vehicles, you’ll have to cover these costs, which can easily run into the six figures, depending on how many you buy. If you let drivers use their own vehicles, this isn’t an issue.

Rest assured, there are many ways to reduce fees. For example, website development can cost as much as $10,000! However, you can create your own website for cheap using a template builder like Wix .

Step 3. Legally establish your business 

You can establish your business as a formal legal entity by registering it with your region.

Establishing a legal business entity is important for a few reasons.

First, it makes it easier to separate your business and personal finances. Once you’ve formed a business entity, you can set up a business bank account to handle all your business funds.

Second, having a formal business entity can simplify certain paperwork in the future, like your bookkeeping and tax filings.

Finally, and most importantly, setting up a distinct business entity can help protect your personal liability. For example, if you have an LLC or a corporation and someone sues your delivery business, your personal assets will likely be protected.

Possible types of business entities in the United States include:

• Sole proprietorship
• Limited liability company (LLC)
• Corporation
• Partnership

These entities differ on points like tax filing and reporting requirements. The U.S. Chamber of Commerce provides a guide to popular types of legal entities, how they differ, and how to choose the right one for you.

Step 4. Get the right licenses and permits 

Starting a business is exciting! 

But it also needs some administrative paperwork. On top of the documentation needed to set up your business entity, you also need to get any licenses or permits required by your municipality. In addition to a general business license, you may need a food-vending license or food-handling permit , for example. The Centers for Disease Control and Prevention (CDC) also provide guidance on safe food handling.

If you fail to get the proper licenses and permits, you may get in trouble with the authorities and face fines — or even lose your right to do business completely! Food safety fines are a big deal (Fun fact: Chipotle has received the biggest fine to date, a whopping $25 million ). 

The SBA has a state-by-state guide to the types of business permits and licenses you may need. You can also consult your county clerk’s office for information.

Finally, keep in mind that you may need to get insurance to cover your business. The SBA has another guide to common types of business insurance and what they cover, including professional liability, commercial property, and general liability insurance.  

Step 5. Establish your delivery region 

Food delivery services are usually local, so odds are you’ll only deliver within your city or municipality. 

However, even within this geographical area, you may want to define a strict delivery region. To do this, consider points like:

• The population density of your potential delivery region. In a densely populated city, a smaller surface area can still bring plenty of business. In rural areas, you may need to cover a larger area to get enough business.
• How much mileage you want to subject delivery vehicles to. A larger area means more miles, resulting in greater wear and tear on vehicles and increased maintenance expenses.
• Your driver capacity , keeping in mind that the farther drivers have to go, the longer it will take them to fulfill their deliveries. A larger geographic coverage may mean building a bigger team.

Part of this is simply about maintaining a good level of customer service. For example, if you deliver restaurant food to a house an hour’s drive away, the food might be cold by the time it gets there! 

Ideally, you want to avoid this scenario.

Other considerations include gas and mileage expenses . The larger the delivery region, the more ground you can cover — but the more you’ll have to pay for fuel.

Step 6. Build a reliable and responsible team

Your business success relies on the right team. Follow best practices for hiring by writing clear job advertisements, interviewing potential applicants carefully, and checking their references personally.

For delivery drivers, you also want to run a background check and check their driving record. Drivers know where customers live, so you want to make sure they don’t have any criminal past.

Step 7. Optimize delivery routes for food orders 

The last thing you want in a food delivery business is to keep hangry (hungry + angry) customers waiting. 

Making sure your drivers complete their routes as fast as possible can help avoid this nightmare scenario and get them to your customers faster (super important for hot food!).

You can optimize your food delivery routes for maximum speed using Circuit for Teams. With Circuit, you upload your delivery details — including a spreadsheet of customers’ names and addresses — into the software, which then calculates the most efficient route for your drivers.

With this tool, you can also do without the added cost of delivery apps, which take a cut out of your profits by charging a fee. The same perks you get from some of these apps, like real-time tracking of drivers, are offered by Circuit.

Drivers can then access their routes on their mobile phones, and you can track their progress using real-time tracking. This also makes it easy to keep customers up to date about their orders.

The best part: Circuit for Teams has customizable notifications to let your customers know exactly when to expect their food. So there won't be any guesswork involved.

Not only will this help prevent complaints – but also make your customers feel much more confident about buying from you again. Which is critical if your food delivery business is going to thrive!

Save your food delivery business time and money with Circuit for Teams

We’ve covered everything you need to know to start a food delivery business. You can now get ready for the exciting adventure ahead.

Taking the first step can seem daunting, but don't let it scare you

As your food or meal delivery business grows, you want to make sure you keep a handle on your business operations. Meal delivery software can help you stay organized, making sure your customers’ orders reach them quickly.

Trust Circuit for Teams to help your online food delivery service stay on track. 

With our routing software, you can easily plan delivery routes for your drivers. Simply upload delivery details into Circuit and let the software plan the fastest route for your drivers.

Real-time tracking lets you check where your drivers are on their routes. Plus, you can automate delivery notifications, so customers know when their orders are coming.

Your drivers will also appreciate the added convenience, as they can access Circuit’s mobile application, making sure they’re always on top of their routes. Thanks to the mobile app’s hands-free functionality, it’s easy to use even while driving.

Finally, by planning fast routes, you’ll also reduce mileage on drivers’ delivery vehicles and fuel usage. This can help keep your operational costs down, increasing the likelihood that your food delivery platform will be a success!

Start your free 14 day trial

About the author

Heather Reinblatt is a managing editor currently living in St. Louis, Missouri. She spends her free time reading, trying new recipes, and cuddling her cat Paisley. You can find Heather on LinkedIn .

Like this? Then try these:

Take the stress out of planning your team's delivery routes.

Manage multiple driver routes at the tap of a button with Circuit for Teams

Reduce your delivery costs by 20% with Circuit for Teams

• Customized onboarding
• Instant account setup
• Unlimited dispatchers
• Driver analytics
• Customer notifications
• Live track of delivery drivers
• Optimized routes
• Edit live routes

How to Start a Food Delivery Service: Complete Guide (2023)

Last Updated on August 4, 2023 by Shari Mason

Are you passionate about food and eager to enter the booming food delivery industry? Look no further.

We prepared this comprehensive guide providing step-by-step instructions on how to start a food delivery service.

From planning and delivery logistics to marketing and customer service, learn the essentials for a successful food delivery business. If you’re ready, let’s begin.

Page Contents

Top 12 Easy Steps To Start A Food Delivery Business

1. make  a  plan & budget.

The first phase of starting a food delivery service is creating a detailed food delivery business plan and budget plan.

Do market research and scrutinise your target audience and market dynamics, calculate recurring and startup costs, estimate the time to achieve profitability, and choose a compelling business name.

Additionally, devise an initial business strategy and marketing tactics to effectively promote your food delivery service. But how much will it cost to start a small restaurant?

2. Secure Workspace/Location

After careful planning and budgeting, it’s time to secure your workspace or location. This element is crucial in your budget plan.

The expenses associated with the location of your business can significantly differ based on its geographical placement.

As a new food delivery business, we suggest starting your business venture at home, effectively reducing overhead costs.

3. Estimate Technology Costs

Even small businesses require essential tools like computers, phone systems, internet connectivity, and printers or scanners.

Using personal devices is initially feasible, but we advise allocating funds for technology investments beyond the initial startup phase. These tech essentials may include:

Delivery Vehicle

It’s recommended to have your own food delivery vehicle. This can be a one-time or recurring cost, depending on how you obtain the vehicle.

Alternatively, you can partner with popular food delivery apps, like Uber Eats, to take charge of the delivery operations. However, this includes delivery service charges.

Kitchen Equipment & Space

Any food business won’t be completed without kitchen equipment and space, right? You must allocate a budget for reusable food containers, disposable spoons, forks, cups, etc.

“Kitchen equipment and space are the essential ingredients that complete any food business. Allocating a budget for reusable food containers, disposable utensils, and cups is a must.” Eat Pallet Restaurant & Food Advice

As for the space, as mentioned earlier, you can use your own kitchen at home. The space for preparation doesn’t need to be extravagant. But if you have more budget, why not buy or rent a space, right?

Website/Mobile App 

You must promote your food delivery business to local restaurants and your target customer base to attract potential customers.

Begin by establishing a compelling social media presence and creating an appealing website or food delivery app.

Find out the necessary permits needed for a commercial kitchen at home .

4. Obtain Licenses & Insurance

Acquiring the relevant licenses, like general liability insurance or commercial auto insurance, and permits from your local municipality, is essential.

Depending on the nature of your food delivery service, you may require a specific business license, such as a food-vending license or food-handling permit.

We suggest contacting your state or city clerk’s office to know all the licenses you need.

5. Develop Marketing Strategy, Materials & Website

Marketing materials and advertising expenses influence the cost of launching your meal delivery service.

Effectively promoting your online food delivery business to a wide online audience through various channels such as social media accounts, banner ads, email marketing, and more can significantly impact your overall budget.

6. Acquire Delivery Vehicles & Tools

In the realm of food delivery businesses, it’s common to offer transportation for drivers and specialized food service bags to ensure freshness and temperature control.

This highlights the significance of commercial auto services, as personal auto policies typically do not extend coverage to business-related accidents or claims.

But what are the trends in the beverage industry ?

7. Research Target Market

Understanding your target audience plays a pivotal role in the success of any food delivery company.

Consider the location of your operations, whether in proximity to a university, business district, or suburban neighbourhood.

Analyzing your audience’s demographics informs decisions like choosing your business name, crafting a tailored marketing strategy, and determining the types of meals to offer.

8. Plan Food Delivery Menu

After analyzing your target market, strategize your menu and service offerings accordingly.

Whether collaborating with a meal kit delivery service or local restaurant delivery services, we suggest considering factors like quick meals, snacks, lunch, dinner, and meals suitable for families or singles.

Establishing a distinct business entity facilitates the launch of your online food delivery service.

When partnering with local restaurants, we suggest aiming for a diverse mix to provide customers with a range of enticing options.

9. Set Up a Shipping System 

Before embarking on your own food delivery business, you need to make crucial decisions regarding the shipping system.

You must establish an efficient shipping system and determine the optimal time to commence operations. Factors include:

• Ideal delivery hours
• Delivery routes (local or nationwide)
• Desired days of service
• Consideration of weather conditions

Assessing neighborhood events and avoiding extreme temperatures are vital to ensuring customer satisfaction and a successful restaurant delivery service.

10. Identify Pricing Strategy

Food delivery companies determine the right pricing strategy as customers carefully compare food prices. Attracting customers requires setting competitive prices while avoiding excessive discounts that could lead to losses.

You must find a pricing sweet spot offering affordability while ensuring profitability for your food delivery business, thus enticing customers with reasonable costs and delivery fees.

11. Cover Legal & Financial Requirements

Like big food delivery business models, every food delivery startup needs a few things, including:

Business insurance: Secure small business insurance coverage, like general liability insurance, to safeguard against liability risks and unforeseen financial burdens.

Permits & Licenses: Ensure compliance with permits and licenses needed for your food delivery business by consulting local, state, and federal small business agencies.

Business bank account: Safeguard your personal assets and simplify tax filing by establishing dedicated business banking and credit accounts. Implementing an accounting system enables clear financial understanding and facilitates annual tax preparation.

Tax registration: Complete the Employer Identification Number (EIN) application on the IRS website, ensuring compliance with state and federal tax obligations before commencing your delivery business operations.

Legal business entity formation: Establish a formal business entity or business model offering personal asset protection. Options like sole proprietorship [ 1 ], partnership, LLC (Limited Liability Company), or corporation are available.

12. Design a Loyalty Program

Designing a loyalty program is also a way to boost your food delivery services to customers. It’s a way of marketing as well, like offering a free delivery fee for certain customers, depending on the program’s standards.

What Is A Food Delivery Service & How Does It Work?

A food service delivery is a business model that provides paid food delivery to customers. The best example is GrubHub, a well-known online food delivery platform alongside Postmates and Instacart.

“Food is our common ground, a universal experience.” – James Beard, American Chef

While the recent surge in demand during social distancing has contributed to their success, the popularity of food delivery services has been growing steadily, with many people interested in how to start a food delivery service.

4 Types Of Food Delivery Businesses To Try

Web-based & mobile on-demand food delivery system.

Customers can order meals from local restaurants through their food delivery app or website, and the restaurant will deliver food right to their doorstep in no time. 

New Delivery

This type best describes a startup food service delivery, introducing a new approach to grocery delivery or meal delivery services. As a startup in delivering food, this model depends on your concept.

This may skip using an on-demand business model, like a web or mobile-based ordering or aggregators. For instance, the transaction is directly from you and your customers.

Aggregators

Aggregators in the food delivery service market refer to online platforms or apps acting as intermediaries between customers and multiple restaurants or food businesses.

These aggregators consolidate menus, provide an online ordering interface, handle the logistics, and facilitate food delivery from various restaurants to customers.

Full-Service On-Demand Delivery

A full-service business model is a delivery solution providing end-to-end delivery services, including pickup, transportation, and timely delivery of items, like food deliveries, to customers or businesses.

Is food delivery a profitable business?

Food delivery can be a profitable business. But the financial success of such a venture hinges on several factors, including the type of business model and location.

A food delivery service can target not only individual consumers but also establish a business-to-business [ 2 ] clientele, broadening the scope of customers.

What is the profit margin on food delivery?

The profit margin in food delivery can vary significantly based on factors such as business model, operational costs, market competition, and average market price.

While profit margins can range from 15-30% [3], assessing individual circumstances and optimizing revenue streams for profitability is essential.

What are the benefits of starting a food delivery business?

The benefits of starting a food delivery business include scalability, cost-effectiveness, an increase in business revenue, and an increased volume of repeat buyers.

Is it possible to start a food delivery business with no capital?

You can start a food delivery business with no capital is possible yet challenging.

It may require creative approaches such as using existing resources, partnering with restaurants, or seeking alternative funding options like grants or crowdfunding [ 4 ].

Is it advisable for restaurants to initiate their own food delivery services?

It’s advisable for restaurants to initiate their own food service delivery as it allows them to control the delivery process, maintain brand consistency, increase profits, and provide a seamless customer experience.

Final Thoughts

We’ve outlined the steps you need on how to start a food delivery service – from making a business plan and determining costs to marketing strats and designing programs.

You can now prepare all the essentials to enter the food and beverage industry.

While starting a business is not easy, you can slowly move forward and accomplish each step with the proper knowledge and guidance. Good luck!

References:

• https://www.entrepreneur.com/encyclopedia/sole-proprietorship
• https://www.investopedia.com/terms/b/btob.asp
• https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery
• https://www.businessnewsdaily.com/4134-what-is-crowdfunding.html
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Online Food Delivery Business Plan [Sample Template for 2024]

Home » Business ideas » Food Industry » Food Delivery Business

If you are interested in starting a business in the food cum restaurant industry, then one of the ways you can enter the industry is to create your niche or choose a niche that you can effectively maximize.

Starting food delivery services to homes and offices (corporate organizations might just be the door into starting something thriving and profitable. No doubt if you want to start a new business, it is required that you have a good business plan in place before launching out if indeed you don’t want to run your business as a mediocre.

Below is a sample homes and offices food delivery services business plan template that can help you to successfully write your own with little or no difficulty;

A Sample Online Food Delivery Business Plan Template

Table of Content

1. Industry Overview

3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.

Players in the homes and offices food delivery services industry are involved in delivery foods to any destination within their coverage area as ordered by their clients. Basically, the process of ordering food from a local restaurant or food cooperative is through their telephones, website or customized mobile app.

It is same process when ordering goods from online stores, and many of these food delivery services companies allow customers to keep accounts with them in order to make frequent ordering convenient. Payments are usually done either by credit card or cash, with the restaurant returning a percentage to the online food company if they are not the owners of the restaurant.

The food delivery services industry is indeed a thriving and profitable industry so much so that, in 2008, Papa John’s International announced that its online sales were growing on average more than 50 percent each year and neared $400 million in 2007 alone.

A recent research conducted by TechCrunch reported that “of the $70 billion [ takeaway and delivery market ], only about $9 billion (roughly 13 percent) is online. The established delivery infrastructure of these franchises was well suited for an online ordering system.

The home and office food delivery services industry much active in the United States of America, Canada and European countries.

The industry generates several millions of US dollars annually from several registered and unregistered small – scale, medium scale and big home and office food delivery services businesses scattered all around The united states of America.

This line of business is responsible for the employment loads of people directly and indirectly all around the world. The recent trends in the food delivery services industry is that, local companies have started teaming up with e-commerce companies to make ordering quicker and more precise.

Some restaurants have embraced online ordering despite their lack of delivery systems, using it to manage pick-up orders or to take reservations.

If you are contemplating opening a home and office food delivery services business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies so you that you will be able to get the ideal location with the right demographic composition.

The truth is that, if you get some key factors wrong before starting your own home and office food delivery services business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Food @ Your Door Step® LLC is a standard and registered home and office food Delivery Company that will be based in Boston – Massachusetts, USA. We will cover a wide range of clients both individual and corporate clients. We have been able to lease a suitable restaurant facility with kitchen permit from the appropriate authorities.

The facility is centrally located in the heart of Boston and little minute drive to Harvard University Community. We have put plans in place to also sell our franchise and offer consultancy services in line with our area of business.

Food @ Your Door Step® LLC is established by the Massachusetts awarding winning food nutritionist and caterer – Ms. Clara Brown who has B.Sc. in Food Science Technology and a Master’s Degree in Business Administration (MBA) from Harvard Business School.

She has a robust experience in the food and confectionaries business having worked both in the public sector and the private sector prior to starting her own business.

As a company, we are willing to go the extra mile to invest in some of the finest professionals (chefs, delivery officers and back office staff members) we can find and also we have set plans in place to acquire the best of equipment when it comes to setting up a standard and first class restaurant / kitchen.

When it comes to hygiene and proper packaging, we have put plans, process and structures in place that will ensure that we are always at the top of game when it comes to that. We have been able to secure permits from all relevant departments in Massachusetts.

The demand for foods, snacks and drinks is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where our restaurant is going to be located and ensure that we create a wide range of distribution channels via franchising. With that, we know that we will be able to maximize profits in our business.

Our strongest selling point at Food @ Your Door Step® LLC is the unique taste of the different type of foods, snacks and drinks that we will make and sell. There is hardly any customer that will taste any of our food who would not want to come back and make more purchase or order more– we take great delight in welcoming repeated customers over and over again.

Food @ Your Door Step® LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Our plan is to position Food @ Your Door Step® LLC to become one of the leading brand in the home and office food delivery services industry in the whole of Massachusetts, and also to be amongst the top 10 home and office food delivery services brand in the United States of America within the first 10 years of starting our business.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Boston – Massachusetts is the right place to launch this type of business before spreading to other cities all across The United States of America.

Food @ Your Door Step® LLC is in the home and office food delivery services industry for the purpose of making profits and we will ensure we do all that is permitted by the law of the United States of America to achieve our business aims and objectives. Here are some of our products and services;

• Takeout and delivery
• Sit-down service
• Trainings, consulting and advisory services
• Our vision is to be amongst the top 10leading home and office food delivery service companies in the United States of America before our 5 th anniversary.
• Our mission is to build a home and office food delivery services business that will meet the needs of all our customers and potential customers in the regions / cities where we have our delivery network.

Our Business Structure

Food @ Your Door Step® LLC do not intend to start a home and office food delivery services business that can only cover only households within our community of operations; our intention of starting a home and office food delivery services business is to build a standard business with active presence in strategic locations in Boston, Massachusetts and of course other key cities spread across the United States.

We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Food @ Your Door Step® LLC;

• Chief Executive Officer

Restaurant Manager

Human Resources and Admin Manager

• Sales and Marketing Officer
• Accountants / Cashiers
• Cook / Chef
• Drivers / Deliverers
• Customer Service Executives

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of the restaurant
• Parts of the team that determines the quantity of foods that are to be produced per day
• Map out strategy that will lead to efficiency amongst workers in the restaurant
• Responsible for training, evaluation and assessment of the entire workforce
• Ensures that the steady flow of both raw materials / ingredients to the shop and easy flow of cooked and well packaged foods and drinks to customers as demanded
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the restaurant and kitchen meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversee the smooth running of the daily office and restaurant activities.

Chief Chef:

• Responsible for preparing delicacies
• Makes lists and budget for kitchen supplies
• Oversees the entire kitchen staff
• Responsible for training new cooks
• Makes sure that the meals being whipped up tastes really good

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, execute and initiate new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Distribution Van Drivers:

• Delivers customer’s orders promptly
• Runs errand for the organization
• Any other duty as assigned by the sales and marketing executive and restaurant manager

Client Service Executive

• Responsible for taking orders from clients when the call or email the organization
• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the shop manager in an effective and timely manner
• Consistently stays abreast of any new information on Food @ Your Door Step® LLC products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the entire restaurant / kitchen facility at all times
• Washes  plates and other kitchen utensils
• Ensures that toiletries and supplies don’t run out of stock
• Any other duty as assigned by the restaurant manager.

Due to our desire and drive for excellence when it comes to running a home and office food delivery company, we were able to engage some of the finest business consultants in Boston – Massachusetts to look through our business concept.

Together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard food delivery company that can compete favorably compete with other leading brands in the industry.

In view of that, we were able to take stock of our strengths, our weakness, and our opportunities and also the threats that we are likely going to be exposed to if we launch our home and office food delivery services business in Boston – Massachusetts and even in the United States of America as a whole. Here is a of what we got from the critically conducted SWOT Analysis for Food @ Your Door Step® LLC;

Our strength lies in the fact that we have a wide range of foods, snacks and drinks that can meet the needs of a wide range of customers including vegetarian et al. We have state of the art kitchen facility and equipment that has positioned us to meet the demand of products even if the demand tripled overnight or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight professionals in the United States of America.

We are not ignoring the fact that offering consultancy services and running a standard and accredited training center is definitely going to count as a positive for us.

The fact that we are setting up a home and office food delivery business in a city with other leading restaurants and food delivery businesses might likely pose a challenge for us in breaking into the already saturated market in Boston – Massachusetts.

In essence our chosen location might be our weakness. But never the less, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on already gather momentum.

• Opportunities:

The opportunities available to us are unlimited; everybody in our chosen location consume foods, snacks and soft drinks on a daily basis and all what we are going to do to push our products to them is already perfected. There are also loads of people who would want to learn how to cook different delicacies and they will readily find our government approved cooking training center highly ideal for them to fulfill that goal.

The threat that is likely going to confront us is the fact that we are competing with already established home and office food delivery businesses in Boston – Massachusetts and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.

Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face, is unfavorable government policies and of course economic downturn. Usually economic downturn affects purchasing / spending powers.

7. MARKET ANALYSIS

• Market Trends

The Home and Office Food Delivery industry has risen slowly over the last five years while combating lackluster consumer spending and changing preferences and eating pattern. Extreme external competition from loads of new food-services concepts and an increase in health consciousness among consumers is also working against the growth of the industry.

In the face of these challenges, many players in the industry have performed extremely well, adjusting their menus and investing in advanced technology which over time has become trendy. As a matter of fact, sophisticated web-based ordering systems are responsible for boosting efficiency and improving profit margins in the home and office food delivery industry.

Going forward, the home and office food delivery industry will continue to experience growth especially as the economy improves and consumers spend more on eating out.

Another trend in the home and office food delivery industry is that despite the fact that foods and drinks are usually delivered in specially designed boxes or in delivery bags, with the aid of an automobile, motor scooter, or bicycle. Some leading home and office food delivery companies have started perfecting plans to employ the use of drones to deliver foods and drinks.

Lastly, local restaurants / office and home food delivery companies have started teaming up with e-commerce companies to make ordering quicker and more precise. Some restaurants have embraced online ordering despite their lack of delivery systems, using it to manage pick-up orders or to take reservations.

When it comes to foods and soft drinks, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love the kind of foods, snacks and soft drinks that we prepare and of course those who would want to try it out.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our pizzas to;

• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations.

Our competitive advantage

Our aim of starting Food @ Your Door Step® LLC is to build a business that can grow within the first 5 years of establishing the business to be listed amongst the top 10 home and office food delivery companies in the United States of America and also to sell our franchise.

With that in mind, we have been able to come up with competitive strategies that will help us compete favorably in the industry. We are going to be one of the very few home and office food delivery companies that will also run a standard restaurant, training school and a consultancy services.

Another competitive advantage that we have is our wide range of foods and drinks that can meet the needs of a wide range of customers including vegetarian et al. We have state of the art kitchen facility and equipment that has positioned us to meet the demand of foods even if the demand tripled overnight or if we have a massive order to meet and emergency need.

One more factor that counts to our advantage is the background of our Chief Executive Office and management team. Our Chief Executive Officer has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight professionals in the United States of America.

Our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups restaurants / home and office food delivery companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

• Sources of Income

Food @ Your Door Step® LLC is established with the aim of maximizing profits in the home and office food delivery industry in the United States of America and we are going to go all the way to ensure that we do all it takes to sell a wide range of foods, snacks and soft drinks to a wide range of customers. Food @ Your Door Step® LLC will generate income by offering the following products and services;

One thing is certain; there would always be corporate organizations, households, schools and government agencies in Boston, Massachusetts and in the United States of America who would always need the foods and drinks from home and office food delivery companies.

We are well positioned to take on the available market in Boston, Massachusetts and in the United States. We are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Boston, Massachusetts to other cities in the United States where we intend marketing our services.

We have been able to critically examine the home and office food delivery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Boston, Massachusetts.

Below are the sales projection for Food @ Your Door Step® LLC, it is based on the location of our business and the wide range of foods, snacks and drinks that we will be offering;

• First Fiscal Year-: $240,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location to launch Food @ Your Door Step® LLC and also the types of foods and snacks to prepare, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in the cities where we intend positioning our business.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading home and office food delivery brands in Boston – Massachusetts and the whole of the United States of America.

We hired experts who have good understanding of the home and office food delivery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market Boston – Massachusetts and throughout the United States of America where we intend selling our franchise.

In other to continue to be in business and grow, we must continue to sell our foods, snacks and soft drinks to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.

In summary, Food @ Your Door Step® LLC will adopt the following sales and marketing approach to sell our pizzas and soft drinks;

• Introduce our business by sending introductory letters to residence, schools, corporate organizations and other stakeholders both in Boston – Massachusetts and in other cities in the United States of America
• Open our business cum restaurant with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to promote our business
• Advertise our business in community based newspapers, local TV and radio stations
• List our business and services on yellow pages ads  (local directories)
• Leverage on the internet to promote our home and office food delivery brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

Despite the fact that our home and office food delivery company is a standard one with a wide range of foods, snacks and soft drinks that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Food @ Your Door Step® LLC

Food @ Your Door Step® LLC has a long term plan of opening outlets in various locations all around the United States of America and also to sell our franchise which is why we will purposefully build our brand to be well accepted in Boston – Massachusetts before venturing out to other cities in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Food @ Your Door Step® LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Boston – Massachusetts
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our foods and drinks.
• Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

When it comes to pricing for products such as food and snacks, there are no hard and fast rules, the prices depend on the size and packaging. Generally, the prices for cooked food and soft drinks are affordable especially in the United States hence there is no need to employ any detailed strategies when it comes to pricing.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our foods and snacks are sold a little bit below the average prices of various restaurant / home and office food delivery brands in the United States of America.

We have put in place business strategies that will help us run on low profit margin for a period of 6 months; it is a way of encouraging people to buy into our brands.

• Payment Options

The payment policy adopted by Food @ Your Door Step® LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Food @ Your Door Step® LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our foods, snacks and soft drinks.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a home and office food delivery business; it might differ in other countries due to the value of their money.

When it comes to starting a home and office food delivery business the major areas that you should look towards spending the bulk of your cash is in the purchase of standard kitchen equipment, delivery vans, bikes and of course renting or leasing well located facilities.

Aside from that, you are not expected to spend much except for paying of your employees and the purchase of supplies. These are the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Boston – Massachusetts – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Food @ Your Door Step® LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for construction of a standard kitchen – $100,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (food ingredients and packaging materials et al) – $80,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for yogurt making equipment – $20,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our home and office food delivery company in Boston – Massachusetts. Please note that this amount includes the salaries of the entire staff member for the first month of operation.

Generating Funds / Startup Capital for Food @ Your Door Step® LLC

Food @ Your Door Step® LLC is a family business that is owned and financed by Ms. Clara Brown and her immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Food @ Your Door Step® LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our well prepared foods, snacks and soft drinks at affordable prices.

Food @ Your Door Step® LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard kitchen: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers of food ingredients, event planners, and transportation companies: In Progress
• Purchase of delivery vans: Completed

Free Food Delivery Business Plan Template

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Free Download this Food Delivery Business Plan Template Design in Word, Google Docs, Apple Pages Format. Easily Editable, Printable, Downloadable.

If you’re thinking of starting up a food delivery business, then be sure to make good use of our Food Delivery Business Plan template in preparation of opening up your business. Our plan template comes immediately useable right after download for your convenience. Narrow down the food items that your target market is bound to order to prepare for the corresponding items needed. Easily come up with a meal plan to help speed up and standardize the making of meals. Offer a fast and efficient food delivery service using our template. Be sure to download our template today for use on your food delivery business.

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Food Delivery Business Plan

Professional food delivery business plan from ogscapital.

Our food delivery service business plans have helped 90 clients attract more than $73m in financing

OGScapital knows the secret in preparing a business plan for food delivery startup that will raise the money you need.

Results-driven solutions

Your food delivery service business plan will comply with all investor requirements. Our dedicated team will emphasize your business idea’s unique advantages and attractiveness, highlighting the market potential, investment returns, and competitiveness of your value proposition.

Strategic advice

We do more than structure your inputs in a professional way. We also take our internal knowledge and market research into account. We will challenge your business idea, adding best practices and providing guidance that will make your ideas more attractive to investors.

Experienced team

All of our experts are MBA fellows from TOP10 schools. Together, we can boast wide-ranging experience working in senior positions in top investment banks, consulting companies like PWC, Deloitte, UBS, and Morgan Stanley and serving Fortune 1000 clients.

High-quality market research

Your food delivery business plan will include market analysis and research from globally recognized research firms including IBISworld, Datamonitor, MarketLine, Statista, etc. In addition we are using our network of industry experts and opinion leaders.

Full customization

Each document is prepared from scratch, with rich and eye-catching design that utilizes graphics, tables, pie charts and illustrations. No templates and no ready-made solutions. Three MBA consultants will work on your delivery food business plan.

Fundraising

OGScapital connects you with our extensive and global network of investors. Our network includes different profile of investors, such as venture capitalists, private equity funds, angel investors, banks/private lenders and international financial institutions.

Key types of food delivery business plans

OGScapital has huge experience in delivering add value to various food delivery businesses

Organized Food Delivery

Local food delivery, diet food delivery, health food delivery, our solution.

OGS with help you meet your goals by creating a food delivery service business plan that will comply fully with all investor and government body (licensing) requirements.

Specifications:

Users: Family & Friends Seed Funders, Angel Investors and Venture Capitalists, Government Bodies and Private Equity Funds

• Size: 40-50 pages
• Timeframe: 12 days
• Graphic design: included
• Unlimited revisions: included
• Assigned team: 3 senior experts with a project lead

Rush Delivery Service: Available

Document contents:

• Executive Summary
• Competitive Analysis
• Business Model
• Mission/Goals
• Overview of food delivery company
• SWOT Analysis
• Marketing Mix
• Market Analysis
• Market Forecast
• Exit Strategy
• Business/Operating Strategy
• 5 Forces Analysis
• Marketing Strategy
• Use of Proceeds

Our investor-ready food delivery business plans are designed by our team of graphic designers.

Our fees are highly competitive and entirely reasonable, scaling up or down according to task complexity

Content varies depending on the client’s needs. We know that making a food delivery business plan for investorsis not a one-size-fits-all process. All documents, though, include the following key sections: market analysis, business model description, operational strategy, goals, financial model, etc

We can guarantee that the delivery food business plan we prepare for you will comply fully with investor/lender requirements. However, we cannot take responsibility for the success of your fundraising efforts—there are simply too many factors that we cannot control (e.g., your credit score, relevant experience, etc.)

OGScapital will work closely with you and provide guidance throughout the process.

Your food delivery service business plan in 4 easy steps

Fill out our online form

We will begin writing a food delivery business plan for investors and issue a draft within 10-15 days.

We consider your comments, revise as necessary, and issue the final food delivery​ business plan.

Payment methods: debit/credit card or wire transfer

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Our clients are our top priority, and we do everything in our power to not just meet but to exceed our client’s expectations.

OGScapital are in the TOP3 on Trustpilot with a score of 9.5/10.

Best Company to work with.

OK, My experience dealing with OGS Capital was one of nothing but pleasure. We have review 3 other company before picking OGS Capital. Our experience with Alex was amazing. I don't know if that guy ever sleeps. We can expect to get emails from him 1 am in the morning. When you answer your email you can expect him to reply wight back. The BP and The PD is amazing. OGS is now trying to help us receive funding. Jay Sanford 8/29/1. Approve!

Great bussiness with the most satisfying service.

To get ones concept from mind to on paper can only be done by professionals, I want to thank OGS Capital for all their dedication, late night work, specialties in all departments needed to complete our bp . Our company GG now able to soar because of the amazing work done by Alex and his colleagues, who gave us more than ever expected. Getting the bp in hand to begin the project was most important and with all of Alex efforts we got it before the time promised, even at times with incomplete information. The BP is amazing. Lynn Taylor 17/09/2019

Details create the big picture!

With full confidence I recommend working with OGS Capital. It is more than just being professional but the attention to details and full dedication from Alex is what impressed me. Such an intellectual individual who has the patience to listen to the needs of the client which ended by exceeding the expectations. I will definitely use their services again whenever required.

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Awesome job, highly recommend .

I was very impressed with Alex and OG Capital. They got to work immediately and produced a top quality business plan that I am very proud of. Will definitely recommend their services.

Best of the best

I was a little nervous at first because they seemed to charge quite little in comparison to what they claimed to be able to deliver, but that scepticism was soon erased. These guys were second to none. Responsive every step of the way and achieved a result far beyond my expectations from a fairly limited amount of information given, it was almost surreal to see. Legends in their field.

Veeeeery good qulaity 😁😁and the best…

Veeeeery good qulaity 😁😁and the best company for your trustt

OGScapital was established in 2006 by 8 partners. Since then, we have become the #1 business plan company with a track record including more than 5,000 satisfied clients. OGScapital has a specific team of consultants focused on development industry only. In addition we have wide-ranging experience working in globally recognized investment banks and consulting companies (PWC, Bain, Deloitte) and serving Fortune 1000 clients.

OGScapital was established in 2006

Our documents have helped attract $73m+ for food delivery projects

Our senior experts have experience spanning 42+ industries

Our track record includes 90 happy clients from food delivery industry

Our team includes 60 consultants including 5 food delivery professionals

OGScapital has access to a network of 300+ investors

Our clients

More than 5,000 companies have used OGScapital’s services.

Food delivery services are highly popular these days. More and more entrepreneurs are stepping foot into this venture because of its high profitability. In most cases, food delivery service business plan have been incredibly successful, proving that this venture is lucrative.

What’s most impressive about these businesses is that you don’t need a big investment to get things running. The food delivery business model is here to stay, and it would be best for aspiring entrepreneurs to dip their feet in it while it is still lucrative.

Types of Food Delivery Businesses

You can choose from a vast range of food delivery businesses these days. Most, if not all of them, yield great profits. Let us look at the different types of online delivery food business plan  and discuss what makes them stand out.

The organized food delivery model is incredibly safe for those who don’t want to take risks. The procedure is quite structured and consistent, ensuring that entrepreneurs have bonded support when it comes to supply and most elements of their delivery food business plan are under their control.

As the name implies, the local food delivery service business plan model allows owners to stick to supplying orders within their vicinity or home area. Having an online food delivery service business plan for your locality can yield some excellent results as long as you plan it thoroughly. One of the best advantages of this food delivery business type is that you have more autonomy and less competition. Furthermore, you can maintain a consistent mode of communication with your customers, which could help you amend your services if needed.

An incredible amount of people are opting for diet food instead of fast food or junk foods. Therefore, it only makes sense to provide diet conscious people with sufficient options to help them get their daily meals with ease. More and more individuals are making fitness a priority, and they are serious about it. Some individuals even track their salt, sugar, and overall calorie intake.

With such a high demand for diet food, it only makes sense to start a diet food delivery service business plan as its profitability would be great. What’s most impressive about this type of food delivery service business plan is that you don’t have to go above and beyond to start it. Diet, food delivery models are quite similar to fast food ones, ensuring that you can start your entrepreneurial journey within months or even weeks with the right planning.

Health food delivery service plans are quite similar to diet food delivery services. However, there are some minor differences. In this specific delivery food business  model, the entrepreneur should focus on common food demands that most customers are making. It requires extensive research of the market, followed by acquiring the items the customers want. It may prove to be a tall task, but it will be worth it if you execute your plan the right way.

Offering audiences products that are not readily available in the market could help you establish your business’ name and increase return on investments by tenfold.

Marketing Plan for Food Delivery Businesses

There have been drastic changes in the food industry over the past decade. Marketing, technology, social norms, and several other things transformed food delivery business marketing in multiple ways. As more restaurants come to the forefront, marketing your food delivery service is more important than ever. Let us discuss some tried and tested tips that could help you advertise your delivery food business plan successfully.

Keep Improving Your Service Quality

Providing high-quality service is one of the best ways to market your delivery food business plan . After all, what better way to impress your customers and spread word of mouth than by improving your service quality?  Encourage the riders to reach the destination before time and ask your chefs to pay special attention to each meal they prepare. It would also help if you considered using the highest quality ingredients to leave a lasting impression on your customers.

Prioritize Digital Marketing

Almost every food delivery business plan includes digital marketing. You cannot reach a wide audience without marketing yourself online, especially considering most, if not your entire audience is there. If you look at all of the successful food delivery service business plans , you will notice they have a well-functioning website to receive orders. These websites are incredibly convenient for users and the delivery food business plan and minimize the time and hassle to select and order foods.

It would help if you also considered adding social media marketing in your advertising efforts as you can promote your food delivery brand in several creative ways.

Develop a Mobile Application

Every food delivery service has a mobile application to offer added convenience to customers. Not only will the app simplify the ordering and delivery process, but it will also act as an effective marketing tool. Providing people the option to order their favorite food with a simple swipe will encourage more individuals to download your app, increasing your business’s profitability.

Besides utilizing the tips mentioned above, you can also implement the following marketing techniques:

• Collaborate with influencers and food bloggers
• Offer discounts and deals
• Reward loyal customers
• Participate in food-related events

Business Financial Plan for Food Kit Delivery

Food delivery business plans can vary depending on the nature of your operations. However, most plans share some similarities. The first thing every aspiring entrepreneur should do is select a niche. Whether it is an e- delivery food business plan or a home food delivery service business plan , here are the basic elements that you or a professional delivery food business plan writer will need to incorporate.

• Overview of the industry
• Summarizing the business
• Services and products
• Vision and mission statements
• Responsibilities and roles
• SWOT analysis
• Establishing the target market
• Analysis of the market
• Startup expenditure
• Marketing and sales strategy
• Sales forecast
• Budget (startup expenditure)
• Strategy for expansion and sustainability

Starting a food delivery service business plan may seem straightforward, but creating a delivery food business plan may be complicated. It would be best to let a professional service create your food delivery service business plan pdf as they know all the intricacies to add in them. At OGS Capital, we can develop a professional, well-thought-out delivery food business plan for you, ensuring that you can get your entrepreneurial journey up and running in no time.

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Food & Beverage Business Plans

Did you know each of these plans was created in LivePlan? Learn More

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Wholesale Food & Beverage Business Plans

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• Wholesale Juice Business Plan

Everybody’s got to eat and there’s still plenty of niche aspects of food and beverage business for entrepreneurs to explore. Locally sourced, organic, farm-fresh, delivery, craft, pick a buzz-word and there’s an opportunity there.

So if you think you have the makings of the next top chef, developed a secret whiskey recipe that will blow people’s minds, or even have a better way of doing delivery, you may want to enter the food and beverage business.

Start cooking up your business plan with our library of foodie-themed sample plans or build a more modern plan to easily manage your restaurant, bar, or cafe with LivePlan . It contains the same food and beverage templates and information you see here, but with additional guidance to help you develop the perfect plan.

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Business Plan For Food Delivery Startup: Here’s Your Only Guide Map

Are you the proverbial Atlas-  the weight of a food delivery business idea upon your shoulders & not knowing whom to shrug it off to? In DC (During Covid) times, a couple of related metrics have seen exponential growth- online commercial activity & the number of people marooned at home. Especially students & corporate executives- all ages, tastes, & appetites! It takes no rocket science to figure out your contemplation of an online food delivery service. In this blog, we will try to demystify the complexities and provide a DIY kit or business plan for food delivery startup. 

Defining Your Business Model

Defining your business model is important. Are you an existing restauranter transitioning from your BC (Before Covid) brick & mortar model to a click & mortar avatar? Planning to set up a cloud kitchen, adding on delivery capabilities? Or, are you sold on the hyperlocal delivery model? Each will call for different kinds of hybridization, scales, & technology investments.

No one can deny the importance of a restaurant delivery software . What you need is the knowledge of right model for your software or application. For this blog, we will follow the GrubHub/UberEats model- food aggregator with captive delivery services. This will influence your app-suite design, but the learning will remain relevant for multiple formats.

Related read: How Does The On-Demand Hyperlocal Delivery Model Work?

The major impact on location & scale (delivery catchment area) will be investible funds &  financing abilities. This influences subsequent expansion in cloud kitchens & future franchising.

The footprint influences the customer you plan to serve (families/executives/students, middle-class/high-end).

Positioning

Customer choice influences brand positioning i.e.cuisine combinations- choice of chefs, cooks, equipment, & raw material vendors.

Elements Of Your Business Plan For Food Delivery Startup

The following sections detail the key tasks you will need to include in your business plan for a food delivery startup .

Do A Market Survey & Analysis

Market research is a crucial part of the competitive analysis of winning app brand names, successful features, category niches targeted, & high-ranking keywords. Track others’ features, pricing, & devices on which they are compatible. Another proxy method- study competitive reviews on App Store/Play Store/Google Reviews/Quora, providing insights into customers’ pain points & delights, indicating avoidable pitfalls & exploitable opportunities for your development team. With a focus on digital, don’t neglect the physical product either. 

Given target geography & customer, garnering information on trending food innovations, combos offered, advertising- content & channels used, competitive pricing, & packaging is a must. The location-specific extent of cellphone usage & culture of online ordering needs to be tracked giving you valuable insights while designing your final product- value proposition.

Arranging Finances & Choosing Stakeholders

Startup jockeys have an embarrassment of riches when it comes to fundraising options. However, there is a need to read the fine print & between lines, since each choice category presents unique pros and cons. Your investible nest-egg, scale, technology ambitions, pledgeable collateral, & extent of equity dilution will impact your decision-making. 

Given the change in our banking mandarins’ mindsets, especially reduction in risk aversion, &  sheer availability of liquidity within the banking system makes today’s entrepreneurs evaluate banks with a far less skeptical eye! Even then, given the residual red tape, their glacial speed, & statutory bindings, one would still relegate bank loans to the bottom, that too for small to mid-size requirements.

Let us proceed to critically evaluate other potential investor candidates:

Angel Investors

Profile – Individuals with more than Rs. 2 crores investible surplus; HNIs, who typically invest in startups/small businesses, in lieu of equity.

• Faster deal closure.
• Basic, hassle-free due diligence.
• Minimal meddling in daily operations.
• Less demanding terms.
• Funding capacity is lesser than corporate investors.
• Sourcing is reliant upon your own connections.
• Usually incapable of mentoring you for the next stage- raising institutional funds.

A preferred choice for:

• Those needing limited funds, swiftly, with easy terms.
• Those having access to an extensive network.
• People are reluctant to expand their boards.
• Startups are self-sufficient in establishing governance structures.

Venture Capitalists

Profile : Private equity firms, capable of drawing capital from corporates, foundations, pension funds, & other organizations, investing against equity. Short-term nurturers, targeting optimum scale, to access the equity market/other investors.

• Substantial funds available, hands-on experience, and business savvy.
• Help identify exit milestones steering you to achieve the targeted metrics.
• Adept at effecting mid-course corrections, thus aiding optimum exit positioning and velocity.
• Demanding terms.
• Perceived value-addition may not accrue.
• Short-term vision & commitment, obsessed with exit parameters.
• Early exit- an overriding priority.
• VC’s industry knowledge, business acumen, & access to equity markets is important.
• Funding required more than the angel investors’ capacity.

Wealth Management Firms

Profile: Private wealth management advisory firms rendering multiple financial services to one/ few ultra-high-net-worth families with investable assets breaching the $100 million mark.

Advantages:  

• Amalgam between  VC and Angel Investor.
• Higher funding capacity than Angel Investors, but below corporate firms.
• Longer-term commitment, more aligned with your end objectives, concentrating on specific verticals.

Disadvantages:

• Lack of capability of prepping you for the next round of funding.
• Brings just cash & industry-specific networking. 
• Unstructured in processes/operations. 
• Fluctuating loyalties.

You Choose This:

• If looking for Angel investors’ pros, but need larger funding.
• You have the savvy to partner with this category, despite compromises required.

Related read: Fundraising Strategy For Food Delivery Startup: Things To Know

Marketing & Promotion- 101

Key components of the business plan for food delivery startup are marketing & promotion. Let us plunge headlong into the dos and don’ts.

A common thread across all initiatives is being in sync with the territorial culture, values, & ethnicity. Quoting Statista, 2.2 million+ apps reside in the App Store while 2.5 million+ is the Google Play Store’s score. So if you’re thinking that your potential app users will automatically gravitate to your app, click rethink!

Conduct a Beta test among potential users seeking feedback, to eliminate pain points & correct bugs. Your development team gets another crack at delivering error-free products, saving costs, & loss of image.

Use Geofencing to send a relevant promotional communication to customers when they are proximal to the target geography. Caution, do not overdo it!

Articulate what makes your app unique/different, should customers download it in preference to the myriad others & not delete it one use later.

App Store Optimization

Keywords are key to your app being seen. Try permutations to test the impact on ASO. The higher, the better the number of downloads. 

Social Media

Yours is a food delivery app, food is first consumed visually. Employ visually delightful messaging via social media platforms to generate favorable WOM , & facilitate direct sign-ups from customers’ accounts.

Email Pitch

Post-launch email, with reviews, USP, price & relevant links to potential users. 

Pre-design phase:

Market research.

As discussed in detail under “Market survey & analysis, nuances of competitive products & their successes need to be noted.

Development partner selection

Since app development is a major cost, (developer, design, testing, licensing, hosting)  plus you need to get it the first time right, it is imperative that you be thorough in researching your potential partner’s pedigree.

• Study their website, &  the types of projects executed by the
• Peruse community websites/social media channels for ratings and reviews
• WOM regarding their efficiency from previous clients/agencies known
• Ideally, a genuine reference from a close confidant.

Cost estimation 

Estimation of statutory, setup & AMC, app development (range $4K-$9K), and marketing & promotional costs.

Technical research

• Platform : Basically, Google Android or Apple iOS- your app needs to run on both. For big-screen lovers, having a desk/laptop version gains you bonus points.
•  UI/UX : User interface and experience should be your top priority. Focus areas are ease of registration, easy location of restaurants/ food chains, simplicity of payment & tracking orders.
• Cross-platform adaptation : Your app should be compatible with other websites/apps, hence, you need to analyze the technology underlying other relevant web/mobile apps.
• Technical platforms : Your app needs appropriate technical platforms for database & its management, real-time analytics, & functioning in a cloud environment in order to function at peak efficiency during rush hours.
• Payment methods : Your app needs to accept debit cards, credit cards, UPIs, net banking, & facilitate cash-on-delivery.

Related read: Complete Grocery App Development Cost Estimation You All Need

Feature Design & Incorporation Phase

Two major food delivery startup models in today’s market rule. The aggregator model-  user signs in, checks menus, reviews, ratings, prices & places order. Upon confirmation, the aggregator passes information to the respective restaurant for delivery. The superior, aggregator plus model, simply add logistical responsibility.

The four essential components of your food delivery app suite: Customer app, Delivery driver app, Restaurant owner App, & Restaurant Web admin app – a common feature being attractive, interactive UI.

Desirable component-wise feature sources abound, so, my focus- top features of food delivery app suites.

1. Push Notifications

Cuts clutter, creates TOM recall, & enables delivery of value-adds- special offers, location-based order drop messages via in-app alerts.

2. ‘Courier’ info for customer

Enables customers to contact the courier directly for queries.

3. Reward/Discount/Cashback/Loyalty Programs

Boosts loyalty, awareness, and attracts new users.

4. GPS Tracking- Real-Time

Provides two-way assistance; the customer to track ETA, the courier to determine the delivery location (Google Maps, MapKit, Waze’s Navigation, for Android, for iOS , CoreLocation framework).

5. Payment Methods listing

Ease is assumed, bugs are deterrents. Option listing becomes non-negotiable! (Google Wallet, Apple Pay, iOS Paypal account, Stripe, Braintree, Credit/Debit Card, Internet Banking, COD).

6. Search Filters

Provide navigational ease & time-saving. A closed-loop API that connects customers with the entire restaurant listings and food menu is optimal.

7. Social Media Integration

Enables user contribution of photographs & reviews via SM attracting new users & boosting sales.

8. Profile Customization

Easy access to past orders, order analytics, shipping addresses, saved outlets, payment options, and ups customer delight.

9. Order History

Courier app’s access to unserviced yet proximal orders, ETAs, & customer contacts elevate their productivity.

10. Ratings & Reviews

Provides valuable feedback to both participating restaurants & the app owner.

11. Virtual Assistants

AI-enabled VAs like Alexa aid repeat orders, provide delivery schedules.

12. Shopping cart

Shoppers used to Amazon, treat carts= prerequisites.

13. Personal Favorites

Allows customers to choose favorite restaurants/dishes.

Devised algorithms & machine learning optimize routes, delivery location, order volumes, & driver availability to announce ETA.

Finally, the Uber for X strategy works in one area- food delivery. 

Related read: 3 Ondemand Food Delivery App Business Models That You Should Know About

ROI options

Food delivery apps provide substantial revenue, yet forms a crucial business plan for food delivery startup. Significant ROI streams at a glance:

• Listing services

Restaurants use listing services for their names to get top billing, have their names highlighted in the app & pay for it. Earnings also result from ads posted.

• Third-party advertisement services

Partnering with third parties like Google Adsense to advertise also yields revenue.

• Commission from Users

Usage commission from the users is another source.

• Exclusive features

Customers subscribe to use special features like express delivery, priority orders, exclusive offers & coupons- hence subscription revenues accrue.

• Delivery charges

One component of surcharges is delivery fees.

• Marketing fee from listed restaurants

Fees ensure when customers view restaurants; in turn, they also gain visibility.

In Conclusion

It matters little whether you’re a single cloud kitchen with a captive delivery team, a multi-brand mega- partnering with an UberEats, or a restaurant with an aggregator plus logistics partner in tow- a food delivery app is a given for success in today’s highly competitive business firmament! Given that such apps are white-labeled and scalable, makes their appeal & relevance are all the more universal.

  If I were to zero in on the one make-or-break variable from the laundry list discussed, it would undoubtedly be the choice of your app development partner! 

So, what’s holding you back, my wannabe intrepid food delivery business mogul? Embark upon the search & evaluation process immediately. Hey! Want an insider’s tip? Let our AllRide Food Delivery experts help you out with your business plan for food delivery startup. 

Swarnendu De

Swarnendu De is the Co-founder of AllRide Apps . He leads the product, sales, and marketing divisions at AllRide. Swarnendu is also the co-founder of Innofied Solutions , a technology company helping SMEs and Enterprises in digital transformation, product strategy, and development. With more than 15 years of industry experience, Swarnendu has been the author of top technology books, a speaker at numerous events, a mentor to startups, and has more than 10,000 online students. He has helped more than 600 businesses launch their tech products. Connect with Swarnendu on LinkedIn .

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Meal Prep Business Plan Outline – Starting A Meal Delivery Business

I may earn money or products from the companies mentioned in this post.

We started our Meal Prep Business in 2005 and when the started that business, we followed a business plan very similar to the free one I’ve outlined below.

Now to be clear, there is no one right way to start a Meal Prep Business, which also means there is no one right way to write a business plan for such a business.

“There is no one right way, but there are certainly some wrong ways.” Stacey Davis of FoodBusinessPros.com

This article is written for someone who is brand new to a business startup .

P.S. If you are looking for ideas for your new Personal Chef Business, here is our article with 199 Personal Chef Business Name Ideas .

The information here is not meant to be professional advice, but simply me sharing my own real-life experience as I would with any friend who wanted to start a meal prep delivery business like mine.

Below you’ll find the business plan outline that I’ve used many times, both with my own businesses and with startups of friends and clients.

Included with that outline are specific notes about a Prepared Meal Delivery Business Plan.

However, before we dig into the outline, let’s make sure that you and I basically agree on why you need a business plan before you start a new small business.

What Is The Purpose of A Business Plan?

A business plan for a startup business has two main purposes.

• To Help You Run Your Business
• To Help You Get Business Loans

Using A Business Plan To Run Your Prepared Meal Business

A solid business plan gets you from where you are today to where you want to be five years from now.

As you make the journey of growing your own business, your business plan is your foundation…or perhaps a better analogy, it’s your anchor.

Foundations can’t be moved but anchors can, but they can’t be without some careful consideration and effort.

Your business plan is your business vision, or put another way, it’s your business’ roadmap. It tells you where you are going and identifies the landmarks that will tell you where you are on your business journey.

I have an entrepreneur’s soul, and with that, I’m always tempted to chase the next shiny thing that catches my attention. If you’re considering starting your own business, you likely share this characteristic with me.

By having a business plan that I revisit regularly, I have that foundational anchor that keeps me from running off after the next shiny thing I’ve found.

Each time I hear a new idea that applies to my meal prep business, I go back to my business plan and really ask myself if this new shiny thing actually fits within the plan.

Now sometimes the idea is just too good to leave untried, but if it’s that good then it needs to find a place on my business plan.

Business plans are living documents, and they can, will, and should change over time.

But they shouldn’t be changed lightly.

Using Your Business Plan To Get A Business Loan

While it’s true that I don’t like taking out loans, it’s also true that sometimes we all have to take out loans.

If you are going to go to a bank or an investor asking for a business loan for a startup meal prep business, you must have a business plan.

And that business plan must have the following characteristics:

• It must be very professional in appearance.
• It must have the correct key sections.
• It must have data.
• It must have projected timelines.
• It must have financial projections.

The meal plan business plan outline I’m going to share with you will include a basic version of each of these essentials in the correct order.

It will also have other sections that business loan officers expect to see in every business plan that gets real consideration.

Customizing The Meal Prep Business Plan Outline

I decided to offer just an outline of my business plan, instead of offering you my full business plan. Why?

My business isn’t exactly like your business, so my business plan isn’t your business plan.

While we both are running prepared meal delivery businesses, we’re not running the exact same business with the exact same journey ahead.

Each new business has a unique starting point, similar but different paths to success, and probably even different visions of ultimate success.

In addition, there are endless types of meal prep businesses, and your business plan should reflect your type as well as your dreams and personality.

Here are just some of the types of meal prep businesses that people have asked me to help them get off of the ground.

• Healthy Prepared Meal Delivery
• Game-Day Prepared Meal Delivery Business
• Vegan Meal Prep Delivery Business
• BBQ Meal Prep Delivery Business
• Tailgating Meal Prep Delivery Business
• Gluten-Free Prepared Meal Delivery Business
• Keto Diet Prepared Meal Delivery Business
• Fitness Prepared Meal Delivery Business

That’s quite a variety, right?

And each of these businesses is going to have a different marketing plan. Each with its own branding, marketing, competitors, and more.

Now let’s walk through the outline of everything that should be in your business plan.

The Free Meal Prep Business Plan Outline

• This section will have two or three paragraphs outlining the business in a manner that leaves the reader curious and asking more questions.
• Problem Your Business Will Solve
• Products or Services Offered By Your Company
• Service Area
• General Growth Projections
• Two or three paragraphs that briefly explain the structure of your company. Once again, your goal here is to leave the reader even more curious and wanting more.
• Business Structure (e.g. Sole Proprietor, Partnership, LLC, or C Corporation)
• Investors – Including Owners
• Physical Location
• Major Assets
• Identify your new business’ competition. Don’t get trapped into only considering the direct competition. Look for parallel competition.
• Restaurants
• Grocery Stores
• Single Meal Delivery like UberEats
• Food Courts
• Mail Order Meal Kits
• Mail Order Prepared Meals
• Other Local Prepared Meal Businesses
• Who are the key people and what are their responsibilities?
• Give a brief synopsis of their qualifications, but don’t include a whole resume, we’ll put those resumes in the Supporting Documents at the end of the business plan.
• Include an Organizational Chart that shows who reports to who.
• Identify exactly what you are going to be selling.
• Make a short pitch here to actually sell your products/services.
• Don’t focus just on the features, but include the benefits of your business to your customers.
• This builds on the product section, but with more details about how you are going to market your goods and services.
• A table of projected ad costs on various platforms.
• A list of locations where you’ll post fliers.
• A list of organizations that will offer your brochures.
• A timeline that shows what kinds of marketing happen at what time during your launch.
• How much money do you need?
• What are you going to spend that money on?
• When are you going to spend that money?
• Three months of operation experience is pretty standard for a new small business.
• This needs to be a nice spreadsheet that shows projected expenses and revenue by month for at least one year out. Preferably, you’ll project out three years.
• What are your projections based upon?
• How did you come up with this number?
• How confident are you in your expense numbers?
• Do you have quotes for ____________? Can I see those quotes?
• This section proves to anyone reading this business plan that you have a plan for starting up this prepared meal business. It’s your startup schedule.
• This needs to be a spreadsheet that indicates when important things are going to happen during your startup.
• It needs to be at least broken down by weeks, but I’d suggest you break it down by individual days.
• Not only does this show a loan officer that you have a real plan, but perhaps more important, it gets you organized and holds you accountable to get this business up and running on schedule.
• Marketing mockups
• Full resumes of key employees
• Letters of recommendation and endorsements

If you follow this outline, you’ll be able to create your Prepared Meal Delivery Business Plan with confidence.

However, if you find yourself struggling, be sure to signup for my email list and I’ll see how I can help you.

If you want a full Prepared Meal Business Plan Template based upon my 16 years of experience starting and running my own delivery business, you can find that business plan template here .

I also offer one-on-one consulting as my schedule allows, and you can find more information about that in the same link above.

My consultation time is not inexpensive. Yet for a couple of hundred dollars, you could get my experienced feedback on your business plan instead of hearing it from a loan officer later.

~Stacey of FoodBusinessPros.com

P.S. If you are a DIY kind of person, I’m including below some links to other resources that will help you get your business plan right.

Until the business plan is right, the business can’t be right.

More Prepared Meal Delivery Business Articles

You can click on the text over each image to read the article right here on FoodBusinessPros.com . ~ Stacey

More Meal Prep Business Plan Writing Resources

With over 15 years of experience starting, running, and growing home-based food businesses, Stacey is the #1 home-based food business coach in America. Stacey is the author of the Advantage Meals: By The Numbers Book.

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End of the road for foodpanda? (Image – Shutterstock)

Online food delivery companies in ASEAN running out of recipes for success

By Aaron Raj | 26 September, 2023

• Online food delivery companies have been struggling. 
• Delivery Hero is considering selling foodpanda; Grab may be interested in acquiring the food delivery company. 

Online food delivery companies in Southeast Asia made record profits during the COVID-19 pandemic. Not only did some of these companies increase their revenue, but many new players also entered the industry, with the hopes of getting a piece of the pie.

From 2020 to the middle of 2022, food delivery companies were profitable. But as the pandemic came to an end and people started going back to work in offices, the need for online food delivery services reduced significantly.

GRAB IS EXPECTING ITS FIRST PROFIT THIS YEAR. HERE’S WHAT ITS LATEST EARNINGS REPORT SAYS

Dashveenjit Kaur | 27 February, 2023

In fact, according to a report by Momentum Works , food delivery companies in Southeast Asia only experienced a modest 5% growth to reach US$16.3 billion in 2022 after two years of good business during the pandemic.

Currently, Grab is the leader in Southeast Asia’s food delivery market, holding 54% of the region’s gross merchandise value in 2022, while Foodpanda captured 19% and Gojek held 12%, according to the report.

In the last several months as well, several online food companies have had to reduce their workforce, with some companies even shutting down their entire food delivery service. This includes Grab, who laid off more than one thousand people, or about 11% of its staff. This not only included employees in its food delivery app, GrabFood but also its other app services.

The superapp has been having a rather interesting year, filled with lots of changes as it looks to supercharge its digital banking ambitions. As statistics show, GrabFood remains one of the top online food delivery platforms in Southeast Asia, despite the economic conditions.

Meanwhile, AirAsia, which made a lot of noise when it entered the online food delivery industry, had also made some strategic changes to its services. With air travel booming, the airline company has decided to keep its focus on travel and ride-hailing instead of carrying on with its food delivery journey.

The airline company had already stopped its food delivery service in Singapore since January 2023. However, it didn’t just terminate the service completely. Instead, AirAsia took a more consolidated approach. The airline company signed a partnership with foodpanda, another online food delivery giant instead. The partnership, which was announced just a few months ago in Malaysia, will see AirAsia’s food delivery services be handled by foodpanda.

Put simply, those who want to order food on the Airasia superapp will be directed to foodpanda’s app instead. Similarly, foodpanda customers can also book air tickets and such on the foodpanda app, as they will be redirected to the Airasia superapp.

Which service did you enjoy most? (Image – Shutterstock)

Food delivery companies are no longer profitable?

As predicted, the online food delivery industry is no longer as profitable as many thought it would be. Not only was the return to work a reason for the dropping profits, many riders working in the industry returned to full-time jobs.

The gig economy, especially for delivery riders, was simply no longer profitable. Many riders were also struggling to cope with the rising prices, especially with inflation. Diners themselves have reduced their spending on deliveries and are opting for cheaper alternatives, opting to cook and eat at home.

At the same time, the smaller online food delivery companies just could not cope with the rising costs. Singapore-based food delivery platform Gobble closed down earlier this year because of low-profit margins and a lack of positive cash flow.

WATCH OUT GRAB! AIRASIA AND FOODPANDA CONSOLIDATE TO PARTNER IN FOOD DELIVERY AND E-HAILING SERVICES

Dashveenjit Kaur | 15 May, 2023

Singapore’s Deliveroo also laid off a portion of its global staff, with roles at all levels of the company affected. In a report by Channel News Asia , an internal memo by Deliveroo founder and Chief Executive Will Shu stated that around 9% of the company’s workforce , with approximately 350 roles was cut, although the actual number of staff laid off is estimated to be about 300, after redeployments.

foodpanda also reported layoffs, with a third round announced on the 21st of September. In Malaysia, Online grocery delivery service HappyFresh ceased operations due to the current economic situation late last year.

Over in Thailand, Line Man, a delivery app founded by the Thai unit of Japan’s Line Corp., reported a loss of US$75.9 million last year, down 14% from 2021, despite growing revenue 88% to US$219 million, according to analytics firm Creden Data. The Kasikorn Research Center, a think tank in Bangkok, has estimated that the market value of the food delivery business in Thailand will shrink this year by 0.6 percent compared with 2022 as the volume of food orders declines post-pandemic.

India’s Zomato, also shut down its food delivery services in the Philippines and Indonesia earlier this year. Although it was more of a restaurant aggregator for food delivery, the company has been in the Philippines for almost a decade.

What will happen to foodpanda if Grab acquires them? (Image – Shutterstock)

Consolidation is the way forward

Given the state of the food delivery industry, most of these companies are already looking for ways to consolidate their operations. AirAsia has made the first brave move of admitting that the food delivery arena is not its area of expertise. While it did get some profit initially, consolidating services with foodpanda seemed like the most reasonable thing to do.

In fact, not only does this reduce the competition in the industry, but it also helps both companies to focus on what they do best. The airline superapp definitely has high ambitions in other areas and the partnership with foodpanda seems to be allowing it to focus on achieving those goals.

GRAB PLANS TO BREAKEVEN IN 2024, BUT 2023 SPELLS UNCERTAINTY. HOW’S THE RIDE HAILING GIANT COPING?

Dashveenjit Kaur | 19 December, 2022

foodpanda has become a household name for online food delivery across all of Asia. The company may not have the ambitions of becoming a super app like Grab or AirAsia but likes to believe that it’s already a superapp in the food delivery industry.

True enough, the main competition in the industry is between Grab and foodpanda. There are other small players like Beep in Malaysia and Deliveroo in Singapore. Unlike Grab, which has other areas of business such as ride-hailing and digital banking, foodpanda relies purely on food delivery.

According to recent news reports, foodpanda is now looking at ways to consolidate its business even more. The company has already executed two rounds of layoffs, with a third one announced last week.

“We are sorry to confirm that we had to reduce our team size in the APAC region on 21 September, as the need to streamline our operations to become leaner and more agile remains critical. In the coming days and weeks, our focus is on supporting impacted colleagues through this difficult time.

We are extremely sorry to colleagues who are leaving us and are grateful for their contributions to foodpanda,” stated the company.

But what’s more interesting this time round is that reports are stating that the parent company of foodpanda, Delivery Hero is in discussions to sell its food delivery business in selected Southeast Asia markets.

In an email to CNBC , Delivery Hero confirmed that there are “ negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets. Any discussions or plans are in their preliminary stages.”

Report on Delivery Hero selling foodpanda.

Grab to acquire foodpanda?

German media outlet  WirtschaftsWoche reported that Delivery Hero is selling its operations under the foodpanda brand in Singapore, Cambodia, Malaysia, Myanmar, Philippines, Thailand and Laos. The German media report also said that competitor  Grab  could be a buyer.

Should Grab acquire foodpanda, it will most likely have a monopoly in the food delivery industry in the region. Grab is already a leader in the ride-hailing industry after acquiring Uber’s Southeast Asia business. Apart from Indonesia’s Gojek, Grab is pretty much untouchable in other Southeast Asian countries in the ride-hailing industry.

In the food delivery industry, Grab acquiring foodpanda could have several outcomes. As with any acquisition, employees are always the first concern. Grab itself has executed layoffs this year, so many employees would definitely be worried about the status of their employment should the acquisition happen.

GRAB WILL NOT REPLICATE SHOPEE’S MASS LAYOFF AMIDST A WEAKER ECONOMY

Dashveenjit Kaur | 26 September, 2022

Next, a lot of businesses actually prefer working with foodpanda instead of Grab. For example in Malaysia, there are more local food vendors operating on foodpanda as compared to Grab. In terms of riders, both companies have their fair share of ups and downs with riders.

While the entire acquisition will most likely benefit Grab, one could wonder on the status of the partnership with AirAsia. It remains to be seen how the partnership will continue should an acquisition take place.

Tony Fernandes, CEO of Capital A and AirAsia has continued to voice his desire to compete to be better than the “green” brand. This was also why he launched the ride-hailing and food-delivery services in the first place. While AirAsia will most likely be out of the acquisition picture, foodpanda could actually be a dark horse for them if they have the right plans in place.

For now, though, Grab is seemingly in line to remain the dominant online food delivery company in the region. And should this acquisition go through, the company is definitely on its way to not just being a powerful superapp, but a dominant one in the region. Put simply, Grab could be getting the ingredients it needs to have the perfect recipe for success.

By Aaron Raj

Aaron enjoys writing about enterprise technology in the region. He has attended and covered many local and international tech expos, events and forums, speaking to some of the biggest tech personalities in the industry. With over a decade of experience in the media, Aaron previously worked on politics, business, sports and entertainment news.

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In addition to home delivery service, consumers also may schedule appointments with weight loss coaches online.

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What is affected by a government shutdown and how it could impact you

The United States is headed toward a government shutdown if Congress cannot pass legislation to extend funding before Oct. 1, a scenario that could interrupt key federal services from food stamps to tax-return processing to military pay.

House Speaker Kevin McCarthy (R-Calif.) is locked in a battle with hard line members of his GOP caucus over a stopgap bill to keep the government open past Sept. 30, when current funding expires. The Senate also must act, but lawmakers there are confident they have the votes for a short-term extension, leaving all eyes on the House.

What’s driving a possible shutdown? A fraction of the U.S. budget.

Basic federal services hang in the balance. If the government shuts down, national parks might remain open, but restrooms there would not. The IRS may keep some essential employees around — unpaid — but only to search for payments to the government. Veterans will receive their monthly pension payments and retain access to health care, and military funerals will continue uninterrupted, but current servicemembers won’t receive paychecks.

Here’s what you need to know about a government shutdown, and how it could affect you.

Food assistance

Programs like SNAP (Supplemental Nutritional Assistance Program) or WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) have contingency funds that can carry over past the government funding deadline. But that funding only lasts so long, meaning a protracted shutdown of a month or more could make some aid disbursements difficult.

WIC may be able to sustain operations only for a few days if Congress does not avoid a shutdown, said the Agriculture Department, which administers the program with state offices. The program is already contending with a budget shortfall , and the Biden administration earlier this month asked Congress for $1.4 billion in emergency aid to keep resources flowing to needy families.

Read more about how a government shutdown would impact SNAP and WIC .

IRS and tax returns

The IRS has not released its shutdown contingency plan yet, but it has historically been among the most aggressive federal agencies in curtailing operations when federal funding lapses.

How a government shutdown could affect you

The IRS chief counsel, the official who interprets tax law for the agency, has consistently held that government workers can remain on the job during shutdowns only if their duties protect the government, as opposed to individuals. That means ordinary taxpayers could be more exposed to financial hardship.

For example, when the government shut down for 34 days in late 2018 and early 2019, employees from the Taxpayer Advocate Service, the agency’s internal consumer rights watchdog, could open mail only in search of checks payable to the government, the service reported . It could not conduct case work or help resolve taxpayer disputes, its fundamental purposes.

Furthermore, at the start of that shutdown, the roughly 12 percent of IRS employees who remained on the job couldn’t answer taxpayer phone calls, issue tax refunds, release liens and levies or complete a bevy of other taxpayer services, the service reported . As the shutdown dragged on closer to the filing season, which begins around Jan. 1 each year, the tax agency exempted more employees and returned thousands of staffers to work answering phones and disbursing refunds.

Military and veterans

The roughly 1.3 million active-duty U.S. military service members would remain on the job without pay during a government shutdown. They would receive backpay after the shutdown ends, as would all the other federal workers forced to keep working during the period.

By contrast, veteran benefits, including health care and pensions, would continue during a government shutdown, according to the Department of Veterans Affairs contingency plan . Ninety-six percent of the agency’s nearly 414,000 employees would continue working, either because their pay doesn’t depend to annual appropriations or because they are exempt from furloughs. The National Cemetery Administration’s burials, burial scheduling, death notices and headstone and marker placements would also continue.

Most government employees who are crucial to travel safety will continue working — albeit unpaid — during a government shutdown. All but about 4,000 of the Transportation Security Administration’s more than 59,000 employees will stay on the job, according to the agency’s most recent shutdown plan .

The Federal Aviation Administration, the agency responsible for air traffic controllers and aircraft and pilot safety certifications, would also continue most of its work. Some 16,000 of its more than 45,000 employees would be furloughed, the agency projects , but air traffic controllers, accident investigators, anti-terrorism and intelligence officials and other safety officials would stay on the job. The FAA’s hiring and training programs would temporarily shut down, and facility safety inspections would also stop.

The State Department will continue issuing passports and visas in the United States and abroad, the agency said, because the work is considered essential to national security, and most funding is covered by the fees that passport applicants typically pay.

Some passport locations, however, are located in government buildings run by agencies more deeply affected by a government shutdown. If those buildings are closed, the State Department might suspend consular and passport services, it said in its contingency plan .

Read more about how a government shutdown could impact your travel plans .

Social Security

Social Security recipients will continue to receive payments because the program is an entitlement funded by a payroll tax, not annual appropriations. Moreover, the agency will continue to issue new and replacement Social Security cards, according to its shutdown contingency plan .

Medicare and Medicaid

Medicare and Medicaid, like Social Security, are funded separately from annual appropriations , so those benefits will continue uninterrupted. However, some services may be put on hold. For example, the Social Security Administration will not issue replacement Medicare cards during a shutdown, according to its contingency plan . The agency will also suspend benefit verifications, responses to third-party information requests and some other administrative activities.

Read more about how a government shutdown would affect Medicare and Medicaid benefits .

Postal Service

U.S. Postal Service operations would be unaffected by a government shutdown, the agency said. The Postal Service is generally funded through the sale of postage products, not taxpayer dollars, so employees’ salaries and the agency’s operations do not rely on Congress.

National parks

The National Park Service has allowed parks, roads, trails and open-air memorials to remain open during some earlier government shutdowns as long as visitors do not need a guide or administrative support. But it suspends maintenance of those areas — including restroom cleaning, road plowing, visitor services and trash collection — during shutdown periods .

In the last government shutdown, for example, monuments and memorials on the National Mall in Washington remained open , but without restroom access and visitor services.

That said, sometimes the Park Service goes ahead and maintains some of its sites, but that risks violating federal law. That was the case in the 2018-19 shutdown, when the Government Accountability Office, Congress’s nonpartisan watchdog agency, found that the service used leftover funds to perform those functions.

The only Park Service employees that will remain on the job — unpaid — through a government shutdown are certain senior officials, wildland firefighters, emergency medical personnel and law enforcement officers.

What to know about a possible government shutdown

The latest: The U.S. government has begun notifying federal workers that a shutdown appears imminent . Here’s how a shutdown will impact federal employees and contractors and a look at the shortest and longest government shutdowns .

We break down how key federal services could be affected by a government shutdown :

• WIC and SNAP services
• Air travel, TSA and passports
• Medicare and Medicaid benefits

Federal workers: Here’s a federal worker’s shutdown survival guide and what to do if the shutdown stops your paycheck . See where federal employees live in the United States.

• U.S. government starts notifying federal employees a shutdown may be imminent 50 minutes ago U.S. government starts notifying federal employees a shutdown may be imminent 50 minutes ago
• What federal employees and contractors need to know about the shutdown 27 minutes ago What federal employees and contractors need to know about the shutdown 27 minutes ago
• The small group of House Republicans who might force a government shutdown 3 hours ago The small group of House Republicans who might force a government shutdown 3 hours ago

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Follow our news, recent searches, delivery hero, owner of foodpanda, confirms talks on partial sale of asia business, advertisement.

A Foodpanda delivery worker carrying bags of food walks towards bicycles parked outside a shopping mall. (Photo: iStock)

BERLIN: Delivery Hero confirmed talks on a partial sale of its Asia business on Wednesday (Sep 20), adding that the deal's value is still under negotiation.

The Wirtschaftswoche business magazine first reported the news earlier in the day, saying Singapore's Grab could pay a little more than €1 billion (US$1.07 billion) for the unit.

The Berlin-based company plans to sell its activities under the foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand, it said in a statement.

Investors in the online takeaway food company welcomed the news, lifting its shares as much as 13.5 per cent after the report.

In response to CNA's queries, foodpanda said: "Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets.

"Any discussions or plans are in their preliminary stages."

Grab declined to comment.

Grab to acquire Trans-cab, Singapore’s third-largest taxi operator

Delivery Hero has been focusing on reaching profitability while maintaining growth as investor confidence in the company started to wane after a pandemic-driven boost.

The group has said that it reached an adjusted profit before interest, tax, depreciation and amortisation (EBITDA) in the first six months of the year, although it did not quantify it, after a loss of €323 million in the same period a year earlier.

Last month, Chief Executive Niklas Oestberg said that Asia was the segment where the company saw the most opportunity to invest.

Singapore internet firm Grab posted US$567 million in revenue in the quarter that ended June 30 and expects to break even on an adjusted core earnings basis in the current quarter. Grab makes most of its sales from its food delivery business and has recently seen strong growth in its ride-share business.

Why are some food delivery riders using their own money to refund customers for spilt items?

‘Good money’ at first, then ‘a bit stagnant’: Food delivery riders square up to realities as they eye a better gig

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US government shutdown: What is it and who would be affected?

Sept 28 (Reuters) - U.S. government services would be disrupted and hundreds of thousands of federal workers would be furloughed without pay if Congress fails to provide funding for the fiscal year starting Oct. 1. Workers deemed essential would remain on the job, but without pay.

Here is a guide to what would stay open and what would shut down, according to agency shutdown plans :

The 2 million U.S. military personnel would remain at their posts, but roughly half of the Pentagon's 800,000 civilian employees would be furloughed.

Contracts awarded before the shutdown would continue, and the Pentagon could place new orders for supplies or services needed to protect national security. Other new contracts, including renewals or extensions, would not be awarded . Payments to defense contractors such as Boeing (BA.N) , Lockheed Martin (LMT.N) and RTX (RTX.N) , formerly known as Raytheon, could be delayed.

The Department of Energy's National Nuclear Security Administration would continue maintaining nuclear weapons.

LAW ENFORCEMENT

Agents at the FBI, the Drug Enforcement Administration (DEA) and other federal law enforcement agencies would remain on the job , and prison staffers would continue to work.

The Secret Service and the Coast Guard would also continue operations, and most employees would continue to work.

Most of the Federal Trade Commission's consumer-protection workers would be furloughed, as would half of its antitrust employees.

SOCIAL SECURITY, MEDICARE AND OTHER BENEFITS

The Social Security Administration would continue to issue retirement and disability benefits, though the agency might have to delay its announcement of its annual increase in payments. read more

BORDERS AND HOMELAND SECURITY

Most Border Patrol and immigration enforcement agents would continue to work, as would most customs officers.

Local governments would not get new aid to shelter migrants.

The Cybersecurity and Infrastructure Security Agency would suspend security reviews that help schools, local governments and other institutions defend against ransomware.

FEDERAL COURTS

Federal courts have enough money to stay open until at least Oct. 13 . Activities might be scaled back after that point. The Supreme Court would stay open as well.

Criminal prosecutions, including the two federal cases against former President Donald Trump , would continue. Most civil litigation would be postponed. The government's landmark Google antitrust lawsuit would continue.

Lawmakers continue to collect paychecks, even as other federal workers do not. Staffers do not get paid, though those deemed essential would be required to work.

TRANSPORTATION

Airport security screeners and air-traffic control workers would be required to work, according to recent contingency plans, though absenteeism could be a problem. Some airports had to suspend operations during a shutdown in 2019 when traffic controllers called in sick.

Training for 1,000 new air-traffic controllers would stop, leaving the system understaffed. The Transportation Security Administration would not be able to hire new airport security screeners ahead of the busy holiday travel season.

Some major infrastructure projects could face delays as environmental reviews and permitting would be disrupted, according to the White House.

FOREIGN AFFAIRS

U.S. embassies and consulates would remain open. Passport and visa processing would continue as long as there were sufficient fees to cover operations. Nonessential official travel, speeches and other events would be curtailed.

Some foreign aid programs could run out of money as well.

NATIONAL PARKS AND NATURAL RESOURCES

It's not clear how national parks, national monuments and other sites would be affected. Many remained open during a 2018-2019 shutdown, through restrooms and information desks were closed and waste disposal was halted. They were closed during a 2013 shutdown.

Wildfire fighting efforts would continue, according to the Agriculture Department's 2020 contingency plan, though timber sales on national forest lands would be curtailed and fewer recreation permits would be issued.

The Smithsonian museums that line the National Mall would close, as would the National Zoo. That would bring a premature end to the Zoo's farewell celebration for its three giant pandas, which are due to return to China.

Scientific research would be disrupted as agencies like the National Institutes of Health, the National Science Foundation and the National Oceanographic and Atmospheric Administration (NOAA) would furlough most of their workers, according to recent contingency plans.

The National Aeronautics and Space Administration (NASA) would continue to support the International Space Station and track satellites, but 17,000 of its 18,300 employees would be furloughed.

Weather forecasts and fisheries regulation would continue, as would patent and trademark reviews. Tests of new drugs and medical devices would continue.

The Federal Communications Commission (FCC) would suspend consumer-protection activities, equipment reviews, and licensing of TV and radio stations. It would continue to distribute telecommunications subsidies and its broadband mapping effort.

The Centers for Disease Control and Prevention (CDC) would continue to monitor disease outbreaks, though other public health activities could suffer as more than half of the agency's workers would be furloughed.

The National Institutes of Health would furlough most of its staff and delay new clinical trials for medical treatments.

[1/5] A general view of the U.S. Capitol, where Congress will return Tuesday to deal with a series of spending bills before funding runs out and triggers a partial U.S. government shutdown, in Washington, U.S. September 25, 2023. REUTERS/Jonathan Ernst Acquire Licensing Rights

Healthcare services for military veterans and Native Americans would continue.

Most inspections of hazardous waste sites and drinking water and chemical facilities would stop.

Food-safety inspections by the Food and Drug Administration (FDA) could be delayed.

FINANCIAL REGULATION

The Securities and Exchange Commission (SEC) would furlough roughly 90% of its 4,600 employees and suspend most activities, leaving only a skeleton staff to respond to emergencies.

Likewise, the Commodities and Futures Trading Commission (CFTC) would furlough almost all of its employees and cease oversight, enforcement and regulation, according to its 2021 plan.

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency would continue as normal, as they are funded by industry fees rather than congressional appropriations.

The Financial Industry Regulatory Authority (FINRA), an industry-financed brokerage oversight body, would continue to operate.

ECONOMIC DATA

The publication of major U.S. economic data, including employment and inflation reports of critical importance to policymakers and investors, would be suspended , according to the Biden administration.

The Social Security Administration would continue to issue retirement and disability benefits, and payments would continue under the Medicare and Medicaid healthcare programs.

Military veterans' benefits would also continue, according to a 2021 contingency plan.

Nutrition benefits provided to 7 million mothers through the Women, Infants and Children program would be cut within days, according to Agriculture Secretary Tom Vilsack.

Food aid through the Supplemental Nutrition Assistance Program (SNAP) would go out as normal for October, but could be affected after that, he said.

TAX COLLECTION

The Internal Revenue Service (IRS) has not released a current contingency plan. The Committee for a Responsible Federal Budget, a watchdog group, says the agency would operate as normal and all 83,000 employees would continue to be paid because its funding would not expire.

DISASTER RESPONSE

The Federal Emergency Management Agency (FEMA) would be at risk of running out of disaster-relief funds. The agency is already delaying payments to some long-term recovery projects in order to keep money on hand for more immediate relief during hurricane and wildfire season.

Pell Grants and student loans would continue to be paid, but could be disrupted as most Education Department employees would be furloughed, according to the agency's 2021 plan.

A protracted shutdown could "severely curtail" aid to schools, universities and other educational institutions, the department says. It also could delay funds that are due to be awarded later in the year.

The U.S. Army Corps of Engineers would continue to operate locks, dams and flood control facilities. Most employees would not be furloughed.

According to the White House, 10,000 children from low-income families would lose access to the Head Start preschool program.

SMALL BUSINESS SUPPORT

The Small Business Administration would not be able to issue any new loans, though loans for businesses hurt by natural disasters would continue.

AGRICULTURE

Meat and egg inspections would continue, but some lab services would be disrupted, making it harder to fight animal diseases. Crop insurance would not be affected, but some loan programs would be. Research, conservation and rural development programs would be shut down.

Workplace safety inspections would be limited, and investigations into unfair pay practices would be suspended, according to the White House.

The ability of the National Labor Relations Board (NLRB) to mediate labor disputes would be curtailed because almost all of its 1,200 employees would be furloughed, according to a 2022 plan.

Monthly subsidies for public housing and low-income housing aid would be at risk. The Federal Housing Administration would continue to back insured mortgages, and Ginnie Mae would continue to back the secondary mortgage market. New homebuyers in rural areas would not be able to get loans from the Agriculture Department.

WHITE HOUSE

In the 2018-2019 shutdown, the White House furloughed 1,100 of 1,800 staff in the Executive Office of the President. Some offices, such as the National Security Council, continued at full strength, while others like the Office of Management and Budget (OMB) were scaled back sharply.

White House furloughs could make it harder for Republicans in the House of Representatives to get information for their impeachment investigation of Democratic President Joe Biden.

The U.S. Constitution specifies that the president continues to get paid.

MAIL DELIVERY

The U.S. Postal Service would be unaffected, as it does not depend on Congress for funding.

Reporting by Andy Sullivan, Pete Schroeder, Howard Schneider, Moira Warburton, Nate Raymond, Makini Brice, Steve Holland, Julia Harte, Diane Bartz, Andrew Chung and Lucia Mutikani; Editing by Scott Malone, Jonathan Oatis and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

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Cost of living latest: Aldi reveals 'priority locations' for new stores; data reveals how much spare cash households have on average

Aldi has revealed priority locations for new stores. Meanwhile, oil prices have surged to their highest level in over a year overnight. Listen to the latest Ian King business podcast while you scroll.

Thursday 28 September 2023 18:01, UK

• Cost of living
• Average mortgage rate on five-year fixed deal falls below 6% for first time in months
• Oil prices surge to highest level in over a year. Should we start to worry?
• Data reveals how much spare cash households have on average  
• Sellers shaving off £12,000 from house prices to make a sale - but they'll continue to 'drift lower'
• List of Wilko store closures today
• What you need to do ahead of Sunday's energy price cap change
• Use our spending calculator to see how prices have changed
• Live reporting by Jess Sharp

By Paul Kelso, business correspondent

Up to 20% of new cars on Britain's roads could still be petrol and diesel models in 2030, after the government published guidelines for phasing out new internal combustion engine cars and vans by its new extended deadline of 2035.

Under the terms of the "zero emissions mandate" published by the Department of Transport, 22% of new cars will have to be zero-emissions from January next year.

This will rise gradually to 52% in 2028, 80% in 2030 - when the original total ban was due to apply - and 100% by 2035.

Prime Minister Rishi Sunak announced a five-year delay to the ban on new petrol and diesel cars and vans earlier this month, calling it a "pragmatic" approach to achieving the UK's net zero goals.

The mandate has been anticipated by industry for two years, with some manufacturers privately frustrated that it has only been published three months before it applies.

The target of 22% for next year is the same as originally planned, however, and industry is confident it can be achieved, with 20% of new cars sold last year classified as zero emission.

Even after 2035, there will be no outright ban on owning a petrol or diesel car and there are likely to be millions still on the road for years afterwards.

Despite the relaxation of regulations, many manufacturers remain committed to producing only fully electric vehicles from 2030 or earlier, with Nissan the latest to confirm that deadline.

Mike Hawes, chief executive of industry group the Society of Motor Manufacturers and Traders, said: "The automotive industry is investing billions in decarbonisation and recognises the importance of the zero emission vehicle mandate as the single most important measure to deliver net zero.

"We welcome the clarity the mandate's publication provides for the next six years and the flexibilities it contains to support pragmatic, equitable delivery across this diverse sector."

Transport Secretary Mark Harper said: "The path to zero emission vehicles announced today makes sure the route to get there is proportionate, pragmatic and realistic for families."

If you are a regular reader of this blog, you'll know every Thursday we bring you the best savings deals of the week. 

Here are this week's best savings accounts, according to Caitlyn Eastell at Moneyfacts. 

Beehive Money – Limited Issue Easy Access

Minimum opening amount - £1,000

Caitlyn said: "Beehive Money has launched two new savings products to add to its range, including the Limited Issue Easy Access, which pays 5.10%. 

"The account grabs a market-leading rate at the top of its sector and may attract savers who have £1,000 to invest. 

"The account does include an introductory bonus rate of 2.45% which runs until 31 October 2024, so a review of the account before this expires would be wise." 

Al Rayan Bank – 12 Month Fixed Term Deposit

Minimum opening amount - £5,000

Caitlyn said: "This week Al Rayan Bank has taken a prominent position in the short-term fixed market with a rise to the expected profit rate on its 12 Month Fixed Term Deposit. 

"Now paying an expected profit rate of 5.99% gross, the deal may well appeal to savers who are comfortable with locking away their cash to secure a competitive return over the shorter-term." 

Sainsbury's Bank – 1 Year Fixed Rate Cash ISA

"Sainsbury's Bank has increased the rates on its Fixed Rate Cash ISAs this week, including its one-year deal which takes a prominent position in the market," said Caitlyn. 

"The deal now pays a rate of 5.70% on anniversary and may appeal to savers who want to invest over the next year and use their ISA allowance. This deal pays an attractive rate when compared to similar products." 

Close Brothers Savings – 3 Year Fixed Rate Cash ISA

Minimum opening amount - £10,000

"The 3 Year Fixed Rate Cash ISA now pays an attractive 5.35%," Caitlyn said.

"The deal takes a position within the top 10 when compared to other fixed ISAs of a similar term and may attract savers who are prepared to lock away their cash for a guaranteed return.

"However, savers should note that earlier access is permitted subject to 270 days' loss of interest and account closure. 

"Savers need £10,000 to invest but they can make further additions for 10 days from account opening." 

Chorley Building Society – Easy Access Cash ISA (1 Withdrawal)

Minimum opening amount - £1

"The deal pays a rate of 4.80% yearly and may appeal to savers who want instant access to their money and to use their ISA allowance," Caitlyn said.

"However, investors must consider that if they make more than one withdrawal in a year the rate drops significantly to 2.50%." 

UK households will have £3bn less to spend on Christmas compared with last year, a new report has found. 

The staggering figure comes as high levels of inflation continue to erode spending power for many families. 

Savvy shoppers have planned to start Christmas shopping earlier and use online marketplaces this year to help cope with the cost, the report by Retail Economics and Auctane found.

As a result, it predicts UK consumers will spend £17.9bn on online marketplaces this Black Friday and Christmas as they search for the most competitive prices. 

In total, 40% of consumers said they planned to start Christmas shopping before October. 

Meanwhile, 15% already started building up their stockpiles in August.

"The squeeze on incomes has become a war of attrition for many households who have dwindled down their savings as the cost of living crisis drags on," said Richard Lim, CEO of Retail Economics. 

"Retailers will have to work harder than ever this year to keep prices competitive while catering for more demanding customers who want to shop on and off-line in a manner that suits their needs." 

Last month, H&M came under fire for charging customers for online returns, with many complaining about inconsistencies in the retailer's sizing. 

Here's an example...

Now, the fashion giant has finally addressed the issue, admitting it needs to improve. 

Chief executive Helena Helmersson told the BBC "there's always improvement to make" and the store is taking steps to make sure "whatever customers buy, they want to keep". 

Under the newly-introduced fee, customers must pay £1.99 to return items bought online, with the cost taken from their refund.

It had initially said it would also charge for online items returned by post and in-store, but it later backtracked on the in-store fee. 

Rail passengers are being warned that fresh strikes by train drivers in a long-running dispute over pay will mean some areas will have no services.

Train drivers belonging to Aslef will begin an overtime ban at 14 English train operators who are contracted to run services by the Department for Transport (DfT) tomorrow.

This was last until 6 October. 

From Saturday until Wednesday 4 October, Aslef rail strikes will also take place coinciding with the annual conference of the Conservative Party.

RMT London Underground strikes will then take place from 4 October until 6 October. 

The strikes will affect 15 train companies with services due to start later and finish much earlier than usual - typically between 7.30am and 6.30pm.

The Rail Delivery Group (RDG) said operators will run as many trains as possible but there will be wide regional variations, with some running no services at all.

It is likely that evening services on some lines will be affected on the days before each strike. 

The RDG said: "The rail industry is working hard to keep trains running despite the union leaders' decision to reject an offer which would give their members an 8% pay rise over two years, taking average salaries for train drivers up from nearly £60,000 a year to almost £65,000 a year for, on average, a four-day week."

A little earlier we heard that the average five-year fixed deal has fallen below 6%, so we spoke to a leading mortgage broker about the state of the market.

David Hollingworth, associate director at L&C, says what we're witnessing now is a consequence of the lower-than-expected inflation figure that came in last week - at 6.7%. This persuaded the Bank of England to pause its run of interest rate hikes.

"That has been feeding through into mortgage pricing with most lenders cutting fixed rates," said Mr Hollingworth.

"The best five-year rates are just below 5% now which does feel rather more positive for borrowers who have been used to rocketing rates earlier in the year."

While interest rates may be nearer their peak, the message from the US Fed this week is that they may stay high for longer than previously anticipated - a statement that has impacted markets.

Tracker or fixed?

These conflicting messages can make choosing a mortgage deal difficult - for example, people who may have opted for a tracker, thinking rates will go down, might now pause for reflection.

"We have seen more customers opting to fix for shorter terms in the hope that rates will continue to fall and they will be able to switch to a better deal at that point," said Mr Hollingworth.

"There's likely to be more considering a tracker rate in the hope that payments will drop back as rates fall but there's a chance that things may remain higher for longer so there needs to be enough flex in the budget to deal with that."

Of course, there are no guarantees of how much, when or if base rate will ease back - "so borrowers should focus on what works best for them", cautions Mr Hollingworth. 

A new study by banking giant KPMG has revealed that UK mortgage payers are making drastic personal financial decisions in an effort to meet payments.

The bank surveyed 1,000 people whether they had either already taken, or were considering taking, action to deal with rising mortgage payments.

Around 18% said they had dipped into savings in order to reduce what they owed, while a quarter said they were considering doing so.

Some 12% said they had extended their mortgage term, with a further 24% actively considering it. 

While 11% said they had cut pension contributions, with 20% considering doing it. 

"Inevitably, increased household budget and savings being used to pay the mortgage, or higher rent costs, will continue to lead to less money being spent elsewhere within the economy by consumers, which will continue to challenge retailers, brands and leisure businesses," KMPG's UK head of consumer markets, retail and leisure, Linda Ellett, said. 

Households now have an average of £224 a week in disposable income - the highest amount in more than a year. 

That's according to the Asda Income Tracker which provides monthly data on household earnings. 

In a sign the financial burden is starting to ease for many, it found the amount people had to spend on themselves after paying taxes and essential bills was up by £14.27 a week compared with the same time last year. 

However, the lowest earning households are still struggling, with a deficit of £72 in disposable income per week - meaning their take home pay is not enough to cover bills and essentials. 

In contrast, the highest earning households have seen their disposable income rise by 4.8% annually in August to £790 per week. 

Earlier, we brought you the latest from Zoopla's house price index, which revealed sellers were shaving just over £12,000 off their original asking prices on average to achieve a sale.

We can now show you what their latest data looks like on a national scale - in terms of percentage increase or decrease across the past year. 

Green represents an increase, red a decrease and grey is no change. 

As the map shows, the south of England has seen an almost universal decrease - with London, the East and South East all dropping between 1.4-5% in the past 12 months.

The north paints a different picture - with Scottish homes costing 1.6% more than last year, while the North West, North East and Yorkshire and The Humber have all increased steadily. 

'What does that look like in the UK's major cities?' - you may ask - lucky for you, we've put that in a table for you too.

Bournemouth and Cambridge have 2.2% and 2.0%  decreases respectively - while Aberdeen fights the wider Scottish trend of rising prices to drop 1.6% on last year's prices. 

Edinburgh has the highest rise in our list - with a 1.7% increase - a full 1% more than the other highest riser (Glasgow - 0.7%). 

"The impact on pricing has been modest compared to the scale of the hit to buying power," Zoopla said.

"Forbearance by lenders, tougher mortgage regulations over recent years and a strong labour market appear to have moderated the stress in the market compared to previous cycles that would have driven larger price reductions."

Potential locations for a series of new Aldi stores have been revealed, as the supermarket continues to push for its 1,500 shop target. 

The budget supermarket plans to open a number of sites over the next two years as part of a £1.4bn investment pledge announced earlier this week. 

The ideal properties would include freehold town centre stores, edge-of-centre locations and retail park sites "suitable for property development" that can accommodate a 20,000 sq ft store with around 100 parking spaces, it said. 

Here are the supermarket's top locations: 

• London - Kensington and Hackney
• South West - Penzance and Bath
• South East - Maidenhead and Worthing
• North West - Warrington and Bramhall
• North East - Newcastle Upon Tyne and South Shields
• East Midlands - Nottingham and Derby
• West Midlands - Birmingham and Warwick
• East of England - Cambridge and Brentwood
• Yorkshire and the Humber - Harrogate and York
• Wales - Cardiff and Chepstow
• Scotland - Clarkston and Cathcart

" We want to make our great value groceries accessible to all, and to do that we need more stores, particularly in towns and areas that don't have an Aldi already," said Richard Thornton, communications director at Aldi UK. 

"The areas we've identified in our latest list are places where there is demand for stores, and we are committed to continue investing until we can bring our quality products and unbeatable prices to as many people as possible." 

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