Due to this pandemic online food delivery is growing very rapidly . Most of Indian customers now don’t want to go restaurants for dine in . If you are thinking ” How to start food delivery business from home ? ” , you are at right place ! I have shared an image below where you can see how food delivery business is growing and according to recent report the global online food delivery services market is expected grow from $115.07 billion in 2020 to $126.91 billion in 2021 at a compound annual growth rate (CAGR) of 10.3%. So , its right time to start this business !
You might be thinking about some questions that I have listed below –
- How to start this type of business ?
- How many staff’s I will be needing ?
- How to convivence restaurants to be your partner ?
- How to deliver food from restaurant to your customers ?
- How will I be earning from this business ?
- How much amount I will be needing to start this type of business ?
- How to promote this type of business ?
How to start this type of business ?
To start this business you can contact best software company or you can try to make a website yourself by following steps given below . You will be needing a domain provider , hosting and a platform which you will be using to mange your website .
Let first talk about domain –
A domain name is a human-friendly text form of the IP address. URL is a string that represents the complete web address of any web page . You can choose domain on your brand name ( eg – padmavatirasoie.com , here padmavatirasoie is a domain and .com is extension ) . If you ask me ” Hey Kartavya which extension I should choose ? ” , my recommendation will be using “.in” or “.com ” where “.in” extension is Indian .
Let’s now talk about hosting provider –
Web hosting is an online service that allows you to publish your website files onto the internet. So, anyone who has access to the internet has access to your content . Let simplify it with example , hosting is a computer where you store data and whenever any user or customer ask for data ,( i.e. visit your site ) it provide information about you ( show your site ) .My recommandation is hostinger for hosting because it is available at very cheap rate .
Let now talk about platform in which your website will be built –
If you ask me ” what will be your recommandation ? ” , I would highly recommend to use shopify . Firstly , it is fully customized for an ecommerce website . Secondly , It is very easy to design pages . Thirdly , It will save lot of your time .But many of us can’t afford it because it’s very costly so one of the best free alternative is WordPress , but it need’s very high resource to work fastly .
How many staff’s I will be needing ?
Now , Let’s talk for what things you will be needing to hire employees . Firstly , for convincing restaurants partners and listing them in your website . Secondly , for managing reviews and solving issues of your customers time to time , that will help you grow and maintain customer list on your website .Thirdly , you will be needing delivery boys who will deliver your food to your customers . Fourtly , for digital marketing and doing SEO , SMO , ASO etc for you .
How to convience restaurants to be your partner ?
As you will be new in this field , you will be needing more and more restaurants to work on your platform so that you can grow your business . If you want more restaurants , you have to make them happy , if they will be happy they will invite more and more customers to platform . To make them happy you have charge less commission on the total bill . Example – brands like zomato and swiggy charge 27% and 29%( includding tax ) commission respectively , so I want you to charge 20% ( includding tax ) to make restaurants partner happy . If you want growth fast you can bring one scheme i.e. if any new restaurants join your brand xyz within 10 days you will only chage 15% commission ( includding tax ) of total bill and that will rapidy increase customer chain .
How to deliver food from restaurant to your customers ?
Now let’s assume if you some how convinced restaurants to join your platform and you start getting orders how will you deliver your food ? Now you have 2 option first is hiring some deliver boys that will deliver your food or creating a platform for delivery boys called delivery partner where you will be paying delivery boys just for the order and if then complete the order target giving them bonus . It will be more profitable as compared to hiring staff . But you spent thousands to promote this delivery platform .
How will I be earning from this business ?
You can earn through multiple ways in this business
- You can charge short commision percentage ( i.e. around 20% ) on the total amount of the bill .
- You can run ads on your platform and charge short amount for per click ( i.e. around Rs 14 )
How to promote this type of business ?
For promoting this type of website you have two option , first is online marketing and second is offline marketing .
Online Marketing ,
Online marketing is the practice of leveraging web-based channels to spread a message about a company’s brand, products, or services to its potential customers. The methods and techniques used for online marketing include email, social media, display advertising, search engine optimization, Google AdWords , writing Food Guest Post .
Offline Marketing ,
Offline marketing is a great way to promote your site if you have to target a specific location , for example – If you want to target online food delivery in ranchi you can feature your website address on your business cards , use your car as a moving billboard and you can do many more things !
How much amount I will be needing to start this type of business ?
|Name of investment||Time||Amount of investment|
|Employees ( 4 )||1 month||40000|
|Platform development and managing cost||1 month||5000|
Let’s calculate it together how much money we will be needing to start this type of business. As , we discussed that we will be needing at least 4 employees to start this business . Now , lets talk how much should I pay them for this job ? , answer is very simple you will be paying around 10k per employee per month , so total amount you will paying to employees will be Rs 40000 /month . Now , comes advertisement which is key for your success but at initial days you have to spend at least 10k per month on advertisement as we have already discussed .
For platform development , as I told you can make it yourself or contact a developer for that . If you try to make it yourself it will cost around 5k per month ( Note : I have including managing charge of website ) . If you go for a developer you have to spent at least 20k for developing your website only and for managing and fixing bugs in your website they will charge around 3000 Rupees /month . So , if you can afford this much money during startup then okay , you are good to go .