Increasing demand for online food delivery services and the changing consumer behavior in the present times make a very strong case for entrepreneurs to start their multi-restaurant food ordering business.
From Uber Eats to GrubHub, several food industry giants witnessed a steep rise in their food delivery services demand. According to Forbes, Uber Eats has seen a 30% increase in the number of sign-ups for their food delivery services since the COVID-19 began.
Another report by BusinessofApps revealed that revenue for the US food delivery app market is estimated to reach up to 42 billion US dollars by 2025 considering the changing consumer behavior. Such statistics indicate that the future shines bright for the online food delivery segment.
So making investments in the sector could be a profitable business idea for entrepreneurs. But before moving further, it is mandatory to understand some significant factors that could help entrepreneurs start their multi-restaurant food ordering business without any hassle.
5 Things to Consider Before Starting a Multi-Restaurant Food Ordering Business
Countless factors must be taken care of before starting a Multi-Restaurant food ordering business, but below-listed are some crucial ones:
Identify Your Budget: The most important factor that you must consider before starting a multi-restaurant food ordering business is your budget. You need to estimate the amount you must spend on managing logistics operations, running marketing campaigns, and other promotional activities. You must also have a clear idea of the revenue model for your multi-restaurant food ordering business. You can maintain a balance sheet and easily track the money spent on various assets regularly.
Select a Business Model: Once you’re done with the financial planning of your Multi-restaurant food ordering business, the next thing is to choose a business model. However, before finalizing the business model, you need to understand your business goals, the latest trends in the online food delivery market, and the challenges faced by end-users. There are numerous business models that you must opt for your food ordering business but below listed are prominent ones:
- Order-Only Model: In this model, a food delivery marketplace is responsible for managing and accepting order requests from customers. The order delivery is handled by the restaurant owner.
- Order & Delivery Model: In this model, a food delivery marketplace is responsible for managing, accepting, and delivering orders to customers. The order delivery is handled by the marketplace owner.
Conduct a Competitive Analysis: Starting a multi-restaurant food ordering business without conducting a competitive analysis could waste your valuable resources and money. You need to conduct in-depth research to examine who your primary competitors are, what their pricing plans are, what their strengths and weaknesses, are and what their USPs are, among other things. These details could help you create an effective marketing strategy to promote your business in the food delivery market.
Obtain Licenses and Permits: Before starting your multi-restaurant food ordering business in a particular region, you must understand the rules and regulations imposed by the elected government. You must obtain some mandatory licenses and permits from the government or industry-specific statutory bodies. Having official licenses for your food ordering business will help you avail of tax benefits and other schemes offered by the government.
Create a Marketing Plan: It could be challenging for startups to engage new users considering the rising competition in the online food delivery market. So you must prepare a marketing plan that could help you advertise your multi-restaurant food ordering business effectively.
You can use social media platforms such as Twitter, Facebook, LinkedIn, Instagram, and more to market your food ordering business. Applying SEO strategies that make sense can also boost the organic reach of your business. In addition to that, you can make your customers aware of your business by using some traditional marketing methods such as print ads and banners. Attending online as well as offline food tech events could be another way to market your food ordering startup.
How a Multi-restaurant Food Ordering Solution Can Help
Creating an online food ordering marketplace from scratch could be a hectic task. To help entrepreneurs launch their food ordering marketplace conveniently, the team of experts at FATbit Technologies created a multi-restaurant food ordering marketplace solution named Yo!Yumm.
Yo!Yumm is a fully customizable multi-restaurant delivery software that enables startups and SMBs in the food industry to quickly launch their online food delivery platform. It provides an admin panel to help business owners manage their marketplace activities conveniently. It also comes with ready-made mobile apps and web portals for buyers, sellers, & delivery staff so that entrepreneurs can set up their online food ordering marketplace conveniently.
To reduce the COVID-19 transmission and to keep people aware of the safety guidelines, Yo!Yumm is integrated with features like contactless deliveries, geo-fencing, digital payments, curbside pickup, COVID-19 awareness notifications, and many more.
While these were some noteworthy factors that entrepreneurs must consider before starting a multi-restaurant food ordering business, there are many more such as location, business ideas, revenue generation methods, etc. Apart from that, you must also decide whether you would create an app or an online marketplace to create a stellar online presence for your business.
Considering the rising need for on-demand food ordering platforms in the current scenario, it would seem very beneficial to start an online food ordering marketplace.