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Nowadays, with just one click of a phone app, we can order food at any time or anywhere. Food delivery service has grown considerably especially during the height of the Covid pandemic since people were limited from going out of their homes. It has been a convenient way of getting food ordered from your favorite restaurant without the hassle of waiting in crowded restaurants. If you wish to venture into the food delivery service, then the best way to start is to develop a food delivery business plan. This will set your company in motion towards the right direction. Read more about this in our article below and if you want to kick start writing a business plan, check out our free food delivery business plan samples for your perusal.
Food Delivery Business Plan
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A food delivery service is a type of business that would probably stay popular for the longest time. With more and more people preferring to transact online, which includes ordering the food they like and having this delivered to their doorstep. Or anywhere for that matter. Nowadays, people love the convenience, no more hassle of waiting in crowded fast food joints or enduring the traffic just to eat in their favorite restaurant. Because food is a basic necessity that sustains life, then the demand for food delivery services is evident. Opening a food delivery company is best started by developing a food delivery business plan, most especially if you need funding or investors. This document will help you organize different aspects such as operations, marketing, management, and finance.
There is good profit in the food delivery business, as long as you play your cards right and start developing a business plan. Creating a business plan is universal for all business organizations, only its most intricate contents are different since every industry is diverse. To start writing up your business plan, the items below should cover all the important aspects of your food delivery business plan.
Some would consider working on their executive summary last, but this is the first section of your business plan. This summarizes the administrative, operational, financial aspects of your food delivery company as well as an outline of your mission statement and overview of the food delivery service business as a whole.
You may want to create a detailed summary of the list of the services you are offering. Perhaps include plans of any tie-ups with fast-food chains and restaurants.
In this section, go into complete detail about your food delivery company which includes the company’s name, location, the scope of services, management, and business legal structure.
Write an overview of the marketing plans intended for your business. Before you can get into complete detail make sure you have done your market research to give you a full understanding of your target market , where to find and reach out to them. And, determine who your competitors are as well. Also, check on the latest statistics and trends in the on-demand delivery market. With all these details, you will be able to establish your marketing strategies to help your company reach your target customers and build up your company’s presence in the marketplace. If you want to go into full detail, you can also opt to create a separate marketing plan document to focus all your efforts on marketing your brand.
This is an important section of your business plan, most especially if you need funding from the bank or are in search of investors. The financial projections generally include a breakdown of the income statement, profit & loss, cash flow , and balance sheet to show the correlation with asset purchases.
This is a process of transporting goods from a source location to their destined location. A service may specialize in a specific type of delivery, such as delivering food, or it might deliver all kinds of packages.
Both are of the same definition, yet courier services can move bulk or cargo items locally and internationally whereas a delivery service means sending a parcel, via a company, to a recipient.
The importance of business plans is that it keeps you focused on the goals that are crucial for success and provides guidelines for day-to-day operations and decisions. A good business plan gives you goals to strive towards for the next month, year, and beyond.
The food delivery service industry is constantly gaining more popularity with the public. We are at the age where a lot of transactions are done online, prompting businesses to have their products delivered conveniently thus partnering with food delivery companies. So start writing up your delivery service business plan now, don’t forget to check out our sample templates to help guide you.
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8+ SAMPLE Delivery Service Business Plan in PDF
Delivery Service Business Plan
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Food Delivery Service Business Plan
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Food Delivery Business Plan Template
Written by Dave Lavinsky
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
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