How To Start New Business for Food Delivery Services

How To Start New Business for Food Delivery Services

How To Start New Business for Food Delivery Services

delivery


   














Introduction
  The food delivery industry has evolved dramatically, driven by changing consumer lifestyles and     technological advancements. Starting a food delivery service requires careful planning and execution to   ensure success in a competitive market.

 1. Decide your Delivery Route

  Before you start preparing for food delivery, decide your best route to market:

  Will you deliver yourself? If so, organize drivers. 
  Or will you use a delivery partner? Consider using a delivery partner for increased visibility and help in delivering. 
  Tip: Consider your prices. Some delivery/pick-up platforms allow you to list your menu at higher prices to  accommodate for the commission fee charged. So, where possible, ensure you have factored     the commission fee into the listed price.
2. Define Your Menu

Create a new condensed takeaway/delivery menu. A reduced, viable, and still-profitable mini menu makes more sense. Decide which dishes you will be delivering by balancing your most ordered dishes with those that are express-proof.  You might consider incorporating some basic dishes into your menu. Remember: defining your menu also means defining how the ordering is done, having the proper tools, equipment, or automation in place. 

Tip: Take advantage of shelf-stable products where appropriate, which have minimal handling and last longer.

Ensure that you have taken all the latest Food Delivery Menu Tips  into account before uploading your Menu. 

3. Upload Your Menu

Next, upload your Menu to relevant platforms i.e. Google, Food Delivery Platform, your website, etc. The following categories usually define your dish:

Dish Images: These are either your best sellers (looking their best!) or images provided by your delivery partner.

Menu Categories: Set your Menu Category, for example, Burgers, Vegan, Sandwiches, Pasta, Desserts

Meal Deals: Design meals around top sellers at a better value than the items individually.

Extras: Add extras to upsell like sauces, drinks, desserts… popular brands like Hellmann’s, Ben & Jerry's and Lipton work well.

4. Get all your Operations in Place

Ensure that all operations are GO by reviewing the following checklist:

  • Do you have reliable internet?
  • Are you logged in to delivery partner tablet/POS?
  • Do you have sufficient delivery food containers & bags?
  • Do you have a designated pick up area for delivery collection?
  • Have you review your pre-time for top sellers & reduced them?
  • Have you planned extra stock & staff for weekends?
  • Have you tested your top sellers in the containers you will use for the average wait time?
  • Have you set up contactless payment?
  • Have you adjusted ingredients or containers to ensure appeal & express-readiness?  
  • Do you have a dedicated order 'space' in your outlet? This location will have its own mise eon place. 

5. Promote Your Delivery

Hiring and Training

Recruit a skilled and reliable delivery team. Provide comprehensive training on customer service, safe driving, and order handling.Implement background checks to ensure the trustworthiness of your delivery personnel.

Now is the time to build your own database and utilize the free promotions that are being offered by delivery platforms.
  • Your loyalty program through your POS, website functions inquiries and bookings inquiries, guest WiFi which captures customer details.
  • Utilize the larger delivery platforms or restaurant booking platforms that offer access to your database.
  • Promote your changes on social media so customers can see you are still open for business and let them know you are doing takeaway/delivery.
  • Make a video to promote your delivery business and showcase your restaurant’s people, their skills, and your dishes.
  • Video a handy cooking demo or something that creates brand knowledge for your customers.
  • Encourage your followers to post their own shots of them enjoying your meals, with a discount on next orders as a reward.
  • Join industry and local social media pages to see what people are doing elsewhere.

Tip: Add Delivery Function on Google & Facebook Frame on Facebook. 

6. Reassure your Diners on Safety

After ensuring that you have strict Safety rules and regulations in place for delivery and pick up, reassure your customers by communicating these food prep safety and kitchen cleanliness protocols externally (social media, email etc.) Some good safety practices are:

  • We are maintaining social distancing while prepping your food 
  • We are wearing protective equipment like gloves and face masks 
  • We are regularly washing our hands  

Offer contactless or cashless options - ensure safety for your guests and drivers/staff.

  1. Customer Service

Exceptional customer service is a key differentiator. Implement a responsive customer support system to handle queries, complaints, and feedback. Positive customer experiences will lead to repeat business and positive word-of-mouth marketing.

  1. Financial Management

Maintain meticulous financial records. Monitor revenue, expenses, and profits regularly. Implement cost-saving measures where possible and allocate resources strategically. Seek professional financial advice to optimize your financial management.

delivery service

What Are the Licenses Needed for Starting a Food Delivery Service in India?

Let us now take a quick look at the compulsory licenses you need to start such a business in India,
Shop Act License

If you wish to run a food truck, restaurant, or online food delivery service, you must get such a license. They take around 30 working days to obtain, and the Department of Labour handles their regulation. Since the license is state-specific, all businesses must register as per their State’s guidelines.

 Health Trade License

Establishments that have an impact on public health must acquire such a license to assure customers, and the government that the food served is hygienic and clean. The Municipal Corporation of your city will be responsible for issuing such a license.
The FSSAI license is mandatory for all food business operators working in India. To obtain this license, establishments must register with the
Food Safety and Standard Authority of India and then opt for the appropriate license. In case your business generates less than  ₹ 12 lakhs a year,
you will need to get an FSSAI registration. If the company makes between  ₹ 12 lakhs and  ₹ 20 crores in a year, you will need to obtain a State License.
If you wish to expand your business to other states or make more than  ₹ 20 crores a year, you will have to get an FSSAI Central License.
In case you have a unique product name or logo and want to protect the brand, you must obtain a trademark registration. Since online food delivery services
work as an e-commerce business, it is best to register the trademark to protect your logo.
If you earn more than the GST exemption threshold, you will have to register for the GST. While the threshold for businesses is  ₹ 40 lakhs, all e-commerce businesses
must mandatorily obtain a GST registration.
In case you wish to market your brand via posters, images, and testimonials, you will need to get a signage license. Your local municipal corporation can issue such a license that will enable you to take up better marketing strategies.
  1. E-commerce Agreements
These will help you define professional relationships with third-party businesses and delivery partners. The agreement will cover all business points, such as details of the services, the term of the agreement and the payment methods. Having such a legal contract in place will help prevent misunderstandings later on.
What Documents Are Required to Start a Food Delivery Service in India?
Entrepreneurs will need to submit the following documents if they wish to start a food delivery service in India.
  1. Permanent Account Number – Company PAN Card
  2. Photo ID of the applicant
  3. Proof of address of the applicant
  4. Banking details of the applicant
  5. Certificate of Incorporation
  6. Food license 
  7. No Objection Certificate from the owner of the place of business
  8. GST Registration
  9. EPF and ESI Registration, if required
  10. Professional Tax Registration, if required
  1. Conclusion
Moreover, a solid foundation built on legal compliance, robust technology infrastructure, and efficient supply chain management is essential. Establishing strong partnerships with restaurants, hiring and training a reliable delivery team, and implementing rigorous quality control measures are vital components of a successful food delivery business. Remember, the food delivery industry thrives on adaptability and the ability to stay attuned to customer preferences. By consistently delivering high-quality services, embracing innovation, and maintaining a customer-centric approach, your food delivery business can not only survive but thrive in this competitive market. Success in the food delivery industry is a journey that requires dedication, resilience, and a passion for delivering not just meals but delightful experiences to your customers.


Created & Posted by (Dolika)
 Marketing and operations at TAXAJ
​
TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ

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