Food Delivery Business Plan

Business Plan Articles

If you are starting a food delivery company, it is likely that you will require a business plan at some point in the future in order to adequately reflect its potential and communicate to investors that it is unique relative to the existing options. Pro Business Plans has extensive experience working with food delivery companies to prepare professional plans for food delivery companies for investment and strategy. This article provides information in what is generally included in a food delivery business plan and how it is typically structured.

food delivery business plan

Food Delivery Business Plan

There are many food delivery companies entering and expanding within the market. The key differentiators vary from region to region and business model to business model. The unique factors that influence one food delivery company will not necessarily be the same for another. This is largely because the markets in which they are each based vary substantially. For instance, a food delivery business in New York City would be quite different than one based in a rural community in Iowa or the suburbs of another metropolitan area.

Business Model

The business model for a food delivery business is generally fairly universal, but the way that most companies succeed in the industry in to acquire some unique positioning in their business model. For instance, some companies target the higher-end of the market whereas others focus on the lower budget market. Some may have an innovative approach such as focusing on relatively underserved areas and others may target the mainstream market to compete directly with the mainstream market leader. Investors generally want to understand what positioning that your business has – relative to its peers and competitors in the market.

market positioning

Market Positioning

The market positioning for a food delivery company is most effective if it is targeting an underserved market or has unique market positioning in a densely competitive market. For instance, no meal delivery service may exist in some parts of the world. In other cases, there may be an option for a meal delivery service to introduce in other key cities within an area of many competitors. For instance, introducing a healthy option for special diets in a major city such as San Francisco or Seattle.

team management

Operations Structure

The operations structure of the company will also shape the market positioning and overall business model. For instance, the operations structure of some companies is focused around maintaining a lean cost structure in order to compete on price - which may sacrifice quality. In other instances, the operations structure is more focused on premium service and quality, which may accommodate a different supply chain for the ingredients and method in which food is prepared and/or delivered.

Marketing Plan

The marketing plan for the company also depends upon its business model, the region it is targeting, and its method of scaling. For instance, the marketing plan for a premium meal delivery company in London would have a different marketing plan than one in Jakarta, Indonesia or a major city in the United States. The best approach to forming a marketing plan for any given area is to analyze the appropriate market segment and the channels through which they may be targeted and converted. For instance, the commercial office lunch demographic rather than the residential consumer market for breakfast and dinner.

trade shows

Mass Marketing

The most effective approach for the mass marketing strategy is to ensure that the promotions are displayed in the area most widely received by your target market. For instance, a highway or major road going into the business district for a company targeting office deliveries. If the mass marketing is targeting the high-end consumer market, it may be done through the media channels that they consume locally. For instance, showing digital advertisements defined within a zip code of higher end consumers within your delivery radius.

business development

Customer Loyalty

The most effective approach to customer loyalty is to ensure that the product quality and prices are consistent. When consumers experience a high variance in the delivery time and product consistency, or the price gradually increases, they are more likely to try an alternative option. The customer loyalty for a food delivery business plan is designed to provide ideas for ways to stimulate consumer loyalty through pricing structure and promotional offers to reward repeat consumption.

Financial Projections

The financial forecasts for a food delivery business plan also depends upon the business model. Some meal delivery companies have a business model designed to scale faster with the sacrifice of profit margins through some licensing or franchise arrangement. Others prefer to start within a defined geographic area and scale organically. 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.

revenue projections

Revenue Projections

The revenue forecasts of any given company is most effectively determined based on the prior history of its operations. However, many food delivery business plans are for newly established companies. In this event, it is advantageous to analyze the performance of similar existing meal delivery companies in order to analyze their growth trajectory and how it is comparable to your business model.

budget forecasts

Budget Forecasts

The budget of any given company is unique based on their approach to market and growth strategy. Some may be more dependent upon technology such as building out a custom mobile application and others may be more unique. The approach to the market is best supported by receiving quotes from vendors and service providers. Having this information will help your food delivery business more accurately determine how much capital is needed in order to reach its revenue forecasts and also to plan its budget accordingly.

What is Included in Our Custom Food Delivery Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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