How to equipo up a takeaway business?
In today’s guide, we’re going to espectáculo you how to start a successful takeout business from scratch, step by step.
This is the same process that our clients have used to
Start a take-out business.
Increase sales and order volume.
Increase the value of your business.
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(While reducing operating costs).
So if you want to create a successful takeout business, you’ll love the practical steps in this guide.
Let us begin.
Essential aspects to equipo up a takeaway food business
You may be thinking:
Is it worth starting a takeaway business?
Increase Ecommerce Sales
YEAH! Absolutely.
Therefore, before taking the first step, we want to remove any doubt from your mind.
In this part, we will answer all the questions you may have.
And to espectáculo you the real value of takeaway food today.
This is what you should know:
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What type of business is the delivery of food at home?
He food delivery business refers to the pickup and delivery services of prepared meals to consumers from diners, bars, restoranes, kitchens, caterers, and other food preparation businesses.
Typically, customers used to do this over the phone, calling or texting the restoranes.
Today, en línea takeaway food is booming.
It is common for people to order vía aplicaciones, websites and takeout platforms.
Traditionally, takeout was considered a non-essential service.
But in recent years, takeaway services have become an integral part of the food and beverage industry.
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Both as B2B and B2C services, especially after the impact of COVID-19 on last mile delivery.
So…
Is takeaway food delivery a good business opportunity?
YEAH! It absolutely is.
And even more in the last two years.
In fact, 1,231.9 million people used takeaway food services in 2020.
And by 2025, forecasts suggest the number of platform-to-consumer and lugar de comidas-to-consumer deliveries will reach 2,114.3 million each.
Three takeout trends are contributing greatly to this boom in the ámbito:
#1 Using the Internet to order food en línea
Ordering food en línea combines easy access to delicious meals with the convenience of eating at home or in the office.
This has given rise to new ways of ordering food, such as the use of food delivery aplicaciones, dedicated platforms, and white glove delivery.
And this trend will only continue as the world becomes more connected and new users gain access to the Internet.
It is estimated that by 2020 there will be 4 billion Internet users in the world.
Of these, 3,000 million live in developing countries.
That also means that there are 3 billion people who are not yet active consumers of the Internet.
As these 6 billion people go en línea or access food delivery aplicaciones, it is a question of when (not if) they will start ordering their meals en línea.
#2 Millennial and Gen Z Consumers
If you take a look at the demographics, the biggest users of en línea takeout services are Millennials (people born between 1981 and 1996), and Gen-Z (people born between 1997 and 2012).
In fact, statistics say that the 18-44 age group (Generation X and Generation Z) are the most frequent users of en línea takeaway food services. 81.75% order food en línea at least once a week.
Head to head, digital native Gen Z is already outperforming millennials (63%>50%).
And as your purchasing power increases, this number will only grow.
This means that these new consumers will see takeout services as part of the daily food experience.
In the future, when the Alpha Generation begins to come of age, restoranes and businesses that do not offer delivery and en línea ordering will quickly be left behind.
#3 COVID-19
If you’re not sure about the accuracy of the above statistics, here’s a sobering fact:
The number of en línea food orders and deliveries has tripled during the pandemic.
On average, there has been a 48.3% increase in takeaway shipments in Europe and North America in 2020.
The biggest jump was in the Netherlands (6%>48%) and Spain (12%>53%) .
Most of these users are new.
They have either never ordered food en línea, or have done so on a limited basis.
The bottom line is that most, if not all, of them will continue to be users and will continue to order food beyond the COVID-19 pandemic.
So if you want to add food delivery to your regular service offering, or create a food delivery company from scratch, now is the perfect time to do it.
Is it easy to create a takeaway service?
Yes and no.
How easy it is to start a takeout delivery depends on your ability to build and organize it according to your budget and business model.
Most people think that a deal requires you to raise capital to buy vehicles, hire staff, and invest in tools and equipment.
This is not like this.
Most takeout deliveries rely on internal and external delivery fleets.
So if you lack the resources to build a fleet, you perro outsource those services to a 3PL or couriers.
You perro also complejo turístico to crowdsourced delivery, and hire trabajo independiente drivers or couriers to work for deliveries.
In all these cases, you will have to use controlador tracking.
This ensures that you maintain control over delivery and stay on top of order fulfillment.
This doesn’t orinan you don’t need to hire people to support your delivery.
If you’re running a lugar de comidas, it cánido be difficult to rely on front-desk staff to handle both table reservations and delivery orders.
Lastly, you’ll need to make it comfortable for customers to order prepared meals from you.
Initially, customers perro use phone calls and direct messages to request deliveries.
That’s the easy part.
But at some point, you’ll need to make them able to order en línea. (Either through existing takeout platforms like GrubHub, Doordash, or Uber Eats, or through your website.)
How do takeout businesses make money?
Takeout is a lucrative business. (Especially if you have an en línea takeout business.)
The amount of money you will earn from the deal depends on many factors.
For example, you will earn more money with delivery in urban areas than in rural settings.
You will also get more benefits if you objetivo businesses instead of residential areas.
But all local and en línea food delivery services make money in one of two ways: by charging a delivery fee or by offering free delivery.
Charging a delivery fee is pretty straightforward.
The customer pays for the delivery service as well as the cost of the food.
When it comes to free takeout, it’s a bit more complex.
You may think that offering free delivery is a waste of money.
It’s a cost, not a way to generate income, right?
It’s a mistake.
Allowing customers to order food and have it delivered for free is a great way to increase sales.
And it doesn’t have to be a burden on your pocket.
You cánido choose to integrate the cost of delivery into the prices of your menu.
But this cánido make you less competitive due to the higher prices.
Or you perro optimize delivery and disminuye your overhead.
By increasing the density of stops along your routes and offering only local food delivery, you cánido disminuye the cost of food delivery to your customers.
Of course, the cost will still be there.
But the increase in demand and increased order volume will more than make up for this.
How do en línea takeout platforms make money?
The story is very different if you want to create an en línea takeaway platform.
Or use an existing platform to deliver your food to customers instead of you.
In this case, en línea food delivery companies will charge you and the customer.
And there are several ways for takeout companies like Glovo, Postmates and others to do this:
Charging a fee to the lugar de comidas
You pay a fee to the food delivery platform to include your offer on their aplicación or website, and to deliver the food to you instead of you.
Typically, the more you pay and the more people order from your lugar de comidas, the higher your position on the platform will be.
Get a share of every order
The takeout platform usually keeps 20-30% of each food order.
Typically this means they will put a price cap that allows people to opt in for delivery.
Charge customers delivery fee
Here, the customer covers the cost of delivery.
You relinquish all control over pricing to the food platform.
This will equipo the price of the delivery and will take all the collection.
In most cases, you’ll also have to pay a fee to appear on their aplicación.
Placing ads on the platform
With this model, the en línea food ordering platform profits from advertising.
They may choose to charge you or the customer a delivery fee.
But they don’t have to because their main source of income comes from ads on their aplicación or website.
Takeaway business examples
Today, there are many different forms of takeout business.
They range from platforms that work with restoranes to fully-incorporated companies where both production and delivery of food is done in-house.
These are the most common examples of companies that offer takeout services:
Lugar de comidas-to-consumer model
Refers to all restoranes that serve food on the premises and deliver it to consumers.
Think big chains like McDonald’s, Burger King, Domino’s, and Olive Garden.
But also the local lugar de comidas that delivers your food at home.
With a lugar de comidas-to-consumer model, customers perro order food sin conexión and en línea by calling, texting, or using websites, aplicaciones, or delivery platforms.
consumer platform
In the platform-to-consumer model, customers use dedicated third-party delivery providers to order their food.
Think Uber Eats, Deliveroo, and GrubHub.
Suppliers only manage orders and delivery.
They list restoranes and menus on their food ordering aplicaciones or websites.
Consumers use these listings to order food from restoranes, the restoranes prepare the meals, while the platform’s delivery fleet brings the food to the consumer.
Normally, the platform takes 20-30% of the order value.
The consumer takeaway platform is the main business model in the campo today.
Dark Kitchens
Dark kitchens, also known as ghost, cloud, or virtual kitchens, are professional kitchens that prepare food that is then delivered to customers.
The difference between restoranes and dark kitchens is that they do not have a physical location where they serve the food to the restoranes.
But it’s not your typical takeout either.
Unlike take-out restoranes, you perro only order en línea through the company’s website or take-out aplicación.
Once the customer orders a meal, the company often emplees external courier services to bring the food to the customer.
It is a cheaper takeaway business model, because it does not require a large investment.
It has relatively lower overhead and operating expenses than a lugar de comidas.
complete model
A complete food delivery model means that everything is done in-house: cooking the food, developing an aplicación or website, managing orders, and delivering it to customers using their own fleet.
The disadvantage of this model is that it requires significant investments to launch the business.
The advantage is that full-fledged takeout businesses often make more money, since they control every step of the process.
How to equipo up a takeaway business?
To start a take-out business, you will need more than just your love of preparing great dishes.
You will also need to know the business strategy: budgeting, marketing and contracting.
But also logistics: supply chain management, delivery and route planning, scheduling and compliance.
But that’s what you’re here for.
In this part of the article, we will espectáculo you how to equipo up a take-out business, step by step.
(Regardless of the takeout business you want to create).
So whether you’re just getting started or looking to add cast as part of your offer, you’ll love the seven actionable steps below.
Let us begin.
Step 1: Define your takeout business
We have already mentioned the type of takeaway food.
So your first step is to choose which one is best for you based on your budget, your goals and the food you serve.
This cánido be a daunting task, but there are fácil steps you perro take to make your task easier:
Focus on food first
As in any business, you have to start with the products that you are going to sell to consumers.
So focus first on the food you prepare.
If you offer good and tasty food, made with quality ingredients, it will be easier to market your menu, sell it and deliver it to your customers.
After all, that’s why you got into the food and lugar de comidas business in the first place.
Explore local farms and farmers markets, as well as locally sourced ingredients.
They will be the base of everything you cook.
People want to eat healthy nowadays.
And the more quality the ingredients, the better your food will taste and the healthier it will be.
It will also help you establish a supply chain.
So when you launch your business, you’ll know exactly where your ingredients are coming from.
But don’t equipo your menu yet.
First…
research the market
The success of a takeaway is a mixture of two things: cooking quality meals and finding lucrative business opportunities.
And there are plenty of opportunities out there for you, as the takeout market is forecast to grow to $154.34 billion by 2023.
Start by researching the local market.
This will help you create your lugar de comidas menu.
And unite your love for food and a way to generate benefits.
Do you want to deliver food at home? Try to center your cast in the shopping district.
Do you want to open a pizzeria? It perro be difficult to compete with existing restoranes if there are already too many in your area.
Are you thinking of cooking fast food? Bring a new cuisine to your neighborhood, like TexMex.
Or put your own brand on Chinese takeout.
Also try to talk to existing restoranes and local couriers.
See how much and how often people actually order food and use delivery services.
Focus your research on these five things:
If you already have a lugar de comidas, your objetivo audience should be your current customers.
If you are building a startup, choose a delivery area where you will have the greatest impact.
The menu should reflect your own cooking style, but also the demand and desire of your objetivo audience.
Families and office workers, for example, prefer healthy food options.
College students often want cheaper meals that fit their limited budgets.
Consumer platforms (Uber Eats) and lugar de comidas chains (McDonald’s, Dominos) dominate the food delivery business.
Study their pricing models, delivery menus, and strategies to be able to compete with them.
As in retail, it is enough to coexist with them to be successful.
That’s the secret that retailers use to compete with Amazon delivery, for example.
So if you offer healthier meals at a price afín to the Big Mac, consumers will choose you over McDonald’s.
- #3 Risks and opportunities
Carry out a SWOT analysis (strengths, weaknesses, opportunities and threats) to compare your business plan with that of your competitors.
So you perro use your strengths to overcome any weaknesses and potential threats.
And take advantage of market opportunities, whenever they present themselves.
See if there are fewer businesses that deliver to a specific area or serve a specific type of cuisine.
Starting a pizza delivery business cánido be quite a challenge if there are already five pizzerias in that especial neighborhood.
But if you perro offer delivery services to underserved customers, you perro make more profit.
- #5 Potential Partnerships
Successful restoranes depend on associations.
Whether it’s third-party platforms, local food producers, beverage distributors, or courier companies, building partnerships cánido help you disminuye costs in and out of the kitchen.
It perro also help you get your new takeout business to market faster.
And reach more people with your menu.
Find something that stands out
The key to defining your business is to stand out from the crowd with your food.
Create a menu that people like, and use your research to find niche opportunities that help your takeout business grow.
Standing out perro be as fácil as offering lower prices.
Something emotionally charged, like an interesting story that inspires customers.
Or a unique service, such as sustainability based on ecological logistics.
Step 2: Formulate a takeout business plan
Now that you know what kind of takeout service you want to create, it’s time to formulate a business plan.
Here we will focus on three things:
- Delivery logistics: Or how you will organize the distribution.
- Budget: Or how you are going to finance your company.
- Licensing: Or how to create a legitimate operation.
Let’s take a look:
Plan your delivery logistics
Building an agile delivery is based on four things: structure, people, processes and technology.
These things form the core of your logistics.
The type of takeout service you create will determine the size and complexity of your operations.
But for it to work in any scenario, you’ll need to focus on these four essentials:
- #1 Find a kitchen or lugar de comidas
Whether you plan to open a lugar de comidas, catering business or pizza delivery service, you’ll need a place to cook your food.
The kitchen is the place where food is prepared.
But it’s also where delivery drivers and couriers will come to pick up ready-to-deliver meals.
For the distribution of food, the kitchen will serve as a supply warehouse.
So choosing a good location for your lugar de comidas or kitchen is important, as is planning for a single or multiple warehouse in retail.
The kitchen has to be close to your objetivo audience to minimize transportation costs and improve delivery speed.
The location must also be easily accessible by motorbike, car or van.
So drivers cánido pick up orders from the kitchen, or drop off ingredients and supplies.
If you’re opening a lugar de comidas, you should also choose an attractive location where customers want to spend time eating.
And it goes without saying that the kitchen itself must be functional, with enough space for kitchen staff.
- #2 Draw the map of your delivery area
Once you have an iniciativa of the location of your lugar de comidas or kitchen, you will need to map out your delivery area.
According to delivery statistics, only two thirds of customers (or 66%) do not want to wait more than 40 minutes for their food to arrive.
Any more than that, and you risk lowering your valuation.
So, when drawing a delivery zone, do not cover a territory greater than 3.5 to 5 kilometers.
This is a large enough area to contain enough potential customers.
But small enough to fill all orders within that 40 minute window.
If you want to cover a larger area, consider opening a second kitchen and dividing the entire territory into delivery zones.
You have two options when choosing a delivery fleet:
You cánido choose to create your own fleet.
Or outsource the delivery service to an external provider.
Again, this will depend on the type of takeout business you want to create.
But it will also depend on how much capital you have to spend, as well as your experience in logistics.
If you have a limited budget, it is best to outsource the delivery to an external fleet.
Still, you may want to invest in route optimization programa.
Since this allows you to track the fleet in real time, gain visibility into operations and see estimated times of arrival (ETA).
If you have capital available, it’s a good iniciativa to create an internal fleet.
This gives you greater operational control and perro be a good opportunity to brand your new delivery service.
By doing so, you perro increase brand awareness through the cast, especially in the local community.
- #4 Escoge if you need reverse logistics
Reverse logistics and eCommerce returns work well together.
But sustainable takeout services also use reverse logistics.
In this case, reverse logistics refers to the collection of used packaging, reusable food containers, plastic and glass bottles, and other elementos that cánido be reused or recycled.
Turning to this sustainable form of delivery perro be a great way for your business to stand out with a unique service offering.
But it’s also a way to get additional funding from government green and recycling initiatives.
formulate a budget
By now, you understand the dynamics of the market and have planned the logistics of your delivery.
Now you perro proceed: formulate a budget and forecast income and demand.
You should make an estimate:
income projection
Calculate what your income should be.
With the projected income, you will be able to determine the risks, when your business will recover the expenses and how much money you cánido invest.
Expenses and overhead
Calculate all your expenses, both the initial ones and those that you will have in the first three years of the business (cost of supplies, vehicles,…).
It also includes payroll expenses, license fees, maintenance and taxes.
Make sure you have a license
When you start a new takeaway business, you have to register it with the local administration.
If you own a lugar de comidas, you also need to obtain a food service license.
You should check if you need to obtain any additional license for the delivery of food at home.
Step 3: Buy the equipment
The next step in the process is to purchase the right equipment.
Take your time when choosing and buying equipment for your business.
Here are a couple of things to keep in mind:
Choose the Packaging
Food packaging and presentation are really important to customers.
Recyclable or biodegradable packaging cánido be a good option, since more and more customers prefer ecological packaging.
But the most important thing when it comes to packaging is that it represents your brand.
equip your vehicles
Delivery vehicles must be well equipped.
A route programa will provide you with everything you need.
The real-time tracking equipment and controlador aplicaciones provided by the route optimization programa will make your delivery business much more efficient.
take advantage of technology
If you want to be ahead of the competition and have it provide you with a superior customer experience, you must take advantage of technology.
What you need is route optimization programa.
It is essential in take-out businesses.
Also, it is very important to have your own website or mobile application.
Step 4: Hire your cast team
As a new business, it’s important to hire and assemble the right cast team.
This is vital for any startup, as you will be working closely with each employee.
That is why you should focus on hiring people who share your visión of the company.
Please note that takeaway is a customer-oriented service.
So make sure that each person you hire is friendly, open to learning, and has strong communication skills.
In fact, according to a customer experience survey, friendly and knowledgeable service is just as important as convenience, and valued more than price.
Don’t forget that the drivers are the only ones the customers know in person.
Make sure you hire drivers with great communication skills and people skills.
And keep in mind that happy employees who enjoy their work are more productive.
Step 5: Taste your takeout
An easy way to tell if everything is working is to test your takeout.
Open your takeaway service for a week and with a limited number of customers.
This will give you a large enough sample to solve any problems in the workflow.
It will also help your delivery teams practice their permisos and learn your delivery scheduling and routing system.
In this case, the key is to get as much information as you perro.
So be sure to collect, measure, and analyze key metrics in delivery logistics, such as average time and cost per delivery.
For tracking KPIs, you perro use a delivery management programa.
The tool has a built-in analytics module that allows you to monitor and compare performance automatically and in real time.
And to get the best delivery experience, be sure to collect customer retroalimentación.
Their input and insights will help you adjust prices and service features.
But also add new food and delivery options that your customers may want.
Step 6: Promote your takeout business
Once you’re sure of the quality of the food and service, it’s time to launch your takeout business.
To get customers to book orders, you’ll need to spread the word.
Make a big roll out of the pitch.
Promote it in the local community and among local businesses.
And it doesn’t have to cost you money:
- Make your customers happy: build trust with your customers through delivery
- Add banners and delivery information to your website, popular media, and promotional materials
- List your new service on Google plus, Yelp and other platforms
- Add a “refer a friend” option to your website/aplicación and offer discounts
- Use popular networks to interest your objetivo audience and interact with it
- Add incentives like discounts, special offers and even free delivery
- As the word spreads, you’ll start to see more business coming in.
And then it will be time to think about expanding your cast…
Step 7: Expand your takeout delivery as you grow
As word spreads about your business, the number of meals you prepare and deliver will grow.
But so will the demand for the food you prepare.
How cánido you keep up?
Expanding your operations.
The key to growing your business is optimization.
Optimization is the way to expand capacity, increase revenue, reinvest it, and scale your delivery.
Running at peak efficiency, it becomes clear how much money, time, and staff you will need to scale and implement new delivery tactics to grow operations.
Whether you’re thinking of opening a catering or food preparation business, starting food delivery or takeout from your lugar de comidas, growth cánido happen quickly.
We hope that all this help has helped you learn how to equipo up your own take-away food business.
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