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How to start your own food delivery business in 2023?

  • You might be running a restaurant already or in the process of starting one, but shifting online would help you expand better. And even though it might seem like a task to start a food delivery business from scratch, you only need a brilliant idea, the appropriate systems, and the motivation to make it happen.

    While we are sure you might have the drive to ensure the proper execution of the plan, all you need is some guidance and instructions because the better your idea, the better it is for your business. 

    You need to take care of multiple things, including your technological resources, business model, revenue model, delivery app, and more. So, whether you are a beginner or have some experience in the industry, this article will help you start a food delivery business. 

    Is it worthwhile investing in a food delivery business?

    The delivery food business is one of the fastest flourishing businesses of our time, so there’s no doubt it will be a blooming investment. Statista annual reports show a project market volume of $291.10 billion for the platform-to-consumer segment by 2027. It is growing at a CAGR of 8.24%. The user penetration is expected to reach 19.1% by the same year. 

    Looking at the demographics of the people who use food delivery apps the most, you will realize that Millennials and Gen Z make the most of them. They are people between the age of 23 and 38. As per the reports, 81.75% of Millennials and Gen Z order food online at least once a week. 

    How to start an online food delivery business?

    Once deciding on the business model, you would like to opt for, you can be double-sure that building an application for food delivery is an idea that has a high probability of success. 

    Research the market

    Start by doing thorough food delivery market research. You can use this to construct your restaurant’s menu and combine your passion for eating with a means of making money. Build an appropriate entry strategy by concentrating on knowing market dynamics. Here are some important factors to think about:


    Platform-to-consumer and restaurant-to-consumer operators who have their own delivery logistics control a major portion of the market for food delivery services. Research their pricing practices, online menus, and marketing techniques to position your company favorably in comparison to these competitors’ offerings.

    Opportunities and threats

    Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis in order to compare important aspects of your operation to those of your rivals. You may take advantage of your strengths, evaluate your deficiencies, seize fresh possibilities, and spot threats with the aid of the analysis. 

    Target Audience

    You need to know what customers you are targeting. If you already own a restaurant, your existing clientele will be your target audience. But if you’re starting a business, pick a market you can influence the most.

    The menu should showcase your unique cooking style and the preferences and needs of your intended clientele.

    Determine your cost and budget

    According to business owners, a food delivery startup’s costs are usually between $3,000 and $25,000, with monthly overheads reaching $600 to $10,000. Let’s discuss some major costs associated with starting and maintaining a food delivery service:


    In the case of a brand-new restaurant, you will need a location, kitchenware, interior decor, flooring, etc. However, a cloud or virtual kitchen is a good idea if you only want to get started with a small investment. You can significantly reduce your inventory costs.

    Technology costs

    It will cost you around $30K to $60K to create a food delivery service from scratch. The price is determined by the complexity, functionality, development team, location, and other elements of the app. But you can reduce the cost by partnering with a food delivery app developer.

    Learn more: https://appinventiv.com/blog/how-to-start-your-own-food-delivery-business/

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