Food Delivery Best practice

1. Introduction
• Food delivery has become a staple in many people’s lives over the past
couple of years. Even before the pandemic, more and more people began
to order takeout food rather than picking them up, or ordered groceries
straight to their house instead of taking a trip to the store.
• No doubt that the COVID-19 pandemic has impacted many business
industries. Even the food industry couldn’t escape its wrath and saw a
drastic downfall in growth. But it gave rise to new opportunities in the
industry. People stopped eating out and started ordering food online.
• In the post-pandemic times, we have witnessed a hike in the online food
delivery business.
• Food delivery is one of the fastest developing areas in food tech. Though it
has been spurred on greatly by Covid-19, a temporary scenario, the
benefits are permanent.

2. Why implement food delivery
• Evolving customer behavior.
• Increase in revenue.
• Boosts sales.
• Greater exposure for new customers.
• Providing customer convenience.
• The global revenue in online food delivery segment has doubled since
2017.

3. The process of implementing food delivery
• Market research.
• Define our target audience.
• In-depth Industry Analysis
• Financial plan
• Resource and Team Management
• Operations Plan
• Set up suitable channels for receiving orders.
• Market our service.
• Technology Stacks

4. Market Research
• Gathering data on consumers wants, needs, demands and behavior.
• Evaluating the viability of our product and service.
• Define our target market.
• Improve user experience.
• Craft marketing strategy.

5. Market Research Cont’d
• Competitors (currently our competitors are Hunger station, Jahez and
local restaurants since no other hotel is providing a food delivery
service.)
• Opportunities and Threats (conduct a SWOT analysis)
• Market Gaps (despite market demand, there may be fewer players
servicing a specific neighborhood or a particular type of cuisine)

6. SWOT Analysis
Strengths
• International cuisines with high quality
Weaknesses
Opportunities
• Be a market leader with respect to other hotels
Threats
• Change in economic conditions
• Price competition

7. Defining Target audience
• Demographically (Age, income, martial status, occupation/industry)
• Location (Neighborhood or Distance)
• Psychographics (Interests, Attitudes)
• Social media(Facebook, Instagram, Twitter, Snapchat)
• Targeting the same customers that choose to dine-in our restaurant.

8. In-depth Industry Analysis
• What is our unique benefit.
• What is our brand’s value and how do they align with our customers.

9. Identifying our USP(Unique Selling Positions)
• Make something memorable(offering valuable interaction with customers)
• What are we doing differently( study our direct and indirect competitors,
such as Hunger station, Jahez and local restaurants)
• Notice patterns in the market(features and aspects missing in the
competition, no other hotel is implementing food delivery)
• Talk to your targeted customers(conducting a thorough market survey)

10. Developing our USP
• Carve out a niche for our own business.
• Who are we targeting (Target audience, keeps our brand image
consistent because we cant be everything for everyone)
• Develop a personality ( Incorporating a strong personality into our
USP will make your product more memorable)

11. Creating our USP
• Writing things down ( Create a list of all differentiators through our
thorough market research)
• What are our unique angles ( pitching our most unique angles against
customer’s needs, learn about their weak points to help set long-term
goals)
• Compile data (integrate all data received from the market research
with our product, service, marketing strategy and business ideas)

12. Prepare a Financial Plan
• Determine initial investment and related costs.
• Budget will be dependent on our approach and the food delivery business model.
• Set aside a budget for marketing our products and services.
• Website Development expenses
• Customer App expenses
• Merchant App expenses

13. Marketing Expenditure

14. Resource and Team Management
• Acquiring New Equipment & Vehicles (kitchen utensils, delivery
vehicles)
• Hiring Drivers (contract or full-time drivers)
• Training Drivers (thorough training will have to be provided for your
newly-hired drivers, whether they are involved on a full-time basis or
on a contract)

15. Operations Plan
• Plan our Last Mile Process (the front-end process that is often
trackable and visible to the customers)
• Simplifying the process (Employing the right tools)

16. Types of Food Delivering Model
• The Order only Model ( Platform to consumer )
• The Order and delivery Model ( Third party such as Hunger station,
Jahez, etc..)
• The Fully Integrated ( We prepare and we deliver “B2C”)

17. Set up suitable channels for receiving orders
• Phone calls (requires the least investment)
• Social Media ( can serve as a multipurpose channel, helping us to
collect orders as well as promote our business)
• Mobile application ( require bigger investment )
• Hotel Website

18. Marketing our service
• Using text messages, social media messages and radio show’s to
promote our business and let our targeted customers know that we
started delivering food.
• Analytical tools (so that we can build a suitable engagement
strategies and social media marketing tools to create, schedule and
post promotions, SMS or WhatsApp campaigns to inform customers
about the deal of the day, Chef’s special, discounts and more )
• Food delivery software’s

19. Interesting food delivery statistics for the year
2023
1. Online food orders has been growing by 300% compared to dine-in
sine 2014.
2. Stats show that 40% of restaurant’s sales is from online food orders
compared to dining-in.
3. In the past 5 years the revenue of the food delivery market has
increased by 204%.
4. Hunger station and Jahez who are our main competitors saw a huge
increase in revenue, hunger station’s annual revenue was $22
million for the year 2021 and saw a 36% growth the following year.
While the latter had a revenue of $122 million in the year 2020 and
had a breathtaking increase the next year around $325 million.

20. Conclusion
• In the ever-evolving digital world, it is amazing to see how flourishing the
food delivery demand is. Getting to eat your favorite meals from miles
away on a whim with a single click is something that people in the past
could only dream of doing.
• On average the increase in sales volume is anywhere between 10-20% by
simply having an online ordering platform.
• But in the modern day, it has become normal Though with this newfound
convenience come delivery challenges left for businesses to deal with. The
challenges can not only raise costs but also cause disappointment in the
minds of your customers.
• This is why looking for new solutions to these challenges becomes crucial.