Things to put into consideration before starting up a food delivery service.

Over time, food delivery service has helped save people from lots of stress. Imagine you driving down from your place of work when a food delivery service is just a call away.

Food delivery service is a fast-blooming business these days because people can’t bear to go through the stress of going to restaurants for themselves when they have the service of food delivery. In fact these days, people prefer more of a food delivery service as it’s quick and saves them from stress.

Now that you’ve realized how rich you can become by venturing into the business of food delivery, there are two choices you can make depending on the method that would be best suitable for you.

  • Employ a driver that will deliver the food at the doorstep of your customers
  • Set up a company that will aid in the delivery of food

However, in the course of starting up a food delivery service, there are some factors you need to put into consideration. Here’s a list of them:

  • Cost of operation

The cost of operating a food delivery service is an important factor that needs to be considered, most especially if you’re going to employ a driver to deliver food. You’ll have to estimate the costs of packaging the food and also how to pay the driver. If you’re under contract with an outside supplier, it is preferable to deliver in low quantity. However, delivering in high quality has its advantages because it is less expensive to operate.

To balance your proceeds as well as your expenses, it would be wise for you to consider the financial details of your low, middle and high delivery volume.

  • Resources needed for the food delivery

If you would be going for the choice of hiring a driver, you’ll have to get a driver, engage, train and address them well. This will bring about some costs for initial startup. Also, the drivers have to agree to your terms and conditions.

But if you’ll be opting to outsource, the upfront cost is usually avoided. In addition to this, there’ll be no need for setting up new policies as there is an already existing configuration.

  • A quality service

Whether you like it or not, the quality of your service is the most important factor that will determine your brand reputation. When your service is of a poor quality, it’s inevitable for the name of your brand not to be soiled. But a quality service will always keep your brand at the peak amongst other competitors.

It’s no doubt that you’ve spent a lot of money before starting up the business, you don’t want to ruin all your efforts just because of a poor quality service. Good quality will encourage customers to keep requesting your service.

In conclusion, ensure that you have insurance policies as a backup for your business in order to cover the risk of being exposed to liabilities

 

Strategies for running a successful catering business

The fact that caterers are quite busy cannot be disputed. This is because catering is probably one of the most crucial parts of planning an event that will aid in ensuring any meeting, wedding event or fundraising event goes smoothly or not.

Nonetheless, lots of individuals nurture dreams about becoming caterers and beginning their own business in catering. For these kinds of individuals, there are some factors to consider before you start a catering business just like any business. Below are some tips to work with.

  • Garner experience in catering jobs

Any individual who has the dream of becoming a caterer should first work as a caterer. A great choice may consist of working as a saver for a caterer who is already established because they are always in search of individuals who are great at what they do to work with them.

If you make the decision to begin a business in catering, this can be the best form of experience. It can also get you prepared for understanding the physical work and long hours standing involved in catering.

  • Locate a commercial kitchen with license to rent

Catering services cannot be provided from your home if you are ready to begin a catering business. You must locate a kitchen in your vicinity with the appropriate license and find out about how much it costs to rent their commercial kitchen space on hourly bases.

  • Create your Prices

This is another aspect that is quite crucial. Setting up your prices and keeping appropriate records is would definitely set you apart. Ensure you also have profit and loss statements for everything you do. Ensure every hour you spend and cash made is recorded.

  • Get insurance for your business

Similar to other forms of businesses, you must ensure you possess insurance. The significance of this cannot be downplayed because it is very easy to undermine at times.

  • Market yourself

This is a very crucial aspect that most caterers fail to put into consideration. Marketing can be a game changer regardless of how large or small your business is. Communicating and interacting with your clients is crucial to establishing long-lasting relationships. You can meet up with new clients by balancing face-to-face marketing with social media marketing.

Social media has become the modern and efficient way of communicating with customers and it is something that has become crucial for any business that wants to have a much broader reach.

Your insurance must provide coverage for your guests, clients, vendors or any individual that your services might have an impact on. Also, if you have employees, they must all be provided with workers compensation insurance.

The above are just a few tips out of numerous others in running a successful catering business. Try out these tips above and watch your business soar.

 

Questions to ask before integrating a food delivery service to your restaurant

Have you observed the change in needs of your customers and margins? As restaurant proprietors, it is important to benefit from the trends changing the industry to grow profits by altering characteristics so as to seize 100 percent of the industry.

Over half a billion dollars from venture capital last year was put into food delivery startups; a tripling of amount seen in the preceding year.

However, before offering to customers your restaurant delivery service, you should remember that with added delivery components comes added complexity and the added complexity means larger important decisions that have to be made. To simplify the process and help you decide the correct business strategy. Compiled below is a questionnaire checklist.

 

What is the unsurpassed method to get my food to my consumers? 

This depends on consumers and what is required from you as a food supplier. It is better to ask your customers what substitute would be better for them and check if it is right for your company. Popular options are:

  • Back and forth distribution, which is great for firms that prefer to dispatch a worker as soon as a delivery order comes in as there isn’t a large demand for delivery. Instances of this are Chinese or pizza delivery businesses.
  • Routes are suited to lifestyle restaurants with sticky clients that require daily/weekly delivery
  • Location Pickups are great for companies that need to deliver mass food quantities to a precise crowd, such as supermarkets, schools or gyms.
  • On-demand providers of delivery, perfect for restaurants that get low delivery orders and don’t need a devoted delivery driver available at all times

 

Should a 3rd party delivery firm be used? 

The restaurant business is rapidly changing whilst restaurant owners aren’t doing anything about it. The majority of solutions come from marketing and technology companies such as PostMates, Amazon, GrubHub, Eat24, DeliveryDudes, Uber etc.

These firms peddle themselves as marketers for your restaurants, however, the clients aren’t yours which makes them direct competitors with numerous restaurants. Clients are charged a delivery charge which is negotiated as a portion of the cost of food dependent on the volume. Why do restaurants give margins to third parties?

The answer is dependent on your food company delivery demand, in addition to the time put into the delivery plan.

 

What software of the system is needed to begin delivering?

Numerous POS restaurant systems add delivery selections to their offerings, so delivery, online ordering, and customer data can be traced through the system. Note that these systems adjust to options you select as the better delivery system.

 

Do you hire drivers as hourly employees or hire them as independents?

It is a question best put to an attorney. Consult your state for labor laws. It depends on the exact supervision and control you require as a part of delivering and hiring process:

Should you prefer to train delivery staff, make them wear uniform, with the company brand on cars and have them permanently available at the restaurant, which would make them employees in the eyes of the Dept. of Labour