Food Delivery Business Plan Template

Written by Dave Lavinsky

Food Delivery Business Plan

You’ve come to the right place to create your Food Delivery business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Food Delivery companies.

Below is a template to help you create each section of your Food Delivery business plan.

Executive Summary

Business Overview

Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.

The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

 

Product Offering

Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.

 

Customer Focus

Dig In will target all residents living in and around San Diego. It will appeal to students, families, retirees, white collar, blue collar, and government employees. Because our fees are moderately priced compared to other delivery apps, all income levels will be able to enjoy our delivery services.

 

Management Team

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.

 

Success Factors

The following success factors will set Dig In apart from the competition:

  • Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
  • Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
  • Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
  • Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.

 

Financial Highlights

Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:

  • Platform Development: $150,000
  • Marketing and Brand Development: $100,000
  • Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
  • Working Capital: $100,000

The following graph outlines the pro forma financial projections for Dig In:

Dig In Financial Projections

 

Company Overview

Who is Dig In?

Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.

 
The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

 

Dig In’s History

John Hutchinson has spent the last 2.5 years creating the food delivery online platform. As a tech entrepreneur, he knows how to map, develop, and implement an online platform. He has been instrumental in creating other apps and platforms for ecommerce companies and has created attractive and efficient apps for numerous Fortune 500 companies.

During the COVID-19 pandemic, John was on lockdown and working from his home. He used other food delivery services, but they were all slow, got his order wrong, or didn’t have a good selection of restaurants and establishments. It was then that he started developing his food delivery business and would implement and perfect all of the things that the competition suffered at.

Since incorporation, the company has achieved the following milestones:

  • Mapped out the online platform for the food delivery business
  • Developed the company’s name, logo, and website
  • Approached multiple local restaurants, grocery stores, and bakeries to be a part of Dig In’s platform
  • Determined necessary insurance and legal requirements
  • Began recruiting key employees
  • Written and developed the Delivery Driver processes and procedures.

 

Dig In’s Services

Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.

 

Industry Analysis

The Food Delivery industry has grown substantially in the past five years. The convenience of ordering food from home has appealed to large demographics and now nearly everyone orders through a food delivery app at some point. Food delivery apps became a necessity during the COVID pandemic and now they are a mainstay in modern society.

According to Grand View Research, the Food Delivery industry is set to grow at a CAGR of 18.7% from now until 2030. What helps this growth is the increasing popularity of smartphones and the expansion of these services overseas. Food delivery apps are becoming an essential tool in modern society, which makes this a great time to create a new food delivery service.

 

Customer Analysis

Demographic Profile of Target Market

Dig In will target millennials, young professionals, and college age students as this demographic is more comfortable with online delivery services and regularly use other similar apps such as Uber and Tasty.

However, we expect Dig In will appeal to other demographics as well as it will be a convenient and moderately priced option to get food delivered quickly. For example, we expect working parents will enjoy our app as well as elderly residents who have trouble leaving their home to go grocery shopping or go to a restaurant.

The precise demographics of the San Diego area are as follows:

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

 

Customer Segmentation

Dig In will primarily target the following customer profiles:

  • Young professionals
  • College students
  • Working parents
  • Elderly

 

Competitive Analysis

Direct and Indirect Competitors

Dig In will be competing with other popular food delivery apps. A profile of each competitor is below.

 

Food at Your Door

Food at Your Door is an online and mobile platform for restaurant pick-up and delivery orders. The company is known for connecting over 30 million customers and processes on average about 500,000 daily orders in most cities around the United States. Customers are able to search for restaurants, order directly through the website or app, and then await their delivery from independent contractor drivers.

The company generates revenue from delivery fees paid by consumers as well as commissions paid by participating restaurants. Food at Your Door’s other offerings include a program for corporate food ordering, website design and hosting for participating restaurants, and point-of-sale integration services. The company is continuously updating its platform with innovative technological advancements to stay on top of the competition.

 

Fast Foodie

Fast Foodie is a technology company that connects people with the most popular food establishments in their neighborhoods. They enable local businesses to meet consumers’ needs of ease and convenience while enabling their independent contractors to generate an additional source of income. The company is passionate about transforming local businesses and dedicated to enabling new ways of working, earning, and living. They empower their local economies by ensuring that people have equal access to opportunities to reach their full potential.

Fast Foodie has expanded their database to include not only restaurants, but convenience stores, pet stores, grocery stores, and drug stores.

 

Ding Dong

Ding Dong is an operator of an on-demand goods delivery platform that is intended to facilitate smooth delivery of essential goods. The company’s platform offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials. This enables users to select items from their favorite grocery stores and get them delivered almost instantly.

Ding Dong was the first online platform to expand their services and products by including anything that can be purchased at a local grocery store, convenience store, or drug store. The drivers/shoppers are required to ensure delivery during the selected timeframe that the user selects.

 

Competitive Advantage

Dig In offers several advantages over its competition. Those advantages are:

  • Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
  • Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
  • Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
  • Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.

 

Marketing Plan

Brand & Value Proposition

Dig In will offer the unique value proposition to its clientele:

  • Comprehensive list of restaurants and grocery stores
  • Membership rewards and specials
  • Faster delivery times
  • Moderately priced fee structure

 

Promotions Strategy

The promotions strategy for Dig In are as follows:

Social Media

Dig In will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of food options that are available for delivery.

Collateral Material

Dig In will develop numerous collateral materials to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.

Website/SEO

Dig In will invest heavily in developing a professional website and app that displays all of the restaurant and store options the company will be able to deliver for. The company will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Billboards/Signage

Dig In will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.

 

Pricing

Dig In’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.

 

Operations Plan

Operation Functions:
The following will be the operations plan for Dig In.

  • John Hutchinson will operate as the CEO of Dig In. In addition to running the general operations, he will oversee the app development and provide app support.
  • John will hire 2-3 additional web engineers to run the website and app.
  • John will hire 20-30 delivery drivers to work on an independent contractor basis.
  • John will also hire an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.

 

Milestones:

Dig In will have the following milestones complete in the next six months.

  • 8/202X – Finalize app development
  • 9/202X – Hire and train initial staff
  • 10/202X – Kickoff of promotional campaign
  • 11/202X – Launch Dig In
  • 12/202X – Reach break-even

 

Management Team

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.

 

Financial Plan

Key Revenue & Costs

Dig In’s revenues will come primarily from the fees it receives from the food delivery orders.

The delivery driver commissions, website platform fees, supplies, marketing, and labor expenses will be the key cost drivers of Dig In.

 

Funding Requirements and Use of Funds

Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:

  • Platform Development: $150,000
  • Marketing and Brand Development: $100,000
  • Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
  • Working Capital: $100,000

 

Key Assumptions

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

  • Initial Number of Orders Per Day: 100
  • Average Order per Customer: $25.00

 

Financial Projections

Income Statement
FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
Balance Sheet
FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
Cash Flow Statement
FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Food Delivery Business Plan FAQs

A food delivery business plan is a plan to start and/or grow your food delivery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Food Delivery business plan using our Food Delivery Business Plan Template here.

There are a number of different kinds of food delivery businesses, some examples include: Restaurant Delivery, Meal Kit Delivery, Grocery Delivery, and Veggie Box Delivery.

Food Delivery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

Starting a food delivery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Delivery Business Plan - The first step in starting a business is to create a detailed food delivery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food delivery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food delivery business is in compliance with local laws.

3. Register Your Food Delivery Business - Once you have chosen a legal structure, the next step is to register your food delivery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food delivery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Food Delivery Equipment & Supplies - In order to start your food delivery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food delivery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food delivery business: