Food Delivery Business Plan Template
If you want to start a food delivery company or expand your existing food delivery business, you need a business plan.
The following business plan template gives you the key elements to include in a winning business plan. It can be used to create a business plan for a standard food delivery business, a meal kit delivery service, restaurant delivery, a grocery delivery service, offices food delivery services or any other type of food delivery services business.
Food Delivery Business Plan Example
I. Executive Summary
Business Overview
[Company name] is a newly established food delivery business located in [location]. The company will have an online website and app for its customers to schedule and choose the food that they will like delivered to their location. [Company Name] will deliver food to residences and businesses from a variety of local restaurants.
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.
[Company Name] 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 [Company Name].
Services
[Company Name] will offer a variety of delivery services. The services include food delivery, grocery delivery, and drug store delivery.
Customer Focus
[Company Name] will primarily serve the residents within a 1 to 20-mile radius of our location. The demographics of these residents are as follows:
- 4,629,739 residents
- Average income of $41,300
- Average household income of $56,000
- 38.45% married
- Median age: 39 years
[Company Name] 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.
Management Team
[Company name] will be owned and operated by [Founder’s Name], 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 businesses’ 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 [location].
With his entrepreneurial and tech knowledge, [Founder] 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
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company will include all of the most coveted restaurants and grocery stores.
- The company will reward its most loyal customers.
- Delivery times promise to be faster than the competition.
- Unlike the competition, [Company Name] will include local events in their platform, such as a local fair or farmers market.
- The delivery fees will be priced cheaper than the competition.
Financial Highlights
[Company Name] is seeking a total funding of $300,000 of debt capital to launch the food delivery business.
- Platform Development: $150,000
- Marketing and Brand Development: $100,000
- Working capital: $50,000 to fund the first three months’ of driver’s pay, insurance, and taxes until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company name] is a newly established food delivery business located in [location]. The company will have an online website and app for its customers to schedule and choose the food that they will like delivered to their location. [Company Name] will deliver food to residences and businesses from a variety of local restaurants.
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. In addition, the app will include local events such as farmers markets and fairs to include in the list of options. 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. This will allow the delivery drivers to earn extra income by completing food deliveries or work for [Company Name] on a full-time basis.
[Company Name] 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 [Company Name]. Users will be able to redeem their rewards for discounts on certain food items or receive discounts on delivery fees.
[Company Name]’s History
[Founder’s Name] 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, [Founder] 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 located at [website]
- Approached multiple local restaurants, grocery stores, and bakeries to be a part of [Company Name]’s platform
- Determined necessary insurance and legal requirements
- Began recruiting key employees that will be the food delivery drivers
- Written and developed the Delivery Driver processes and procedures.
[Company Name]’s Products/Services
Below are [Company Name]’s service offerings:
- Food Delivery
- Grocery Delivery
- Drug Store Delivery
III. Industry Analysis
The Food Delivery industry has grown 20% in the last five years; food delivery sales are estimated to grow as high as $220 billion in the next couple of year. In recent years we have seen a huge growth in businesses providing everything from groceries to recipe boxes and fast food. In fact, McKinsey & Company estimates that the food delivery market was worth a massive $150 billion last year, more than triple its value just four years ago.
Much of this success is the recent proliferation of delivery models and fleet types: same hour, same day and next day delivery; single fleet, multi-fleet, crowdsourced fleets and in-house fleets; deliver from store, curbside pickup, delivery from robotic warehouses, and more.
Third-party delivery companies have also revolutionized the food delivery space. Companies such as Uber Eats, DoorDash, and GrubHub have blown the delivery space wide open, making it significantly easier for businesses of all sizes to sell food online and have it delivered straight to customers.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] 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.
Typically, those who use online apps and delivery services are the younger generation as they are more technologically savvy. Despite this, [Company Name] will work to target retirees and the elderly population as they would benefit the most from food delivery services. This segment of the population does not leave their house often, do not drive anymore, and will benefit highly from the convenience of having their food, pastries, and drugs delivered to them in a safe and reliable manner.
The precise demographics of the area are as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Young Professionals: they are tech savvy and are too busy advancing in their careers to go grocery shopping or sit for their take-out order at a restaurant.
- College Students: college students prefer to have their everyday necessities delivered to them as they are busy studying for exams or doing homework.
- Working Parents: Raising children and juggling careers is a constant hectic struggle as schedules get full and parents do not always have time to cook for their families. Working parents will certainly benefit from food delivery services as this will take one thing off their plate.
- Elderly: Elderly people will benefit from food delivery services as they do not drive all the time and are unable to receive food, drugs, and necessities on a consistent basis.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 50-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
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
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Comprehensive List of Restaurants and Food Stores: [Company Name] will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
- Membership Rewards: [Company Name] 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: [Company Name] promises to have faster delivery times than its competitors.
- Pricing: [Company Name]’s price point for delivery fees is on par with its customers, if not cheaper.
VI. Marketing Plan
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] seeks to position itself as a popular local option in [location] where it will gain a following and increase its brand awareness.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- More comprehensive list of restaurants and grocery stores
- Membership rewards
- Faster delivery times
- Includes more local options such as fairs, events, and farmers markets
- Affordable fee structure
Promotions Strategy
[Company Name] expects its target market to be millennials, busy families, and the elderly. [The Company’s} promotion strategy to reach these businesses includes:
Billboards/Signage
[Company Name] will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.
Local Publications
The company will also invest in advertising in selected larger publications such as newspapers and local publications.
Website/SEO
[Company Name] 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.
Restaurant and Store Partnerships
[Company Name] will partner with the restaurants and stores it will list on its platform and will display signs, flyers, and collateral material to advertise the food delivery option for its customers.
Social Media
[Company Name] 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
[Company Name] will develop numerous collateral material to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.
Pricing Strategy
[Company Name]’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.
VII. Operations Plan
Functional Roles
[Company Name] will carry out its day-to-day operations as a food delivery business. There will also be numerous administrative functions involved.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company Name] In order to achieve this goal, [Company Name] will need to expand its online presence and develop a team of reliable delivery drivers. To do this, the company will need to hire more web engineers to support the website and app, sign up the list of restaurant and store options, and invest in marketing campaigns. The company will need to hire at least three full-time employees who can manage all aspects of operations including customer service, delivery driver issues, sales and marketing.
Service Functions
- Small team to assist with delivery driver communication and issues
- Small team for website and app support
Administrative Functions
- General and administrative functions including tax payments, insurance payments, marketing, bookkeeping, etc.
- Filing and maintaining accurate electronic files of every transaction and order
- Brand management/social media
- Restaurant and store outreach
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] will be owned and operated by [Founder’s Name], 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 businesses’ 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 [location].
[Founder] will hire 2 – 3 web engineers to assist with the website and app support as well as a team of at least 20 – 30 delivery drivers to work on an independent contractor basis. He will also have an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.
Hiring Plan
[Founder] will serve as the Owner of [Company Name]. In order to launch, he needs to hire the following personnel:
- Web Engineers: 2-3 part-time engineers to provide daily support to the online platform and app.
- Team of Delivery Drivers: 20 – 30 independent contractors to perform the food delivery duties.
- Marketing Professional: 1 person who will manage the outreach to restaurants and stores and focus on customer outreach.
- Accountant: 1 employee who will manage the accounting, clerical, bookkeeping, tax payments, insurance, and any administrative task required.
- Brand manager: 1 part-time employee who will be responsible for developing and launching the brand; hold marketing events, and manage the social media accounts.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’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 [Company Name]. The major cost drivers for the company’s operation will consist of:
- Payroll
- Website and app maintenance
- Marketing and advertising
- Business insurance
- Taxes
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $300,000 of debt capital to launch the food delivery business.
- Platform Development: $150,000
- Marketing and Brand Development: $100,000
- Working capital: $50,000 to fund the first three months’ of driver’s pay, insurance, and taxes until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| Year 1 | 40 |
| Year 2 | 60 |
| Year 3 | 80 |
| Year 4 | 100 |
| Year 5 | 120 |
| Average order price | $32 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
