Overcome the issues of starting a food delivery business

Picture of a food delivery bag being delivered

Over come the issues of starting a food delivery business

Feast your eyes on this tasty tidbit of information! In the past, a night out at your favorite restaurant meant dressing up and mingling with friends over a scrumptious meal. But now, things have taken a bit of a different turn. Sure, we still love sharing a meal with our loved ones, but the convenience of ordering in and chowing down in the comfort of our own homes has become increasingly popular.

In fact, the global revenue for online food delivery is predicted to hit a mouth-watering £241.40bn by 2022, and with an impressive annual growth rate of 5.8%, it’s expected to reach a staggering £321.30bn by 2027. So, for all you food enthusiasts out there dreaming of starting your own food delivery business or for restaurants looking to expand, the delivery model could be the recipe for success.

The issues and fixes for food delivery companies

Starting a business can be a bit intimidating, and the food industry is no exception. 

As you embark on this journey, it’s natural to have some doubts and reservations. But don’t worry, we’re here to squash those fears and guide you through the process of launching a food delivery business from a dark kitchen or within a pub kitchen residency to rent. From the potential challenges to solutions for overcoming them, we’ve got you covered. 

So, let’s dive in and turn your business dreams into a delicious reality!

The competition: Issues with customer retention

It’s no surprise that the food delivery market is extremely crowded, and the competition is fierce. With so many established food businesses using food delivery apps and already having a loyal customer base, it can be difficult for smaller, independent food brands and new startups looking to make a name for themselves and gain customer loyalty. 

However, this should not discourage you, this is an opportunity for you to come up with creative ways to differentiate your brand, create a unique offering and make sure your customer service is top-notch. 

There’s always a way to stand out and make your food delivery business successful in a dark kitchen, pub residency to rent or food pitch. From the potential challenges to solutions for overcoming them, we’ve got you covered. 

So, let’s find those solutions!

The solution

There are a few ways for startups to beat established competition in the food delivery market. One strategy is to offer discounts and promotions to attract new customers. For example, launching the business with introductory offers such as a free side with a main, a “meal deal” option, or a discount on orders over a certain amount can be a great way to catch the attention of potential customers.

Once you have successfully gained customers, it’s important to keep them coming back. One way to do this is by offering delicious food that aligns with the trends, tastes, and preferences of your target market. Be aware that consumer preferences change frequently, so if you can’t offer the food that your customers are craving, they will likely move on to the next option.

Another key aspect is to ensure that your customer service is top-notch. Your customer service team should be highly responsive, friendly, and offer help and support. Customers not only buy the food, but they also buy into the brand, and great customer service can play a big role in building loyalty.

Lastly, offering a loyalty scheme is another way to encourage repeat customers. This can be something like a rewards program where customers earn points for each purchase and can redeem them for discounts or free items.

Poor quality and quantity of marketing

Are you a delivery-only kitchen feeling left out of the restaurant spotlight?

No worries, there’s a way to make your online food business shine just as brightly as those fancy high-street eateries. The key is to focus on building a strong online presence through creative digital marketing strategies. Get those taste buds tingling with mouth-watering food photos and videos that show the behind-the-scenes of your kitchen.

Partner up with foodie influencers, or run exciting promotions and contests to attract new customers. By building a loyal customer base and creating a unique online presence, you’ll be sure to stand out in the competitive world of food delivery.

So, don’t just rely on delivery apps!

 

The solution

So you want to take your food delivery biz to the next level? It’s time to focus on your marketing strategy!

First things first, figure out your target audience. Who are you trying to reach? Once you know that, you can start planning your marketing strategy. And let’s be real, what’s more mouth-watering than a delicious social media post? Platforms like Instagram and TikTok are a great place to start. But don’t stop there, think outside the box and explore other options like flyering or even billboards.

The point is, you can’t afford to not have a marketing strategy in place if you want to compete with the big players. So, take some time to plan and execute a strategy that will help you reach your target audience and bring in more customers. Trust us, your taste buds (and your bank account) will thank you!

Get your price right

Deciding on a pricing strategy for your food business can be a tricky task. With a constantly changing customer base and volatile food and supply costs, it’s important to find a balance that works for everyone.

One approach is to use a cost-plus pricing strategy, where you determine your costs and then add a markup to determine the price. However, this can be difficult to implement in a market with fluctuating costs. Another approach is to use a value-based pricing strategy, where you determine the value that your product or service provides to the customer and base your prices on that.

It’s also important to note that using offensive or defensive pricing models to compete with your opponents may not always be the best approach and may negatively affect your business in the long run. It’s essential to carefully analyze your costs and competition and come up with a pricing strategy that works for your unique business.

Ultimately, the key to successful pricing in the food business is to constantly monitor the market, review your costs, and make adjustments as necessary. Keep your prices fair and competitive, and most importantly, communicate effectively with your customers.

The solution

Another approach to consider is implementing dynamic pricing, which adjusts prices based on real-time demand and market conditions. This can help you stay competitive while also ensuring that your prices cover your overhead costs. Additionally, you can consider offering promotions, discounts, and loyalty programs to attract customers and encourage repeat business.

It’s also essential to keep in mind that transparency is key when it comes to pricing. Communicating your pricing strategy and any changes clearly to your customers can help build trust and loyalty.

In summary, setting a pricing strategy for your food delivery business can be challenging, but by staying competitive, monitoring market trends and consumer behavior, and keeping your overhead costs in mind, you can increase your profit margins while keeping customers happy.

Varying food quality

Delivering delicious meals to hungry bellies is a tasty challenge! But, getting that hot and fresh meal from the kitchen to your customer’s doorstep can be a real test of endurance. It’s like a food marathon on wheels, with your meal braving the elements on the back of a trusty bicycle.

But, no worries! With the right techniques and tools, we’ll make sure your meal arrives at the finish line just as scrumptious as when it left the kitchen.

The solution

Before you start selling, invest in premium packing materials to maintain the quality of food orders on their journey. 

You should also ensure every delivery driver has an adequate, insulated food bag before they collect orders from your pick-up point and deliver the food to the customer. 

Sharethere’s food delivery kitchens are ready and waiting to fuel your business.

Whether you want to sell your food on UberEats, Deliveroo or independently or take up residency in a pub kitchen or food market, our kitchens to rent in London and cold storage rooms can help you reach your goals. 

Check out the Uk’s largest selection of kitchens to rent to get started!

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