Starting a Home-Based Restaurant Take-Out Delivery Business

Pizza shops have offered home delivery for many years. However, most other restaurants have not traditionally offered this service to their customers.

The restaurant take-out delivery service is a fairly new business model. In fact, many communities still do not have a business offering this type of service. Consequently, a restaurant delivery entrepreneur may encounter no competition whatsoever when starting their business.

Restaurant delivery businesses serve as a bridge between restaurants who do not offer delivery and their customers who would like to have dinner delivered. Restaurant delivery businesses will typically contract with multiple restaurants to provide independent delivery services in an area. Customers call, fax or e-mail their order to the delivery service. The delivery business then places the order with the restaurant, picks up the order when it is ready, and delivers it to the customer. The restaurants benefit by making sales that would otherwise not have occurred, the customer benefits by being able to have the food delivered, and the delivery business owner benefits by earning a fee or commission for their services.

Getting Started

The first step in starting a home-based, restaurant delivery service is to identify the restaurants for which you would like to offer delivery services. Most restaurants are able to accommodate take-out orders already, even if it is only a small part of their business and they do not offer delivery. However, you will need to insure that the restaurant can handle take-out orders, determine the typical preparation time on orders you submit, obtain a copy of their menu and prices, and reach an agreement on how orders will be placed and picked up by your business. This is also a good time to attempt to negotiate a commission or discount on sales you bring to the restaurant. This margin can help to boost the profitability of your business.

Once you have decided which restaurants you will provide delivery services for you will need to develop a system to track restaurant menus, take orders from customers, place orders with restaurants, and deliver the orders to customers. This may be accomplished through a business website where customers can view menus, place orders, and even make payments.

Revenues in this business can come from several sources. First, you may be able to negotiate a discount or commission from the restaurants since you are bringing them sales that they would not have experienced otherwise. Second, you can charge a delivery fee to your customers. This may be a flat fee or a percentage fee and may vary depending on the location of the restaurant, the complexity of the order, and the location of the customer. Finally, many customers will offer a tip in exchange for excellent delivery service. These three revenue sources combined could make the restaurant delivery business a profitable, home-based business.

Marketing

The first step in marketing your home-based, restaurant delivery business will be to determine your target market. For example, you may choose to target customers in large office complexes, college campuses, or residential neighborhoods. Of course, you can certainly deliver to all of these markets, but it is helpful when marketing to identify one or more target customer groups.

Restaurants that you contract with may be willing to help promote your business through brochures or business cards displayed at their restaurant or even on their website. Your business is not in competition with their business. Quite the contrary, your business is essentially partnering with the restaurant to provide a convenience service to the restaurant customers.

Distributing brochures or business cards at office complexes, college campuses, and similar locations can be a great way to reach many people. These type of locations often have hundreds or thousands of people in one place. This is a great opportunity to connect with many potential customers.

Targeted direct mailings, while more costly than posting brochures at a large facility, can still be effective. Mailings can be sent to target neighborhoods, apartment buildings, etc. with brochures explaining your service, the restaurants that you deliver for, and any details about delivery hours and fees.

A website is an essential marketing tool for many businesses. A restaurant delivery service can also benefit from a quality, professional website. The website can attract customers who are searching for restaurant delivery services if it is optimized for local search. Additionally, since many restaurants do not have a website or it may be poorly optimized for search, your business website would appear prominently in search results for that restaurant. Finally, a business website provides a place for your customers to learn about your services, which restaurants you will deliver for, and even to place orders and make payments through your website.

Putting a sign or lettering on your delivery vehicle is also a great way to advertise your business wherever you go. Signs or decals should display your business name, a description of your services, your phone number, and your website address.

Cautions

Business insurance on delivery vehicles is obviously essential. This is also true if you are using a personal vehicle to make deliveries though. Insurance companies may deny a claim if they discover that you were using your vehicle for business use and did not have it insured appropriately.

Requiring advance payment on all orders will eliminate the risk of not being paid by a customer who is not home or changes their mind about an order. However, this could also restrict your business since some people do not have credit or debit cards.

You will need a careful system to track orders, pick-up times, and delivery schedules. During peak times this business could be hectic.

Insulated containers will be essential to keep food hot or cold during transport. This is particularly true if you are making multiple deliveries at once, or if the weather is very hot or very cold.

Vehicle breakdowns can be catastrophic for delivery businesses such as the restaurant delivery business. This is particularly true if you are in the middle of making deliveries when the vehicle breaks down. Having a second vehicle that can quickly be placed into service can relieve a lot of stress, and can also keep you working when the first vehicle is in the shop for repairs. Another option would be to contract with a local auto rental company to be able to quickly pick up a rental vehicle if necessary.

Conclusion

The restaurant delivery business is a home-based business that can be started on a shoestring budget. The only significant expense in launching this business is a delivery vehicle - something that most people already own. Since this business requires no inventory or specialized equipment it can be started for very little money.

The restaurant delivery business can be a great, home-based business for someone who likes variety, can balance several different customer orders at once, and who likes to be out on the road.

SOURCES

Joe McVoy. How to Start Restaurant Delivery Service in Your Area. Monster.com. Site accessed on 2 November 2010.

How to Start a Restaurant Delivery Service: Starting a Restaurant Delivery Service. Startup Biz Hub. Site accessed on 2 November 2010.

Starting A Restaurant Delivery Service. BizyMoms. Site accessed on 2 November 2010.