Food Delivery business is a service-rendering venture. It entails the delivery of foods and the likes to a customer either by a restaurant, a food joint or independent food delivery outlets. Such orders are made either through the customer telephone, the website of the food venture or a custom designed app.
The items to be delivered ranges from African dishes, Continental dishes, drinks, desserts, or snacks and are typically delivered in food containers, boxes or bags, which are mostly delivered using a car, bikes or scooters.
The opportunities inherent in the Nigerian food delivery market are ever increasing. This is due to the fact that food delivery is a business that is well known and very easy to start and run successfully. This is a sure meal ticket venture for any aspiring entrepreneur looking for a business to start with assured returns.
Customers usually, depending on the delivery venture, chose to pay in person or online with cards.
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Types of Food Delivery Services
1. Independent Vendor: This is like entering into a partnership with different restaurants to provide food delivery services independent of their operations.
2. Personal Restaurant: This involves only your restaurant and menu, you could be delivering lunch time, seminar and corporate parties order.
3. Liaison With A Known Restaurant: This involves operating your delivery services exclusively with a particular restaurant.
Profitability Of Food Delivery Business in Nigeria
It is a known fact that more than half of the population in Nigeria are made up of working class people, coupled with the heavy traffic condition in places like Lagos and Onitsha, these people barely have to cook themselves, this makes food delivery service a very profitable venture for smart individuals.
On an average, you can make up to two hundred thousand naira monthly profit as people don’t have time to leave their office or places especially during raining season.
The Market Demand For Food Delivery Business in Nigeria: Competition and Opportunities
Food Business cannot be affected by economic hard times. This is because regardless of the state of a person’s pocket situation; buoyant or broke, he must eat, People must get hungry and eat.
In Lagos, a state in Nigeria which has an average population of over 25 million residents, most working class people rush out as early as 4:30 a.m in order to beat traffic on their way to work and will not come back until late at night around 11:00 p.m. because they got stocked in traffic.
These set of people now depends on the service of a food delivery company to meet their nutritional needs. The biggest advantage of this business is the low investment.
However, due to the fact that you are just starting up, expect a stiff competition from the big names already in the market but arming yourself with the right plan and attitude will give you’re a smoother running of the venture.
How to Start Food Delivery Business in Nigeria
If you wish to start a food delivery business, these are steps you need to take to start your food delivery business in Nigeria.
Source for Startup Capital:
Food delivery service is not an expensive business to start up, you can start with just N60,000 this only include the food preparation aspect, this is referred to as your Startup capital.
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You need to locate a good environment where you can start your food delivery service, specifically; a metropolitan area with a high profile record is the best place to start a food delivery service.
Create A Brand Name And Logo:
let the name reflects on time delivery of food and also catchy. it is necessary that you have a nice business name and logo.
Register Your Business Name:
The next step is to register your business with the Corporate Affairs Commission (CAC) to avoid government sanction and harassment.
Get a license from the health department, when it comes to food or any intake, there are some regulatory bodies in charge of issuing license for thus business, in you are starting big from NAFDAC under the federal ministry of health.
Set Your Price and Payment Method:
There is a flat rate fixed mostly for the delivery of food according to your location, you can also model your own price towards this so as be able to survive the completion. There are different options for the payment method; this can be Pay on Delivery, POS, Bank transfer or InterSwitch.
Choose a Transportation Model:
They include; bicycles, motor cycles and mini vans for long distance.
This covers staffing and advisers for Food Delivery Business in Nigeria
You must have experienced and skilled employees for a smooth running of food delivery business, these includes those preparing food, delivery, order taking and cashier.
Advisers here include the industry experts that have been in business for long, also including the Supplier of the raw materials for the meal, Major company’s receptionists, and casual staffs of the organization you are intending to deliver to.
Let us now consider how to market and boost the Profitability and sustainability of Food Delivery Business in Nigeria.
Below are some of the available options you might use:-
- The best way to promote your business is by client satisfactory. Let your clients to refer their friends to you.
- You can also advertise by sharing leaflets, flyers and business cards.
- For an office food delivery business, it is best to meet your customers personally.
- Additionally, employ outdoor advertising methods such as erection of billboards at strategic locations. This has an highly effective offline advertising conversion rate.
- Maximize upon the potentials inherent on the social media to advertise this business
- You can also brand your transport mode with your brand name, logo and contact details.
Profitability/Sustainability Tips for Food Delivery Business in Nigeria:-
- You need to always make your customer happy by providing quick service; this will make them feel safe to eat the meals you have brought for them.
- Avoid lengthy delivery time; get a motor cycle for densely populated traffic.
- When it comes to wrong orders, Have an accurate order taking system and double-check via for confirmations before alerting restaurants.
- When it comes cancellations, If the error is from your side, offer full refund and possible discount on the next order.
Summary and Conclusion:
These are some important things to know when starting a food delivery business in Nigeria, They do not guarantee success, but will place you on the right track. Wish you all the best in your business, feel free to leave a comment
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