How to Start a Food Delivery Business in Bangladesh
Food Delivery Business in Bangladesh
Before you know how to start a food delivery business you should know what the business of food delivery is and other related things. As food delivery services are a big matter of convenience, the very first step in food delivery business is to understand certain important aspects.
These include having the complete menu of the restaurant you want to cover, promoting your business in the best way possible, knowing your target market, finding the right location for your business etc.
Since a meal delivery service is an inexpensive and easy business to start up, metropolitan areas seem to be the best places to start a meal delivery service. This business is for you if you live in a large city when you don’t know which type of business to start. So, continue reading till to the end.
What is a Food Delivery Business in Bangladesh?
Delivering food from restaurants to customers is a food delivery business. Although it can be truly challenging to start any business, this is one business you can start with little challenges and wide market coverage is a food delivery business.
The good news is that you can’t get it wrong if you are considering starting a food delivery business. This service is for those who have not enough time to come over to the eatery and you’re providing them their necessary foods.
In this case, you can get a partner with several fast food restaurants, canteens along with other food outlets who are willing to partner with a food delivery company to continue a food delivery business.
Why Start a Food Delivery Business in Bangladesh
There are many people work in the various sectors that don’t have enough time to go out for eating. As the food delivery business is a part of the food and restaurant industry value chain, it often shares common values.
In this case, you’ll find thousand people in the city areas who are not taking their lunch and breakfast with them due to various reasons.
That’s why the food delivery business is getting popular in Bangladesh. Although it’s important to state that starting a food delivery business comes with its own fair share of challenges, it doesn’t rule out the fact that it is indeed a profitable business venture.
Steps to Start a Food Delivery Business in Bangladesh
Dealing with a handful of eateries and covering a small locality, an aspiring entrepreneur can either choose to start a food delivery business on a small scale.
Or, depending on your financial status, you can start it large scale. It will pay you to carry out your market research, economic and cost analysis and of course feasibility studies before launching this type of business.
The most important aspect is to hire a food delivery application development company when you want to establish a business. Let’s know the steps to start this business in Bangladesh.
First Step: Business Plan
A business plan is vital for any business and you must make it for the food delivery business as well. Even if you’re unable to write a business plan then you must take help from an expert. As a business plan works for you in all aspects, this is the first and foremost step.
A good business plan comes with all in one that you need for your business’s establishment. From marketing strategies to the source of finances, a business plan will show you the way to be successful in the business of food delivery.
Second Step: Operating Costs
You’ll have upfront costs and a new set of expenses associated with managing the operation if you hire drivers in-house.
Also, you’ll be paying a percentage of your deliveries to the third party provider if you use a 3rd party.
Most of your costs will be front-loaded and fixed going forward with in-house.
But, most of your costs will be on-going and variable when outsourcing. It will ultimately become less expensive to do it in-house if you’re doing higher volumes.
However, outsourcing might make the most sense if you’re doing lower volumes. Determining your revenues and expenses would be best to put together detailed financial projections with high, low, and middle scenarios.
Third Step: Required Resources
You’ll have to recruit, train and manage your drivers with the in-house option. That’s why there will be initial startup costs as well as higher overhead.
Moreover, when you’ll create policies and procedures, it governs how these employees operate.
You’ll avoid upfront costs and the need to devise policies and procedures because you can plug into an existing infrastructure if you outsource.
Food-related businesses in Bangladesh for 2019 –
- Profitable Bakery Business in Bangladesh
- Coffee Shop Business in Bangladesh
- Pizza Shop Business in Bangladesh
Fourth Step: Quality of Service
In your planning, quality of service is the most important aspect. You may spend thousands of dollars so that you can build your brand. As if the customers ordered inside your restaurant, you want to ensure that your products arrive in the same condition.
For instance, you want to ensure that the product is at the right temperature and condition upon delivery if you deliver food. Because it will reflect on your brand, you want to also ensure that the driver has the right demeanor and interaction with the customer.
This will be harder to control if you outsource the delivery. And you can define policies and procedures if you manage it in-house.
Fifth Step: Exposure to Liabilities
You now expose your business to new liabilities that you haven’t encountered in the past by running an in-house operation. Also, you should make sure that the employees you have employed are widely trained.
Although it’s not a direct liability if you’re outsourcing, you may be exposed if an incident occurs while the third party is delivering your product. Because you’re one step removed, it’s also difficult to control the behavior of third-party drivers.
Sixth Step: Operations Fit
You may have a point of sale system that is designed specifically for an operating environment if you’re like the most food delivery business. You’ll likely need a dispatching tool if you go in-house.
You may need to link your POS system to the third party’s operational system if you’re outsourcing. And of course, it presents security and resource challenges and may extend the amount of time to set up the operation while linking with a third party system.