How to start a Restaurant Delivery Service Business?


How to start a Restaurant Delivery Service Business

Are you interested in starting your own Restaurant Delivery Service Business?

If you're reading this, you're probably considering starting a restaurant delivery business. Whether you're looking to supplement your existing restaurant's income or start a new business from scratch, delivery can be a great way to reach new customers and increase profits. There are a few things to consider before starting a restaurant delivery business, like whether your restaurant is set up to handle delivery orders, if you have the right insurance in place, and what delivery software you'll use to manage orders and payments. We've put together an overview of what you need to know to get started with a restaurant delivery business, including tips on marketing, logistics, and more.
Business Plan
If you're thinking about starting a restaurant delivery service business, the first thing you need to do is create a business plan. This will help you map out the steps you need to take to get your business up and running, and it will also give you a roadmap to follow as you grow your business. Here are some key components to include in your restaurant delivery service business plan:
1. Executive Summary Start your business plan with an executive summary. This is a brief overview of your business, its goals, and how you plan to achieve them. Be sure to include information on the size and scope of the market for restaurant delivery services, as well as your target customer base.
2. Company Description In this section, describe your company in more detail. What is your business model? What services do you offer? What makes your company unique? Be sure to include information on your team, your experience in the industry, and your plans for growth.
3. Market Analysis In this section, you'll need to provide an in-depth analysis of the market for restaurant delivery services. What is the size of the market? Who are your target customers? What needs does this market
Target Market
Assuming you would like one section on targeting a market for a restaurant delivery service business: When starting any business, it is essential to understand who your target market is. The target market is the group of people you are aiming your product or service at. When it comes to a restaurant delivery service, there are a few different options for who your target market could be. One option is to focus on businesses, specifically office buildings or complexes. Many businesses have employees that do not have time to leave for lunch, or may not have access to nearby restaurants. Having a delivery service that brings lunch right to their door could be very appealing. Another option is to focus on residential areas, especially those with a high density of people living in close proximity to each other, such as apartments or condos. People who live in these areas may not have cars, or may not want to deal with the hassle of going out to eat. Once you have decided who your target market is, you can begin to tailor your marketing and advertising efforts to reach them. You can use online tools like Google AdWords to target specific demographics with your ads. You can also use traditional methods like print ads or flyers in high traffic areas
Business Model
If you're thinking about starting a restaurant delivery service business, there are a few things you need to consider before getting started. First, you need to determine what type of business model you will use. There are two common models for restaurant delivery businesses:
1. The first model is a partnership with a local restaurant. In this model, you would approach a local restaurant and offer to deliver their food to customers. The restaurant would pay you a commission for each delivery you make.
2. The second model is an online ordering platform. In this model, you would create an online platform where customers can order food from multiple restaurants.
The restaurants would then pay you a commission for each order that is placed through your platform. Which model you choose will depend on a number of factors, including your budget, the competition in your area, and the type of restaurants you want to work with. Once you've decided on a model, you need to start building up your delivery fleet. You can either use your own vehicles or partner with a local delivery company. Once you have your fleet in place, start marketing your service to potential customers. Use social media, flyers, and word-of-mouth to spread the.
Competitive Landscape
When it comes to starting a restaurant delivery service business, it's important to be aware of the competitive landscape. This includes other restaurant delivery services, as well as companies that offer food delivery as a part of their overall business. Some of the major players in the restaurant delivery space include DoorDash, Uber Eats, and Grubhub. These companies have a large network of restaurants that they partner with, which gives them a significant advantage when it comes to selection and availability. Another thing to consider is that many of these companies are well-funded and have a lot of resources at their disposal. This means that they can offer deep discounts and promotional deals that may be difficult for a new business to match. Finally, it's worth noting that the restaurant delivery business is becoming increasingly crowded and competitive. This means that it's important to have a well-thought-out business plan and a unique selling proposition if you want to succeed.
Costs & Pricing Strategy
Assuming you already have a restaurant up and running, there are a few key areas you’ll need to consider when pricing your delivery service:
1. Food Costs: This is probably the most important factor in pricing your delivery service. You’ll need to make sure that you’re charging enough to cover the cost of the food, plus a reasonable profit margin.
2. Delivery Fees: You’ll also need to charge a delivery fee, which will cover the cost of gas, wear and tear on your vehicle, and any other delivery-related expenses.
3. Minimum Order Size: To make delivery worth your while, you’ll likely need to set a minimum order size. This can vary depending on your location, but $20 is a good place to start.
4. Discounts and Promotions: To attract customers, you may want to offer discounts or promotions on your delivery service. For example, you could offer a 10% discount for orders over $50, or free delivery for orders over $100.
5. Pricing Strategy: There are a few different pricing strategies you could use for your delivery service. The most common is to charge a
Forming a Legal Entity
If you want to start a Restaurant Delivery Service business, you will need to form a legal entity. This will protect you from personal liability and help you raise money for your business. You can choose to form a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each type of entity has its own pros and cons, so you will need to choose the one that is right for your business. If you are the only owner of your business, a sole proprietorship may be the best option. This type of business is easy to set up and you will not have to deal with much paperwork. However, sole proprietorships offer no personal liability protection, which means that you could be held responsible for debts incurred by your business. Partnerships are similar to sole proprietorships in that they are easy to set up and offer no personal liability protection. If you decide to form a partnership, you will need to choose a business partner who you can trust and who has complementary skills. It is important to have a written partnership agreement that outlines each partner's roles and responsibilities. A limited liability company (LLC) offers personal liability protection and is a good option for a small group of founders.
Opening a Business Bank Account
When you’re ready to start your Restaurant Delivery Service business, one of the first steps is to open a business bank account. This will help you keep your personal and business finances separate and will make it easier to track your expenses and income. To open a business bank account, you’ll need to have the following information and documents:
-Your business name and address
-Your Social Security number or Employer Identification Number (EIN)
-A list of the owners, officers, and directors of the company
-Articles of incorporation or a business license
-A voided check or deposit slip from the account you’ll be using for your business
Once you have all of the required information and documents, you can visit your local bank or credit union to open a business checking account.
Setting up Business Accounting
If you're starting a Restaurant Delivery Service business, one of the first things you need to do is set up your business accounting. This will ensure that you're keeping track of your finances and that you're complying with any financial regulations that apply to your business. Here's a quick guide to setting up your business accounting:
1. Choose an accounting software. There are many different accounting software packages available, so do some research to find one that will suit your needs.
2. Set up your chart of accounts. This is a list of all the categories of income and expenditure that you will track in your accounting system.
3. Set up your bank account. You will need a business bank account to manage your finances effectively.
4. Keep track of your income and expenditure. Make sure you keep accurate records of all money coming in and going out of your business.
5. Prepare and file your tax return. Once a year, you will need to file a tax return for your business. Make sure you keep on top of this so that you don't miss the deadline
Setting up Business Insurance
As a business owner, it is important to protect your company with the proper insurance. When setting up a Restaurant Delivery Service business, you will need to consider the following types of insurance:
-Product liability insurance: This will protect you in the event that a product you designed and printed causes injury or damage.
-Professional liability insurance: This will protect you in the event that a client suffers damages as a result of your work.
-Business property insurance: This will protect your equipment and premises in the event of damage or theft.
-Business interruption insurance: This will protect you in the event that your business has to stop operations due to a covered event.
-Employee dishonesty insurance: This will protect you in the event that an employee steals from your business.
Speak with an insurance agent to determine which policies are right for your business
Setting up a Business Website
If you want to start a Restaurant Delivery Service business, one of the first things you need to do is set up a website. This will be your online home base, where potential customers can learn more about your business and what you have to offer. There are a few key things you need to include on your website:
-An About page: This is where you can tell your story and give potential customers a sense of who you are and what you stand for.
-A portfolio: Showcase your best version on your website so that potential clients can see your work.
-A contact page: Make it easy for people to get in touch with you by including your email address and/or social media links.
-Pricing information: Let visitors know how much you charge for your services.
By having a well-designed website, you’ll be able to attract more customers and grow your Restaurant Delivery Service business
Obtaining the Necessary Permits
If you want to start a restaurant delivery service business, you will need to obtain the necessary permits. The first step is to contact your local city or county clerk's office to find out what permits you need. You will likely need a business license, a food handler's permit, and a vehicle permit. Once you have the required permits, you will need to purchase liability insurance. This will protect you in the event that something goes wrong during the delivery process. You will also need to make sure that your vehicles are properly insured. After you have obtained the necessary permits and insurance, you will need to find a good location for your business. The best location for a restaurant delivery service is near a busy intersection with high traffic. You will also want to make sure that there is plenty of parking available. Once you have found a good location, you will need to set up your business. This includes creating a menu, hiring employees, and advertising your business. You will also need to create a delivery system that is efficient and reliable.
Setting up a Business Number or Appointment Setter
When you’re ready to start your Restaurant Delivery Service business, one of the first things you need to do is set up a business phone number or an appointment setter. You can use a service like Google Voice to set up a business phone number for your Restaurant Delivery Service business. Google Voice will give you a free business phone number that you can use to make and receive calls. Once you have a business phone number, you can start taking calls from potential customers. When you get a call, be sure to take down the customer’s name, contact information, and what they need. Once you have this information, you can give the customer a call back to discuss the project in more detail and give them a quote.

Delivery Model

To ensure the best customer experience possible, our restaurant delivery service will use a system of on-demand delivery drivers and couriers. Our drivers will be able to pick up orders from our partner restaurants and deliver them directly to customers. This system will enable us to provide fast and reliable service while eliminating the need for a physical storefront.

Service Area

Our restaurant delivery service will cover the greater metropolitan area, with the initial focus on the downtown core. We will expand our coverage area as demand dictates, eventually reaching out to all neighborhoods in the city.


Our staff will include both full-time and part-time employees, depending on the needs of the business. We will need delivery drivers, administrative staff, customer service representatives, and other personnel to ensure that our business runs smoothly.

Menu Selection

We will carefully select menus for our restaurant delivery service that offer something for everyone. We will focus on providing meals from local restaurants that are high quality, diverse in their offerings, and reasonably priced.

Technology Automation

We will utilize modern technology and automation solutions to streamline order management and deliveries. This includes using cloud-based software for order processing, automated route optimization tools to help drivers find the fastest routes, and real-time tracking systems to keep customers informed of their orders' status.


To start and grow our restaurant delivery business we have a variety of financing options available including loans from banks, angel investors, venture capital firms, crowdfunding platforms, and other sources.

Marketing Strategy

To promote our restaurant delivery service we plan to use a combination of digital marketing tactics such as SEO optimization, paid search campaigns, email marketing, content marketing, influencer marketing, and social media advertising.

Risk Management

To manage risk when running a restaurant delivery business we plan to implement effective policies and procedures such as driver background checks, vehicle maintenance logs, food safety protocols for accepting orders from partner restaurants, insurance coverage for accidents or mishaps on the job site etc.,

Customer Service Satisfaction

To ensure customer satisfaction is maintained with our restaurant delivery service we plan to offer competitive prices for meals delivered as well as efficient customer service through live chat support or phone calls during working hours. We also plan to implement an online feedback system which customers can use to provide feedback on their experience with us so we can make necessary improvements if needed.
Assuming you have followed all of the steps in this guide, you should now have a pretty good understanding of how to start a restaurant delivery service business. You should have a clear idea of the process, what is required, and what you need to do to get started. Take some time to think about your specific situation and determine if starting a restaurant delivery service business is right for you. If so, then start taking the necessary steps to make your dream a reality. Good luck!

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content


Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Restaurant Delivery Service business plan, fill out the form below and download our Restaurant Delivery Service business plan template. The template is a word document that can be edited to include information about your Restaurant Delivery Service business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning


With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.


Want a Bespoke Business Plan for your Restaurant Delivery Service Business?

Our Expertise


Avvale Consulting has extensive experience working with companies in many sectors including the Restaurant Delivery Service industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your Restaurant Delivery Service business. We would also be happy to create a bespoke Restaurant Delivery Service business plan for your Restaurant Delivery Service business including a 5-year financial forecast to ensure the success of your Restaurant Delivery Service business and raise capital from investors to start your Restaurant Delivery Service business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.


About Us


Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.

Restaurant Delivery Service Business Plan Template FAQs

What is a business plan for a/an Restaurant Delivery Service business?

A business plan for a Restaurant Delivery Service business is a document that outlines the objectives, strategies, and financial forecasts of the venture. It serves as a roadmap for the company, detailing how it will operate and achieve its goals. The plan typically includes sections on the market analysis, target audience, competition, marketing strategies, operational procedures, staffing requirements, and financial projections. It is an essential tool for attracting investors, securing loans, and guiding the growth and development of the business.

How to customize the business plan template for a Restaurant Delivery Service business?

To customize the business plan template for a Restaurant Delivery Service business, follow these steps:

1. Review the template: Start by carefully reading through the entire business plan template to understand its structure and content.

2. Update the executive summary: Begin by revising the executive summary to provide an overview of your Restaurant Delivery Service business. Customize it to include details about your target market, unique value proposition, and financial projections.

3. Modify the company description: Edit the company description section to provide a clear and concise overview of your Restaurant Delivery Service business. Include information about your mission, vision, and the problem you aim to solve.

4. Adapt the market analysis: Conduct thorough market research to gather data about the restaurant delivery industry. Customize the market analysis section with relevant statistics, trends, and insights specific to your target market.

5. Customize the service offerings: Tailor the section discussing your service offerings to fit your Restaurant Delivery Service business. Provide details about the types of cuisine you will deliver, delivery methods, and any unique features that set your service apart.

6. Revise the marketing and sales strategy: Modify the marketing and sales strategy section to reflect your specific target audience and promotional tactics. Include details about how you will attract and retain customers, such as through online advertising, partnering with local restaurants, or offering loyalty programs.

7. Adjust the operational plan: Customize the operational plan section to outline the logistical aspects of your Restaurant Delivery Service business. Include information about delivery routes, order management systems, staffing

What financial information should be included in a Restaurant Delivery Service business plan?

In a Restaurant Delivery Service business plan, the following financial information should be included:

1. Startup Costs: This includes the initial expenses required to launch the business, such as permits and licenses, lease or purchase of delivery vehicles, kitchen equipment, marketing expenses, and legal fees.

2. Sales Forecast: This section outlines the projected revenue for the business over a specific period. It should include details of the average number of orders, average order value, and the total sales expected on a monthly or yearly basis.

3. Cost of Goods Sold (COGS): This includes the direct costs associated with the production and delivery of food, including ingredients, packaging materials, and any third-party delivery fees. It should be calculated as a percentage of total sales.

4. Operating Expenses: This section includes all the ongoing costs of running the business, such as rent, utilities, employee wages, insurance, marketing expenses, software subscriptions, and maintenance costs. It is essential to break down these expenses on a monthly or yearly basis.

5. Profit and Loss Statement (Income Statement): This financial statement summarizes the revenue, expenses, and net profit or loss for a specific period. It provides an overview of the business's financial performance and helps assess its profitability.

6. Cash Flow Statement: This statement tracks the inflow and outflow of cash in the business. It includes details of cash receipts from sales, cash payments to suppliers, employees, and other expenses. It helps assess the business's ability to generate and manage cash

Are there industry-specific considerations in the Restaurant Delivery Service business plan template?

Yes, there are industry-specific considerations included in the Restaurant Delivery Service business plan template. The template will cover topics such as market analysis, target market and customer segmentation, competitive analysis, marketing and promotional strategies, operations and logistics, financial projections, and risk assessment. It will also provide guidance on how to address common challenges and opportunities specific to the restaurant delivery service industry, such as managing food quality and freshness during delivery, optimizing delivery routes for efficiency, and leveraging technology for order management and tracking.

How to conduct market research for a Restaurant Delivery Service business plan?

To conduct market research for a Restaurant Delivery Service business plan, follow these steps:

1. Define your target market: Determine the demographic and psychographic characteristics of your potential customers, such as age, income level, interests, and preferences. Consider factors like location, culture, and lifestyle that could influence their dining habits and preferences.

2. Analyze the competition: Identify existing restaurants and delivery services in your area that offer similar services. Evaluate their strengths, weaknesses, pricing strategies, delivery areas, customer reviews, and overall market share. This analysis will help you identify opportunities and differentiate your business from the competition.

3. Conduct surveys and interviews: Engage with potential customers to gather valuable feedback on their dining preferences, expectations, and willingness to use a delivery service. Use online surveys, focus groups, or interviews to collect data on their preferences, delivery preferences, price sensitivity, and any unmet needs.

4. Analyze market trends: Stay informed about the latest trends in the restaurant and delivery service industry. Research consumer behavior, eating habits, and preferences to identify emerging trends that you can leverage in your business plan. Stay updated on technological advancements that could impact the delivery service industry.

5. Gather data on the local market: Obtain data on the local restaurant industry, including the number of restaurants, average revenue, and growth rate. Explore the demand for delivery services in your area by researching the number of households, population density, and average income level. This data will help you estimate the market potential and

What are the common challenges when creating a business plan for a Restaurant Delivery Service business?

When creating a business plan for a Restaurant Delivery Service business, there are several common challenges that entrepreneurs often encounter. Here are some of the most common challenges:

1. Identifying the target market: Understanding the specific target market for your restaurant delivery service can be challenging. You need to conduct thorough market research to identify your potential customers, their preferences, and their behavior when it comes to food delivery.

2. Competition analysis: Conducting a detailed analysis of the competition in your area can be time-consuming and challenging. You need to identify other delivery services, including both local and national players, and analyze their strengths, weaknesses, pricing strategies, and delivery areas.

3. Financial projections: Creating accurate financial projections can be challenging, especially if you are new to the restaurant industry or have limited financial knowledge. You need to estimate your startup costs, operational expenses, and revenue projections based on factors like average order size, delivery fees, and customer acquisition costs.

4. Operations and logistics: Developing an efficient and cost-effective delivery system can be challenging, especially if you plan to handle the delivery in-house rather than outsourcing it to third-party services. You need to consider factors like delivery routes, vehicle maintenance, driver training, and managing peak delivery hours.

5. Marketing and customer acquisition: Promoting your restaurant delivery service and acquiring customers can be challenging, especially in a competitive market. You need to develop a marketing strategy that includes online and offline channels, social media campaigns, partnerships with local restaurants, and customer loyalty programs

How often should I update my Restaurant Delivery Service business plan?

You should update your Restaurant Delivery Service business plan at least once a year, or whenever there are significant changes in your business or industry. It is important to keep your business plan current and relevant to reflect any updates in your goals, strategies, financial projections, or market conditions. Regularly reviewing and updating your business plan ensures that you stay on track and adapt to any changes in the market or your business environment.

Can I use the business plan template for seeking funding for a Restaurant Delivery Service business?

Yes, absolutely! Our business plan template for a Restaurant Delivery Service is specifically designed to help you seek funding for your business. The template includes all the necessary sections and information that investors or lenders typically look for when evaluating a business for funding. It covers important aspects such as a detailed market analysis, financial projections, marketing strategies, operational plans, and more. By using our template, you will have a comprehensive and professional business plan that can greatly enhance your chances of securing funding for your Restaurant Delivery Service.

What legal considerations are there in a Restaurant Delivery Service business plan?

There are several legal considerations to keep in mind when creating a Restaurant Delivery Service business plan:

1. Business Structure: You will need to determine the legal structure of your business, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has different legal implications and requirements, so it is important to consult with a lawyer or accountant to determine which option is most suitable for your business.

2. Licenses and Permits: Depending on your location, you may need to obtain various licenses and permits to operate a Restaurant Delivery Service. This may include a business license, food handling permit, health department permits, and any specific permits required for delivery services. Research and comply with all local, state, and federal regulations.

3. Employment Laws: If you plan to hire employees or independent contractors, be aware of the employment laws that apply to your business. This includes minimum wage requirements, overtime pay, worker's compensation, and any other employment-related laws and regulations. Ensure that you understand and comply with these laws to avoid legal issues.

4. Food Safety Regulations: As a Restaurant Delivery Service, you will be handling and delivering food to customers. It is crucial to comply with food safety regulations to ensure the health and safety of your customers. Familiarize yourself with local health department regulations, obtain necessary permits, and implement proper food handling practices.

5. Contracts and Agreements: Your business plan should include provisions for contracts and agreements with various stakeholders, such as restaurants