Private LLCBusiness Plan for Online Food Ordering Services Controlled Document ............................................................................................................................................................ 11 Revenue Plan........................... 5 Market Analysis................................................ 3 Business Overview......... 3 The Opportunity.....................7 Strategy.............................................................................................................................................. 4 Industry...... 8 Pricing Strategy..................................................................................................................................... 8 Sale Tactics.............................................................................................................................................................................................................................................................................. 9 Competition.................................Business Plan for Online Food Ordering Services Business Plan for Online Food Ordering Services Contents Executive Summary........................................................................ 11 Management............................ 4 Services........................... 6 Online food ordering market size............................................................................................................................................................................................. 12 Current Investors............................................................. 10 Exit Strategy............................................................................................................... 8 Marketing Strategy................................................................ 11 Financial Analysis............................................................................................................................................................ 8 Foodjeep USP................................................................................................................................................................................. 12 FOODJEEP – Online Food Ordering e-Shop Quality time Rejoice cuisine 2 ............................................................... 5 billion in 2013. It is rather enhancing the business prospect of all food delivery business services.Business Plan for Online Food Ordering Services www. Business Overview Foodjeep is an online food ordering system or online restaurant aggregator that enables users to order food from various restaurants that are available on the Foodjeep website and mobile platform. Foodpanda had approximately 100000 orders which was roughly 10% of Indian online food ordering market size.2. logistics and convenience. campus & university food delivery market Office food delivery market In online food ordering services businesses differentiate itself from other competitor based on their USP. with increasing disposable incomes clubbed with work and hectic schedules. The food delivery segment has seen a surge in demand over the years in tandem with the change in consumers food habits and lifestyles trends. Online food ordering services has potential client base from following market segment: Home delivery food market Institution. In 2012. Start up investment in Foodjeep will be Rs. 3 . At present market. With its strategic plan and balances Foodjeep is expected to breakeven within first year. The online food ordering services work in supplementary to the food delivery business ecosystem. a few top market player put together could only cater to 6000+ restaurant across 20+ cities. The food services industry expected to grow at CAGR of 15% to be pegged at US$21. Present investor in Foodjeep – online food ordering services are founding members.5 billion in 2018.97million.foodjeep. Foodjeep outlined its own USP.com Executive Summary Online food ordering services has been catching up in India. It is also helping user overcome constraints in terms of time. The estimated number of restaurants all over India that carry out home deliveries is around 50000. The system is web based and has mobile web integration it allows users to order their favorite foods from their favorite restaurant and then wait for a confirmation as for food get delivered to their address. As per recent Industry report Indian food services industry stand at US$10. relationship and assurances. The delivery part is handled by restaurant owner. Improvement in technology. the restaurant gives a pre-decided commission. ordering food by calling is inefficient.Business Plan for Online Food Ordering Services The Opportunity The food delivery segment has been seen a surge in demand over the years in tandem with the change in consumers food habits and lifestyles trends. For every order placed through the website. with increasing disposable incomes clubbed with work and hectic schedules. and convenient means of ordering food from their office or residence. Restaurants can also get featured on the website homepage for publicity. costly and has no order accuracy. Some of the salient points of the business model are: Online food ordering system partner with local restaurants that offer home/ office deliver. first point. The Foodjeep online food ordering solution will create a win-win ecosystem for all stake holders. and pay for it online or opt for COD (cash on delivery). as consumer now have more accurate. Second point is that the increasing congestion levels and longer waiting times at many a restaurants having swayed a section of consumer into going for the convenience of ordering – in rather than eating out. 4 . and prepare a database. place order with their chosen restaurant. Online food ordering platforms follow a simple business model. Last but not the least important factors is that people like to order in food for the sake of convenience and avoid hassles of travelling to restaurant. traffic jams and parking. Thirdly. efficient. access to internet and mobile communication scaled up the demand. These systems act as a common platform between customers and restaurants. User search for restaurants. Industry Online food ordering web site service is very recent in India. Forth demand driver for these formats is the growth of multinational corporations in commercial hubs across cities. leading to a higher number of expatriate office goers staying away from their hometowns preferring home delivery instead of dine-in and cooking. The estimated number of restaurant 3 in India that carry out home deliveries is around 50000. The industry segment is such that it creates a collaborative complimentary ecosystem for all the stake holders.html 5 . 1 http://www.Business Plan for Online Food Ordering Services The industry segment is categorized in food services sectors.business-standard. The market opportunity is open to new entrants with least barrier to entry.com/article/companies/vcs-grab-a-bite-of-online-food-servicesmarket-113102300840_1. The clients [online food booking service users] get the benefit of choosing their best restaurant and food in their convenience or comfort. Some of the factors that are probably affecting the market growth are: Operational Logistics Services The industry segment is very new with huge growth potential. desserts etc. Restaurant registered with Foodjeep will have: Its address and entire menu online. Services Online food ordering services – where restaurant across different cities sign up our premium services which become active only after post sale or order booking. Technologies are readily available in the market. There are huge opportunities to provide services in these sectors.in/internet/india-s-online-food-delivery-segment-still-in-nascent-stage-justeat-ceo-riteshdwivedy-19776. As per technopak estimate Indian food services industry1 stand at US$10. This online food ordering system has two-fold opportunity in the organized food services market. Company can start from a concept level to operation level or can directly move on to operational with third party solution. with items listed under separate categories such as gravies. signifying that a huge untapped market potential are there in this sector. The food services industry expected to grow at CAGR of 15% to be pegged at US$21.digit. Even a existing online food ordering plat form can also be seen as a collaborator at present market condition.technopak.3% which account for $2billon Indian food services market is structured2.5 billion in 2013. The first opportunity is for the brick – and – mortar food services player who intend to tap into delivery market to significantly increase revenue.5 billion in 2018. The segment is totally unstructured.com/ [ QSR_Market_in_India.pdf] 2 http://www. appetizers. Only 14.html 3 http://www. The second opportunity is for the take away / QSR restaurant to focus on delivery market as a sole channel for generating revenue. Filters like location. Prospective Customer Base FoodPan % of Location da Average Total Subscriber 3500+ Mumbai 238 6% Delhi 149 3% Bangalore 152 6% Hyderabad 159 13% Ahmadabad 115 31% Chennai 79 5% Kolkata 156 16% Surat 11 0% Pune 159 11% Jaipur 149 14% Nagpur 0 0% Indore 0 0% Thane 43 6% Bhopal 0 0% 6 Juste at % of Average Zoma to Trip Advisor Avera ge NA 156 180 176 18 17 112 8 14 158 10 7 9 0 7 4% 4% 7% 2% 5% 7% 1% 0% 11% 1% 5% 4% 0% 0% 1958 5715 1713 864 746 989 653 0 946 587 0 480 1260 0 5766 3597 3152 1501 0 2145 1345 0 1872 1520 307 0 231 0 3862 4656 2433 1183 373 1567 999 0 1409 1054 154 240 746 0 . cuisine etc are also present wherein the user can just enter his location or the cuisine he wishes to have and the restaurants available under the respective headings will appear. The top two market players put together only cater to 6000+ restaurant across 20+ cities.5 billion today and is growing at a very steady pace. making it customized according to the specific user’s preferences. The estimated number of restaurants all over India that carry out home deliveries is around 50000. Both the options – cash on delivery and online payment – are available for a majority of the restaurants. Also.Business Plan for Online Food Ordering Services The user can simply select the restaurant of his choice and add the required items to the cart to place his order. These features coupled with a very user-friendly app interface make ordering food online very simple on the go. There are only few market player in providing services for online food ordering services. anytime and anywhere. This shows an immense untapped market potential lying in store for us in this business. which can be tap amidst changing mindset of foodies from ordering food over phone to online ordering. Market Analysis The Indian food delivery market is pegged at $10. The food delivery market is expected to grow at CAGR of 12%. an instant order tracking system is available through which the user can track the status of his order using the unique order reference ID. Chennai and Hyderabad are very upbeat at the present market condition for online food ordering services market.5 billion in 2013. Online food ordering services has potential client base from following market segment: Home delivery food market Institution.technopak. In 2012. The market has a huge potential and showed having very high growth rate at researched timeline. In tier I cities there are Pune.Total Subscriber 1410 8% 872 5% 1591 1 21436 18674 As per the expert review national capital region. Online food ordering market size The entire food delivery market size is US$10.Business Plan for Online Food Ordering Services Sub . This estimate revel there is huge gap even this three important market. 4 http://www.pdf] . Mumbai and Bangalore covers more than 60% of business revenue for online food ordering services provider. As per our research the present online food ordering service provider only able to meet the demands on these three location as follows: National capital region or Delhi – 4% plus Mumbai – 6% plus Bangalore – 7% plus Technopak data4 showed that 78% of the food services outlets in Mumbai have delivery options. Foodpanda had approximately 100000 orders which was roughly 10% of Indian online food ordering market size. It is 61% in the Delhi National Capital Region and 48% in Bangalore. campus & university food delivery market Office food delivery market The online food ordering platform has potential market growth rate of CAGR 12%.com/ 7 [ pg-80-81-NRAI-Delivery-Format. Based on this data it can be estimated that Indian online food ordering market size is approximately one million orders per annum. cuisine. Sale Tactics A comprehensive core process of selection of restaurant will be done based on local search volumes. food.Business Plan for Online Food Ordering Services Strategy Foodjeep will allow Restaurants to join our site free of charge and hope to enlist over 2000+ Restaurants with in the first years of operation. restaurant details and menus Operation team local to city – to collaborate with the restaurant to make it updated and make it live Foodjeep will also apply some of the traditional process of sale like: 8 . Foodjeep will also carry out promotions to institutions and companies. The core value of our USP will be H2H [human – to – human] services or attention. type of hard ware to use in ordering. Online promotion of subscribing restaurant through our platform Pricing Strategy There will be no charge in signing up for our online food ordering services. Delivery outfits and social sites. delivery or take away. popularity and several other factors. on delivery payment. We will position Foodjeep in collaboration with the Restaurant owner to offer discounts on online order and coupons to regular customers. order automation. Marketing Strategy Our Marketing strategy will be to advertise to consumers through subscribing restaurants. payment mood. address. You – Foodjeep will listen and attend to your need immediately. Fodjeep will collaborate with restaurant owners to work on commission basis on a pre-agreed terms for all successful order through our services. as we are in business of human needs. cross browser support. Foodjeep USP Foodjeep will differentiate itself from other market player by: Freedom – in selection of restaurant. Sale and marketing team local to city – for signing up. online payment. Ease – a fast and convenient option with mobile apps. mcdonald. KFC etc who take online order for delivery.Business Plan for Online Food Ordering Services Advertizing and promotions Trade show Trade magazine and advertisement Direct mailing Internet Others Foodjeep Marketing Strategy Competition This is a new growing market business segment. Following are the statistics of two major player of online food ordering service provider in India: Two Prominent Competitor Matrix of Foodjeep 9 . Foodjepp will consider them as the actual competitor. So in real term the business model exist in its success of conversion of the conventional and long established method of ordering food over the phone from restaurants. Thus. As far as other restaurant including pizza hut. The business model evolves from the idea that clients order food over phone to their local restaurant or to restaurant that have delivery logistic in place. There will be huge opportunity for growth for all market players on short terms. At present market condition the other online food ordering service provider will be like our complimentary services. our services will be supplementary services to them as long as it increases their gross earning. Delhi. Nagpur.5milion 10 . Pune. Indore. 0. Bhopal Proposed Commissioned Rate: 10 % will be charged on all successful online food ordered through our services. Surat. Setup Cost: Rs. Kolkata. Thane .Business Plan for Online Food Ordering Services SWOT Mind map Drawing of Foodjeep Exit Strategy Exit strategy will be based on equity sale out. Bangalore. Ahmadabad. Hyderabad. Financial Analysis Foodjeep Roll Out Plan Number of cities: 14 Name of cities: Mumbai. Jaipur. Chennai. 450 / per order Minimum number of order per location: 100 Commission rate: 10% of successful sale order Minimum number of restaurant to sign up: 200 per location Financial Projection – In Excel Model annexure Management Our team comprises of: Marketing Operation Technology Online Marketing Sale Current Investors Present investor in Foodjeep – online food ordering services are founding members. taste and interest for the target market. Hyderabad and Chennai where the market is a bit upbeat. 6 Crores in 2012-13 Average order size Rs. Foodpanda operation in 2012 has: Total number of order in First Year 100. We have put together start up seed capital of Rs.2.15million Renewal Cost: Rs.Business Plan for Online Food Ordering Services Operation Cost: Rs. Our interest will be in fulfilling the local selection.0.97million.22million Advertizing & Marketing Rs. 11 .2million Revenue Plan National capital region.0.1million Man Power Cost: Rs. Mumbai and Bangalore will be core target market with stress on Pune.000 Revenue Was Rs.0.600 per order Restaurant average minimum order size for delivery: Rs.
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