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Startups

To Get Funding to Grow Food Ordering Business

written by Harshita Khangarot | Mar 23, 2020
Funding for the food ordering business

Digital technology is making an impact on all the industries in one way or the other. Digital dependency is doing more good than bad to help the business grow. Not only it is making management convenient for the owners, but the clients as well are enjoying the services with their smart pads.

This trend is now seen in the food industry, as well. With restaurants tieing up with brands for the logistics, the need for food ordering mobile app development is on the rise.

BR Softech providing software & IT solutions and with many satisfied clients will help you with your food ordering app development.

Read More : Ways to Resolve the Food Delivery Industry Problems

To reach out to the people

For any business to grow, the company must be famous. For this, the services should be consumer-oriented and also fast-paced provisions to address any complaints or suggestions should exist. The reputation of a business depends on the quality of the services. 

Same applies to the food delivering industry as well. For the food ordering business to grow, some key aspects should always be kept in mind before executing the business plan and initiating online food ordering app development.

  • Quality of food- The quality of food should always be on the topmost priority. Compromising on the quality of food that is delivered will have ill-effects on the consumer’s health. It might also get you and the business into trouble in the long run, further damaging the brand image and impacting your market. 

     

  • Quality of services- Not just the food, but also the quality of the services that you provide should be maintained. Apart from preparing the food fresh, it should reach the customer within a stipulated time. Also, the condition of the delivered package should be intact.
  • Reviews and Ratings- Another aspect that needs to be covered are the reviews and ratings. It not only lets you know the opinions of the customers about your services but also helps the customers to know about the quality and services of your food delivery company in the market which influences and persuades other customers to opt for your app by seeing the reviews and ratings.

Keeping these points handy, while the process of the food ordering mobile app development is on the run will help achieve the goals set by you for your startup.

Approaching Food Influencers

Food influencers are the expert foodies having a long list of followers, jumping restaurant to restaurant and influencing millions of people by updating about the famous restaurants and the delicious foods that they offer. After initiating the process of online food delivery app development, the food influencers can further help you in the promotions of the application and the services that you offer.

Approaching the right food influencers to promote your business can prove to be a good strategy in expanding your business. After you are all set to launch your product, they can help you increase your market by influencing their followers and luring them with attractive offers and combos. 

Limited but quality cuisines

The cuisines that your offers could be compromised on the quantity but failing to maintain the quality can lend the business into trouble. People these days are getting health conscious and have become very selective when it is about food choices. Meeting their needs and maintaining quality and hygiene is mandatory for the food business to grow.

Types of food delivery models

There are many food delivery options available in the market. You can approach the food delivery app development company to assist you with the type of model best suited for your business.

  • Aggregator- In this model, a third party is responsible for keeping the customers and the restaurant connected. Aggregator acts as the mediator between the two. When an order is placed via an aggregator, it is updated to the restaurant, and the customer is informed the same. However, the aggregator is not responsible for delivering the food but the restaurant itself. 

    Read More: Key Features for On-Demand Food Ordering App and how does Food Delivery App Works?

  • Food delivery platform offering logistics- Startups can opt for this kind of delivery system. It is cost-effective for small and medium scale startups. In this system, the aggregator is responsible for placing the order and informing the restaurant to pick up the parcel and deliver it to the customer. This saves the cost of the restaurant owner of appointing and maintaining a transport system. 

Funding for the food ordering business

Funding for the food ordering business

For a food delivering business, funding is required for the food delivery app development

Funding can be acquired in various ways. It depends on the reach and convenience of the investor to initiate with the right method to give a boost to the idea of funding the food ordering business.

  • Savings- This type of business funding is considered the best as you are the boss of your own money and does not carry any liability to repay the money invested in your company to anyone. Also, the profit earned belongs to you and nothing is deducted in the whole process. 
  • Family, friends and acquaintances- This type of funding provides several benefits to the owner. It not only helps you in getting the funds more quickly but the repayment options are also flexible and with minimal or no interest on the principal amount. 
  • Crowdfunding- This type of funding is crowd oriented rather than acquiring the funds from an individual or any financial institution. In this method, the entrepreneur needs to reach out to family, friends and knowns via social media as the platform. This type of funding does not burden the investors as only a small amount is collected from many individuals.food delivery app

     

  • Angel Investors- This type of funding involves either an individual (capable of investing) or a group of investors that invests in the venture in return for a share of the equity. 
  • Venture Capital- This involves business-minded capitalists who invest after estimating and visualizing the potential of the food ordering business. 
  • Loans from financial institutions- This type of funding involves government and private banks. After screening the profile of the applicant and the potential of the business idea, these financial institutions provide loans at specific interests (simple or compound) on the principal amount.
  • SBA Loans- Small business administration loans are acquired by the government administration. Government assists small startups to give them wings to go solo and establish their idea making profits which will benefit the owner as well as the government.

With the many options available in the marketing suiting your needs and profile, you can opt for the right funding option to initiate your on-demand food delivery app development.

The market for food delivering business

The market for food delivering business

The idea sparks from the Naples pizza chef delivering the three pizzas to the ruler of Italy named King Umberto 1 and the queen Margherita of Savoy in the year 1889. The delivery of food rarely imagined to be in reach of ordinary people is now a common thing that can be seen on the roads with the delivery boys in a rush to deliver the food hot and sizzling. 

Also, it has been noticed that most of the customers (67%) opting for these delivery apps are the ones that have already experienced the services and are satisfied. Be it students, working-class, or homemakers, everyone is familiar with these food delivery apps and are ordering food with few taps and clicks at the comfort of their home. (SOURCE

Conclusion

With the rising trend of online food ordering app development, you can start your own business. BR Softech with a team of experts will provide you with the right platform to start the business and earn high revenues by tieing up with the leading restaurants and delivering outstanding customer experience. Choosing the right funding option is the first step followed by knocking on the door of the food delivery app development company to develop the application for smooth user experience.

Harshita Khangarot

A skilled content writer and a lifelong learner with an ongoing curiosity to learn more, I specialize in technical, banking, hospitality, and poetry content writing; while taking every opportunity as a responsibility and believe in creativity that is beneficial for society.

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