Food Delivery Business in Nigeria

Business Overview

Food delivery is a  very popular and attractive business to start and run. It is a kind of business where opportunities are still available in market and still increasing.

If you’re a budding entrepreneur looking for what business to start, you could also consider a food delivery venture as a meal ticket.

What is Food Delivery?

Food delivery is a service in which a restaurant, store, or independent food delivery company delivers food to a customer. Basically, the process of ordering food from a local restaurant or food cooperative is through their telephones, website or customized mobile app.

The delivered items can include African dishes, Continental dishes, drinks, desserts, or snacks and are typically delivered in boxes, food containers  or bags. The delivery person will normally drive acar, but in bigger cities where homes and restaurants are closer together, they may use bikes or motorized scooters.

Customers can, depending on the delivery company, choose to pay online or in person, with cash or card. A flat rate delivery fee is often charged with what the customer has bought. Tips are often customary for food delivery service.

Types of Food Delivery Services

1.      Independent: You are in partnership (MOU) with different restaurants and provide food delivery services independent of their operations.

2.      Self catering: This involves only your restaurant and menu, i.e. lunch time deliveries, seminar and corporate parties order.

3.      Liaison with a restaurant: You operate your delivery services exclusively with a particular restaurant.

How Profitable is Food Delivery Business in Nigeria

More than half of the population of people in the nation are made up of working class people and also with the heavy traffic situation especially in places like Lagos and Onitsha, residents barely have time for themselves. Most working class women can’t afford to spend out of their time to cook food during the week and so this makes food delivery service a very profitable venture for smart entrepreneur.

People  often don’t have time to go out to get something to eat especially at raining season even from their work place too. averagely you can make up to two hundred thousand Naira profit monthly.

Is there a Market Demand for Food Delivery  Business in Nigeria ?  What is the Competition and Opportunities Like

Food Business in Nigeria is not only a profitable venture but it cannot be affected by economic hard times. This is because regardless of the state of a person’s pocket; buoyant or broke, he must eat. Like the hair business, food business is an “all season “business. People must get hungry and eat 24/7, all year round!

In Lagos, a state in Nigeria which has an average population of over 20 million residents, most working class people rush out as early as 4:00 a.m in order to beat traffic on their way to work and will not come back until late at night around 10:00 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 marketbut arming your self with the right plan and attitude will give you’re a smoother running of the venture.

How to start a 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.

1.      Source for Start up 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 Start up capital.

2.      Choose Location :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.

3.      Create a business/brand name and logo: the leading food delivery companies in Nigeria today have a brand and logo. In like manner, it is necessary that you have a nice business name and logo.

4.      Register your Business Name: The next step is to register your business with the Corporate Affairs Commission (CAC) to avoid government sanction and harassment.

5.      Get License: 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 to those people who are into this type of business, in short you can get your license if you are starting big from National Agency for Food And Drug Administration and Control under the federal ministry of health.

6.      Set Your Price  and Payment Method:When fixing your price, make sure your charges are affordable .There are different options for the payment method, This can be Pay On Delivery, Point Of Sales, and Webpay.

7.      Choose a Transportation Model: They include; bicycles, motor cycles and mini vans for long distance.

Management

This covers staffing and advisers for Food Delivery  Business  in Nigeria

Staffing: You must have experienced and skilled employees for a smooth running operation. Broadly, you have to hire employees for preparing food and for delivery.

Advisers: 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 companies receptionists, and casual staffs of the organization you are intending to deliver to.

Marketing

Let us now consider how to market and boost the Profitability and sustainability of Food Delivery Business in Nigeria.

1.      Advertisement Strategies:-  Below are some of the available options you might use:-

ü  The best way to promote your new business is by client satisfactory  publicity. Get your clients to refer their friends to you.

ü   You can also advertise by sharing leaflets, flyers and business cards.

ü  You must promote your business both in the offline and online. For an office food delivery business, it is best to meet your customers personally.

ü   Additionally, outdoor advertising like billboards are the effective options for advertising this business. Make your business available on the local directories. You can also promote the business on social media.

ü  You can also brand your transport mode with your brand name, logo and contact details.

2.      Profitability/Sustainability Tips for Food Delivery  Business in Nigeria:-

You need to always make your customerhappy by providing quick service with smiles this will make them feel safe to eat the meals you have packaged for them, Listen to your customers’ complain or requests because it will help you serve them better.

Furthermore, Avoid lengthy delivery time, Employ efficient delivery men, and get a motor cycle for densely populated traffic.

 When it comes to wrong orders, Have an accurate order taking system and double-check via confirmations for optimization before alerting restaurants.

In the event of cancellations,  If it occurs from your end, offer an apology, 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