Feedback for a new business idea

**GonnaBthere** · 02-18-2008 01:20 PM

I've thought about this business a few years ago and it's re-entered my brain. I'm not sure if it's been done before, but I don't know of any in my area. Let me know any thoughts, critizm, potential problems or questions you might have.

It's a food delivery business. I'll call it "Food 2 You", just to give it a name. You call or go online to place your order. You can order from any restaurant in the area and we go and pick it up then deliver it. It can be anything from McDonald's, Chili's, Starbucks...whatever is in the area. If you go on the Food 2 You website, you can click on the place you want to order from and get the menu off of it. Then you call us with the order. We place it, pick it up, and deliver it.

The area would be the one where the business is located. So it would start off as one location and serve only that town/city and perhaps a surrounding town or two. I know it puts a stop on how many customers I will get, but if it catches on, then I can expand and start to open other branches. With gas prices, I would need to limit the amount of driving to be done in order to make money.

As far as charging, I'm not sure what would be appropiate. I was thinking $5 per each $20 of the order.

Could there be legal issues if anyone claimed to get sick or food poisioning from a delivery. How could I protect myself and the company? Maybe a clause on the website that releases liability from that order? Or a form that's signed when you drop off the food?

I appreciate anything you might have to say about this. Please let me know what you think good or bad. Thanks!

**Ahern & Brucker** · 02-18-2008 02:00 PM

I don't know about being sued for bad food but their was a guy in Boise Id who had an arrangement with several of the higher end restaurants to do just what you are talking about...

The restaurants liked it because they sold a lot more food at less cost and the yuppie customers liked it because they could order a nice meal and have it delivered...

both restaurant and customer paying for the sevice.

5 or 20 bucks sounds kind of cheap but it may be right for your area? I doubt Mcdonalds would pay you to deliver and your profits would be a lot worse if the restaurant isn't paying as well... plus, you don't really want your car smelling like a big mac.

I'd stick with at least restaurants that people with the money to pay for delivery would want to eat.

the on-line menu sounds like a good idea but you might also need some phone support.

anyway, I live in the MTS and we can't even get UPS to deliver out here so You have One customer at least if you start this in Oregon!

**GonnaBthere** · 02-18-2008 02:00 PM

Quick update:

I should of googled this before I posted a new thread, but I didn't. That shows to do research first..hahaha. Anyways, it turns out there are a few companies that are doing this. But none are in my area. The closest one is about 20 minutes from my town.

As far as charging, they all seem to charge $4.99 plus 5% of the cost of food. Also, there is a $15 minimum order. I'd like to change that miminum order, though, so that even if you want a value meal from McDonalds or Burger King you can get one.

I would still like to get everybodies opinion on what they think.

**entrepresooner** · 02-18-2008 02:09 PM

Seems like the people who would be wanting to order a cheap meal, such as McD's, Taco Bell or whatever won't want to pay price for delivery. I think you would be better of targeting nicer restaurants, instead of fast food.

**BusinessAdviser** · 02-18-2008 02:20 PM

Originally Posted by entrepresooner

Seems like the people who would be wanting to order a cheap meal, such as McD's, Taco Bell or whatever won't want to pay price for delivery. I think you would be better of targeting nicer restaurants, instead of fast food.

After living in two different cities with this service, you'd be surprised what people would order...unless you already know how lazy Americans are.

**GonnaBthere** · 02-18-2008 02:21 PM

Originally Posted by entrepresooner

Seems like the people who would be wanting to order a cheap meal, such as McD's, Taco Bell or whatever won't want to pay price for delivery. I think you would be better of targeting nicer restaurants, instead of fast food.

Yeah, I figured that too. But it wouldn't hurt to have those restaurants on the list. Plus, not everyone who eats there are cheap people. I know that my brothers and I alway bet on stuff and the loser has to go to the store or go pick up fast food. And sometimes I'm in the mood for a burger and just don't want to leave the house to pick it up and would gladly pay someone 5 bucks to go get it.

But I do think there would be more money to be made from the nicer restaurants. Thanks for your reply.

**GonnaBthere** · 02-18-2008 02:25 PM

Originally Posted by jmenq2

After living in two different cities with this service, you'd be surprised what people would order...unless you already know how lazy Americans are.

Did you ever use these services or anyone you know? What did you think about it? I've read a lot of your posts on here and I respect your opinion. I'd like to hear what you have to say about this.

**BusinessAdviser** · 02-18-2008 02:37 PM

Originally Posted by GonnaBthere

Did you ever use these services or anyone you know? What did you think about it? I've read a lot of your posts on here and I respect your opinion. I'd like to hear what you have to say about this.

I never used these services because (1) I am a typical "penny pincher," and (2) I try to eat healthy and find a difficult time finding many healthy options when dining out.

However, the companies that offered these services were very successful.

One key is to plan it all out carefully so that you are able to take advantage of economies of scale, if you will; planning delivery routes and times to minimize total travel distance. This will allow you to minimize your overhead, which is a must when you have low profit margins.

Another key is marketing. You must be efficient; get the most bang for each and every buck spent marketing. In this day and age, everyone seems to run to the internet first when marketing. However, I think it all depends on the scope of your business. If your target audience is nation-, region-, or even state-wide, the internet is often a great way to go. However, in your case, where your target audience is local, you need to get your hands dirty. Drop a flyer off at each and every house in town, advertise in a local publication, get a writeup in your local paper. (I prefer the first of these three options.) I would avoid television and radio ads in favor of print media - print media will be kept for when it's needed, but TV and radio ads cannot.

Hope this helps a bit.

**Gaulkin** · 02-18-2008 05:04 PM

Maybe charge an amount per mile sort of like a taxi driver.

**BusinessAdviser** · 02-18-2008 05:49 PM

Originally Posted by Gaulkin

Maybe charge an amount per mile sort of like a taxi driver.

I disagree. KISS ("Keep It Simple, Stupid"). Think about it from your customer's point of view. They want to know what to expect prior to placing their order.

**Gaulkin** · 02-18-2008 05:54 PM

YEAH! makes sense to charge the same amount whether you drive 1 or 10 miles!

**GhostFac3** · 02-18-2008 05:58 PM

I just got out of this type of business and it can be tricky. I am from a college town and we figured that it would be a good experience to start with and be able to grow it with our peers.

The amount it costs overall for you to make a profit with McD and Burger King is not worth it. Plus with fast food restaurants, you may (like we did a lot) run into a ton of issues in terms of consistency with time and quality (I'm sure everyone has had to pull up once or twice).

Another thing I would say, that especially with this, If you are doing it with a partner, seriously sit down and think about it, because with this, you are constantly going to be on the go and if you partner shows an inability to either lead or be led, you will hit hard times faster than a plane to a mountain.

I support your idea, but make sure you do a lot of research, and when i say a lot I mean A LOT.

If you have any questions, feel free to message me on here, Aim (Chibi5867), or yahoo (prime_ghostface) and I will help you as much as I can.

**BusinessAdviser** · 02-18-2008 06:03 PM

Originally Posted by Gaulkin

YEAH! makes sense to charge the same amount whether you drive 1 or 10 miles!

It certainly does, because your customer drives the business, so you MUST cater to their needs and desires to be successful, regardless of whether this is most convenient for you.

The key is to plan things well. You'll want to pick up all the meals and deliver to your customers driving as little as possible. Then, you charge a fee for delivery which spreads your costs over all deliveries.

**Gaulkin** · 02-18-2008 09:16 PM

Good luck making any money that way.

**BusinessAdviser** · 02-18-2008 09:26 PM

I don't think luck is a necessary factor. And if it is, then there's a whole hell of a lot of it floating around out there, evidenced by all the other businesses doing the exact same thing.