Planning To Build a Multi-restaurant Food Delivery App? Here is How to build it!

With an increasing craze of digitization among people, online food ordering has become a popular business idea. The multi-restaurant food delivery apps have completely changed the traditional way.

Ordering food online by using third party apps like Uber seems more convenient and less expensive rather than putting the effort to visit the restaurant to eat the delicious food.

The food delivery market has seen significant growth over the past years. Online food delivery platforms such as UberEat, DoorDash, Deliveroo are the big players in this food delivery segment.

These platforms have earned customer’s trust across the world by providing top-notch services to clients, and have made billions of dollars in this industry.

No doubt, this is one of the most popular and profitable business ideas, but along with that, it’s also a highly competitive industry. Still, there are many areas where the leading players of this industry haven’t established themselves yet, so starting a business in the food delivery segment is truly a good decision for you to enter in the entrepreneur world.

The food delivery industry is one of them which have seen impeccable success in the last 4–5 years. And the revenue in this segment is increasing every year. So as the result, aspiring entrepreneurs are investing in the food delivery business.

It can be a profitable business for entrepreneurs if they can execute it in the right way. Not only platform (app) owners make profit from this business but restaurant owners also make a huge profit.

Online Food Delivery Services Market Scope

According to Statista data, the revenue in the online food delivery segment is expected to show an annual growth rate (CAGR 2021–2024) of 6.4%, resulting in a market volume of US$182,327m by 2024.

These days, starting an online business is not a hard task but running a business successfully is not a park walk. Before entering a business you need to consider various factors such as how the business model works, revenue generation channels, technology, location, time, etc. These are a few questions that you need to ask before jumping into the food delivery industry.

How does multi-restaurant food delivery business model work?

The business model works on a three way marketplace that connects customers, restaurants & delivery agents. There are the following steps:

• Multiple restaurants or food joints list their brand or menu in third party food delivery apps.
• Customers search for their favorite food on the platform from a local region based restaurant and place their order.
• At the same time, the platform assigns a nearby delivery boy to pick the food from the mentioned restaurant and deliver it to the customer’s doorstep.

How does an app owner generate revenue from this business?

Money is the main concern for every business. Unlike other businesses, this business model offers multiple revenue generation sources. Platform owners can earn money from different-different channels. However, the delivery fee is the main revenue source.

Here are the revenue monetization methods:

• Delivery fee from customers
• Commission fee from restaurants
• Advertising fee from restaurants
• Subscription fee from restaurants

Delivery Fee from Customers:

Admin charge a specific commission fee from the restaurant owner for every order that is placed by the food delivery platform. The commission fee can depend on the deal of the admin and restaurant owner.

Commission Fee from Restaurants:

Admin can charge a specific commission fee from the restaurant owner for every order that is placed by the food delivery platform. The commission fee depends on the deal of the admin and restaurant owner.

Advertising Fee from Restaurants:

The owner of the platform makes money from advertising services. Restaurant owners advertise their business/restaurant on the app by banner ads or promotional ads. Admin charge a certain amount for these promotional services. The advertising amount can differ as per the restaurant requirements. Because it completely depends on the size of the ad, running time of the ad, and the position of the ad on the platform.

Subscription Fee from Restaurant:

Admin/owner of the food delivery platform can set a subscription based package for merchants (Restaurant owner or food joints) to register their business on the platform. It can be monthly, half-yearly or yearly bases.

How to launch a multi-restaurant food delivery app?

When the entrepreneurs have an idea of setting up their online food-delivery platform, the question that comes to every entrepreneur’s mind is whether to build it from scratch or purchase a readymade solution. Budding entrepreneurs are always confused between both ways.

Both of them are the right ways for building a top-notch food delivery app. But they require different time-frames & costs. Entrepreneurs can choose one as per their business needs or budget. Here I’ve explained both of them in a simple way that will help entrepreneurs to choose the right solution as their requirements.

• Developing it from scratch

Building the app from scratch can be a well-suited way. For that, you need to hire a reputed app development company that has experience in food app development. Large numbers of professional developers required for this process. It can take several months because you have to create everything from the beginning. The web development companies charge an hourly basis and it takes at-least 7–8 months so the cost will also go millions of dollars.

• Purchase a readymade solution

Rather than hiring a team of web developers or an app development company you can choose a readymade multi-vendor food delivery software solution that builds business apps similar to UberEat within a very few time. With white-label software like Yo!Yumm, Shopurfood, etc. you can build your food delivery business app or website at a very minimal cost.

These solutions are considered the most suitable, flexible, and convenient way to develop a food delivery app. Along with that you can easily add or remove the additional features because of a fully customizable solution.

As per my recommendation, you must prepare a list of your business requirements & goals first, then select a ready-to-use solution that meets all of your needs. A few solutions give instant benefits such as free installation, free technical support, etc. that help budding entrepreneurs to set-up a hassle-free business.

Conclusion:

The food delivery market has risen over the past years and it will be skyrocketing in the upcoming years. Customers prefer to order food online from the food delivery apps. On the other hand, the restaurant owners are also happy to register their brand on the platform/app, it helps them to reach a wide number of customers.

If you are looking to invest in the food delivery segment then this article will give you the right path about how to choose the best software for your business.