Private LLC

Business Plan for Online

Food Ordering Services
Controlled Document

Business Plan for Online Food Ordering Services

Business Plan for Online Food Ordering Services
Contents

Executive Summary............................................................................................... 3
Business Overview................................................................................................. 3
The Opportunity..................................................................................................... 4
Industry................................................................................................................. 4
Services................................................................................................................. 5
Market Analysis...................................................................................................... 6
Online food ordering market size....................................................................7
Strategy................................................................................................................. 8
Foodjeep USP................................................................................................... 8
Marketing Strategy.......................................................................................... 8
Pricing Strategy............................................................................................... 8
Sale Tactics...................................................................................................... 9
Competition......................................................................................................... 10
Exit Strategy........................................................................................................ 11
Financial Analysis................................................................................................. 11
Revenue Plan................................................................................................. 11
Management........................................................................................................ 12
Current Investors................................................................................................. 12

FOODJEEP Online Food Ordering e-Shop

Quality time Rejoice cuisine

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Business Plan for Online Food Ordering Services

www.foodjeep.com

Executive Summary
Online food ordering services has been catching up in India. The online food ordering services
work in supplementary to the food delivery business ecosystem. It is rather enhancing the
business prospect of all food delivery business services.
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, with increasing disposable incomes clubbed with
work and hectic schedules. It is also helping user overcome constraints in terms of time, logistics
and convenience.
As per recent Industry report Indian food services industry stand at US$10.5 billion in 2013. The
food services industry expected to grow at CAGR of 15% to be pegged at US$21.5 billion in 2018.
The estimated number of restaurants all over India that carry out home deliveries is around
50000. At present market, a few top market player put together could only cater to 6000+
restaurant across 20+ cities.
In 2012, Foodpanda had approximately 100000 orders which was roughly 10% of Indian online
food ordering market size. Online food ordering services has potential client base from following
market segment:

Home delivery food market

Institution, campus & university food delivery market
Office food delivery market

In online food ordering services businesses differentiate itself from other competitor based on
their USP, relationship and assurances. Foodjeep outlined its own USP.
Present investor in Foodjeep online food ordering services are founding members. Start up
investment in Foodjeep will be Rs.2.97million. With its strategic plan and balances Foodjeep is
expected to breakeven within first year.

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. 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.

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, with increasing disposable incomes
clubbed with work and hectic schedules, first point.
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.
Thirdly, ordering food by calling is inefficient, costly and has no order accuracy. Improvement in
technology, access to internet and mobile communication scaled up the demand, as consumer
now have more accurate, efficient, and convenient means of ordering food from their office or
residence.
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.
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.
The Foodjeep online food ordering solution will create a win-win ecosystem for all stake holders.

Industry
Online food ordering web site service is very recent in India. Online food ordering platforms follow
a simple business model. These systems act as a common platform between customers and
restaurants. User search for restaurants, place order with their chosen restaurant, and pay for it
online or opt for COD (cash on delivery).

The delivery part is handled by restaurant owner. Some of the salient points of the business model
are:
Online food ordering system partner with local restaurants that offer home/ office deliver,
and prepare a database.
For every order placed through the website, the restaurant gives a pre-decided commission.
Restaurants can also get featured on the website homepage for publicity.
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Business Plan for Online Food Ordering Services

The industry segment is categorized in food services sectors. As per technopak estimate Indian
food services industry1 stand at US$10.5 billion in 2013. The food services industry expected to
grow at CAGR of 15% to be pegged at US$21.5 billion in 2018.
The segment is totally unstructured. Only 14.3% which account for $2billon Indian food services
market is structured2. The estimated number of restaurant 3 in India that carry out home deliveries
is around 50000, signifying that a huge untapped market potential are there in this sector.
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. There are huge opportunities to
provide services in these sectors. The industry segment is such that it creates a collaborative
complimentary ecosystem for all the stake holders. Even a existing online food ordering plat form
can also be seen as a collaborator at present market condition.
The market opportunity is open to new entrants with least barrier to entry. Company can start
from a concept level to operation level or can directly move on to operational with third party
solution. Technologies are readily available in the market.

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. The clients [online food
booking service users] get the benefit of choosing their best restaurant and food in their
convenience or comfort.
This online food ordering system has two-fold opportunity in the organized food services market.
The first opportunity is for the brick and mortar food services player who intend to tap into
delivery market to significantly increase revenue. The second opportunity is for the take away /
QSR restaurant to focus on delivery market as a sole channel for generating revenue.
Restaurant registered with Foodjeep will have:
Its address and entire menu online, with items listed under separate categories such as gravies,
appetizers, desserts etc.
1 http://www.technopak.com/ [ QSR_Market_in_India.pdf]
2 http://www.business-standard.com/article/companies/vcs-grab-a-bite-of-online-food-servicesmarket-113102300840_1.html
3 http://www.digit.in/internet/india-s-online-food-delivery-segment-still-in-nascent-stage-justeat-ceo-riteshdwivedy-19776.html

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. Filters like location, 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, making it customized according to the specific users preferences. Both the
options cash on delivery and online payment are available for a majority of the restaurants.
Also, an instant order tracking system is available through which the user can track the status of
his order using the unique order reference ID. These features coupled with a very user-friendly app
interface make ordering food online very simple on the go, anytime and anywhere.

Market Analysis
The Indian food delivery market is pegged at $10.5 billion today and is growing at a very steady
pace. The food delivery market is expected to grow at CAGR of 12%. The estimated number of
restaurants all over India that carry out home deliveries is around 50000. There are only few
market player in providing services for online food ordering services. The top two market players
put together only cater to 6000+ restaurant across 20+ cities. 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.

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

Business Plan for Online Food Ordering Services

Sub - Total
Subscriber

1410

8%

872

5%

1591
1

21436

18674

As per the expert review national capital region, 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. It
is 61% in the Delhi National Capital Region and 48% in Bangalore.
In 2012, Foodpanda had approximately 100000 orders which was roughly 10% of Indian online
food ordering market size. Based on this data it can be estimated that Indian online food ordering
market size is approximately one million orders per annum.

This estimate revel there is huge gap even this three important market. In tier I cities there are
Pune, Chennai and Hyderabad are very upbeat at the present market condition for online food
ordering services market.
Online food ordering market size
The entire food delivery market size is US$10.5 billion in 2013. The market has a huge potential
and showed having very high growth rate at researched timeline. Online food ordering services
has potential client base from following market segment:
Home delivery food market
Institution, campus & university food delivery market
Office food delivery market
The online food ordering platform has potential market growth rate of CAGR 12%.

4 http://www.technopak.com/
7

[ pg-80-81-NRAI-Delivery-Format.pdf]

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. We will position Foodjeep in collaboration with the
Restaurant owner to offer discounts on online order and coupons to regular customers.
Foodjeep USP
Foodjeep will differentiate itself from other market player by:
Freedom in selection of restaurant, food, cuisine, payment mood, delivery or take away, type of
hard ware to use in ordering.
Ease a fast and convenient option with mobile apps, cross browser support, order automation,
online payment, on delivery payment.
You Foodjeep will listen and attend to your need immediately.
The core value of our USP will be H2H [human to human] services or attention, as we are in
business of human needs.
Marketing Strategy
Our Marketing strategy will be to advertise to consumers through subscribing restaurants,
Delivery outfits and social sites. Foodjeep will also carry out promotions to institutions and
companies.
Online promotion of subscribing restaurant through our platform
Pricing Strategy
There will be no charge in signing up for our online food ordering services. Fodjeep will collaborate
with restaurant owners to work on commission basis on a pre-agreed terms for all successful order
through our services.
Sale Tactics
A comprehensive core process of selection of restaurant will be done based on local search
volumes, popularity and several other factors.
Sale and marketing team local to city for signing up, address, 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:
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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. There will be huge opportunity for growth for all
market players on short terms. 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. 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, Foodjepp will consider
them as the actual competitor.
At present market condition the other online food ordering service provider will be like our
complimentary services.
As far as other restaurant including pizza hut, mcdonald, KFC etc who take online order for
delivery, our services will be supplementary services to them as long as it increases their gross
earning.
Following are the statistics of two major player of online food ordering service provider in India:
Two Prominent Competitor Matrix of Foodjeep

Business Plan for Online Food Ordering Services

SWOT Mind map Drawing of Foodjeep

Exit Strategy
Exit strategy will be based on equity sale out.

Financial Analysis
Foodjeep Roll Out Plan
Number of cities: 14
Name of cities: Mumbai, Delhi, Bangalore, Hyderabad, Ahmadabad, Chennai, Kolkata, Surat, Pune,
Jaipur, Nagpur, Indore, Thane , Bhopal
Proposed Commissioned Rate: 10 % will be charged on all successful online food ordered through
our services.
Setup Cost: Rs. 0.5milion
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Business Plan for Online Food Ordering Services

Operation Cost: Rs.0.15million
Renewal Cost: Rs.0.1million
Man Power Cost: Rs.0.22million
Advertizing & Marketing Rs.2million
Revenue Plan
National capital region, Mumbai and Bangalore will be core target market with stress on Pune,
Hyderabad and Chennai where the market is a bit upbeat. Our interest will be in fulfilling the local
selection, taste and interest for the target market.
Foodpanda operation in 2012 has:
Total number of order in First Year 100,000
Revenue Was Rs. 6 Crores in 2012-13
Average order size Rs.600 per order
Restaurant average minimum order size for delivery: Rs.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. We have put
together start up seed capital of Rs.2.97million.

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