Good 2 Go: Food Delivery Service

Audrie Bielskis, Adam Willis, Mike

Butler, Sirah Camara
 Executive Summary
Good 2 Go is an independent, online food delivery service. This business would be
based in Adrian, MI and would deliver food from various restaurants to customers in
the Adrian area. Customers would go online and order food through our website
from area businesses such as Taco Bell, Fricker’s, Alpha’s Coney Island, Applebee’s,
etc. We would then delivery this food to our customers for a small fee and tip for the
driver. Our main focus would be on evening/late night delivery, especially to college
campuses. One of our objectives is to establish a presence in Adrian in college areas
in 2014 and agreements with at least 25% of Adrian’s food establishments. We would
also like have at least 70% of Adrian College and Siena Heights University students
report they have used our service at least once in a survey at the end of 2015.
We feel our company Good 2 Go can excel in this market mainly because of this
growing online food ordering trend and large number of college students in the area.
We will compete with companies such as GrubHub, Seamless, Jimmy Johns and other
food establishments that deliver. However, our company is at an advantage as none
of our main independent food delivery competitors, such as GrubHub, have entered
the market of Adrian yet. The only competition we may face in Adrian is pizza
delivery and other restaurants that delivery, but this competition will be fairly
minimal as our business is quite unique from these.
 Market Trends/Growth
• According to a study by the National Restaurant
Association, 39% of consumers say they would
use electronic ordering to buy meals if it were
available
• This same study reported that 36% of Americans
have placed an order online, with 46% saying
they would order via a smartphone app if that
option was offered
• The Online Food Delivery Market Grows at a Rate
of 12% Annually
U.S Consumer Trend Survey from Statisa.com:
In the next six months, will you spend more or
less when ordering food for takeout or
delivery?
 Competition
GrubHub
Seamless
ChowNow
Campus Special
Delivery.com
Pizza Delivery
Jimmy John’s Delivery, etc.
 Strengths
• First in the area to provide this service
• Customers can have a wide variety of food delivered
• We would deliver food mainly during late night, which is
when college students are least satisfied with on campus
dining selections
• Employees would probably be easy to find because there
are so many students in the area in need of jobs
• Similar businesses have already proven successful in other
college towns such as East Lansing and Ann Arbor
• Saves people with busy schedules time and gas money
• We save area restaurants the trouble of making their own
online ordering websites and/or applications
 Weaknesses
• Costs more than just driving to get it yourself
• Making initial profits will be difficult because
only a few dollars are made each delivery
 Opportunities
• Niche.com campus dining rating of Siena Heights University
is C and of Adrian College is C+. Late night options have
poorest rating for both colleges
• Four colleges in Adrian (Siena, Adrian, Fiser’s College of
Cosmetology, JCC)
• College students are 87% more likely to order late-night
meals than the average person
• On average, a college student is 28% less likely to order a
healthy meal when compared to the average person
• 90 Restaurants in Adrian, MI
• Owners who offer online ordering experience a rise in
order frequency, mostly for take-out meals
• Most restaurants don’t have mobile applications
• Cornell University reports that 40% of all adults have placed
restaurant orders through a form of online software
 Threats
• Competition
• College students spend 10% less than the
average diner
• Adrian is a fairly small market, there’s not
much room for expansion
• Most cities where this type of service has
proven successful are much bigger and have
much larger colleges/universities
 Marketing Objectives
• Objectives:
1. To establish a presence in Adrian, especially in
the area colleges, during 2014. Make delivery
agreement with at least 25% of Adrian’s food
establishments.
2. In survey given at end of 2015, have at least 70%
of Adrian College and Siena Heights University
students report they have used our service at
least once.
Target Market Potential/Sales Forecast
• Adrian College Full-time enrollment: 1,556
• SHU Full-Time enrollment: 1,032
• Percentage of family households in Adrian: 57.9%
• 1,532 people in college/university student
housing in 2010 in Adrian
• Number of full-service restaurants in Adrian: 69
• In the U.S., GrubHub turns over nearly US$300
million each year
• The income potential is $25,000 and up
• The average customer orders $46 worth of food
every month at restaurants using ChowNow
 Marketing Mix
• Product Strategy:
– Target: Working couples, singles, busy families, employees
working late, college campuses(main target market)
– Focus on evening/late night delivery
– Deliver foods that would not normally be delivered
• Promotion:
– Place ads on radio and cable television stations, in local
newspapers, college newspapers, telephone directories,
and local parent’s publications
– Print and distribute lists of the restaurants you deliver for
in a direct mail campaign to organizations, hotels, college
campuses, businesses and area residents
– Referrals from restaurants whose food you serve
 Marketing Mix Continued
• Pricing:
– $10 order minimum
– $3 to $4 delivery fee depending on distance
– Gratuity for driver
– Pricing is competition based. This is about the
same price competitors charge
• Distribution/Place:
– Located in downtown Adrian and would deliver
anywhere in city of Adrian
– Hourly delivery drivers using their own cars
 Implementation/Conclusion
We would need to have someone create a user-friendly,
simple website and mobile phone application. We could
probably find a computer programming student who
could do this for a good price. We can also hire an art
student to create a logo for a fair price. We would then
need to speak with the restaurant owners in the area to
explain/promote our business and to try to come to
agreements with those who are interested. We would not
publish our website/app until we had finalized
agreements with at least 4 restaurants, but we would like
to have it already designed so we can show potential
business partners how simple and easy it is.
Implementation/Conclusion Cont.
We would aggressively promote the business with flyers, ads, and
referrals as discussed in the promotions section of this paper.
Customers would go to our website and select their restaurant of
choice from a dropdown list. They would then put a check in the
box next to the food they would like and write any special
instructions in a blank box at the bottom of the page. Finally, they
would enter their payment information and the address and a
phone number for where the food is being delivered to. To avoid
taking out a larger loan than necessary, one of us would make the
deliveries ourselves until we had enough profits to hire help. We
would need to take out a loan for start-up costs, but we will try to
keep this minimal.