How to start a delivery service as a London food business
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Posted: Tue 3rd Sep 2024
The food delivery and take-out industry in London has boomed in recent years, with apps like Deliveroo, Just Eat and Uber Eats leading the charge. For the city's small restaurants and food businesses, tapping into this market can significantly boost sales and brand awareness.
Understanding what each platform offers and then tailoring it to your business is key to success. Here's a short guide to help you navigate these popular platforms and start taking your great food to customers' doors.
Reasons to start a home delivery service
Delivering your food to customers has several benefits.
Expands your reach across London, allowing you to serve customers beyond your immediate neighbourhood.
Boosts sales and increases revenue, particularly during off-peak times.
Caters to the growing demand for convenience and online ordering and helps keep customers satisfied.
Allows you to grow your business without the need for a larger physical space.
Helps you stay relevant in a rapidly changing industry where consumer preferences are shifting towards online orders.
Food delivery services you can work with
Partnering with well-known platforms like Deliveroo, Just Eat and Uber Eats can boost your brand's visibility. It also gives you insight into what customers like and prefer, which you can then use to refine your menu and marketing.
Here's what these types of services can offer your business:
Deliveroo
Used by many London restaurants, Deliveroo provides access to a large customer base. It operates across most of the city, but availability can vary by neighbourhood.
Fees: A commission fee of 25% to 35% per order, depending on your arrangement with Deliveroo. It also charges an onboarding fee when you first join, which covers things like your menu and equipment photography.
Ratings and reviews: maintaining high ratings on Deliveroo is crucial. Consistently good reviews improve your visibility on the app and attract more customers. Prompt responses to customers' complaints or issues can help maintain your reputation.
Top tips: focus on clear and appealing food photography. Deliveroo lets you update your menu and add promotional offers, which can drive more orders during slower times.
Just Eat
One of the UK's largest food delivery platforms, Just Eat covers most of London. It's known for its extensive reach and broad customer base.
Fees: A flat commission fee of 14% on every order if you use your own delivery drivers. If you opt for Just Eat's delivery service, the commission can rise to 30%. There's also a one-off set-up fee to join the platform.
Ratings and reviews: Just Eat prominently displays customer reviews and ratings. Regularly encouraging customers to leave positive reviews can boost your ranking and make your restaurant more visible.
Top tips: the platform offers marketing packages that include boosted visibility on the app. Consider investing in these during peak seasons or whenever you launch a new menu.
Uber Eats
Another major player in London's delivery scene, Uber Eats is known for its quick and efficient service, particularly in central areas.
Fees: a commission fee of around 30% per order. The platform also offers marketing tools that can help increase your restaurant's visibility in the app, although these come at an extra cost.
Ratings and reviews: like the other platforms, Uber Eats relies heavily on customer reviews and ratings. High ratings can mean you're better placed in search results in the app, which helps increases your order numbers.
Top tips: Uber Eats provides insights and analytics about your sales and customer preferences. Use this data to tweak your menu and promotions.
Other platforms
2020Media is a small business that offers a free online ordering service for restaurants. Rex Wickham, the company's founder, says:
"We find businesses that directly engage with their customers via our online ordering app get more return business and earn more than using the leading marketplace food ordering apps.
"Paying zero commission is a great win for the business too!"
Ganddee is an app designed to make sustainable consumption really easy and sustainable businesses more visible. CEO and co-founder Antoine Rondelet says:
"Ganddee makes it easy for vegan restaurants and cafes to get discovered by their target audience. By listing them, we bring more customers to their doorstep, helping them thrive and grow their impact.
"We're a curated platform where local sustainable bars and restaurants can stand out for what they do and who they are."
How to provide a great food takeout and delivery service
Packaging matters: invest in high-quality, eco-friendly packaging that keeps food hot and intact during delivery.
Streamline your menu: focus on dishes that travel well and don't lose their quality. Offering a limited, specialised takeaway menu can help you maintain consistency and reduce waste.
Communicate well: keep customers informed about their orders, especially during busy periods. Clear communication helps manage expectations and can lead to better reviews.
Run promotions and loyalty programmes: encourage repeat business by offering discounts or loyalty rewards for customers who order directly from your website or through a specific platform.
Use available data: food delivery platforms can provide data about customers' preferences and peak ordering times. Use it to inform your menu, staffing and promotional ideas.
Train your staff: make sure your employees understand the importance of accuracy and speed when handling delivery orders. Missteps in the kitchen can lead to negative reviews, which are hard to recover from.
Choosing the right food delivery platform is vital for any small restaurant in London looking to expand its reach. By carefully managing your presence on apps like Deliveroo, Just Eat and Uber Eats, your business can thrive in this competitive landscape.
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