How to set up a takeaway business from home - Startups.co.uk (2023)

If there were winners from the chaos of Covid and the lockdown, the delivery area was one of them.

However, it now faces a new threat from the cost of living crisis, which is causing households across the UK to lose an average of £3,000 in purchasing power by the end of next year.

As consumer consumption habits change, takeaway companies must adapt. You need to offer fair priced menus, regular promotions and discounts, and watch out for rising operating costs due to inflation.

Despite these challenges, now is a good time to start a takeaway business and serve delicious home-cooked meals directly to consumers.

The benefits are many, especially for startups, as by leveraging existing resources you can minimize the cost of other overheads like rent or travel. But settings, as our experts know, can be confusing. Fortunately, our experience has taught us all the important details, including building rules and regulations.

So put your feet up, turn on the TV on Saturday nights and let us bring the facts straight to you and tell you everything you need to know to start a small takeaway business in the guide below.

There's a lot of planning going into launching a takeout business. Fortunately, creating a website to promote your business is an area that doesn't need to cause undue stress. Thanks tomodern models like the following, you can create your own in less than an hour.

At Startups.co.uk, we've tested and ranked website building tools and identified Wix as one of the best tools you can choose to build a business website. Wix even has a selection ofcustom website templates designed specifically for takeaway businesses- Simply place your preferred menu, delivery details, text and images into your chosen template. Better yet, it's completeTry it Freefor you.

Startups caught up with James Tulley who shared his experience starting a Teesside based companyTake away food delivery serviceLeave street food:

„Prior to Covid-19, I was working full time as a chef during the week and running my business on the weekends. When the country closed, my shop had to close. Unfortunately I didn't have the right to the license and I had to do something to not lose my house, so I set up a gourmet delivery service. The offer changed weekly and each week consisted of a menu from a different country with instructions on how to heat it up. Luckily it was a huge success! "

Should you open a takeaway business now?

According to a recentPost Covid market reportThe takeaway industry is experiencing unprecedented growth thanks to the British Takeaway Campaign. The report found that, at the height of the pandemic, 38% of households were ordering takeaway at least once a week (and those are just the ones that admit it) and were spending an average of £45 a month in 2020.

However, this is not just a flash in the post-pandemic situation: the market was already growing before the first national lockdown began. It has increased by 43% over the past five years and is expected to reach £22 billion by 2025.

That's an incredible rate, and it definitely bodes well for startups.

As food delivery companies increase capacity and waive registration fees, this is the perfect opportunity to lay the groundwork for your future takeaway business: set up your kitchen, acquire the necessary skills, gain the experience. needed and promote your brand. There.

Best of all, starting a takeaway food business from home doesn't require a huge upfront investment on your part. While delivery companies often charge a company registration fee, this is usually not paid until you start making money, something you should check with the delivery company before signing up!

And if you're worried about the commission fees that come with partnering with a delivery company, there's another way to get your takeout business up and running.

You can use a takeout ordering provider to create a website with an integrated ordering system. Or, if you already have a website, embed one into it. Please note that you will need your own delivery or collection service for these options. But you can learn more about these options later.

“Covid-19 has been the biggest challenge I have ever faced and to be honest the last 18 months have been very stressful. [But] the takeaway business has been booming since lockdown, so as long as your food is good and well marketed, you should be doing fine.

– James Tulley, founder of Deja Street Food.

Create a travel business plan

The first step to starting a business is to create a business plan.

Your business plan is the document that structures your proposal and helps you align your objectives with a realistic and achievable goal.

It should cover all aspects of what your potential business might look like, from licensing to expected revenue. These details make you a great resource for attracting investors.

Read our free guide on how to do this.Businessplan-Designfor more information on what to include and how to get started with your business plan.

Make sure you have the right business licenses to take with you.

When turning your love of food into a home delivery business, similar rules and regulations apply asstart a catering business, including the necessary permits and the level of cleanliness you must demonstrate.

Government law says you must do thisregister your grocery storeat least 28 days before opening. And if you are already trading, then you need to register as soon as possible.

Before starting a takeaway food business at home, you should also make sure you have a level 2 food hygiene certificate. Virtual College offers an accredited city and guildsLevel 2 food hygiene coursefor £12.

Compare Food Companies

The three main delivery companies Deliveryoo, Just Eat and Uber Eats have different rates, commission rates and regulations. Here's an overview.

Starting a takeout food business takes time and effort, and it's important to make sure you don't waste anything either.

We recommend using project management software to streamline processes, track progress and assign tasks. Whether you start your business alone or with others, it's a great way to get things moving in the right direction.

Find out which project management tools we recommend.

The numbers above provide a high level overview and thorough research should be done before signing up with a vendor.

It's also worth noting that while Just Eat has the upper hand when it comes to lower fares, it has a stricter affiliate approval process than both Deliveroo and UberEats.

Weigh the pros and cons of using a third party

Online ordering systems (ordering and payment apps)

While outside delivery companies make life easier for takeaway food business owners, they receive a relatively large share of their profits in return.

So if you have the option of having your own food delivered or you want to encourage your customers to pick up their food to go, you can always use an online ordering system. An online ordering system can be integrated into your website, or you can use a white-label ordering and payment app provider to host your digital menu and process your payments.

Online ordering systems and ordering and payment applications areMore economicaljreceive less commissionthan UberEats and Deliveroo, but give your customers the option to order food directly from you. In fact, some online ordering systems offer theirfree basic packageand take only a percentage of each transaction performed by the system or application.

So how do you get one? First, contact an online takeout ordering system or ordering and payment provider. If you don't know where to start, you can always use startup.co.ukquizto guide you All you need to do is answer a few basic questions about your potential business and we will match you with the best suppliers for your needs.

Once set up, customers can order and pay online, and orders will arrive right on their phone.

Free online ordering systems

With free online ordering systems, you can create an ordering platform and take orders for free. But is there a catch? You will likely have to pay for the following optional services:

• A fee for payments to be deposited directly into your merchant account instead of through your online ordering platform
• Any advanced marketing service
• A website optimized for sales
• A branded mobile app

The best online ordering systems for takeaway businesses

Choosing the right ordering and payment system for your business takes a lot of thought. While some providers offer free setup of their ordering and payment system, be prepared to pay a commission percentage for every transaction made through the platform. The table below shows a selection of ordering systems on the site.

Square Online allows you toCreate a simple online ordering system for free. After setting up a Square online store, you can place a link on your social media pages.

Others, like Flipdish, will help you create beautiful, user-friendly websites with integrated online ordering, and also help you implement a marketing strategy! It's up to you to decide how sophisticated you want your online ordering platform to be and how much you're willing to give up on each sale.

Using an online ordering system versus a delivery company

What else do you have to consider?

Create an attractive menu

You may not be used to high speed cooking. This means that you need to consider menu items that you can prepare quickly with available facilities. Decide what menu items you can best prepare before you open your shop: side dishes, sauces, and even full menu items like stews and curries.

Be active on social media if you haven't already!

Being relatively new to the takeaway business game, you must also take responsibility for driving the business forward.

While delivery and pickup companies may market on your behalf, you need to build your own brand image using Instagram and Facebook likes to engage with your target audience.

Or maybe you already have a loyal Instagram following that you can invite to try your new menu?

Why not take a look at our guidesmall business marketingto see what hints and tips you can take with you?

“Find a concept you're passionate about, make sure it's different from what everyone else is doing, and stands out from the crowd. A great logo and visual marketing are important – post regularly on social media and build your brand. You sell groceries, so make sure your posts are visual and show what you do.”

–James Tulley,deliver street food.

track your finances

Starting a takeaway business takes time and money, and accounting software can help with both.

Whether you run the business yourself as a sole proprietor or with a team of chefs and delivery people, you need to make sure you keep your finances in order. When you start taking orders and payments, you need to start tracking your expenses, income, and profits. You can do this with spreadsheets and a lot of work, but we encourage you to get some help. Finding an accountant is expensive, so it's easier to use software to help you with the legwork.

Accounting software is designed to simplify complex money-related processes. From tracking your expenses to managing your taxes, every financial process becomes easier with the right tools.Take a look at the accounting software we rated the best.

“Make sure you cost your dishes correctly. Calculate exactly how much each dish costs to produce, including packaging. It's very, very important. Then you can calculate correctly. Grocery costs should be around 20-30% of its retail price. No point in selling a dish for £5 when it costs £3 to make."

– James Tulley, Street Food Holiday

Use the software to your advantage

Similar to the above, software can help you set your business up for success in many ways; This can make organizing your tasks, tracking your customer base, and getting paid much easier. Using software tools now available to even the smallest of businesses can literally save business owners hours of time every week and even help them provide better customer service.

Consider our top recommended software tools for task and team management, customer information management, and store checkout below:

What should I do next?

Here is a summary of how to start a home delivery business:

1. Contact several delivery companies or online ordering providers to see if their services are a viable option.
2. Make sure you register your business with the Food Standards Agency within 28 days
3. Make sure your kitchen is fully equipped and has the proper food hygiene certificates
4. Stay active on social media. Start a discussion about your new takeout business. You might even get some tips from adigital marketing agency. Startups works with several agencies that will be happy to advise you
5. Brainstorm menu ideas and practice each of your dishes by cooking for the people in your home.

“My number one piece of advice for people wanting to start a takeout business is that there is always something that can go wrong, you have to wait, and to be flexible and understanding, you have to dedicate a lot of time to doing it. sure you can. .

“And most of all, make sure your food is amazing! Organize your recipes and weigh all ingredients in grams so dishes are consistent when prepared by other employees.”

– James Tulley, Street Food Holiday