With the country opening up again and restaurants now booked for weeks, is there still a place for food delivery? Is it still a viable way to make a profit?
The Buzz-it team asked some food delivery companies we know whether there is still money to be made in the industry. This is what they said.
Is there profit in food delivery?
Yes, there is. As long as you set the kitchen up right, have the right staff and the right menu, there is definitely profit to be made.
It’s all about efficiency. Keeping the chain short, managing stock, orders, staff and delivery and optimising efficiency as much as possible.
If you run a restaurant and added delivery, it’s almost pure profit. Your dining room covers most of your costs with only a little added for drivers, extra staff and ingredients.
If your fixed costs run at around 75% for a restaurant, adding food delivery to that doesn’t increase those costs by much, but can increase the money you make by up to 20%.
That means your profit could go from around 25% up to 45%!
If you run a ghost kitchen, you can keep costs to a minimum while still being compliant to make a profit.
You may not have a dining room to cover your costs but you have far fewer costs to cope with in the first place. There’s no guarantee of course, but we’re seeing enough new food delivery companies pop up to assume there is still profit in it.
Use a cheap food delivery app
One key to turning a profit in the catering industry is using the right food delivery apps. While you have to be on the mainstream apps for coverage, concentrating on cheaper apps like Buzz-it means more profit for you.
Rather than paying high fees and high commissions on every order, you pay zero fees and minimal commission on orders.
For every £1 you earn, anything up to 65p goes to the apps. With Buzz-it, it could be as low as 10p. That leaves a lot more profit for you!
These amounts are only averages, but you get the idea.
Low running costs
Adding food delivery to your existing operation or setting up a ghost kitchen can be cheap.
It requires minimal setup, minimal new equipment if you already have a kitchen and can use existing staff. If you’re setting up a new ghost kitchen, you’ll have more outgoings but they should still be manageable.
That means your order figure to break even is much lower and potential for profit higher.
As long as you market effectively, keep standards high, optimise for efficiency and use Buzz-it, there should be no reason why you can’t make a profit!
Buzz-it won’t guarantee a profit but it will increase your chances of making one. Alongside your own efforts, it could be the key to your success!