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Restaurant Meal Delivery Business Questions & Answers

Questions and Answers

I have been getting questions on both my email and on Facebook so thought I’d answer some of them here so everyone can get further insights into this type of business.

Can people afford a service like this?

Since the customer is essentially paying the same for the food as they would if they went to the restaurant, the answer is yes.  The profit to the operator comes from the restaurant paying the operator a commission to deliver the food, not in marking up the food price itself.

Of course, restaurants cost more than cooking at home yourself, so the typical customers for dinners are couples with families where both parents work and can get home late from work and be too tired to want to cook.  For these people, it’s not a money issue but more a time and convenience issue.

For businesses, many businesses use catering services for events and a service like ours allows a business to decide on the spur of the moment to bring food in for 10 people at a meeting without having to plan a week in advance with a more typical catering arrangement.

How much money can I make?

How much you can make is totally dependent on how large a market are you serve.

In a small town, your revenue will be much more limited than in a large metro area. As long as the population is there, your income can be substantial although you may have to open multiple territories to fully serve a large area.

The reason for this is just like a pizza company such as Domino’s. You can only drive so far before the food gets cold.

So, to estimate how many territories it might take to serve a larger area, look to see how many Domino’s are in the same area. It will probably take about the same number of DIDs to serve the same area.