As with any nascent startup, costs often run ahead of expectations and create cashflow problems for UK businesses. It’s important to keep control of spending and be mindful of what money is flowing out of the company’s bank account, not only what’s coming in.
Here are five money saving ideas just for online food delivery companies who want to be more effective and cut costs at the same time.
Shop Around for the Best Delivery Deal
The competition for delivering food ordered online to the homes of waiting customer is heating up. The growth in delivery services covering “the last mile” is outstripping restaurant table turn growth ten-fold. Delivery upstarts like Deliveroo, which helps restaurants without a traditional takeaway service fulfil delivery orders, and Just Eat, which has its own network of delivery staff in each city it serves, are both growing fast.
With the increased competition for the business of restaurants and dedicated food businesses across the UK, it leaves it open to companies to negotiate more aggressively for better pricing to complete food deliveries for their customers. Depending on the city, there are probably one or more delivery companies servicing the location. This is a good negotiating position for a food business to cut costs when outsourcing deliveries to a third-party.
Reduce the Cost of Advertising
For online delivery food businesses, online advertising though Google, Facebook, Twitter, LinkedIn and other potential ad networks offers the opportunity to get the attention of people who would enjoy their cuisine. Rather than seeing Google as the only way to win with advertising, it’s useful to examine where the target market is hanging out and meet them there.
In some cases, this is a Facebook group for late-night workers who are likely to be receptive of food delivery services in the evening. In another situation, busy mums may enjoy a night in with their girlfriends and get some food delivered to take the pressure off one mum making enough for everyone. Targeting a specific demographic reduces the total cost of advertising by boosting the engagement and response rates.
Save Money on a Rented Commercial Kitchen
Finding and getting a good rate on a kitchen to use in an online food delivery business when you’re quickly outgrowing your home kitchen is a tough one. Lease terms tend to be long and the arrangement is often inflexible too. A commercial kitchen to rent in London that’s suitable for an online food enterprise needs a supportive partner like FoodStars which has multiple kitchens in convenient locations for fast food delivery across London’s capital.
Customise Your Food Offering to Target Specific Groups
Consider changing your food menu to target specific groups of people. For instance, gamers will enjoy different types of foods to a bridge club. Look at ways to offer package food deals to groups who’ll find the customisation to their needs appealing. With custom food packages, it’s easier to target these groups specifically, whether that’s through a guest post written on a site they’ll likely visit or advertising to that demographic in a Facebook advertising campaign.
We hope that the above suggestions are useful to “Foodpreneurs” who are trying to manage their expansion while keeping a lid on their finances. Cashflow is the lifeblood of any business so anything you can do to save costs here and there is always helpful.