Trends and opportunity assessment
Delivery of food has become trending for several years all around the world. Food delivery service market in Australia have been assumed to be growing by $2.4 billion by the year 2025 according to the report found by Morgan Stanley report (Power 2018). This industry is inclusive of traditional fast food service and health food service that are using Menu log for their service. A current study conducted by YouGov reported that approximately half of the Australian population prefers online food and are likely to do it again. (NewsComAu 2018).
The industry is undergoing a rapid change with customers across various location such as America, Asia, Australia, Europe and the Middle East. The changes are see mostly due to the growing internet platform.
In Australia the market revenue of online food service accounts to AU$1,052million in the year 2018. The revenue has been assumed to increase annually at a CAGR of 10.3% leading to increase in market value of $1,559m by the year 2022 (Statista 2018). The food delivery industry has increased its activities in lot of countries with an annual growth that is being estimated to rise 3.5% in the next 5 years (NewsComAu 2018).
Based on this factors it is evident that “healthy food delivery service in Australia” has a high opportunity too in Australia as it consists of several international and working students who demand healthy and tasty food. There is an increased number of aggregators that are part of people who are dependent on online platforms to place orders in a smooth and fast way (NewsComAu. 2018). Therefore, Booth and Whelan (2014) states that there are high opportunities for the investors to expand their home delivery service from cheap fast food service including a variety of foods and technologies that are burning up the food delivery industry, in a challenge to obtain a piece of country’s billion dollar industry.
The homemade food delivery service industry is driving high profit in Australia that is running at an average percentage of over 50% annually with a revenue of almost $400 million in the year 2017 (Reicks et al. 2014). Homemade food delivery is a new competitive sector in Australia that is targeting to increase market share through popular operators such as Menu log, Deliveroo and Foodora (Dailytelegraph.com.au. 2018). However, apart from these are fast food services, there are also several healthy food service organisations that provides online service. There are almost two million Australian who are aged in between 14 and more who are dependent on online food delivery apps (NewsComAu. 2018). In this context, Menulog.com.au and other meal delivery service are increasing at an average rate of three months found from latest research. Research in this context found that Australian city dwellers that accounts for 12.6% are more likely to have their meals delivered than those residing in the country location. In addition to this it has been found that almost 10.2% women are more likely to prefer to use food delivery services than men (9.4%). Moreover, Australia’s younger generation have taken interest in the meal delivery services with a rate of 16.1% millennial who are aged in between 28-42 years in comparison to 4.5% of the baby boomers in Australia (Inside FMCG 2018).
Industry and consumer assessment
It has been found from statistics, that “online takeaway” is the largest segment in the food offering marker. Based on this factor, the chosen customer segments have been selected from the Australian working class specifically the working students and the international students who do not have time for cooking food at home after there working hours and classes (Medium 2018).
Apart from this, getting too many take ways, may be quite expensive for them. Therefore, the food delivery service will be targeting the young students and few families who are conscious about their health. Specifically, those that belong to the age group of 18-30 with a yearly income of at least $15,000 to $60,000, including male as well as female population. Alongside the adult segments and international student, the target population will include the age group in between age 30 -50 both male and female (SBS News 2018).
Homemade Food delivery service is in high demand and has a high psychological appeal as they promise to deliver the service on time with their effective effort. More than delivering convenience they deliver convenience across customer segments at every touch point. In this context, their business model will be based on decision convenience service with easy and fast delivery service across the Australian region (SmartCompany. 2018). In the case of price transaction, they will make it fast and easy to pay along with significant convenience benefit.
Our main activity is to transport homemade food from home to the working class customers for helping them with their lunch and dinner. Apart from these, the major activity of our service will be to manage kitchen and the delivery boys. It is also necessary to manage the raw materials for preparing the Indian meals. Moreover, the major activity of the food delivery service will also be associated with managing the technological as in web site development infrastructure along with processing of the meal delivery orders (Standing and Mattsson 2018). Our objective is to make the food delivery process as simple and fast as possible for the consumers.
To offer homemade food in some parts within Australian boundary specifically offering services to the workplaces in the nearby areas. In addition to this by making the process of ordering process fast and simple, the service will be made desirable and demanding for the customers.
The key partners will be the Indian Chef, two delivery boys, one supplier for the grocery and packaging material. These partners will be associated with the preparation of food and delivery service.
Business model
Our major resources will be the online website page, cycle and motorbike rental used for delivery, our delivery people and a physical kitchen for preparing food. In this context, the online platform will be consisting of the web site page and a registering application (NewsComAu. 2018). Therefore, with the help of this technological platform, the consumers will be able to find the restaurant and their food items to place their order.
Customer relationship
Customer relationship will be developed through the social media channels that will be used as customer support service. Through this reviews and ratings on the service and food items will be achieved. Through the website and social media sites feedbacks of the customers will be received to focus on the loopholes of the service and improve them accordingly (Morioka et al. 2016).
The main channel of the healthy food delivery service will be the website page, email and social media platform. Word of mouth will be used as the initial channel for promoting the food service. In the starting of the service, it will be very important to increases awareness and let people know about the company (Perera et al. 2014). In the near future, all this channel will be used to gain more customers and to strengthen customer relations.
The main customer segments of the service will be people who do not prefer to cook food at their dinner time and people who do not want to order food from outside restaurants. Specifically, those students who prefer to eat Indian food and the food that are prepared by authentic chef along with those customers who belong to middle income family. Those major segments will be Australian working-class students and international students as well as few families.
Students and young adults are suitable target group who have little or no time due to busy and stressful lives. These people do not usually have the energy to cook their own food after work and study, wherein most of them are Indians as they come abroad for their further study (SmartCompany. 2018). The best thing about young people will be that they tend to have a fetish of wide culinary pallets that means they would be appreciated different varieties of Indian food service.
The revenue streams of the service will be based on the sale of meals and fixed delivery cost added to the service of the meal. In this context, for the purpose of food delivery fee, the revenue will cover the expenses such as equipment’s and salary of the workers as well as food packaging. In addition to this, there will be an extra 10% that will be added to make a profit. In the future, the value will be increased gradually with the increase of items (JungleWorks. 2018).
Key activities
Moving on to the variable areas of cost, it will be seen that the cost will be set on the basis of 2 service delivery employees with a salary of $1000 for the initial period, later with the growth of service employees may be increased. In this following years, the salary will gradually increase in accordance with the increasing demand of the quantity requirements. These packages and ingredients expenses will be counted on the basis of 5 normal dishes and 5 meals each of them will cost $3 – $15.
|
Kitchen set up and running cost |
$200 |
|
Technological set up for service |
$150 |
|
Salaries for 2 delivery boys |
$1000 |
|
Expenses of the ingredients |
$ 200 |
|
Total expenditure |
$1550 |
Each year some of the dishes will be updated and renewed. Apart from this, there will be cost will be classified into several sections such as prices for technological set up, Kitchen and running cost, brochures to be disseminated, to 20-30 units accordingly. The website expenses will be representing cost along with the advertising cost and the menus.
We at “Homemade health food delivery service” are to produce authentic Indian cuisine and the fast service atmosphere. In this context, our value proposition is quite straight forward. Besides this, the service that we will offer will be more focused on authentic services as we are independently owning the business. The value will be based on genuine facilities and healthy food delivery service to manage catering and hospitality. We offer:
- Authentic homemade healthy prepared food that will be made with original and fresh ingredients
- Owner of the food service will be personally delivering the service
- Friendly service provision’
- Easy accessible service
- Convenient takeaway and online ordering service
- Improving reputation through compatible food service facilities’
- Will try to offer delightful service and food items with a standard presentation of food.
Our customers will be delivered with homemade healthy food with few Indian cuisines. The starting business will have only Indian food items with limited options due to the small-scale business for lunch and dinner purposes of the working class in Australia. In addition to this the homemade healthy food will be delivered to the customers residing in certain limited locations in Australia on the basis of their work, place and time.
The healthy food delivery service wants to offer memorable culinary experiences through well served authentic Indian dishes especially prepared by some Indian cooks. Apart from these, the food delivery service will be providing affordable service but with some limited food items (SmartCompany 2018).
The food delivery services want to bring all the above-mentioned experiences for the young and adult customers who otherwise have to seek for food delivery from another country or has to depend on their own cooked food. By offering a genuine and friendly service, the food delivery service will have the characteristic of original Indian flavour.
The food service believes in positive customer satisfaction obtained through a mix if reasonable price, healthy quality of food and amiable customer relationships. Based on this the major efforts, the service will be intended towards the constant improvement and maintenance of these factors.
Value proposition
Food products: Limited range of healthy and homemade food for the students and working class residing in Sydney, Australia.
Target customers: Working students, international students aged 18-30, adults aged 20-50 with an annual income of $15,000 to $20,000 in Australia.
According to my perspective, for Australia, in order to maintain its economic prosperity, it is necessary for the entrepreneurs to find different ways to stimulate productivity and motivate increased entrepreneurship as well as start-up. I believe it is entrepreneurship that propels innovation, the creation of jobs and increasing competition that is crucial for increasing productivity.
Entrepreneurs nowadays, therefore, are changing their way of perception with the establishment of a variety of business. In this context, foodies at hearts those who have a passion for great flavour and fresh and seasonal food are extremely inclined toward developing food service business (Perera et al. 2014). I have seen that young people after completing their studies, they are creating their own catering company after learning the basics of the company and are increasingly deciding to sell healthy and tasty foods that could help them to build something exciting.
I have researched several food companies and have seen that food Delivery Company is the most interesting and smart way to start a business in Australia. The major reason behind this thinking is that it has a low cost of start and I think there is a high gap in the existing market for the homemade food delivery with health advantages,
There are many people who are concerned about losing weight and have moved towards a healthy choice, but it is the growing challenges of modern and stressful living that makes it difficult for the people to stay healthy under such busy schedules. In this context, the new trend of entrepreneurs is increasingly depending on learning materials and courses to increase their ability and skills to invest in the business. It is the urge to learn something new and get popularity in the market, entrepreneurs are coming up with new ideas starting with interesting food delivery that helps them in remaining focused on the sourcing of food quality ingredients and productivity.
From the business model for starting up a food delivery business I have learned that starting a business is not so much easy as it looks, specifically food business that is even more tough a task. In the beginning I had a rough idea that selling food in the market must be easier than any other business. However, while carrying out the market research for setting up the business, I had to go through lots of legal and investment stress before starting the business. Not only this, I also need to plan the entire business from the perspective of the customer for understanding their demands and expectations from a start-up delivery service.
Key partners
|
Key Partners Indian Chef, two delivery boys, one supplier for the grocery and packaging material. This partners will be associated with the preparation of food and delivery service. |
Key Activities Our main activity is to transport food from home to the working class customers for helping them with their lunch and dinner. Managing kitchen and delivery employees Fast and simple service Managing raw materials for preparing meals Managing technological settings’ Processing meal orders. |
Value Propositions To offer food everywhere within Australian boundary from a broad range of workplaces. In addition to this by making the process of ordering process fast and simple, the service will be made desirable and demanding for the customers. Authentic homemade healthy prepared food that will be made with premium and imported ingredients Beautiful rustic with southern and north Indian flavours Owner of the food service will be personally delivering the service Friendly service provision’ Easy accessible service Convenience takeaway and online ordering service Improving reputation through beneficial food service facilities’ Offer delightful service and food items with a unique presentation of food. |
Customer Relationships Social media communication Consumer support service Reviews, feedback and ratings of the customer through the social media channels. |
Customer Segments Students and young Adults are suitable target group who have little or no time due to busy and stressful lives. These demographics do not usually have the energy to cook their own food after work and study, wherein most of them are Indian as they come abroad for their further study. Aged in between 18-30 Adults- 20-50 Income: $15,000-20,000 |
|
Key Resources Technological settings Authentic Indian chefs Physical kitchens |
Channels Websites channels Word of mouth Social media channels |
|||
|
Cost Structure Cost for the kitchen set up and cost of running the business Technological settings and cost of running Salaries of the two delivery boys Cost of ingredients |
Revenue Streams The revenue streams of the service will be based on the fixed delivery cost added to the cost of the meal. In this context, for the purpose of food delivery fee, the revenue will cover the expenses such as gas and salary of the workers as well as food packaging. |
Reference list
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