The food delivery business has been picking up in Nigeria for quiet some time time now. This is largely due to the changing consumer preferences and the ease of accessibility. And thus setting up this business is not a herculean task as it may seem. In this post lets look in detail on How to start a Food delivery business in Nigeria.
A Food delivery business could be developed into a big bucks venture in Nigeria. With growing concerns around long working hours and unrealistic daily targets, an average worker in Nigeria finds himself/herself , with no time to prepare quality food for herself/himself. In light of this, such worker would be willing to pay a fortune to gain access to quality home-made meal, in the midst of a rather enervating day at work.
1. Determine your location/target market
Before establishing your business, do a thorough market research/survey of your desired location and find out your target audience/market. Doing this survey will give you more understanding of the food choices of the fold in that area. Morever you’d also get to know if people are craving for something new to relish their tastebuds with!
For instance, if your target market is a school or sports centre, with a large concentration of youths, you might want to prepare more of snacks, junks and other fast foods. However, in areas with government institutions, business establishments and the likes, with a large concentration of middle-aged and high class individuals, special home-made delicacies would sell more.
In any case, when considering a location to start a food delivery business in Nigeria, an urban – business concentrated – area is the most ideal for optimum productivity. This choice is better than a residential area, as people in their homes would prefer to prepare their own food themselves. Nevertheless, depending on the area and cash at hand, starting up in a residential location is not so bad an idea.
Furthermore, it is important to consider certain sociocultural aspects of a target location. Basically, issues like religion, economic condition and other cultural aspects should be considered, as it can affect the entire process of starting a food delivery business in Nigeria. For instance, a place with large concentration of Muslims is obviously not ideal for the delivery of certain food products like bacon, pork and other kinds of products considered Haram (forbidden).
Summing up – Determine a target location, and ensure you understand the needs of your target market before setting up a food delivery venture.
Tip: HERE is a FREE Food delivery Script with mobile apps.
2. Prepare a business plan
Food delivery business in Nigeria, like every other business, requires a business plan. This is one of the key attributes that determine the success of a business in the long run.
A business plan is a simple document, which contains information about your business and how you plan to start, sustain and grow the business. It basically covers every key aspect, from the most significant detail (like startup capital) to the least significant information (like grocery stock).
Also, your business plan should be tailored, in line with your target market and location ie. Nigeria. And your prospective competitors, in the same line of business, should also be duly acknowledged in the plan. Typically, a standard business plan for a food delivery business in Nigeria should contain the following information among others:
- Brand name; create a catchy and unique brand name for your business. The business world today is all about branding!
- Desired location and target market
- Type of food product(s); fast food, junks, home-delicacies etc
- Delivery channel and cost
- Startup capital; including how to acquire it (if not already in hand)
- Operational budget and cost (daily, week, monthly and yearly)
- Forecasted ROI (daily, weekly or monthly)
- Required manpower (depending on your desired business scale)
- Billing format; price per pack or price per distance
- Expected growth rate
Summing up; How good your business plan is usually determines how successfully your business would be, and vice versa.
3. Register your new business – Becoming a Brand
Every new business in Nigeria is legally bound to obtain an operating permit from Corporate Affairs Commission (CAC). Hence, it is important you obtain required license(s) and permit(s) from CAC and other relevant regulatory bodies in Nigeria. If you are looking to go into the supply/delivery of packaged food products, you should apply for a NAFDAC registration number, to get your products certified safe for consumption. All these, of course, require money; but, in the log run, are worth every penny.
Summing Up; By getting your food delivery business registered/licensed, you’ve distinguished yourself from an average food seller. With this, you are able to charge more money for services rendered. And in the long run, you can easily expand your food ordering business in Nigeria as you grow your client base.
4. Marketing: Promoting your Venture
Getting new customers on board is one of the hardest task for most businesses, especially when it is related to the hospitality and food industry. Although the initial phase might seem to be pretty challenging, it is worth all of the hardwork and effort put in.
As a new venture, you should harness every resource at your disposal to advertise and promote your goods. Basically, you can create and distribute flyers, reach out to friends and relatives (to help promote your new biz), advertise on social media, and approach organisations or establishments in your target location (if possible).
Typically, it takes a little while before getting a sizeable customer-base, after which you can start earning significant income. Hence, it is recommended you start small, and expand as you grow your customer-base for your Food ordering business in Nigeria.
As a startup, you should be able to handle the workload of preparing food at a small scale, and hand deliver them to all demand points. However, as you grow your business and expand your client base, you can hire extra hands to help with food preparation and more importantly, delivery.
In the delivery of food products, you might have to cover several kilometres per day, and this may not be cost-effective. The smart thing to do here is to get a vehicle and/or a delivery staff (two or more). This would ensure orders are delivered in quick time. Also, hire a couple of kitchen assistants to help you with the regular chores that are involved along with the preparation of food. With this, you won’t become overwhelmed, and this would ensure continuous delivery of quality service to your customers.
Some of the key essentials to start this business are as follows;
- A startup capital (depending on scale and location)
- Kitchen wares (utensils) – cookers, pots, plates, take-away plates and spoons etc
- Delivery vehicle – van, car, motorbike or tricycle
- Grocery stock & Access to Clean Water (regular supply)
- Labour cost
- Registration/license fees
Hope all this information. helps you to successfully start your food delivery business in Nigeria. Do post your thoughts and queries in the comments section below and we’ll get back to you at the earliest.
Why Start a Food delivery business in Nigeria?
Nigeria is one of the hottest developing hubs in Africa and it is primed to be one of the strongest economies in the world by 2030. The country has the largest population in Africa and one of the biggest in the entire world, with more than 250 ethnic groups amongst its population and roughly 65% younger than 25 years. The Nigerian government runs on a democratic presidential system and despite recent socio-political instability the future seems to promise a greater degree of stability.