How to Write a Meal Delivery Business Plan
The meal delivery industry was practically nonexistent just a few years ago. However, because of the recent lockdowns and other reasons, the meal delivery industry has been growing at an impressive pace over the last several years, which has driven the demand for meal delivery business plans, meal delivery business plan templates, and meal delivery pro forma financial projections.
There are numerous reasons why meal delivery business plans are in high demand. For example, meal delivery businesses have been providing customers with multiple healthy options on a subscription basis. This business structure allows for business owners to sell each meal at a reduced price because of the bulk sales. In addition, the convenience of having meals delivered on a daily basis is very difficult for busy parents and executives to pass up. No matter the reason for the growing demand for meal delivery business plans, having a prepared business plan is an excellent strategic move. From this, our meal delivery business plan writer has come up with some tips and tricks that business plan writers may use when writing their own meal delivery business plans, business plan templates, and pro forma financial projections.
Executive Summary for a Meal Delivery Business Plan or Template.
The meal delivery executive summary section should start by providing important basic information about the organization, such as the company’s name, address, and delivery service area. Once this foundation is set, meal delivery business owners should specifically state one or two competitive differences that the organization offers as compared to other companies. In some instances, meal delivery businesses may focus on healthy alternatives to fast-food restaurants. Still, more meal delivery businesses offer extensive meal plans to choose from. No matter the differentiating factor, make sure to expressly state it in the executive summary segment.
The company information section and location segment of the meal delivery business plan should again reiterate the basic company information like location, meal plan options, and payment structures. Further, in this section, meal delivery business plan writers should provide in-depth details as to the delivery area for the company. In some cases, meal delivery businesses will provide services on a city-by-city basis. In other strategic business models, organizations will deliver only to a specific radius based on their firm’s location. No matter which structure is embraced by the meal delivery company, make sure to expressly state it as well as document any exceptions to the delivery route, such as large orders. By providing in-depth explanations of the location of the organization, the business owner is able to provide a sound business model from which to operate.
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Popular Services/Products Offered by a Meal Delivery Company.
Meal delivery companies provide similar services throughout the industry. These services are pretty straightforward, which include preparing meals and delivering them to customers. What does differ from competitor to competitor would be the actual meals provided and payment structures. In some cases, meal delivery competitors will embrace a healthy menu option for customers. Other meal delivery companies will provide customers with a wide selection of meals to choose from. Further, the payment options differ from company to company as well. Our meal delivery business plan writer has found that some organizations will bill on a monthly basis depending on the number of meals ordered. Other organizations charge per meal delivered. Regardless of the types of meals provided and billing structures, these details should be provided in the services and product segment of the meal delivery business plan.
Marketing Section for a Meal Delivery Business Plan or Business Plan Template.
Meal kit delivery business owners usually advertise through multiple channels. For example, our meal kit delivery business plan writer has found that traditional or common marketing channels for this type of business would include car magnets for their delivery vehicles, websites, and social media postings. However, what all too often is lacking in some meal delivery advertising strategies is leaving promotional material with their products delivered. Of course, most delivery banks have the company’s name and logo on them. However, including a well-designed menu not only informs customers of all your products offered but also helps to build brand recognition as well. This is just one of several innovative marketing strategies that should be included in the well-prepared meal kit delivery business plan (8/22).
The pro forma financial projections for a meal delivery company should start with identifying how many customers will be serviced daily or weekly. Next, anticipate the average sales price for each meal delivered as well as the aligned variable costs, which should include fuel charges. From this structure, the meal delivery pro forma financial projection professional should then multiply the average sales price per meal delivered by the number of customers serviced daily and then multiply the product by one minus the variable costs. This formula will provide the business owner with the company’s daily gross profit margin. After this is complete, the business owner can then multiply the gross profit margin for the meal delivery company by the number of days in the month and then deduct the various monthly fixed cost. The end difference is the organization’s estimated net profits for their meal delivery company. The structure is a mouthful to describe, but once the financial model is complete, its usefulness ranges from identifying optimal price points to providing insights into which costs need to be controlled.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author