Food & Food Startups

Food & Food start us is a very exciting space as everyone thinks they love food and must be thinking “how difficult can it be for people to run an enterprise” … Truth is you should be able to identify where you are in the matrix to determine where you can start. There are different challenges for different categories of Food Start ups. I have narrowed them down to three categories.. ofcourse there can be more categories and sub categories too… this publication is also to highlight the delivery price matrix and where you fall in it.

It is easy to get influenced by success stories around you and try to replicate the model of a successful enterprise but a lot of hardwork, multiple failures and sometimes lots of money goes behind reaching that point where you are seeing only success in that person/idea.

Try and identify where your start up lies in the delivery and price matrix which are the key components for determining the line of business and resources you require to really decide on starting up or scaling up. I have numbered the options based on my liking, it may defer for you. I have not accounted for different cost factors, market conditions and demand supply protocols but generalized it.

Try seeing where do you lie in this matrix and let’s discuss how we can improve this. I believe the eco-system can be empowered if we all work together and reboot failed systems.

“Price - Delivery Matrix”

Published by:

Ritesh Bafna Manager, Business Development Broadway Malyan Student Mentor – Bizorion, JBIMS Twitter: @riteshbafna84 Email: riteshbafna84@gmail.com Zomato: @riteshbafna84 Linkedin: Bafnaritesh

e.g. faasos

(Not viable unless promoter or other funds are available)

4

Scheduled/ Subscribed

Oncall

Low High

Delivery

Price

Cost of Delivery

Rs. 50 – Rs. 250 per delivery

• Staff Driven – Fixed or Variable • Tie –Up with Logistics Company • Outsource to an Aggregator

Cost of Food

10% - 40% or more of Sale Price

• Food Aggregators • Food is Outsourced • Personal Kitchen

Cost of Customer Acquisition (COCA)

Rs. 100 – Rs. 1000 or more

• Online & offline marketing • Customer retention :

Target

Engage

Service

Retain

Refer

e.g. Dominos

• Very robust Delivery System • Very High Brand Recall • High COCA & Asset Cost

2

e.g. spicebox

• best for tiffin/snack services • Subscription model

3

e.g. holachef, the food doofs

• Best Scenario Niche • Food Quality will lead to

retention

1