1、Yummy Online Food Marketplace Business Plan CODE BREW LABS Index 1. Executive Summary 1.1 Objectives 2. Market Opportunity 2.1 Rising Demand & Revenue 2.2 Millennial Buying Preference 2.3 Customer Behavior 3. Business Summary 3.1 Start-up Summary 4. Market Analysis Summary 4.1 Market Segmentation 4.

2、2 Target Market Segment Strategy 4.3 Major Competitors 5. Strategy and Implementation Summary 1 2 2-3 3 4 5 5-6 7 7-8 9 9-11 12 5.1 Competitive Edge: 5.2 Pricing Strategy 5.3 Commission Strategy 5.4 Sales & Proft Forecast 5.5 Proft Forecast 6. Sales & Marketing Plan 6.1 Online Marketing Strategies 6

3、.2 Ofine Marketing Strategies 7. Management Summary 7.1 Team Expansion Plan 8. Business Expansion Plan 8.1 Expanding Service Area 8.2 Expanding Service Oferings Conclusion 12-13 13 14 14-15 15-16 17 17-18 18 19 20 20-21 21-22 23-24 Executive Summary Yummy is an emerging online food marketplace which

4、 will be serving customers across the United States. Providing a combination of healthy, delicious and cost-efective food at doorstep, Yummy is the answer to every food lover who wants lip-smacking dishes at their fngertip. Looking forward to dealing with an exponential rise in demand for food deliv

5、ery, this platform lets customers and food restaurants connect on one platform. The main priority is to establish as one of the most preferred food delivery platforms and serve the dining needs of the customers at the comfort of their homes, ofces, or wherever they want. 1.1 Objectives To establish

6、a presence as a successful online food marketplace and gain a market share in the United States food industry. To make Yummy a go-to destination for food lovers & restaurants. To expand into a multi-service marketplace by adding services like pickup & delivery, grocery delivery, pharmacy delivery, &

7、 more. CODE BREW LABS1 Market Opportunity 2.1 Rising Demand & Revenue Despite the highly competitive environment, Yummy stands apart from the other food delivery apps with the help of its highly advanced technology solution. With more than 1 million restaurants operating in the state, the revenue in

8、 the food & beverages segment amounts to US $12,056m. However, the revenue in the online food delivery segment amounts to US$26,527m in 2020. 16,510 202420232022202182017 15,784 14,808 13,557 12,056 8,670 7,352 6,263 20,000 15,000 10,000 in million US$ 5,000 0 CODE BREW LABS2 2.2 Millenni

9、al Buying Preference From the increasing congestion levels to longer waiting times at restaurants, there are several reasons for the change in behavior of millennial food ordering. They are swayed by the convenience of ordering online rather than stepping out to eat their favorite food. THE FACT Mil

10、lennial are three times more likely to order than their parents. And food delivery apps are now on average in the top 40 most downloaded apps in major markets. -F Restaurant-to-Consumer DeliveryPlatform-to-Consumer DeliveryTotal 40,000 202420232022202182017 31,413 30,138 28,486 26,527 22,

11、073 20,147 18,332 40,000 30,000 20,000 in million US$ 10,000 0 CODE BREW LABS3 2.3 Customer Behavior Customers have a diferent set of needs and expectations from the online food delivery platforms. Once customers sign up, 80% never or rarely leave for another platform. Increased customer loyalty Mor

12、e than 60% customers cite the speed of delivery to be the biggest variable in customer satisfaction. Time-e!cient delivery Around 82% of orders are placed from home, while only 16% are placed from the workplace. Ordering convenience Friday, Saturday, and Sunday tends to be the highest-volume days fo

13、r the online platforms, making it to 74% of the orders being placed. Weekend ordering CODE BREW LABS4 Business Summary Yummy is a multi-vendor food marketplace delivery service started in Michigan City. John Steve, the owner of Yummy Food Delivery app, has 10 years of experience in the restaurant in

14、dustry. Considering the abrupt change in the food industry and an increase in demand of online food ordering in the area, he decided to launch his food delivery app. His major focus is to satisfy the customers demand for high quality and tasty food, which is delivered right at their doorstep, quickl

15、y with a smile. Initially, he aimed to serve the twenty-three mile area with over 32,000 residents. Overhead will be kept low so that Yummy prices can beat the competition. 3.1 Start-up Summary The start-up cost of Yummy primarily consists of total spend on technology solution, delivery team, suppor

16、t, team, sales & marketing, and monthly maintenance. John initially invested $90,000. CODE BREW LABS5 $50,000 $50,000 $13,000 $0 $50,000 LoansInvestmentAssetsExpenses $20,000 $15,000 $30,000 $25,000 $40,000 $35,000 $50,000 $45,000 $10,000 $5,000 $0 One-time tech-suite cost$13K Delivery team (10 Driv

17、ers)$24K/Month (Charging $10/hour) Support team (8 persons)$38,400/ Month (Charging $20/hour) Sales & Marketing Spend$1-2K/Month Maintenance Charges$100/ Month Miscellaneous$500/ Month Monthly Recurring Costs$75,900 Start-Up CODE BREW LABS6 Market Analysis Summary To analyze the market, it is import

18、ant to understand the market segmentation, market segment strategy and the major competitors. 4.1 Market Segmentation The 2010 Census of Michigan City, Indiana states that there are currently over 31,479 people populating this area. While the median age in the city is 37.1 years, it is a great oppor

19、tunity for food marketplace like Yummy to operate in the area. As millennials tend to order more, the city includes 61% of people in the age group 18-44. Using basic demographic characteristics of age, gender, income, location, food preferences, and ethnicity, an estimate of 25,000 potential custome

20、rs was used in developing this plan. 23.5% of residents were under the age of 18 8.9% were between the ages of 18 and 24 27.8% were from 25 to 44 26.2% were from 45 to 64 13.5% were 65 years of age or older. 23.5% 8.9% 27.8% 26.2% 13.5% CODE BREW LABS7 There are 20 Towns in the radius of 25 miles ar

21、ound Michigan City and the total population sums to more than 167,000. If every year, Yummy extends services to 10 Miles, the potential customers will increase to 35, 500 in !rst year, followed by 54,000 and 78,500 in second and third year. Beverfy ShoresSW605United StatesIndiana95.59 TownDirPopCoun

22、tryAreakm.mi. La PorteSE21610United StatesIndiana12.847.98 WestvilleSW5635United StatesIndiana14.669.11 New BuffaloNE1878United StatesMichigan16.310.13 ChestertonSW13833United StatesIndiana16.8310.46 Rolling PrairieSE582United StatesIndiana21.8313.56 PortageSW36806United StatesIndiana26.0416.18 King

23、sford HeightsSE1393United StatesIndiana26.5516.50 WanatahSW1010United StatesIndiana29.0818.07 Three OaksNE1622United StatesMichigan27.2116.91 Cites and Towns Near Michigan City Indiana Market Analysis YEAR 3YEAR 2YEAR 1 235,500 54,000 148,000 CODE BREW LABS8 4.2 Target Market Segment Strategy 1. Ube

24、r Eats 2. Grubhub 3. DoorDash 4. Postmates Most Popular Apps On average, 40 minutes is the longest well accept for estimated delivery will accept an hour or more for delivery time 20 mins 30 mins 40 mins 50 mins. 60 mins 70+ mins. 7% 31% 27% 12% 20% 3% 1 in 4 The Wait Less than 1/2 mile. 31% Average

25、: 1.5 miles 1/2 to 1 mile .33% 1-2 miles.15% 2-3 miles.8% More than 3 miles13% Whats the shortest distance youll still opt for delivery tackout? The Cost The target market for the food ordering marketplace is very broad and will incorporate the entire demographic regions. Almost all ages, genders, r

26、aces, and incomes should be considered potential customers. 4.3 Major Competitors There are four major competitors including UberEats, Grubhub, Postmates, and Doordash. Here is the cost breakdown for two meals ordered from these food delivery apps. Start with a restaurant in mind, then look for it i

27、n the apps Start by opening an app, then look for ideas54 % 46 % $5 or less35% Average: $8.50 $6-10.37% $11-15.28% Whats the most youll pay for delivery fee & tip combined? The Cost CODE BREW LABS9 Two meals: $27 Tax: +$2 Delivery fee: +$3 Service fee: +$3 Discount: -$5 Total fee paid: $3 Driver tip

28、: $5 Total for meal and tip: $35 Total for meal and tip: $52 Two meals: $37 Tax & fees: +$8 Delivery fee: +$4 Discount: -$2 Total fee paid: $10 Driver tip: $5 Total for meal and tip: $48 Two meals: $33 Tax & fees: +$9 Delivery fee: +$6 Discount: -$10 Total fee paid: $5 Driver tip: $5 Two meals: $26

29、Tax: +$2 Delivery fee: +$5 Service fee: +$4 Discount: -$0 Total fee paid: $11 Driver tip: $5 Total for meal and tip: $42 CODE BREW LABS10 Commission Charges From Partner Restaurants 15-30 Doordash % 20-30 Uber Eats % 15-30 Grubhub % 15-30 Postmates % Despite these four major players, customers are n

30、ot satisfed with their services for one reason or the other. Customers Food not warm and / or fresh17% Food delivered late16% Incorrect orders12% Restaurants ignoring notes/instructions12% Prices are inconsistent11% Food gets shaken or messed up during delivery10% Menus are inconsistent or Limited9%

31、 Complaints% consistently irritated CODE BREW LABS11 Strategy & Implementation Summary At frst, we will onboard all the famous international and national restaurants in Michigan City. As we go further, Yummy is planning to open doors for the small food entrepreneurs, including food trucks and local

32、chefs, operating from home. To attract potential customers, we will be marketing our platform across diferent platforms. Moving further, we will pay greater attention to customer satisfaction and try to retain the maximum of them. Our support team will be there 24/7 to attend any queries/disputes ra

33、ised by the customers. 5.1 Competitive Edge Considering every single complaint of the customers against the major competitors (Uber Eats, Grubhub, Postmates, and Doordash), Yummy will turn out to be a go-to destination for food lovers. Yummy has several advantages over its leading competitors: CODE

34、BREW LABS12 5.2 Pricing Strategy The total for two meals and tip ranges somewhere $35 to $52 on diferent platforms (Uber Eats, Grubhub, Postmates, and Doordash). The sales strategy of Yummy is simple. We will cut down the total cost from $29 to $32 for two meals. Flexibility to correct the order by

35、calling up the delivery agent directly. Ensuring the partner restaurants follow the instructions carefully, and if not followed, the customers are refunded or awarded with some loyalty points. Consistent pricing across the marketplace, without comprising on food or delivery quality. Trained drivers

36、to make sure the food reaches in its best state at the customers doorstep. Adding the maximum number of international, national and local food brands to ofer a diverse range of menu and cuisine selection. Onboarding local chefs, food trucks, and small food startups to help them reach a larger custom

37、er base. Ofers fresh, healthy, and warm food to the customers. On-time delivery with the help of the fnest delivery management solution. The delivery fee will be as low as $2 The service fee will be reduced to $0 The discounts will range to from $4 to $6 CODE BREW LABS13 5.3 Commission Strategy The

38、other major platforms like Uber Eats, Grubhub, Postmates, and Doordash, charges commission 15-35% commission rate from the restaurants. Yummy being new in the industry will charge 12-15% commission rate. This will help food businesses of all sizes to start selling and earning more on Yummy platform.

39、 We also plan to reduce the commission charges from the restaurants that bring in high orders in a bid to strengthen our hold in the food-tech space and take on our competitors. 5.4 Sales & Proft Forecast With a good number of potential customers in Michigan City, Yummy expects 500 orders per day in

40、 the initial stage. We will onboard the most popular food vendors to ensure we ofer what customers love. Gross Revenue: $82,200 Gross Revenue $30,000 Delivery Charged/Order ($2) $52,200 Commission Charged/Order $14,500 Total transactions/day $435,000 Monthly Transaction $30,000 Number of order/day 5

41、000 Number of vendors CODE BREW LABS14 5.4.1 Proft Forecast Net Proft: Gross Revenue Overall Cost (including driver, support, server, market spend) Yummy believe that it can increase the number of orders per month with its sales and marketing plan. Month by month, we plan to increase orders by at le

42、ast 10% and increase customer retention rate to 80% for the !rst year which further leads to increase in revenue every month. Year 5Year 4Year 3Year 2Year 1 20,000 25,000 30,000 15,000 10,000 5,000 0 Year 5Year 4Year 3Year 2Year 1 20,000 25,000 30,000 15,000 10,000 5,000 0 $82,200 - $75,900 Gross Re

43、venue Overall CostNet Pro!t = $6,300 CODE BREW LABS15 As we plan to expand our services by 10 miles every year, Yummy expects 33%, 47% and 53% CAGR for the frst, second, and third year, respectively. Year 5Year 4Year 3 20,000 25,000 30,000 15,000 10,000 5,000 0 Year 5Year 4Year 3Year 2Year 1 20,000

44、25,000 30,000 15,000 10,000 5,000 0 ($6K to $15 K rise in year 1) Year 1 Revenue Monthly DecNovFebJanJunMarMayAugSepOctAprJul $16k $14k $12k $10k $8k $6k $4k $2k 0 Gross RevenueTotal transactions Net ProftOverall Cost CODE BREW LABS16 Sales & Marketing Plan The marketing plan begins with Social Medi

45、a platforms including Instagram, Facebook, Pinterest, Youtube and Twitter. We aim to boost our online presence with paid campaign across diferent platforms too. There will number of online and ofine strategies to increase awareness about our platform and sales. 6.1 Online Marketing Strategies We pla

46、n to have a great and large online menu to encourage in-app ordering. We will ofer in-app coupons and reward programs to encourage customers order more frequently. We will be sending push notifcations for time to time ofers, discounts, deals, etc. We will focus on create highly visual dishes and use

47、 trending hashtags to help Yummy gain visibility on social media. We will attract more customers with diferent types of discounts, promo codes, and more. Creating special discounts for students and ofce meals will help us in standing apart from the competition. CODE BREW LABS17 6.2 Ofine Marketing S

48、trategies Yummy plans for associating the brand name with some local events. We will also host special events, such as a local celebrations or music festivals, which are attended by thousands of people from the local area. We also plan for adding press releases into our strategy to gain coverage in

49、local media. From listing out our new and interesting menu to the events we associate with, we will draw media attention for every good reason. We plan to run giveaways through your social media to make sure our current customers spread the word for us. We also have email marketing in our plan and we will reach out our potential customers through creatively crafted emails. We look forwa