Halal and Kosher Online Food Business Model
The flourishing demand for halal and kosher food indicates the creation of two huge industries. The current scale of technologies allows investors to conveniently start a business as compared to a couple of decades back. The advent of online food business is a massive relief for consumers. Meanwhile, it is a remarkable opportunity for investors too.
Before jumping to the question of how to start an online food ordering business, it is wise to find the consumption statistics for halal and kosher.
Research predicts that the market value of halal food in the US will be peaking at $26.2 billion by 2022 (Statista). The number of kosher consumers in the US reached 12.35 million at the end of 2016. Thus, the US alone is one of the biggest markets for halal and kosher food businesses. The significance of on-demand services in such businesses reflects in the following case study.
The Halal Guys – a halal food company started in 1990 in New York. However, the owner struggled to scale up this business. It carried on as a roadside food cart up to five years back. In 2014, the owners decided to start online food ordering and delivery services. Consequently, the business expanded at an exponential pace. Currently, The Halal Guys operates in 85 locations in five countries.
Defining the Scope of Business
Research in the past two decades indicates that most food startups fail due to a vague business model. The owners must clearly identify the scope of business, targeted areas, and app complexity. Some owners intend to offer online food delivery business only while others also cook in-house. Again, others have farms to grow organic food.
“A business model describes the rationale of how an organization creates, delivers, and captures value.”
The scope of business varies directly to costs. Nevertheless, broader scopes also increase the probability of higher profits. However, a word of caution for the investors – the scope designing phase must consider the demography which is discussed later.
Identification of Potential Business Areas
The selection of regions depends on the scope of food on-demand business model. If one intends to offer halal food only, the region should have a considerable population of this religious demography. Same is the case with kosher. It should also ensure that the majority religion in the country of operation should predominantly vary.
This variation of religion follows from the fact that the countries with Jew and Muslim population in majority will already be offering sufficient services for respective populace. Thus, the probability for success of online food ordering business model in such locations is lower.
Population density also plays a vital role. For example, an area in the US or Europe with 30% of population Jew majority population does not guarantee success. This is because the total population of this region might be under a thousand. Consequently, less than 300 people will have kosher as the first choice.
On-demand Food App Development
Owing to the growing interest in online food business startup, ODTAP has developed a framework for the purpose. Instead of building from scratch, aspiring investors use this framework and customize it as per their business requirements. The pre-built features have already been tested extensively to ensure optimum performance.
The framework carries distinct panels for admin, customers, and staff. Hence, each of these stakeholders has a separate app which relates to their tasks. Customers can select a restaurant, scroll through the food menu, and order it. The customers can also pay through the app and share feedback. Moreover, the user can track the delivery agent in real-time. All these tasks require only a few taps on one’s smartphone. Thus, the developers ensured that every user could comfortably use the app regardless of their technical background.
The agent panel enables the delivery agent in finding the best route to the customer’s location. Administrators monitor the agents spread in the city and ensure that food delivery remains seamless.
Apart from these pre-built panels, the owners can add a range of more impressive features. Our developers recently added functionality where multiple customers can share the delivery charges. However, using this framework is not the only choice; if the use cases vary drastically, development from scratch is an appropriate option.
How to promote food business online
Some owners are able to find appropriate developers after carefully designing the scope. However, they fall short in promoting their business. Many of the aspiring investors are reluctant to invest all because they fear failure due to lack of marketing knowledge. Although their apprehension is legitimate, yet it should not hold them back from grabbing this opportunity.
The technological development in the past two decades allows fledgling owners to promote businesses as good as their experienced counterparts. There are marketing tools which enable companies to run online promotions on various platforms including social media.
One of the best ways to market a food startup is to develop partnerships with restaurants and fast foods. Restaurants do not usually offer food delivery. They are dependent on third-party delivery companies. Thus, collaboration with such food outlets provides the opportunity to grow with the industrial leaders.
Abide by National and Local Laws
Ethics should be part and parcel of every company. Unfortunately, some businesses – in effort to expand the profits – face forced terminations or hefty penalties due to unethical practices. Such suicidal practices are one of the primary reasons for failure in the food industry.
Ethical clauses in corporate laws vary in different countries. At times, some owners unintentionally violate the code of ethics since they are unfamiliar with the local laws. Owners should make sure that they are well aware of local and national corporate laws.
According to OSHA – the food regulatory body in the US – $132,598 is the minimum penalty for repeated or willful breaches. Nevertheless, the cases of violations are extremely rare since most businesses tend to understand and follow the rules.
Hit the Ground Running
Effective implementation of online food services business plan ensures success due to a significant degree of demand. Do you have an online food business idea but struggling to implement it?
ODTAP can assist you in converting the idea to a business model with our white label on-demand delivery app. Contact us today to hit the ground running.