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Advantage & Disadvantages of Online Food Business

Narendra Kumar

| Updated: Jul 04, 2019 | Category: FSSAI Food License

Online Food Business

Now-a-days, online business is a great opportunity to come from the new means of reaching to the customers online and it is necessary for the food business to have an online presence. People are more connected online rather than going outside. In the competitive world it hardly matters how big or small the business is, every business needs to have a basic online presence. Same criteria are followed in the food industry, if the person having a food business haven’t yet created an online page about his/her place, it is a disadvantage for his business and some profiles on the social networks have already created it and took a benefit of it.

Reason why food business must have online presence?

Online food business creates an opportunity and the businessman starts by expanding the service output with some additional pick-up in the business. Nowadays people are spending more money online. Advanced technology has brought a lot of change in people’s lives through e-commerce facility and people of all the generation have no barriers in a adopting new way of shopping.

Note – As per the present statistics, about 69% of the consumers are ordering food online with various mobile applications which allow users to place orders online.

What is the Criteria of Online Food Business?

An effective way of calibrating a takeaway business without investing and risking too much is to try some casual pick-up service first.

Following are major things that are taken into consideration i.e.-

  • Menu item
  • Ease of ordering.
  • Pricing
  • Packaging
  • Quality of food
  • Discount offers.
  • A good website designs for quick serving the clients and with a nice rating.

Also Read: How to Avoid Delay in Getting FSSAI License?
Food Hygiene Guidelines for Food Delivery Businesses
How to Start a Catering Business in India

Elaborate the process of starting an Online Food Business

Initially, it is good to start the online business by creating the Facebook business page of the restaurant and a business must have administration rights on the page. Additionally, it must have Local Business or Place mode.

Onlline Food Business

Creating a Facebook Online Page

  • Adding a cover photo on the page, so that a person can recognize it easily.
  • Adding an online order Application, which makes online ordering easier. Like-Zomato, swiggy etc.
  • Create context and regular posting of pictures of existing customers, products, offers or any messages on certain occasions and festivals.
  • Let the customers know more about your restaurant, your chef, the ambiance of the restaurant by making short clips, live video and through pictures so that the people will be able to connect personally with the brand.
  • Regular promotions and keeping an update on any change in the menu along with the prices.
  • Special discounts announcements and updating the Facebook page daily.

Accomplishing all the criteria will result in generating good sales. As ordering online is a very easy way, as it works on any devices i.e. mobile, laptop and desktop also.

Creating a Google Presence

It is very important for all the businessperson to have a Google presence and the business needs to get registered in Google Account (My business account). It acts a business workplace online where you can manage everything that reflects about your business on the Google.

Process of creating a Google Account

  • Sign in with the email address by creating the Google account. The email address must associate with the business name for the ease and understanding of the customers.
  • After signing into the Google account create your business acknowledgments by including all the details such as name, address, phone no. and business category.
  • Verification of business account, as without verification step the exposure benefit cannot be availed arising from the claiming the Google Plus page.
  • Editing the business Profile for enhancing the online ordering capabilities. Following processes are required to create an extra-ordinary profile of the business for the customers:
    • Google’s local listing by updating more and more reviews of the customers. More and more positive reviews form the customer based on the services and food of the restaurant.
    • Uploading real pictures of the restaurant i.e. of the location and the food. Happy customers pictures, pictures of the team/customers ordering food.
    • Description of food and product variety helps the customer in finding the food easily.

All this process helps in good visibility of the restaurant on Google.

Advantages of Online Food Business

Running an online business adds flexibility in the business which ultimately results in the increase in sales and profit-

  • Easy to start an online marketing business

Starting an online business with less capital. It affiliates a marketing business without spending more time and money. Online business helps in promoting the business without going for dine-in. In an online business, the process does not require much time to get started.

  • Unlimited profit and Income Potential

Online food business results in unlimited profit and Income potential of the business.

  • Free access all over the world

As long as a person have a computer and internet access, it doesn’t matter where the person is—, you can run an online business from anywhere in the world.

  • Ease for the customer to receive the delivery at their place without going outside.
  • Easy to use features which is completely easy, convenient and completely transparent.

Disadvantages of the Online Food Business

Despite of being an end number of advantages in online business, there are certain disadvantages of online business. They are-

  • Relying on the third-party results in Loss of Control over the business.
  • No direct contact with the customers.
  • Delivery charges result in an increase in labor cost which is ultimately born by the consumers.
  • Compromise in food quality.
  • Additional Packaging charges.
  • Fierce competition between the restaurants dealing in the same business.

Conclusion

In online business, the owner of the business becomes very creative to increase the sale. It allows the customer to purchase the food online without any inconvenience. It also offers discounts on the order value with the payment option (Cash or Card payment).

Also Read: How to Avoid Delay in Getting FSSAI License?
Food Hygiene Guidelines for Food Delivery Businesses
How to Start a Catering Business in India

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Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

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