While every industry has complications, online food businesses often face unique challenges, such as an increased risk of legal consequences, expiration dates, and allergens.
However, there are many benefits for those wanting to open an online food business, including lower overhead costs than running a physical restaurant, a growing market of consumers, and the chance to work with existing delivery partners. If you’re ready to start selling food online, follow this five-step guide:
Research Local Food Laws
Government organizations regularly monitor the food industry to ensure public safety, so do your research and acquire the proper licenses.
You must make certain information available to consumers, including mandatory food labeling information, nutritional and health claims, and allergen information.
Remember, all food must be delivered in a way that ensures it remains fit for consumption. For example, food that needs to be refrigerated should be delivered as quickly as possible—ideally overnight—and may need to be in an insulated box or a cool bag.
Find Your Niche
As a new eatery entrepreneur, it’s a good idea to consider your personal passions or hobbies when choosing a niche.
For example, are you already baking cookies at home, crafting jams from homegrown strawberries, or making snack boxes for your friends and family? This way, you already know the process and have experience with the recipes.
In addition, you could look into food trends. What are people cooking? What dishes are going viral online?
Free tools such as Google Trends, social media apps such as TikTok, and social media monitoring tools such as Hootsuite are a a great way to start looking into interest in certain foods and dishes over time.
Search up your cuisine niche and see what flavors are hot off the press. What are content creators cooking? How is their audience responding?
The New York Times has predicted that fusion snacks, hot sauces with complex flavors, and plain-old soup will be viral successes in 2024.
However, jumping on a food trend will come with lots of competition, so ask yourself how your products can stand out. Perhaps you could create fusion snacks that target a unique market, such as those with a nut allergy or gluten intolerance or those who eat vegan, vegetarian, kosher, or halal foods.
Consider How To Source Your Ingredients
Whether buying in bulk or making your own products, picking the best sources for your ingredients is essential to ensure your food is of the highest quality and your business reputation is intact.
Natural ingredient sourcing is on trend. While your business is operating only, your customers will still expect transparency regarding ingredient sourcing.
According to Innova, one in three consumers now hunt for natural ingredients on product packing, and this is likely to remain the same when it comes to scanning ingredient lists on your online store.
Here are some options for sourcing your ingredients:
- Local sourcing. Partnering with local farmers and producers ensures product freshness, fosters community growth by supporting local businesses, and appeals to consumers who prioritise eco-friendliness and community.
- Making your own products. Crafting your own products gives you ultimate control over the quality and uniqueness of your offerings.
- Co-packing and private labeling. This method lets you choose existing products but have them packaged and branded as your own, saving time and money.
Make sure to carefully check suppliers and focus on partnerships that match your brand’s goals.
Build your Brand
Selling food online is challenging because consumers can’t make purchasing decisions based on taste. This highlights the importance of your branding, packaging, and website.
Your package design and materials, the visuals and copy on your website, and the information on your product pages must work together to tell your story and help consumers imagine how your product might taste.
With packaging being so critical in the online food industry, consider hiring a designer to help with your needs.
Taking advantage of seasonal branding trends may also bring your business into the limelight. If you’re planning to start selling food online this quarter, leveraging seasonal hospitality themes such as Halloween and Diwali in your branding could help your online business stay in touch with consumer trends.
Why not release a “spooksational” flavor or a festive deal that encourages your demographic to start shopping?
Choose Your Sales Channels
In 2024, offering an online ordering service to customers can increase conversions by 61 percent.
This said, there are many sales channels to choose from to get your new food business online and start delivering to customers, including:
- Your own website. Setting up an online food store can be simple and give you full control over your brand. However, the self-delivery route comes with requirements and costs, such as buying and maintaining vehicles, petrol, tax, and commercial insurance.
- An existing delivery partner platform. Popular delivery services such as Uber Eats, DoorDash, and Grubhub require an initial setup fee and a percentage from each order in exchange for their services. However, a delivery partner is a great way to get your food business in front of consumers who may not land on your website.
- Online marketplaces. Reaching your target audience is trickier with an online store than a marketplace. You can sell your food products on Amazon, Etsy, or Open Food Network UK. Do your research to find which marketplaces do the packaging and shipping for you and which don’t.
Ensure all sale channels are connected to your chosen restaurant point-of-sale (POS) system so you can track orders in one place, manage inventory, and gather customer data.
Are You Ready To Get Started?
With consumers enjoying ordering online more than ever, starting an online food business presents a profitable opportunity to join an ever-growing market.
This guide has explored five essential steps, from researching local food selling laws to building a compelling brand that will help you create a successful food brand capable of anything.
Rebecca Barnatt-Smith talks about all things technology. Writing for popular publications like Real Business and Maddyness, she writes on the power of growing your business using the latest tech innovations and how the digital world continues to change hospitality strategies across the globe.
