How to Start a Food Delivery Business in Abuja, Lagos, Nigeria

The food delivery business has been growing exponentially for quite a time in Nigeria. The country being the seventh most populous country in the world. Therefore, it provides a great opportunity for budding entrepreneurs to start their own food delivery business in Nigeria.

If you are eager to develop your own food delivery business in Nigeria and become a part of this big buck venture. Then we at Suffescom have the right expertise and technology to turn your dream into reality within your expected budget. We’re designed for your app development needs. Request a service tour.

expert advice

Want to know ‘how to start a food delivery business in Nigeria?’ Then the next section of the post is a must-read for you. In addition to this, you will find the answer to;

  • Is Food Delivery Business A Worthy Investment in Nigeria?
  • Who Can Invest & Benefit from Food Delivery Business in Nigeria?
  • Must-Have Features of a Food Delivery App
  • How Food Delivery Apps Generate Money?
  • How Much Does It Cost To Develop a Food Delivery App?
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Basically, every aspect related to Nigeria’s food delivery business is discussed in detail in this post. So, scroll the next section of the post to know – How to start?

  1. Target Location/Market

Before setting up your food delivery business in Lagos, Nigeria, it’s vital to do a thorough market research/survey. The market survey will give you valuable insights about;

  • Perfect location for your food business
  • Identifying your target audiences, and
  • Their food preferences

For instance, if you are planning to open your food business in any of the largest cities in Nigeria, such as Lagos, Kano, Ibada. Then, adding famous local food such as;

  1. Fufu (or foofoo, foufou)
  2. Eba
  3. Tuwo Shinkafa
  4. Moin Moin (or moi moi)
  5. Gizdodo
  6. Ponmo (or kanda)
  7. Suya (or tsire)

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Places like Lagos and Kano are the country’s financial, cultural, and educational hubs, and adding local food to the menu is the best for your food business. Add these mouth-watering local dishes to the food menu to relish customers’ taste buds!

On the other hand, if you are planning to open a food delivery business near a popular tourist attraction in Nigeria. Such as Agbokim Waterfalls, Agodi Gardens, Aso Rock, Bar Beach, and adding local and international dishes to the menu.

2. Business Plan & Roadmap

Like every other business, you need to work on the road map for your food delivery business. Here in this stage, you are going to plan things about your business such as;

  • Prepare a simple document about your business plan
  • How to sustain your food delivery business
  • How you are planning to grow your food business
  • Key aspects related to food business
  • Prepare a budget estimate for setup cost
  • Key investments for the food business include food delivery apps, Digital marketing, Social media management.

Not just planning, it’s crucial to prepare a road map keeping in mind your business goal and target market, i.e., Nigeria. Prepare an action plan for the same as this will help monitor your business growth and make changes accordingly. A standard food delivery business plan contains the following information;

  • A catchy and unique brand name.
  • Location, target market, and restaurant menu.
  • Setup and Operational cost
  • Forecasted ROI (daily, weekly or monthly)
  • Required manpower (depending on your desired business scale)
  • Overhead expenses
  • Expected growth rate

3. Register With Local Authorities

Every new business needs to register and obtain a permit from the Corporate Affairs Commission (CAC)  (Official link) and other regulatory authorities in Nigeria. Hence, the first thing that you need to do after finalizing the brand name and location is to register and obtain a permit.

However, you need to go a step further and apply for a NAFDAC registration number for your food business. All these legal procedures might take time and require money too; thus, it is recommended to have a legal advisor along to make this process smooth.

4. Build A Virtual Brand Presence

In this technology-dominated world, a business needs to build a brand’s virtual presence and connect with target audiences. With a strong online presence, you can easily overcome the initial challenges that any food business faces in onboarding new customers. 

This is where our tech experts can help food delivery businesses in Nigeria. Marketing and social media promotions effectively engage with your target audience. But with a customized food delivery app (just like UberEats), you can convert the audience to loyal customers. We are going to discuss food ordering software later.

Typically, for any food delivery business in Nigeria, it takes a while to build a loyal customer base and be profitable. But by leveraging the power of technology and online platforms, you can break barriers and grow your business.

Top 10 Biggest Food Delivery Companies In The World 2022

Is Food Delivery Business A Worthy Investment in Nigeria, Abuja, Lagos?

food delivery business nigeria

Nigeria has one of the largest populations in the entire African region. The country is expected to become one of the strongest economies in the world by the end of 2030. With a 65% population younger than 25 years and over 250 ethenic groups, entrepreneurs have a lot of potentials to capture the market and be profitable. 

Still have doubts…….

  • In 2021, the number of mobile internet users in Nigeria amounted to over 101.7 million.
  • This figure is projected to grow to 142.73 million by the end of 2026.
  • Nigerian e-commerce platform Jumia had 6.8 million customers, and in June 2021, the number peaked to almost 650 thousand active users.
  • Number of downloads of popular Food delivery apps:
    • UberEats – 140000
    • Jumai – 140000
    • Bukka – 100000
    • GoFood – 67000
    • Foodie – 78000
  • The Online Food Delivery segment is projected to reach a revenue of US$537m in 2021.
  • With an annual growth rate (CAGR 2021-2025) of 41.76%, the revenue is projected to reach US$2,168m by 2025.

But the real question is …..

How to Create Your Food Delivery App Like Ubereats

Who Can Invest & Benefit from Food Delivery Business in Nigeria, Abuja, Lagos?

From the above stats, it is clear that the food industry in Abuja, Lagos, Nigeria is expected to soar up in the future. But the question is who should invest in this new business venture. If you are not sure about whether you should invest in the food delivery business or not, then this section is a must-read for you.

We have categorized food delivery business investors in two categories who can invest & benefit from it:

  1. Food Business Owners in Nigeria

Someone who already has a well-settled or is planning to set up a food delivery business in Nigeria. Investing in food software allows them to grow their business and serve customers better. Here are some of the benefits if you invest in these food delivery apps such as:

  • Resource management
  • Inventory management
  • Recipe management
  • Online menu
  • Business Analytics
  • Billing software system
  • Feedback system

These are just the basic advantages of restaurant software for the business. With these food apps, you can manage every aspect of the business on a single screen. Thus making it easier to manage everything from anywhere.

2. Budding Investors in Nigeria

Everyone knows about the success of third-party delivery apps like Jumia Foods, Chopnownow, UberEats in Nigeria. This opens up a world of opportunity for budding Nigerian investors to jump the bandwagon and earn hefty profits. To take advantage, investors can offer cutting-edge features, low commission rates, and better courier service to the restaurant business in Nigeria.  

The Nigerian food sector is expected to reach US$2,168m by 2025, with a growth rate of 41.76%. And with a competitive third-party food delivery app, you can have a slice of the cake. However, it’s important to keep customer needs at top priority during the development stages.

If you fit in with any one of the above-mentioned users, then it’s high time that you move ahead from planning to development stages. Take advantage of our software development experts and discuss your app needs today.

You are ready to develop your Food delivery application but don’t know what features to offer to your customers. Don’t worry; we have got your back…

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Must-Have Features of a Food Delivery App for Abuja, Lagos Audiance

In order to provide you a clear picture of what features to be added to the food delivery app. We have divided the food delivery interface into three categories: Customer Panel, Admin Panel, and Courier Panel.

Customer Panel

  1. Profile Creation & Management

To enjoy the features of food delivery apps, a customer needs to first create a profile with their email, mobile number, or social media account. You can use a single-stage profile creation process and make it easy for customers to create & manage their profiles.

2. Location tracking

This feature allows customers to browse food restaurants nearby, specify drop-off locations, and track the courier’s live location.

3. Restaurant List

This app feature allows customers to see the popular restaurant business in the area and view their menu. Customers can find reviews and ratings of an individual restaurant before ordering food.

4. Drop-Off Address

A customer can specify the drop-off location to the courier and track their live location as well. A customer can save the location as Home, Office, Apartment, thus eliminating the need of adding delivery address every time.

5. Payment Option

A food delivery app integrating multi-payment methods such as Debit/Credit card, Cash On Delivery, eWallets is a must-have feature. With this, customers can easily move from ordering food to payment methods.

6. Order Cart

On this app screen, users can view their orders, add or remove dishes ordered and see the final payment amount.

7. Order History

This time-saving feature allows customers to track their previous orders and even reorder the same.

8. Review & Rating

With this feature, users rate the restaurant services and share their reviews. This feature comes in handy in case users want to try a new restaurant.

9. Push Notifications

Launched a new offer or an attractive discount? Push notifications are the best way to keep users updated about the application.

10. Search Filters

Want to know which restaurants nearby serve Jollof Rice, Garri, Pounded Yam, and other popular dishes. This feature allows users to find and even filter out restaurants based on dishes.

Dynamic QR Codes for Restaurant Menus

Restaurant Panel

  1. Managing Orders

This app feature allows restaurants to keep track of incoming orders and inform customers that their orders have been accepted, are being cooked, and are out for delivery.

2. Manage Accounts

With this feature, a food business can manage, track their accounts, and watch the total number of monetary transactions.

3. Business Dashboard

With a dedicated business dashboard, restaurant owners can manage every business aspect all in one place. Business information such as new order requests, dropped orders, accepted orders, completed requests, and others are available in one place.

4. Business Profile

This app feature allows restaurant businesses to add new dishes and update their profiles. Businesses can alter their food costs, rebate rates, add new dishes and make other changes to their existing profile.

5. Billing Software

No need to worry about the billing software. With these food delivery apps, you can integrate the billing software and manage all transactions all in one place. 

6. Marketing Management

With just a click of a button, restaurants can launch new offers, coupons and manage other marketing features all from one place. Just focus on the business, and the food software will handle the rest.

7. Business Analytics

Successfully analyzing key performing and weak areas of the business makes it easy for an owner to plan for the future.

8. Online Menu

This feature allows restaurant owners to showcase their virtual menu to their customers. Restaurant owners can change the food menu within minutes with easy edit, update, and delete options.

9. Inventory management

For the smooth running of the food business, it is vital to keep track of the inventory and pre-order things in advance. Food software allows restaurant owners to track and automatically order to avoid shortages.

10. Feedback system

A feedback system makes it easier for a business to work on its weak areas and improve its products and services. These are effective in enhancing customer engagement by swiftly addressing their queries.

Courier Panel

  1. Profile Creation & Update 

This app feature allows couriers to register to start accepting orders with the platform. Single-step registration allows couriers to easily connect with the platform and get verified. 

2. Manage Orders

Food delivery software allows couriers to manage incoming orders, accept or reject orders depending upon their availability.

3. Call/Chat

Call or chat feature is effective if the courier finds it hard to locate the exact drop-off location. They can either call or text the customer if they face any issue with the application.

4. App Support 

This app feature allows couriers to connect with the support team if they face any issues with the application. In-app chat or call feature allows them to communicate their issue directly to the app support team.

5. Delivery Records

In this app screen, the courier can keep track of previous successfully completed deliveries and even track the payment records for each.

6. Availability Update

This app feature allows couriers to set their availability time and update when they are ready to accept or not available to accept orders. With an integrated calendar, they can set their availability and make it easier for the admin to manage resources.

Food Delivery App Solutions
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How Food Delivery Apps Revenue Generating Idea in Abuja, Lagos, Nigeria?

  1. Delivery Charges

Most food delivery apps generate most of their revenue from delivery charges on orders. These charges usually vary depending upon the location, distance, and price of the dish ordered.

2. Commission

Most food delivery apps charge a direct commission from partner restaurants in lieu of their services. You can change predefined commissions based on the order size with your own build app.

3. In-app Advertisement and Promotional

These food delivery apps allow partner restaurants to promote, offer discounts and services within the application. With these, partner restaurants can boost their brand visibility and reach their target audience in a better way.

4. Surge Pricing

In this revenue model, the food delivery apps charge additional delivery charges when there is high demand or bad weather conditions. Usually, food delivery apps charge more during the festive season, holidays, weekends, or bad weather.

cta-food

How Much Does It Cost To Develop a Food Delivery App?

It is hard to provide information about how much it costs to develop a food delivery app as different companies have their own cost criteria. However, four major factors become a deciding cost factor for building a food delivery app. These four factors are listed below:

  1. Features & Functionality

The features that you want in your food delivery app directly affect the development cost. The more customized or cutting-edge features you want in your app, the higher will be the development cost. 

2. Platform

There are basically two platforms for building a mobile application, i.e., Android and iOS. Although Android is an affordable option than iOS, choosing cross-platform native app development is a better and economical option for startups.

3. Technologies

The development cost increases based on the desired specifications and technologies needed to form a complex app. To make your app idea a success, choosing the right technology for app development is essential.

4. Application Design

The UI/UX design of an application plays an important role in overall app experience, functionality, and usability. Interactive app design and friendly user interface add up to the development cost.

Now what is holding you back…

We at Suffescom have got you covered with our affordable app development solution…

Have a look at our tailored app building solutions:

  1. Full payment: As a client, you can choose to pay the full development cost of the application and get the app with desired features as discussed. This payment method is more preferred for entrepreneurs with huge investments.

2. Hourly-renting model: If you are looking for a more budget app development option, then the hourly rental model is perfect for you. In this, we are going to charge you for the number of hours you intend to use the food delivery application. With this, budding entrepreneurs lower the risk to their capital and even test that the app serves the intended purpose. 

3. SaaS-based model: Major tech giants like Facebook, Dropbox, WhatsApp, Uber are working on the SaaS model. Where earlier you were paying on an hourly basis in SaaS can use the food delivery app on a monthly basis. This is best suited for someone looking for an affordable app development solution and ready to invest a fixed amount monthly.

4. Hiring a developer: If you have tested the application either via hourly or SaaS model and want to add or customize or develop the app from scratch, then we have got you covered. Connect with our development team, share your feature needs, and start the development process.

Why Choose Suffescom As A Food Delivery Business Software Development Company?

That’s pretty much everything about ‘How to start a food delivery business in Nigeria?’. Still, have some unanswered questions about food delivery apps? Get in touch with our experts today!! Search for what services we offer at Suffescom. Let’s take a route for our services:

  • Unmatched Flexibility to match your company’s needs
  • Scalable solutions for every businesses size and budget
  • The NDA protects all your intellectual property rights.
  • A team delivers the experience you are seeking in the software of over 150 people
  • 24/7 support is available
  • Claim your free trial.
  • We are always ready to meet every deadline 
  • Dynamic designs from experts.

So what are you waiting for…. Book your free Food delivery business demo today. 

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