Rural food delivery start-up during Coronavirus?

[Financial-Modeller]

A friend lives in a village (1000 inhabitants) and is considering setting himself up to deliver hot food from local pubs restaurants to residents to provide a service during the Coronovirus isolation, and to try to earn some money as his usual income has been destroyed by the virus.

He is enthusiastic, has a car, but cannot invest any money into this.

My guess is that the model works (Deliveroo/Just Eat/etc) where volumes are high, and the smaller population of consumers and suppliers will make it difficult to operate viably.

I have time available at the moment so said I will help him on a voluntary basis but I have almost no relevant experience.

Unlike most start-up ventures that I have been involved with, when everything is researched, planned, funded etc, it seems to me that him getting up and running ASAP is key, whilst keeping things simple. This is likely to be a short-term venture, so revenue growth and eventual exit are not really considerations.

The idea is about 30 minutes old(!) I have some initial queries, but I'm sure some on here have started up similar services, so I would be grateful for thoughts, ideas, pitfalls, practical considerations etc

1. Is it better for him to align with restaurants, offering to deliver for them, and be paid by them, or is it better to attract custom from residents, and charge a premium for delivery?
2. If the latter, can he use Facebook to advertise the service, AND accept orders, AND accept payment? (I don't use Facebook but he does)
3. My guess is that he would do better to approach restaurants in the neighbouring town, offering to deliver to the local villages, to try to increase the deliveries to journeys ratio (4 miles away there is excellent pizza, fish and chips, and a curry house for example)
4. There is a weekly farmers' market in the town which will be experiencing lower footfall. I wonder if he could offer to deliver fruit/veg/dairy produce etc, perhaps combined with delivering hot evening meals.
5. Is there any advantage in referring to his venture as a pop-up business or similar? 'Pop-up' seems to apply to poorly-thought-out ventures with no premises, funds or business plan, so might be ideal here!
6. I don't believe that he needs a food rating to deliver food in an insulated bag - but happy to be corrected
7. his car (and mine if necessary) are insured for business use

Thanks in advance.

 

[Socio South West]

Looking at Facebook, all of a sudden there are people screaming for this sort of service. You could also add collecting Click & Collect shopping for people to save them going to the shops as well as restaurant takeaways.

I don't see it as long term, but you could earn a few quid.... but then again just about everyone else on FB is professing to have become a Good Samaritan and says they will do it for neighbours, friends and anyone who needs it for nothing... so you are up against that.

There are also insurance implications if you are using your own vehicles.... but whether you are prepared to wing that in the current circumstances is up to you. Business use is usually specified as to what the use actually is, so look at the wording on the policy carefully.

Yes - its a pop up venture... but if you leave it another 30 minutes another ten will pop up, so if you are going to do it, don't delay!

 

[UKSBD]

I would think a big problem is there will be loads of people offering this service for free

You go in and start trying to charge too much for this and you will be seen as the evil scumbag taking advantage of those in need.

You have to get the balance right between being someone providing a fair service and being someone exploiting the situation.

 

[Mr D]

Could do it for tips.

 

[Financial-Modeller]

Thanks for the feedback everyone.

It feels like there are potentially more downsides than upsides to supporting this - particularly in terms of reputation in a small village.

Also, whilst my car is entirely inappropriate for this type of use, it is insured for my consulting work, so I definitely will not be volunteering to use it for this. Avoids it picking up food smells, too!

Coincidentally @Mr D my first reaction was for my friend to do it on a voluntary basis, just keeping any tips, but he sees this as providing an income.

 

[Mr D]

Thanks for the feedback everyone.

It feels like there are potentially more downsides than upsides to supporting this - particularly in terms of reputation in a small village.

Also, whilst my car is entirely inappropriate for this type of use, it is insured for my consulting work, so I definitely will not be volunteering to use it for this. Avoids it picking up food smells, too!

Coincidentally @Mr D my first reaction was for my friend to do it on a voluntary basis, just keeping any tips, but he sees this as providing an income.

Doing it voluntarily because it needs doing, no one would have a problem.

Trying to do it for an income - that's a lot harder. Not saying its impossible but competition doing it for free will impact.

 

[Ian J]

1. Is it better for him to align with restaurants, offering to deliver for them, and be paid by them, or is it better to attract custom from residents, and charge a premium for delivery?

Once you suggest this to the restaurants would they not see the benefit and do it themselves as many of them have staff that they would like to keep on

 

[Gordon - Commercial Finance]

All the restaurants and cafes in my small town seem to be offering delivery of some sort. I thought about offering to the ones I know well to do some drops for them to help out and do my bit for the people in most need, not for money.

However I felt like maybe would be doing more harm than good because I could potentially be taking the virus to those vulnerable people?

 

[Deleted member 59730]

I don't see it as long term, but you could earn a few quid.... but then again just about everyone else on FB is professing to have become a Good Samaritan and says they will do it for neighbours, friends and anyone who needs it for nothing... so you are up against that.

There are several offering to help for free in my small hamlet. The problem is that I do not feel comfortable asking people to risk their lives on my behalf. None of them are what I would call young.

However there is a need for a regular deliver run of newspapers, milk, bread, eggs etc and operating book, DVD exchanges etc.

 

[Mark T Jones]

As above. I’m currently offering myself as a volunteer for any cause related to this crisis

there are any number of shops and enterprises offering free delivery to the vulnerable and a huge number of volunteers available. .

 

[Mr D]

Guys don't forget food banks and homeless projects - those still open.
May well need more volunteers as some of the existing ones get advised to fort up.

 

[MBE2017]

Click and collect is a non starter for many atm, all supermarkets are snowed under and you are looking at 10-20 days to get a slot, they haven’t got the staff to do the picking in many busy areas.

 

[Gordon - Commercial Finance]

My wife tried to book a Tesco slot and there are none available. Not even in 10-20 days.

 

[Ian J]

As above. I’m currently offering myself as a volunteer for any cause related to this crisis

You are a decent man Mr Jones despite what the others might say

 

[MOIC]

Everybody will be at home and will have enough time to cook themselves.

Offer deliveries of fresh fruit and vegetables as well as other required produce.

Or have people forgotten the art of cooking?!

 

[Gordon - Commercial Finance]

Everybody will be at home and will have enough time to cook themselves.

Offer deliveries of fresh fruit and vegetables as well as other required produce.

Or have people forgotten the art of cooking?!

I have rediscovered that art.
Made my own pasta from scratch the other day, and have been baking bread again too. Having to improvise with whatever is in the cupboards just like when I lived alone during university.

 

[MOIC]

I've been cooking every day for the past 3 months (since it all started in China).

I've never felt so healthy!

 

[Mark T Jones]

Everybody will be at home and will have enough time to cook themselves.

Offer deliveries of fresh fruit and vegetables as well as other required produce.

Or have people forgotten the art of cooking?!

I've always been into cooking for myself; and always enjoyed eating out / take-aways.

The current situation kinds of adds a new level; like @Gordon - Commercial Finance we're trying to make bread etc (haven't braved pasta yet) and notice that the allotment has a greater sense of purpose - perhaps it's just something to do?

On the other hand, along with a lot of other people we will undertake to use another restaurant/take away at least once a week to keep them going (and because I like to be cooked for)

The cost of living is astonishingly low when you don't go out!

 

[Mr D]

Everybody will be at home and will have enough time to cook themselves.

Offer deliveries of fresh fruit and vegetables as well as other required produce.

Or have people forgotten the art of cooking?!

People have learnt the art.
Some vegetables, some meat, some spices - and good to go. There's a casserole for a start.
Can get fancy with browning the meat, marinades, sauces etc.

 

[UKSBD]

I've got the "use stuff by date" down to a T now.

Had a curry yesterday, but rather than having it with rice or nan bread we had it with Yorkshire puddings because we had some eggs that needed using up, also bulked it out with a couple of carrots from top of the vegetable shelf.

I say top of shelf, because I've got the oldest stuff on the top so it all gets used.

 

[Mr D]

I've got the "use stuff by date" down to a T now.

Had a curry yesterday, but rather than having it with rice or nan bread we had it with Yorkshire puddings because we had some eggs that needed using up, also bulked it out with a couple of carrots from top of the vegetable shelf.

I say top of shelf, because I've got the oldest stuff on the top so it all gets used.

We sometimes do a stir fry with rice and stick it in Yorkshire puddings. Just dollop it into the pudding after taking them out of the oven.

 

[Gordon - Commercial Finance]

Just made some bread as we're about to run out. Plenty in the supermarket but I've got flour needing used so might as well.

The problem with baking bread at home is that it tastes sooo much better than the sliced stuff out the shop, so you end up eating half a loaf to yourself just for no reason, and I might have to make a loaf a day at this rate!

 

[Ray Breen]

Hi Bud,

Strangely enough, I am setting up an online multi-business online shop, which will allow local shops and businesses to take payments online and deliver the goods themselves directly. I am also hoping that the slightly bigger business's who have delivery vans or cars, will be open to potentially delivering other business's goods as well.

we all need to pull together in this time of crisis.

if you would like to discuss this further(or your friend), drop me a mail at ray at bring2you.co.uk (site is under development literally as we speak)

Cheers

Ray

 

[Financial-Modeller]

Hi Bud,

Strangely enough, I am setting up an online multi-business online shop, which will allow local shops and businesses to take payments online and deliver the goods themselves directly. I am also hoping that the slightly bigger business's who have delivery vans or cars, will be open to potentially delivering other business's goods as well.

we all need to pull together in this time of crisis.

if you would like to discuss this further(or your friend), drop me a mail at ray at bring2you.co.uk (site is under development literally as we speak)

Cheers

Ray

Thanks for posting and for the invitation.

My friend is not particularly enterprising, and has since lost interest in pursuing this venture in any case. bring2you already looks much more organised and professional.

Best of luck with your venture.