Food Delivery Business

How Profitable Is A Food Delivery Business? (Updated for 2024)

Pat Walls

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Updated: October 8th, 2024

How Profitable Is A Food Delivery Business? (Updated for 2024)

So you want to start a food delivery business?

And the first question that came to your mind was, “well, are food delivery businesses actually profitable?”

With a market size of $152B - there’s plenty of business to go around.

Especially considering:

You could start a food delivery business with as low as $1,000
Based on our data, food delivery businesses generate an average of $6.12M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a food delivery business.

Let’s dive in!

Is a food delivery business profitable?

Yes, a food delivery business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $6.12M per year with an estimated gross margin of 90%, you could expect to recover your investment within 9 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your food delivery business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your food delivery business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a food delivery business worth it?

If you’re wondering if a food delivery business is worth it, the answer is a big YES. With food delivery businesses, you have the potential to earn $6.12M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $152B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a food delivery business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful food delivery businesses case studies.

Examples Of Profitable Food Delivery Businesses

Here are a few examples of profitable food delivery businesses, and a few more details about them:

1. Spork Bytes ($3M/year)

After experiencing the repetitive and mundane office lunches, Tim Taylor and Chris Diamond decided to create Spork Bytes, a catering delivery service that partners with local restaurants to provide delicious meals for offices in Portland, Oregon. With a focus on quality and convenience, Spork Bytes has grown to partner with 60 restaurants and achieve an annual revenue of $2 million in 2018, projected to exceed $3 million in 2019.

Is it profitable? Yes
How much money it makes: $3M/year
How much did it cost to start: $15K

How We Started A $3MM/Year Catering Delivery Service

Learn how Spork Bytes, a catering delivery service, addressed the problem of monotonous office lunches by partnering with local restaurants, resulting in annual revenues of $2 million in 2018 and an anticipated growth rate of 50% in 2019.

Read this case study

Read by 7,186 founders

2. Jaju Pierogi ($960K/year)

Jaju Pierogi, founded by sisters Casey and Vanessa White, started as a side project selling pierogi at farmers' markets and pop-up events. With a background in the corporate world and a love for their Polish heritage, they saw a gap in the market for high-quality, handmade pierogi. Fast forward to August 2022, Jaju Pierogi is now in multiple grocery chains and over 650 specialty independent stores, with a monthly revenue of $80,000-$100,000.

Is it profitable? Yes
How much money it makes: $960K/year
How much did it cost to start: $3.5K

Our Grandfathers Recipe Inspired Us To Start A $1M/Year Pierogi Business

Jaju Pierogi started off as a side hustle at farmers' markets and festivals back in 2016, and as of August 2022, they are in multiple grocery chains and over 650 specialty independent stores with a monthly revenue hovering between $80,000-$100,000.

Read this case study

Read by 3,857 founders

3. Portable Chef ($744K/year)

Uri Attia, founder of Portable Chef, came up with the idea for his business out of desperation after losing his banking job in the 2008 financial crisis. With a passion for cooking and understanding the demands of busy New Yorkers, Uri saw the opportunity to provide customizable, healthy meals for his clients. Today, Portable Chef generates an average monthly revenue of $60,000 by making 25,000 custom meals a year.

Is it profitable? Yes
How much money it makes: $744K/year
How much did it cost to start: $0

How I Started A $60K/Month Business Cooking And Delivering Custom Meals

New York food business founder goes from broke and desperate to cooking 25,000 custom meals per year with an average monthly revenue of $60,000, focusing on pleasing existing customers and word of mouth for new clientele.

Read this case study

Read by 4,870 founders

Learn more about starting a food delivery business:

Where to start?

-> How much does it cost to start a food delivery business?
-> Pros and cons of a food delivery business

Need inspiration?

-> Other food delivery business success stories
-> Marketing ideas for a food delivery business
-> Food delivery business names
-> Food delivery business Instagram captions

Other resources

-> Food delivery business tips

How much can you make with a food delivery business?

With a food delivery business, you can make an average of $6.12M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $1,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a food delivery business make a week?

Based on our data, average weekly revenue for a food delivery business ranges around $87.2K. As such, you could see monthly revenues of $349K.

To know if your food delivery business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your food delivery business.

How much do food delivery businesses owners make?

The income of a food delivery business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established food delivery business is about $87.2K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a food delivery business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Food Delivery Business Profit Margins

Generally speaking, a food delivery business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a food delivery business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, food delivery business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, food delivery business owners can ensure long-term sustainability and profitability for their business.

Food delivery business owner salary

The salary of a food delivery business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established food delivery business, in a prime position, might see an average weekly salary around the ballpark of $78.5K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a food delivery business may be a promising business to start - but the success of your food delivery business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable food delivery business.

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Starting A Food Delivery Business: Everything You Need To Know

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