Good 2 Go: Food Delivery Service

Good 2 Go: Food Delivery Service AudrieBielskis, Adam Willis, Mike Butler, SirahCamara

Executive Summary Good 2 Go is an independent, online food delivery service. This business would be based in Adrian, MI and would deliver food from various restaurants to customers in the Adrian area. Customers would go online and order food through our website from area businesses such as Taco Bell, Fricker’s, Alpha’s Coney Island, Applebee’s, etc. We would then delivery this food to our customers for a small fee and tip for the driver. Our main focus would be on evening/late night delivery, especially to college campuses. One of our objectives is to establish a presence in Adrian in college areas in 2014 and agreements with at least 25% of Adrian’s food establishments. We would also like have at least 70% of Adrian College and Siena Heights University students report they have used our service at least once in a survey at the end of 2015. We feel our company Good 2 Go can excel in this market mainly because of this growing online food ordering trend and large number of college students in the area.We will compete with companies such as GrubHub, Seamless, Jimmy Johns and other food establishments that deliver. However, our company is at an advantage as none of our main independent food delivery competitors, such as GrubHub, have entered the market of Adrian yet. The only competition we may face in Adrian is pizza delivery and other restaurants that delivery, but this competition will be fairly minimal as our business is quite unique from these.

Market Trends/Growth • According to a study by the National Restaurant Association, 39% of consumers say they would use electronic ordering to buy meals if it were available • This same study reported that 36% of Americans have placed an order online, with 46% saying they would order via a smartphone app if that option was offered • The Online Food Delivery Market Grows at a Rate of 12% Annually

U.S Consumer Trend Survey from Statisa.com: In the next six months, will you spend more or less when ordering food for takeout or delivery?

Competition • GrubHub • Seamless • ChowNow • Campus Special • Delivery.com • Pizza Delivery • Jimmy John’s Delivery, etc.

Strengths • First in the area to provide this service • Customers can have a wide variety of food delivered • We would deliver food mainly during late night, which is when college students are least satisfied with on campus dining selections • Employees would probably be easy to find because there are so many students in the area in need of jobs • Similar businesses have already proven successful in other college towns such as East Lansing and Ann Arbor • Saves people with busy schedules time and gas money • We save area restaurants the trouble of making their own online ordering websites and/or applications

Weaknesses • Costs more than just driving to get it yourself • Making initial profits will be difficult because only a few dollars are made each delivery

Opportunities • Niche.com campus dining rating of Siena Heights University is C and of Adrian College is C+. Late night options have poorest rating for both colleges • Four colleges in Adrian (Siena, Adrian, Fiser’s College of Cosmetology, JCC) • College students are 87% more likely to order late-night meals than the average person • On average, a college student is 28% less likely to order a healthy meal when compared to the average person • 90 Restaurants in Adrian, MI • Owners who offer online ordering experience a rise in order frequency, mostly for take-out meals • Most restaurants don’t have mobile applications • Cornell University reports that 40% of all adults have placed restaurant orders through a form of online software

Threats • Competition • College students spend 10% less than the average diner • Adrian is a fairly small market, there’s not much room for expansion • Most cities where this type of service has proven successful are much bigger and have much larger colleges/universities

Marketing Objectives • Objectives: • To establish a presence in Adrian, especially in the area colleges, during 2014. Make delivery agreement with at least 25% of Adrian’s food establishments. • In survey given at end of 2015, have at least 70% of Adrian College and Siena Heights University students report they have used our service at least once.

Target Market Potential/Sales Forecast • Adrian College Full-time enrollment: 1,556 • SHU Full-Time enrollment: 1,032 • Percentage of family households in Adrian: 57.9% • 1,532 people in college/university student housing in 2010 in Adrian • Number of full-service restaurants in Adrian: 69 • In the U.S., GrubHub turns over nearly US$300 million each year • The income potential is $25,000 and up • The average customer orders $46 worth of food every month at restaurants using ChowNow

Marketing Mix • Product Strategy: • Target: Working couples, singles, busy families, employees working late, college campuses(main target market) • Focus on evening/late night delivery • Deliver foods that would not normally be delivered • Promotion: • Place ads on radio and cable television stations, in local newspapers, college newspapers, telephone directories, and local parent’s publications • Print and distribute lists of the restaurants you deliver for in a direct mail campaign to organizations, hotels, college campuses, businesses and area residents • Referrals from restaurants whose food you serve

Marketing Mix Continued • Pricing: • $10 order minimum • $3 to $4 delivery fee depending on distance • Gratuity for driver • Pricing is competition based. This is about the same price competitors charge • Distribution/Place: • Located in downtown Adrian and would deliver anywhere in city of Adrian • Hourly delivery drivers using their own cars

Implementation/Conclusion We would need to have someone create a user-friendly, simple website and mobile phone application. We could probably find a computer programming student who could do this for a good price. We can also hire an art student to create a logo for a fair price. We would then need to speak with the restaurant owners in the area to explain/promote our business and to try to come to agreements with those who are interested. We would not publish our website/app until we had finalized agreements with at least 4 restaurants, but we would like to have it already designed so we can show potential business partners how simple and easy it is.

Implementation/Conclusion Cont. We would aggressively promote the business with flyers, ads, and referrals as discussed in the promotions section of this paper. Customers would go to our website and select their restaurant of choice from a dropdown list. They would then put a check in the box next to the food they would like and write any special instructions in a blank box at the bottom of the page. Finally, they would enter their payment information and the address and a phone number for where the food is being delivered to. To avoid taking out a larger loan than necessary, one of us would make the deliveries ourselves until we had enough profits to hire help. We would need to take out a loan for start-up costs, but we will try to keep this minimal.

Good 2 Go: Food Delivery Service