Restaurant & Food Delivery Service

Restaurant and food delivery services partner with local restaurants to provide delivery capabilities, either as a dedicated delivery fleet for specific restaurants or as a local delivery platform competing with DoorDash and Uber Eats.

With food delivery worth $150+ billion annually and restaurants seeking better economics than major apps (which charge 20-30% commissions), local delivery services generate revenue of $120,000-$380,000 annually with profit margins of 20-35% through delivery fees and restaurant commissions.

The business can operate with employee drivers, independent contractors, or combination model.

Services include order receiving and dispatch, driver coordination, food pickup from restaurants, customer delivery, and payment processing.

Delivery fees typically range from $3-$8 per order, with restaurants charged 10-20% commission or flat monthly fees for dedicated service.

Success factors include fast delivery times, order accuracy, driver reliability, and strong relationships with restaurant partners.

Many services differentiate by offering lower commissions than major apps, focusing on specific cuisines or neighborhoods, or providing dedicated drivers for high-volume restaurants.

Technology for order management, driver dispatch, and tracking is essential.

Marketing includes both restaurant recruitment and consumer marketing in target delivery areas.

With restaurant owners seeking alternatives to expensive third-party apps in 2025 and consumers expecting delivery options, local food delivery services offer opportunities for entrepreneurs who can provide reliable delivery at better economics than national platforms, especially in underserved suburban and secondary markets.