Written By: Resham Daswani

Over the last decade, the meal delivery industry in India has grown at an exponential rate. Online meal delivery has gone from being a specialised industry in a few major cities to a nationwide phenomenon, even reaching Tier 2 and Tier 3 cities.  So all aspiring entrepreneurs, it’s your chance now to grab onto this growth curve and embrace launch your business of dreams - the food delivery franchise in India. So, are you ready to get started?

But before we delve into the best food delivery franchise opportunities in India, let us see how this market has embraced the growth and what it holds ahead for new entrepreneurs planning to venture into this business.

About India’s Food Delivery Franchise in India - Market Statistics, Trends & Opportunities To Look Out For

BCG recently released a paper predicting that the Indian meal delivery sector could reach over $8 billion by 2023, up from $4 billion in 2019. The increasing number of city-dwelling professionals who are pressed for time but have enough disposable income to order takeaway is a major driver of this expansion.

Here are some facts that state and vouch for the growth of this food delivery business in India.

1. In the two years between 2016 and 2021, online meal delivery platforms saw a doubling of their order volume. Apps that deliver food are currently used daily by 25 million individuals. Rising smartphone ownership, high-income working professionals, and the prevalence of nuclear households in urban areas are the main factors fueling this exponential growth.
2. The top gross metropolitan areas (GMAs) at the moment are Tier 1 cities, such as Bangalore and Delhi-NCR. Growth in tier 2 cities, however, is three times as rapid. For their next growth spurt, food tech companies are looking beyond India's oversaturated metros to the country's high-potential smaller cities.
3. An increase of 45% in orders is being driven by Tier 2 and Tier 3 cities. The metros are about to reach capacity. By providing vernacular interfaces, personalised pricing, and hyperlocal menus, food tech companies are aiming to expand into India's non-metro cities, which have unrealized potential.
4. With a compound annual growth rate (CAGR) of 150% from 2014–2021, the Indian online meal delivery sector was worth $4 billion in 2021 and had nearly 500 million orders. The industry predicts that the current strong growth rate will persist for at least the next three to four years, with yearly growth rates of 30%.

Food Delivery Franchise Business Model Types

Franchises in India's food delivery industry have come up with new ways to grow efficiently that go beyond just taking orders and delivering them. 

Here are some common business models spread across the country.

1. Cloud Kitchen / Ghost Kitchen Franchise Business Model: Rebel Foods and Swiggy have set up a network of professional kitchens that are only used for preparing food for delivery and are designed to work efficiently. Some brands, like The Bowl Company, don't even have physical locations; they just have Swiggy. Without the high rental costs of traditional dining facilities, cloud kitchens provide quick scalability in response to demand fluctuations.
2. Virtual Restaurant Franchise Business Model: A restaurant might only be visible on meal delivery apps like Swiggy or Zomato, but its kitchen and prep areas might be rented out as needed. Makes things more adaptable. The virtual restaurant approach enables the testing of various cuisines and food concepts through delivery apps with various brands, all without requiring a large initial investment.
3. Grocery Delivery Franchise Business Model: Making use of the current logistical infrastructure and fleet to facilitate 45-minute or less supermarket delivery times from nearby outlets. Online grocery delivery and meal delivery have synergies that help aggregators optimise their last-mile fleet usage, which is especially important during peak order seasons.

Top 3 Food Delivery Franchise in India 2024

1. Swiggy Food Delivery Franchise

Indian food delivery pioneer. An estimated $10.7 billion in worth at now. 55% of the market. Restaurants can consolidate their access to several meal delivery and dine-in applications on the Iris platform. Brands and the cloud kitchen network are owned by Swiggy.

Pioneering new methods of supermarket delivery with Instamart and ridesharing with Swiggy Genie. Prioritise tier 2 and tier 3 cities to avoid saturation.

Under the name Swiggy Go, Swiggy has also launched a meat delivery service, and the company is utilising machine learning to forecast demand in different areas so that they can better manage their inventory.

2. Dabbawala Food Delivery Franchise

Dabbawala helps you order food anywhere. how it works When you enter an address, we display your local delivery and pickup restaurants. want more specific? Cuisine, restaurant, or menu item search. Your results will be filtered. You may order online for free and get coupons, special promotions, and 24/7 customer service to make sure you get what you want.

One of the best and most intuitive apps out there, Dabbawala lets users find nearby eateries, place online orders, and have their food delivered quickly. With menus, reviews, and ratings, it delivers reliable restaurant information. Users can order and enjoy delicious food at home.

3. Zomato Food Delivery Franchise

Listed and worth approximately $7 billion. A restaurant discovery pioneer before meal delivery. Near 40% market share. With a primary focus on expanding to more than 500 cities in India and offering customised menus.

Started 10-minute Zomato Instant meal delivery. Looking into alcohol delivery. Nutritional supplement from Zomato Health. Zomato's industry-first Gold subscription offers dining-in and delivery perks and personalised suggestions from its massive database.

Advantages Of Starting A Food Delivery Franchise in India

There is room for new food delivery franchises to emerge in India's rapidly expanding market, even though Swiggy and Zomato are the dominant players in the industry. 

Here are some of the advantages of starting one today.

1. Rapidly Expanding Industry:
   1. Changing lifestyles, urbanisation, and the growing use of smartphones have all contributed to the considerable rise that the meal delivery sector in India has undergone.
   2. It is anticipated that the market will continue to increase, which will generate a great deal of opportunity for business owners.
2. Several Choices for Cuisine:
   1. In the world of cuisine, India is renowned for its extensive and varied history. Through the use of a food delivery franchise, it is possible to attract a large number of customers by providing a selection of cooking styles.
3. Consumers who are well-versed in technology:
   1. People in India are generally comfortable utilising meal delivery apps due to the country's large smartphone and internet user population. This can make the ordering process more streamlined and increase the number of customers reached.
4. Easy-To-Enter Probability:
   1. Because many franchise models offer pre-existing infrastructure and procedures, beginning a food delivery franchise may require less initial investment than starting an independent restaurant.
5. Scalable Option:
   1. The delivery area, the number of restaurants partnered with, and the marketing efforts of a meal delivery franchise can all be increased after the business is up and running.

Therefore, the profitability and the success of a food delivery franchise in India is associated with various factors, so entrepreneurs should take into consideration hiring a franchise consulting firm to help them enter this market smoothly.

Challenges You May Encounter While Starting A Food Delivery Franchise in India

Entrepreneurs in India may face several obstacles on the road to building a successful food delivery franchise. If you want to make smart choices and figure out how to overcome these obstacles, you need to know about them.

Possible obstacles include the following:

1. High level of competition: Both domestic and foreign companies compete fiercely in India's meal delivery industry. Particularly in highly congested urban regions, it might be difficult to stand out and acquire market share.
2. Managing the logistics: Keeping food fresh, ensuring on-time deliveries, and dealing with high demand all add up to a challenging logistical landscape for food delivery services. Managing the supply chain efficiently is of utmost importance.
3. Navigating through the Indian laws and regulations: Numerous rules and permits are necessary in the food sector. Business owners must learn the ins and outs of food safety, cleanliness, and licencing requirements at the state and federal levels.
4. Change in customer preferences: It is critical to remain ahead of trends because consumer preferences can change quickly. Businesses need to have entrepreneurs who can roll with the punches and change up their products and services to meet customer needs.
5. Precaution from external factors: Disruptions in the supply chain, natural catastrophes, or other unanticipated events might affect the supply of ingredients and cause operations to be disrupted. To lessen the impact of such dangers, it is crucial to create backup plans.

Moreover, entrepreneurs can overcome these obstacles by researching the market extensively, forming solid alliances with dependable eateries, deploying technology, and carrying out successful marketing and client retention campaigns.

Furthermore, the secret to enduring achievement in the food-delivering business is to stay updated on market trends and to consistently analyse and improve processes.

To Conclude,

Reach out to our experts at FranchiseBazar for more on the latest food delivery app franchises in India and how you can get started right away.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.