Pioneering The Business Of Food Service Technology
Years ago, when people think of the foodservice business they thought more of the kiosk, street vendors, and restaurants. But in the most recent years, this notion has been challenged to a large extent, due to the rising need for comfort, ease, and dynamics of the ever-evolving technology in the landscape of Nigeria.
Yes, the foodservice business in Nigeria doesn’t have statistics to point to on its profitability. However, it’s imperative to know that in the United States according to Statista:
- Revenue in the Online Food Delivery segment amounts to US$136,431m in 2020.
- Revenue is expected to show an annual growth rate (CAGR 2020–2024) of 7.5%, resulting in a market volume of US$182,327m by 2024.
- The market’s largest segment is Platform-to-Consumer Delivery with a market volume of US$70,741m in 2020.
- In global comparison, most revenue is generated in China (US$51,514m in 2020).
Be it as it may, that is some mouth-watering statistics, to be honest. The reality that the most essential needs of man (food, clothing, and shelter), cannot be defeated even in the coming generations, is a pointer to the need to focus on boosting a sector that might not be the spotlight of the decade.
So how is an emerging startup preparing to handle this problem and how are they solving this in all ramification?
Food Delivery: The Business Overview
The food delivery business is arguably one of the lucrative businesses in Nigeria today. And this is due to the fact that people rarely have time for their cooking these days, especially the working class. Also, technology is beginning to play a huge role in our everyday lives, and the way we buy food. Most people now prefer to buy food online, as it is more convenient and comfortable than going out to a fast food or roadside food vendors/restaurant to do the buying.
Online Food Delivery comprises services that deliver prepared meals and food that was ordered online for direct consumption. The Restaurant-to-Consumer Delivery segment includes the delivery of meals carried out directly by the restaurants. The order may be made via platforms (e.g. Jumia Food, Uber Eats, Dera Foods) or directly through a restaurant website (e.g. Foodhive).
The Platform-to-Consumer Delivery market segment focuses on online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves. In this case, the a platform or delivery partner handles the delivery process. Not included are orders by telephone, unpacked food for immediate consumption as well as non-processed or non-prepared food.
Food Vending: An Overview
From giants like Jumia, Konga, to small startups, direct-to-consumer delivery and pickup options have swept the country — and restaurants are no exception. Ordering food online or through a mobile app took off in 2019 and it will only grow further and faster in 2020, though the corona-virus has put a temporary halt on businesses globally and in Nigeria, the food vendor business is still thriving.
What or who is a ‘food vendor’?
A Food vendor means any person, public or private, located within the State, who offers for sale or sells food or beverage products. Food vendor means any restaurant, retail food vendor, or nonprofit food provider.
Food vendor means any and all sales outlets, stores, shops, vehicles, or other places of business located or operating in the city that operates primarily to sell or convey foods or beverages to consumers, and stores that sell food or beverages in combination with a physical entity (such as a gasoline station).
In more depth, we can discern that a Food vendor means any establishment, located or providing food within the cities of Nigeria, which provides prepared and ready-to-consume food or beverages, for public consumption including but not limited to any store, supermarket, delicatessen, restaurant, retail food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, sidewalk or another outdoor vendor, or caterer.
The Disparity IN Food Service Business
The whole world is leveraging different marketing schemes to help boost its business presence. Unfortunately, many foodservice providers who are into the production of various cuisines are yet to catch this cruise.
The top-tier service platforms such as Jumia Food, Uber Eats, and even OPay do not fully feature many local food vendors to manage their business as their strong points. Why? Policies, intents, and objectives differ with respect to individual food commerce companies. The platforms do not recognize the average Nigerian business on the streets. The average Nigerian food vendor businesses are lost, as they see fellow citizens purchase exotic meals that they can produce with more superiority and style.
Nigerian foodservice providers need systems they can use to organize and manage their business activities from the comfort of their smart-owned devices such as smartphones, computers, and more. This is where Food Hive comes to play, but what is this startup about and how do they plan to solve this problem they claim to exist?
Smartly Pioneering The Business Of Food Service Technology
We opined that Foodhive is a technology company solving ordering and delivery problems for ambitious food service businesses. The mission is to help foodservice businesses in Nigeria become profitable and loved.
Foodhive offer their services in Grocery Markets (Deli Counter, Specialty Items, Advanced Orders), Restaurants (Cafes, Delis, Juice Bars, Coffee, and Bagels), Food Vendor (Verified food vendors around your area), and Catering (The system is set up to better satisfy the needs of your audience at any event).
A Modern Food Multi-Vendor Marketplace
Foodhive Nigeria builds technology to help Nigeria’s best foodservice businesses grow, from new startups to market leaders launching any business models. We are inspired by a vision of millions of exceptional foodservice businesses across the nation who’re profitable and loved. We believe that in our lifetimes, such businesses in Nigeria will routinely go toe to toe with the best companies on the planet, and win in providing essential services for the increasing population.
The Foodhive Nigeria product/service is 100% Nigeria-made product, as according to our founder, it is entirely designed and built in the dynamic, entrepreneurial cities of Owerri and Lagos!
At this time, we have announced that more food vendors and restaurant owners should signup on the platform, as we have rolled out low-cost pricing which is aimed at fostering a relationship between our partners.
Foodhive is a commission-based platform too, this means for every sale on the platform by a business, we earn a certain rate of commission on sales, depending on the membership plan subscribed to by the business entity/owner. Businesses register a profile using any of the membership plans provided by Foodhive. After activating a membership plan successfully they can add their menus and cuisine too.
The Commission based system entails that depending on what plan the businesses opt-in, a charge rate is taken as commission for each product sold on Foodhive. The remaining balance is left to the business.
Users too can register and order from any vendor and get their delivery to their doorstep location or even pick it up.
Benefits Of The FoodHive Marketplace
All businesses using Foodhive get to use premium order service management, the first of its kind in Nigeria. This means, instead of a food service losing track of who has ordered meals, they have a central dashboard to manage customer purchases, earning, social impressions, and much more.
Businesses using Foodhive can run Ads on the platform too and get a large base of customers to view their service. Businesses using the service get a special advantage of the Premium SEO service. This means that once a search (or relevant query) is made on search engines such as Google, your business is showing in the Search Engine Result Pages.
Businesses can request to withdraw earnings which will be paid out on a daily or when scheduled by the business service provider.
Other benefits of using the Foodhive platform include: Centralized System, Unique Dashboard, Membership Plan, Review System, Earnings, Secure Data Management, Promotional Articles on their Blog Trusted Service Customer Service Support, and more.
Foodhive is also Fraud Labs Pro certified, this means all transactions are authenticated and vetted for fraud.
Conclusion: To The Horizon
As stated at the onset, when people think of the foodservice business they thought more of the kiosk, street vendors, and restaurants. But in the most recent years, this notion has been challenged to a large extent, due to the rising need for comfort, ease, and dynamics of the ever-evolving technology in the landscape of Nigeria.
A technology company solving ordering and delivery problems for ambitious food service businesses is Foodhive. Our mission is to help foodservice businesses in Nigeria become profitable and loved.
Yes, that’s us!