Online Food Ordering System: Business Model Development Report

This report provides a detailed business model for an online food ordering system. It begins with an introduction and explores the necessity of such a system in the current market, highlighting the benefits for both administrators and end-users. The report then outlines the proposed business model, emphasizing key aspects such as customer interaction, data processing, and administrative roles. It also discusses the risks and benefits associated with the business idea, followed by a comprehensive analysis using the Business Model Canvas, covering key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structures, and revenue streams. The conclusion summarizes the effectiveness of the online food business model for innovation in the restaurant industry.

BUSINESS MODEL DEVELOPMENT
Business Model Development
Name of the student:
Name of the university:
Author Note:

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Table of Contents
1. Introduction............................................................................................................................2
2. The necessity for this idea......................................................................................................2
3. Generated Benefits.................................................................................................................3
3.1 Benefits from the admin end:...........................................................................................3
3.2 Benefits from the user end:..............................................................................................3
4. The proposed model for the business.....................................................................................4
5. Risks and benefits of the business idea..................................................................................6
5.1 Benefits of online food ordering system..........................................................................6
5.2 Risks of the online food ordering system.........................................................................6
6. The Business Canvas Model..................................................................................................7
7. Conclusion..............................................................................................................................8
8. References..............................................................................................................................9

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1. Introduction
The report deals with innovative idea of business, which can is taken into
consideration by entrepreneurs for the initiation of the business. The idea of business that is
taken into consideration in this report is taken as online food ordering system. This idea
tends to be precisely effective for any individual that is trying to implement this idea along
with the physical restaurant. The business idea includes certain facilities that can be accessed
by the customers to order food online and get it delivered to their specified address (Franco et
al., 2017). This business idea promises to serve its customers with the ease of ordering food
and then get it delivered easily. This idea is to be implemented with the help of mobile
applications, which will provide an easy access of the restaurant and order food. This
application has various aspects regarding the user interface that will be discussed in the
further part of the assignment.
2. The necessity for this idea
As the economical market is continuing to grow, an individual tends to enhance the
physical business with a great exposure regarding the application of the information
technology with the standard physical businesses. This section elaborates the necessity of this
business idea. In this respect, the business idea that is taken into consideration is the online
food ordering system (Chen et al., 2018). The individual is supposed to run a business
application which tends to serve the customers with the facilities of exploring food that are
available in the restaurant as well as ordering them by providing a specified address.
Therefore, the implementation of the information systems with respect to restaurant can
amplify the facility provided to the customers. Moreover, the business idea has a social aspect
too (Evans et al., 2017). The probable facility that can be adhered by the information system
implementation is the ease of accessing the food menu available at the restaurant via the

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application as well as payment is also available in the application itself. The idea is to
facilitate the customers who are residing very far in context too the restaurant. The payment
gateway also tends to facilitate the customers with the online payment of the ordered items.
3. Generated Benefits
The above stated idea of the business can implement a great amount of benefits
towards the society and the admin or client, which are associated with the generation of the
business. The benefits that are generated can be summed up and observed from two
perspectives; one from the admin end and the other one from the end user side (Steever,
Karwan & Murray, 2019). The benefits that are viewed in respect to the online food ordering
system are stated as follows:
3.1 Benefits from the admin end:
 The application must be kept well updated with respect to the food menu available to
the customers.
 The admin provides an effective service to the customers by the prominent delivery of
the food to the specified address of the customers.
 The admin can have a real time check with the food menu that are available in the
restaurant as well as the menu that had been ordered form the user end (Lee, Hallak &
Sardeshmukh, 2016).
 The admin is supposed to have a vision for providing extra discounts regarding the
ordered food by the help of maintain a customer database.
3.2 Benefits from the user end:
 The implemented business idea is supposed to provide an effective as well as efficient
delivery regarding the ordering of the food with the help of the developed application
for cell phones.

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 This idea is further enhanced by providing a feedback section built in with the
application where the customers could share their personal viewpoints regarding the
procedure of the food ordering.
 The user interface is designed in an effective manner that the user are provided with
enhanced guidance for using the application as well as order the food.
 The idea is made such convenient that the users can be facilitated by the delivery of
the product to its specified address (Laudon & Laudon, 2016).
4. The proposed business model
The model regarding the business with respect to the implementation of the online
food ordering system importantly depicts three major aspects that are interrelated with the
attributes of the present system (Bocken et al., 2016). The three attributes are mainly said as
the admin, the interface of the application and the end users. These attributes are explained as
follows:
The customers or the end users: This section are associated with the persons that
mainly uses the application to order the food from the specified restaurant. These are said to
avail the facilities that are made available by the admin (Joyce & Paquin, 2016). The
customer can view the application and then provide their personal details such as addresses to
sign up with the application. Then the customer could log in to their respective accounts as
well as go through the food menu, which are offered by the restaurant. Then the user selects
the food and go through the interface of the application that leads to the final stage of the
payment after which the food will be delivered by the assistance from the end of admin.
The data processing: After the order has been placed from the customer’s end, the
admin assesses the data and checks with the restaurant employees to get a confirmation of the
selected food. If the selected food of the customer is in stock then the admin initiates a

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message of confirmation to the customer as well as the total bill that is to be paid (Clark &
Inwood, 2016). Then the admin receives the money from the customer and prepares for the
delivery of the food with the help of the associated delivery boys.
The admin: The admin in a project like this firstly looks for the dishes available for
the customers. Moreover, the admin processes the data that is selected by the clients from the
application (Ge, Ricci & Massimo, 2015). Further, the admin takes the initiative for the
delivery of the food to the specified address of the customers.
According to Maind et al., (2017), the model of business for the online food delivery
system needs to be structured in such a manner that the facilities provided as well as
developed by this system for the clients and the admin could be effective to provide excellent
facilities through this system. The accessibility feature of the application regarding this
business idea must be designed to provide effective services to the users. The business model
is also provided with the feedback facility that will help the customer to provide an enhanced
feedback regarding the food as well as the restaurant, which will help to improve the facilities
provided by this business model. The implementation of this business idea might be very
useful for the persons that are residing far away from the restaurant. The customer database is
also maintained with respect to the admin end so that the specified customers that are using
the application for several number of times (Joung et al., 2016). These customers can be
facilitated from the admin end by providing discounts or an extra facility such as free
delivery of the food. Moreover, the customers will be very much facilitated by using the
mobile application, as the user interface is made simpler and easier to use from the customer
point of view.

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5. Risks and benefits of business idea
5.1 Benefits of online food ordering system
The key benefits associated with this business idea can be briefly stated as follows:
 The food ordering process is made easier to the users.
 The accuracy of the orders is maintained with respect to the admin and the customers.
 The costs are kept transparent via the application.
 The expenses can be maintained that are incurred in a real time basis.
 The application is supposed to be much mobile friendly for the customers.
5.2 Risks of the business idea
The risks that are identified regarding the above stated business idea is stated as
 The customer data privacy is the most observed risk including the above stated idea.
 The safety of the foods is also an important factor regarding the risks of the food
ordering system.
 The issues can also be with the delivery partner that are associated with the delivery
of the food to the customers.

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6. Business Canvas Model
Key Partners
 Chefs
associated
with the
restaurant.
 The delivery
partner
associated
with the
delivery.
 The suppliers
of the grocery
as well as of
the raw
materials.
Key Activities
 Hiring Chefs as well as
delivery boys.
 Managing the kitchen and
their staffs.
 Management of the raw
materials.
 Management and
development of the
infrastructure related to
technology.
 The processing of the food
orders.
Value Proposition
 Users: The users can order
food by using the online
application. The price of the
food available are quite
reasonable. The good quality
of food is said to be delivered
to the users.
 Chefs: The main role to make
the restaurant popular is
taken by the chefs.
 Delivery Partner: The
persons associated can earn
good money.
Customer
Relationships
 Social Media
 Review
 Feedback
 Customer
support
Customer Segments
 Users: Ease of
ordering food.
The user those
does not have
time for cooking.
People who wants
to taste different
dishes.
 Chefs: The
professionals who
loves to cook.
Some of the chefs
that want
recognition in the
society.
Key Resources
 The technological platform
 The professional chefs
 The physical and innovated
kitchens
Channels
 Website
 Mobile
applicatio
n
Cost Structure
 The setting up of costs regarding the kitchen as well as the
maintenance of it.
Revenue Streams
 The sale of the foods

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 The setting up of technology and the running cost.
 The salaries regarding the permanent employees.
 The payment of the delivery persons.
(Image: Business Canvas Model for Online Food Ordering)
(Source: Created by Author)

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7. Conclusion
The above report deals with online food ordering system that facilitates the customers
to provide an improved service of ordering food in respect to the usage of the application that
is developed by the restaurant. The implementation of the application will enhance the
business growth of the physical restaurants too. This idea is likely to facilitate the
entrepreneurs with the effective planning and execution of the stated business. Thus, it can be
concluded with that the above stated model of the online food business would be very
effective in the field of innovation of restaurants with the information systems and this will
be a very beneficial business idea for entrepreneurs.

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8. References
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business model strategies for a circular economy. Journal of Industrial and
Production Engineering, 33(5), 308-320.
Chen, Z., Zhang, M., Du, Z., & Cheng, Y. (2018, April). Study on the Model of Home
Delivery of Fresh Food under New Retail. In 2018 International Conference on
Management and Education, Humanities and Social Sciences (MEHSS 2018).
Atlantis Press.
Clark, J. K., & Inwood, S. M. (2016). Scaling-up regional fruit and vegetable distribution:
potential for adaptive change in the food system. Agriculture and human values,
33(3), 503-519.
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow,
C. Y. (2017). Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment, 26(5), 597-608.
Franco, R. Z., Alawadhi, B., Fallaize, R., Lovegrove, J. A., & Hwang, F. (2017). A web-
based graphical food frequency assessment system: design, development and usability
metrics. JMIR human factors, 4(2), e13.
Ge, M., Ricci, F., & Massimo, D. (2015, September). Health-aware food recommender
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science, 81(3), N745-N753.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
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