How Food Startups can Grow in Failure Phase

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Initiation just needs a push or boost up! But how you keep it going smooth with less depriving factors makes it countable. Numbers of startups are there which are running in the horse-race but get hitched just by the small hurdles in their journey to success. Here, we will discuss regarding the food startups! We are reading everyday news regarding the shutdown of Food Delivery Applications / Food Startups for not being able to achieve their break-even points.

I have closely studied the startup history and journeys of various food startups and why they fall into the failure timestamps. I have listed many ways how one can summarize their planning strategies and achieve their respected goal with the concern of few things. Many Food Application Development Company are developing such amazing applications these days.

Process of Food Outlet

1. Prepare

2. Pack

3. Deliver

You all agree with this process, as this is the outer view of a picture. But the main scene is left behind the curtains. The “eaters” have raised our expectations here at a seventh sky with the food outlets, and in order to complete them, we(the food startups) do the unusual prompts and fell into the falling trap.

Reasons that leads to Failure:

1. Delivery

  • This is the major issue and revenue losing point for the startups.
  • They promise the customer to deliver the food to deliver in 30 minutes(most favorable) but somehow this loosen ups the rope.
  • The delivery cost which the food outlets keep for free makes them more pivoted.

2. Management

  • Managing the staffs and their salaries along with the revenue and many more things is not an easy task.
  • You need to be much more into the stuff and think how the chef, delivery boys  , cleaner will be paid
  • I tell you this is the most challenging task for a startup to manage

3. Marketing

  • In my opinion, this takes up the half of the costing for the project
  • You have to reconsider the platforms and to encapsulate the details, much more gets added
  • To keep on increasing the revenue, marketing holds on the stage for itself


  • Developing an application, itself costs up to the harsh reality of the budget
  • If your app is not user friendly then you will lose you customer but if you spend a lot over your app and unable to manage the expense, then also it will pay you nothing.

After discussing the major areas of the flaws, I will move towards what one can adapt to handle the situation and overcome it.

Solutions one can Adapt:

  • The very first suggestions go to rectify the Revenue Model.
  • You can read about the revenue model that one “Zomato” is using nowadays. They have a great business idea though.
  • Second one can do is to focus on their quality of food much more than on the technology. Your application can be updated side by side after you have engaged your customers.
  • You should opt the Unit Economics. This is one of the most powerful strategies in this time to gain the revenue.

Our main focus should be over the Retention. When we will manage to increase the retention, the marketing will automatically decreased. And hence we will be able to add up that cost in the revenue factor. I am sure, one can definitely increase their market and money value if they closely study the factors mentioned above and hence their food startup will even grow in the phase of failure.


Last modified: 1 Mar 2017


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