How to start a takeaway business from home

If there had been any winners from the chaos of Covid and lockdown, then the takeaway sector had been one of them.

However, it now faces a new threat from the cost of living crisis, which is leaving households across the UK seeing their spending power cut by an average of £3,000 by the end of next year.

As consumer spending habits change  – takeaway businesses need to adapt. They need to offer fairly priced menus, regular deals and discounts, and factor in the management of rising operational costs due to inflation.

Despite these challenges, now is still a great time to set up a takeaway business and begin directly catering to consumers with delicious home-cooked meals.

The benefits are many, particularly for startups, as by taking advantage of existing resources you can minimise the cost of other overheads like rent or travel. But the setup, as our experts know all too well, can be confusing. Luckily, our experience has taught us all the juicy details, including the rules and regulations around setup.

So put your feet up, whack on some Saturday night TV, and let us deliver the information right to you, by telling you everything you need to know to setting up a small business takeaway in the below guide.

Should you start a takeaway business now?

According to a recent, post-Covid market report by the British Takeaway Campaign, the takeaway sector is currently experiencing never-before-seen growth. The report found that 38% of households ordered takeaway at least once a week at the height of the pandemic (and that’s just the ones that will admit to it) spending an average of £45 per month in 2020.

But this isn’t just a flash in the post-pandemic pan – the market was growing even before the first national lockdown began. Over the past five years, it rose by 43% and is expected to hit £22 bn in 2025.

That’s an astonishing rate, and one that definitely bodes well for new startups.

With food delivery companies upping capacity and waiving sign up fees, this is the perfect opportunity to lay the groundwork for your future takeaway business – by setting up your kitchen, getting the qualifications you need, gaining the experience you need, and getting your brand out there.

Best of all, starting a takeaway business from your home doesn’t require a hefty initial investment from you. Although delivery companies usually charge businesses a sign up fee, this typically isn’t payable until you start earning money – something to check with the delivery company before you sign up!

And if you’re worried about the commission charges that come with partnering up with a delivery company, there is another way to get your takeaway business up and running.

You could use a takeaway ordering system provider to create a website with an integrated ordering system. Or, if you already have a website, integrate one into it. It’s worth bearing in mind that these options require you to have your own delivery or pick up service. But you can find out more about these options later on.

James Tulley, founder of Deja Street Food

Design a home takeaway business plan

The first step to starting any business is to design a business plan.

Your business plan is the document that adds structure to your proposal and helps you focus your objectives on an achievable and realistic target.

It should cover every aspect of what your potential firm might look like, from licensing to predicted revenue. These details will make it a great resource for attracting investors.

Read our free guide to designing a business plan to learn more about what to include in, and how to get started on, your business plan.

Make sure you have the right home takeaway business licenses

Turning your love of food into a takeaway business from your home comes with similar rules and regulations to starting a catering business, including the licenses required, and the standard of cleanliness you should be demonstrating.

Compare food delivery companies

The three main delivery companies – Deliveroo, Just Eat, and Uber Eats – all have different fees, commission rates, and regulations. Here’s an overview.

The figures above offer a top level insight, and proper research should be conducted before you sign up to a food delivery company.

It’s also worth noting that while Just Eat seems to come out on top for lowest fees, it does have a more rigorous partner approval process than both Deliveroo and UberEats.

Weigh up the pros and cons of using a third party delivery company

Online ordering systems (order and pay apps)

While third party delivery companies make the lives of takeaway business owners easier, they do, in return, take a relatively large chunk of your earnings.

That’s why, if you have the means to deliver your own food, or want to encourage your customers to pick their takeaway up, you could always use an online ordering system. An online ordering system can either integrate into your website or, you can use a white label order and pay app supplier to host your digital menu and process your payments.

Online ordering systems and order and pay apps are cheaper and take less commission than the likes of UberEats and Deliveroo, yet give your customers the means to order their food directly through you. In fact, some online ordering systems offer their base package for free and just take a percentage of every transaction made through the system or app.

So how do you get one? Start by getting in touch with a takeaway online ordering system or order and pay provider. If you don’t know where to start, you can always use startup.co.uk’s questionnaire to guide you. All you need to do is answer a few basic questions about your prospective business, and we’ll pair you up with the best providers for your needs.

Once set up, customers will be able to order and pay online and orders will come straight through to your phone.

The best online ordering systems for takeaway businesses

Choosing the right order and pay system for your business takes a lot of thought. While some providers offer to set up your order and pay system for free, be prepared to be charged a commission percentage of each transaction made through the platform. The table below shows a selection of website ordering systems.

Square Online enables you to create a basic online ordering system for free. Once you’ve set up a Square online store, you’ll be able to put a link to it on your social media pages.

Others, like Flipdish, help you to create enticing, user-friendly websites with online ordering built in – and help you to put a marketing strategy in place too! It’s up to you to decide on how sophisticated you want your online ordering platform to be, and how much of each sale you’re willing to give up!

Using an online ordering system versus a delivery company

What else do you need to consider?

Create an attractive menu

You may not be used to cooking at speed. This means you need to consider menu items that you can cook quickly using the facilities that you have. Opt for menu items that you can prepare as much as possible before you open for business – garnishes, sauces, and even whole menu items like casseroles and curries.

Deja Street Food menus

Get active on social media – if you haven’t already!

As you’ll be relatively new to the home takeaway business game, you’ll also need to take it upon yourself to drum up business.

While delivery companies and takeaway ordering companies can carry out some marketing on your behalf, you should be building your own brand image by using the likes of Instagram and Facebook to interact with your target audience.

Or perhaps you’ve already got a loyal Instagram foodie following that you can call upon to try your new menu?

Why not check out our guide to small business marketing to see what hints and tips you can pick up?

Deja Street Food Instagram account

Keep on top of your finances

Starting a takeaway business takes time and money, and accountancy software can help with both.

Whether you run the business alone as a sole trader or with a team of chefs and delivery drivers, you need to make sure you keep your finances in order. When you start taking orders, and payments, you’ll need to start tracking your spending, revenue and profit. You can do this with spreadsheets and a lot of work, but we recommend getting help. Getting an accountant is expensive, so it’s easier to use software that’ll help you do the legwork.

Accountancy software is designed to simplify the complex processes related to money. From tracking your outgoings to managing your taxes, you’ll find any finance process simpler with the right tools in place. Take a look at the accountancy software that we’ve rated best.

Use software to your advantage

Similar to the above, software can help you set up your business to succeed in many ways; it can make organising your tasks, keeping track of your customer base, and taking payment so much easier. Using software tools – which are now readily available to even the smallest businesses – can save business owners quite literally hours of time each week, and can even help you offer better customer service.

Consider our top recommended software tools for task and team management, managing customer information, and taking payment in-store below:

What should I do next?

Here’s a round up of how to start a takeaway business from home:

1. Get in touch with the different delivery companies or online ordering providers to see if their services are a feasible option
2. Make sure to register your business with the Food Standards Agency within 28 days
3. Make sure your kitchen is fully equipped, and you have the relevant food hygiene certificates
4. Get active on social media. Instigate a discussion around your new takeaway business. You could even get some advice from a digital marketing agency. Startups has partnered with a number of agencies who would be happy to give you advice
5. Brainstorm menu ideas and do some practice run throughs of each of your dishes by cooking for people in your household