A sandwich delivery business is involved in making and delivering sandwiches to retailers or consumers, or a business that serves as a middleman between major fast-food restaurants that mass-make sandwiches and retailers or consumers.
The sandwich delivery business is a niche idea in the sandwich and sub-store industry and available statistics show that the sector in the United States was valued at 20.56 billion U.S. dollars in 2020, down from the previous year’s total of 25.12 billion U.S. dollars.
in 2023, the market size was forecast to reach 22.56 billion. Please note that according to IBIS World, the sandwich and sub-store industry experienced 3.4% growth from 2014 through 2019. In 2015, the industry grew by 4.3%, and in 2017, the industry experienced a 6.0% growth.
Steps on How to Start a Sandwich Delivery Business
Table of Content
Conduct Market Research
If you are considering starting a sandwich delivery business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your sandwich delivery business should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source for information that will help you maximize your business, give you a reliable clue of what your potential market will be looking out for from a sandwich delivery business, and also help you operate your sandwich delivery business with less stress.
a. Who is the Target Market for Sandwich Delivery Business?
- Sandwich consumers
- Sandwich retailers
- Event planners
- Party planners
- Corporate organizations
- Schools
b. Is Sandwich Delivery Business a Profitable Business?
Yes, the sandwich delivery business is quite profitable. Available data shows that Americans eat more than 300 million sandwiches every day – a pretty large amount considering that there are slightly more than 300 million Americans, meaning that each day, over 50 percent of America eats a sandwich.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the sandwich delivery business because the sandwich delivery business is a subset of the sandwich and sub-store industry.
d. Who are the Major Competitors?
- Meituan
- Uber Eats
- Delivery Hero
- DoorDash
- Grubhub
- Deliveroo
- Just Eat
- Postmates
- Swiggy
- Zomato
- Milio’s Sandwiches
- Katz’s Delicatessen
- Jimmy John’s
- Apple Spice Box Lunch Delivery and Catering Company
- Potbelly Sandwich Shop
- Snarf’s Sandwiches
- Big Star Sandwich Co.
- Hillcrest Sandwich Co.
- Yampa Sandwich Co.
- Ocean State Sandwich Company
e. Are There County or State Regulations or Zoning Laws for Sandwich Delivery Business?
Yes, there are county and state regulations and zoning laws for sandwich delivery businesses in the United States. Please note that the Food and Drug Administration (FDA) sets the federal Food Code, but doesn’t oversee individual sandwich shops. Instead, the various states use the Food Code as the basis for their own food codes. They may adopt its rules, interpret them differently or set their own rules.
It is important to also state that in the United States, you are required to follow your own state’s foodservice code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling restaurants and bars and view the laws that apply in your state.
f. Is There a Franchise for Sandwich Delivery Business?
Yes, there are franchise opportunities for a sandwich delivery business. Here are some of them;
- Uber Eats
- Time To Eat Delivery
- Delivery
- Takeout Waiter
- Go Waiter
- MyTown2Go
- Waiter On The Way
- DoorDash
- Grubhub
g. What Do You Need to Start a Sandwich Delivery Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Delivery Bikes or Vans
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- Insurance
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- IRP Plates
- Employees
- Operational Capital (For Ongoing Expenses)
Memorable Sandwich Delivery Business Names
- Reeds Go© Sandwich Delivery Company, Inc.
- On The Go® Sandwich Delivery Company, LLC
- Food King© Sandwich Delivery Company, Inc.
- Delivery Solutions® Sandwich Delivery Company, Inc.
- South Bank™ Sandwich Delivery Company, Inc.
- Go Line™ Sandwich Delivery Company, LLC.
- Gnabry Team© Sandwich Delivery Company, LLC
- Our Guys® Sandwich Delivery Company, Inc.
- We Order© Sandwich Delivery Company, Inc.
- Cornell Donnell© Sandwich Delivery Company, Inc.
- Cruse Team® Sandwich Delivery Company, LLC
- Direct Order® Sandwich Delivery Company, LLC
- Go By™ Sandwich Delivery Company, LLC
- Edmonton Sam© Sandwich Delivery Company, Inc.
- Fly Foods® Sandwich Delivery Company, Inc.
- Zeros™ Sandwich Delivery Company, Inc.
- Lombardo™ Sandwich Delivery Company, Inc.
- Opera© Sandwich Delivery Company, Inc.
- Right Way® Sandwich Delivery Company, LLC
- Food Depot™ Sandwich Delivery Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Sandwich Delivery Business?
When it comes to the business structure of a sandwich delivery business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Sandwich Delivery Business?
- General Business License
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- IRP Plates
- Health and trade license
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your parking
d. What Type of Certification is Needed to start a Sandwich Delivery Business?
You don’t need any certifications to start a sandwich delivery business.
e. What Documents are Needed to Open a Sandwich Delivery Business?
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your parking)
- Certificate of Incorporation
- Health and trade license
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- IRP Plates
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a sandwich delivery business, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Sandwich Delivery Business?
The startup cost for a sandwich delivery business is not uniform as some factors can influence the cost. Factors such as the number of delivery bikes, drones, trucks, or vans, the size, and of course the brand and model of the box trucks. But basically, a sandwich delivery business will cost from $20,000 – $200,000 to start and that can easily go higher depending on your overall business goals and objectives.
b. What are the Costs Involved in Starting a Sandwich Delivery Business
- The total fee for registering the business in the United States of America – is $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
- The cost for hiring a business consultant (writing of business plans inclusive) – is $4,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $12,400.
- The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
- The cost for the purchase of delivery bikes, drones, and vans: $60,000
- Phone and utility deposits will cost – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,150
- Operational capital – $50,0000
- The cost of launching an official website – $600
- Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Sandwich Delivery Business?
- The size of sandwich delivery business (numbers of delivery bikes, drones, vans, and the number of manufacturers you want to deliver for)
- The choice of location
- The required licenses and permits
- The cost for branding, promotion, and marketing of the sandwich delivery business
- The cost for furnishing and equipping the facility
- The cost of insurance
- The cost for registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your sandwich delivery business, as you can easily operate from a leased facility.
e. What are the Ongoing Expenses of a Sandwich Delivery Business?
- Gas and lubricants
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Bikes, drones, vans, or trucks maintenance
- Insurance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $48,000 Per Year
- Admin and HR Manager – $35,000 Per Year
- Transport and Logistics Manager $34,800 Per Year
- Accountant $34,000 Per Year
- Delivery Guys – $28,800 Per Year
- Customer Service Officer (Receptionist) – $26,100 Per Year
g. How Do You Get Funding to Start a Sandwich Delivery Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Fly Foods® Sandwich Delivery Company, Inc. is a standard sandwich delivery business that will operate in and around Asheville, North Carolina. We have been able to lease an office facility that can fit into the kind of business we intend to launch. The facility is centrally located in the heart of town with an easy delivery network.
b. Products and Service
- Delivery of sandwiches.
c. Mission Statement
Our mission is to establish a sandwich delivery business that will become one of the largest online sandwich order and delivery platforms in the United States. We intend to operate in over 100 cities in the country.
Vision Statement
Our vision is to become one of the leading mobile food-ordering and delivery platforms based in the United States of America.
d. Goals and Objectives
The goals and objectives of a sandwich delivery business are to make it easier for people to order sandwiches from the comfort of their homes and offices and get them delivered without stress.
e. Organizational Structure
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Accountant
- Delivery Guys
- Customer Service Officer (Receptionist)
Marketing Plan
a. SWOT Analysis
Strength:
- Excellent operational history
- Attention to detail
- Access to some of the leading sandwich shops
- Experience and trained professionals.
- Large storage facility.
- Excellent customer testimonials.
- Reliable and efficient delivery bikes, vans, and service.
Weakness:
- Not enough clientele to run at full capacity immediately
- The owner is new to large scale marketing
- We will need a loan to purchase delivery bikes, drones, and vans
- Lack of economies of scale.
Opportunities:
- Growing online (eCommerce) activities as it relates to sandwiches and food in the United States.
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
Threat:
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- The food or transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.
b. How Do Sandwich Delivery Businesses Make Money?
A sandwich delivery company makes money by charging a commission for every delivery made if they are working with sandwich companies or outrightly charging for delivering sandwiches to customers.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your sandwich delivery business by sending introductory letters alongside our brochure to sandwich retailers, schools, organizations, households, and key stakeholders in and around your city and state
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
- Use friends and family to spread the word about your business
- Place a small or classified advertisement in the newspaper, or local publication about your company and the services you offer
- Leverage on referral networks
- Advertise your business in relevant magazines, newspapers, TV, and radio stations.
- Engage in direct marketing
- Encourage the use of word-of-mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry to market your services.
Financial Projection
a. How Much Should You Charge for your Service?
Most sandwich delivery businesses charge based on the quantities of goods delivered and the distance covered.
b. How Much Profit Do Sandwich Delivery Business Owners Make a Year?
It depends, but the available report shows that on average, the delivery business needs to make 15 to 25 percent gross profit when they sell it to the retailer. Hence, a sandwich delivery business should net more than $110,275 per year assuming steady clientele.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the sandwich delivery business (numbers of delivery bikes and vans owned and number of sandwich companies you are delivering for)
- The location the sandwich delivery business is covering
- The management style of the sandwich delivery business
- The business approach of the sandwich delivery business
- The advertising and marketing strategies adopted by the sandwich delivery business.
- The number of years the sandwich delivery business is in business
e. What is the Profit Margin of a Sandwich Delivery Business?
The profit margin of a sandwich delivery business is not fixed. It could range from 15 percent to 30 percent.
f. What is the Sales Forecast?
Below is the sales forecast for a sandwich delivery business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $220,000
- Second Fiscal Year: $280,000
- Third Fiscal Year: $350,000
Set Up your Office
a. How Do You Choose a Perfect Location for Sandwich Delivery Business?
- The demography of the location especially as it relates to sandwich consumption
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of sandwich retailers in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Sandwich Delivery Business?
- New York City, New York
- Washington, D.C.
- Scottsdale, Arizona
- Asheville, North Carolina
- San Francisco, California
- Washington DC
- Chicago, Illinois
- Las Vegas, Nevada
- Los Angeles, California
- Dallas-Fort Worth, Texas
- Boston, Massachusetts
- Palm Beach, Florida
c. What Equipment is Needed to Operate a Sandwich Delivery Business?
- Bikes
- Drones
- Van
- Logistics and delivery software.
Hire Employees
When it comes to hiring employees for a standard sandwich delivery business, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, transport and logistics manager, accountant, delivery guys, and customer service officer (receptionist).
Launch the Business Proper
You can choose to open your sandwich delivery business with a party but this is not mandatory. You should instead focus more on marketing and publicizing your new business to sandwich-making companies. This is the best way to source clients for your business.
a. What Makes a Sandwich Delivery Business Successful?
- Choose a good location and reliable delivery trucks and vans to launch the business
- Partner with leading sandwich companies
- Hire only competent, hardworking, and trustworthy staff
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your sandwich delivery business
- Leverage on all available online and offline platforms to promote your sandwich delivery business
b. What Happens During a Typical Day at a Sandwich Delivery Business?
- The business is open for the day’s work
- The delivery bikes and vans are washed, cleaned, and ready for deliveries
- Customer’s requests are taken and their sandwiches are delivered to them
- Schedule maintenance of delivery bikes and vans are carried out
- Marketing/website upkeep
- Administrative duties
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Sandwich Delivery Business?
- Good driving skills
- Customer services skills
- Interpersonal skill
- Logistics and material handling skills
- Business management skills
- Bargaining skill
- Work experience in the food delivery or transport and logistics industry
- Experience in managing people
- Experience in business administration
- Experience in handling delivery, logistics, and transportation software.