Beginner’s Guide on Starting a Pizza Delivery Business in the United Kingdom
Starting your own business involves a lot of complex preparations and tons of strategic thoughts. One main challenge to consider is arriving with the right business idea or opportunity. Knowing that pizza is a British popular meal, starting a pizza delivery business could be a well-favored start-up.
Pizza delivery contributes to a hefty percentage of the total market for pizzas. Remember that it is a very competitive business and for you to succeed, you need to create your own niche. Differentiating yourself and your way of service is good to establish. Several suggestions would be beneficial in providing you with a better understanding of where to begin. 3E Accounting provides you with an easy-to-follow guide in starting your own pizza delivery business and a guide to company registration.
Pizza delivery operates by having pizza restaurants that deliver takeaway foods. It might be a sole proprietorship or a franchise. Products may range from gourmet and specialty pizzas, traditional pizzas, as well as sides and drinks. Note that the business’s continued success is due to the convenience and affordability it offers to the customers.
Steps in Booting Your Pizza Delivery Business
When launching a business, there is no need to be afraid. Starting a pizza delivery business can appear to be a hard endeavor, even if you have the desire. But by following the right measures, you can build a reliable business that will allow you to pursue new interests. Invest in expanding your product line to keep up with changing customer preferences. Make the most of all of your personal skills, including marketing, to ensure a positive public image.
1. Know Your Target Market
Knowing who your potential customers are and their demand is a fundamental lead in starting your business. Doing a market census would be beneficial to gather data. Since pizza is popular and the industry is very competitive, you should check out competitions present in your location. Take note of the likes and dislikes of the customers as well as their feedback.
You should also consider the location of your business. It should attract enough potential customers, preferably choose major residential areas. Your service must secure the efficiency with which the order was taken. You should be able to maximize your skills along with your products to attract your target market well.
2. Decide What to Sell
Innovation is the key to success in the market, so don’t be afraid to give something a whirl. To get enough trade, your business should offer something different or extra. Adding to your menu what the customers mostly suggest is a good innovation to acknowledge.
Start working on the range of different types and sizes of pizzas, toppings, and combinations. Work on your pizza bases, the different sizes, the toppings you will offer, and the possible special offers. You might also consider the names for the varieties of pizzas to offer. Take into consideration as well the vegetarian options and the use of organic ingredients. Offering a healthy menu is a plus for the consumers who are concerned about putting on too much weight.
3. Your Delivery Service
Initially, decide on the boundaries of where you will deliver. Assure that your delivery service is excellent and vehicles’ drivers are efficient. Accommodating a higher number of orders for each delivery could save money than a per-pizza delivery.
Bear in mind that an easy ordering system through phone, applications, and online is more convenient to customers. Consider promoting a free or low-cost phone number. A popular method you might try when advertising your business is signing up for a takeaway food ordering service. It is necessary to guarantee that your customers know about you and the services you offered.
Keep in mind the reasons why your customers should choose your delivery service. For instance, you may provide high-speed delivery services as well as a simple and fast ordering process. It is highly suggested to do it online because data shows that smartphone orders outnumber website orders.
4. Pricing Policy
The price range varies depending on the pizza as well as its size and toppings. Getting the costing and setting the price right is very important. It must cover all the operation costs, delivery costs, and your drawings.
Remember that this industry is very competitive, so it is practical to price in line with your competitors. Ponder whether you will add the delivery fee or charge it separately. Also, decide if you will set a minimum order value for delivery and how much will that be. When giving special offers and discounts, focus on boosting the sales and not selling the same quantity at a lower price.
How to Register Your Pizza Delivery Business
When starting a business in the United Kingdom, you must first choose a business structure. In the UK, sole traders, limited companies, and partnerships make up the majority of enterprises. You must register as a self-employed person if you are an alone trader. This means that you are self-employed and not employed by another. You will need a registered office and at least one direct contact if your company is a private limited corporation. If you need assistance registering your firm, you may look for a corporate service provider.
In the UK, being a sole trader is the simplest way to start a business. This means you are the sole owner of the company and are free to operate alone or hire others. You will have to enlist for ‘self-assessment’ tax. This means you or your accountant will be responsible for calculating your own tax.
A National Insurance (NI) number is also required to become a lone trader. Then go to HM Revenue and Customs to apply for self-assessment (HMRC). Don’t forget to choose a business name or trade under your own name.
You have the option of using your personal name or trading under a business name when naming your company. However, you should first review the regulations for naming your company. Any formal paperwork, such as invoices and letters, must include your name and your business name if you have one.
To conduct your business in the UK, you can create a private limited company. You’ll need to appoint someone as director to operate the business and register it with Companies House, known as incorporation. As a corporate director, you are also an employee. This means that when it comes to taxation, personal and company income are treated separately.
To form a limited corporation, you must first give it a name and an address. Then, with at least one (1) director and one (1) shareholder, register with Companies House. You will also need articles of incorporation containing the agreed rules concerning the running of the company. Finally, you must register your business for Corporation Tax. In this process, company incorporation services in the United Kingdom may be of great help.
You and your partner(s) share personal responsibility for your firm in a partnership. This includes the bills and purchases made for the company as well as the losses it suffers. It is not necessary for a partner to be a real person. A limited business, for example, can be both a partner and a legal person.
Note that you must register for self-assessment tax if you are in a business partnership. Then give your company a name that follows a set of guidelines. Run the company as an individual, but split the profits with your partners.
Licenses Needed for Pizza Delivery Business
A pizza delivery business deals with the production and marketing of food so it must register as a food business. The local authority environmental health department will help you comply in accordance with the Food Safety Act. This process requires no charge.
For background music in your pizza outlet, you will need a Music License issued by PPL PRS Ltd. For the delivery, remember that the license for your driver is very important. You should also seek the assistance of your local authority for premises licensing. To have your premise license, you have to classify your café and restaurant activities based on planning usage classes.
Businesses under the food sector such as pizza delivery must adhere to strict food safety legislation. The local environmental health department will help maintain your operating areas hygienically. Remember that customers can access food hygiene ratings online. That is why it’s critical to achieve a high score by informing your clients that their orders are prepared hygienically.
If for some reason, your menu has an alcoholic beverage, you should comply with the terms of legislation. This ensures that you conform to standards and licensing conditions. Licensing Act in England and Wales, the Licensing (Northern Ireland) Order, and the Licensing Act in Scotland regulate the sale.
Health and Safety
You must also comply with workplace health and safety and fire legislation. Comply with the Clean Neighbourhoods and Environment Act concerning the responsibility of cleaning litters originating from the retail activities. Whereas for consumer protection, there exists special legislation concerning misleading advertisements and dishonest business practices. You must take responsibility for ensuring the excellent quality of your products. As for employment, employing staff must comply with employment legislation. This includes recruitment, employment contracts, pay, working hours, and other concerns for employees.
When starting a pizza delivery business in the UK, you should not forget the insurance of your business. The insurance cover by law and other things you should consider will depend on how your business will operate. Things such as employer’s liability, product liability, motor insurance, public liability, and business interruption are to be considered. To help you know more about insurance, you may contact 3E Accounting.