Starting an Aussie Food Delivery Business? Here's What You Need to Consider

Starting a Food Delivery Business in Australia? Here's What You Need to Consider

The Aussie food delivery industry is going gangbusters, with Statista projecting an annual growth rate of more than 6% up until 2024. This means there's no better time than now to jump into this lucrative niche.

Feeling a bit lost about where to begin? Fear not, because in this article we'll cover everything you need to know before launching your very own food delivery business.

What is a food delivery business?

In Australia, a food delivery business operates as a courier service that delivers food from restaurants, cafes, and grocery stores straight to customers' doors. Customers can easily place their orders through a mobile app or website, making the process quick and convenient.

Create a business plan

Before registering your new venture in Australia, it's essential to be clear on the type of business you are creating. Writing a comprehensive business plan can help you define and refine your business objectives. It can also help you to estimate the projected costs and revenue of your new company.

When creating a business plan for your food delivery venture in Australia, it doesn't have to be excessively detailed, but it should include the following elements for a successful setup:

  • Market research: Conduct research to identify your competitors, potential clients, and the size of the market opportunity.
  • Business model: Determine how your food delivery business will generate revenue. Will you use a mobile app to reach customers directly?
  • Financial projections: Create projections to estimate the necessary equipment and startup costs. Consider how you will fund the initial costs and if you'll need to hire employees.
  • Projected vision: Clearly outline your vision for the food delivery company, including how it will look in one, five, and ten years' time.

Having a well-written business plan will help you stay on track and ensure your food delivery business is set up for success.

Register the food delivery business

To register a food delivery business in Australia, you must select a business structure and choose a name for your venture. This is a crucial step in the registration process.

1- Choose a business structure

In Australia, there are three common business structures to choose from, including:

  • Sole Trader: Also known as a Sole Proprietorship, this structure is essentially a one-person business. It can be a cost-effective and straightforward structure to set up. However, you're personally responsible for all aspects of the business, including tax and debts.
  • Partnership: If you're starting a business with someone else, you may consider a Partnership. This structure involves two or more people running the business together, with ownership and responsibility split between the partners.
  • Company: A Company is a separate legal entity from its owners and is owned by shareholders. Setting up a Company requires ongoing support and incurs additional costs.

Once you've chosen a business structure for your food delivery business in Australia, you'll need to register for an Australian Business Number (ABN). The ABN is a unique 11-digit number that identifies your business to the government and other businesses. You can register for an ABN through the Australian Business Register website.

2- Decide on a business name

Pick a name for your food delivery business now. Make sure your business name is obtainable using the Australian Securities and Investments Commission's (ASIC) business names register search tool. If you decide to go with a company structure, you will also receive an Australian Company Number (ACN).

3- Tax and other considerations

In Australia, if your business's annual turnover is $75,000 or above, it's mandatory for you to pay goods and services tax (GST) on all your sales. Additionally, you must make Pay-As-You-Go (PAYG) installments for any employees you hire.

Buy the right equipment, software and insurance

Even if you run your new food delivery venture on your own, there are still certain investments you'll need to make. We've broken down the three areas to consider into equipment, software, and insurance:


You won't need a lot of equipment for food delivery. What you may require are:
  • Vehicles. There are different types of vehicles suitable for food deliveries, including cars, bicycles, scooters, or vans.
  • Food delivery bags. Food must be kept at a certain temperature to ensure it's safe. The food bags you need to get should comply with the Australian Food Standards.
  • Mobile phones. Use them to communicate with drivers and make sure they know where to pick up food and where to deliver it.


There is a vast range of software available for download that can assist you in managing the entire delivery process. Some of the options include:

  • Routific: This app can help you streamline your deliveries, resulting in faster and more punctual deliveries.
  • OptimoRoute: This software enables you to manage delivery dispatching, orders, and provides real-time tracking features.
  • GSMtasks: With this software, you can plan and optimize your delivery routes, as well as assist with administrative tasks.


Having insurance coverage is crucial to ensure the safety of your business. If you're running a delivery service, it's essential to consider the following types of insurance:

  • Vehicle insurance: Your means of transportation are vital for getting food delivered to your customers. It's crucial to ensure that your vehicles, whether bikes or cars, are protected against theft or damages.
  • Public Liability Insurance: This type of insurance covers your business if someone sustains injuries or property is damaged while interacting with your company.

Prepare your licences and other legal documents

To start your food delivery business in Australia, you will need to obtain specific licenses and adhere to the Food Standards Code. Some licenses that you may need are:

  • Food license: This license demonstrates that your business understands how to handle food safely.
  • Food transport business license: If you transport meat, seafood, plant products, or similar items, you will require this license. You will need to reapply for the license every 12 months.

Moreover, to protect your intellectual property and data while operating online, there are various legal agreements available, including:

  • Privacy Policy: It is a legal requirement in Australia to have a Privacy Policy if your business collects personal information. This policy outlines how you plan to collect, use, and store this sensitive data.
  • Terms and Conditions: You will need website Terms and Conditions as well as email disclaimers.
  • Employment Agreement: This agreement outlines what is expected of the employee and what they are entitled to.
  • Workplace policies: You will need policies that establish the expectations for your workplace, such as a Workplace Hygiene Policy and an Equal Employment Opportunity Policy.

Build a customer base

The next step in starting your food delivery business is to market your business, attract customers and increase sales. There are several ways to attract new customers, including:

  • Search Engine Marketing: Promote your food delivery business online using relevant keywords. For instance, when a customer searches for "food delivery in my area," a small advertisement promoting your business appears at the top of the search engine results.
  • Social media: Establish a social media presence for your business. You can showcase the meals customers can order through your food delivery platform.
  • Referral program: Encourage your existing customer base to refer your business to their network. You can offer loyal customers a discount or freebie as an incentive to refer your business.

Frequently Asked Questions:

How can I advertise my business?

You can promote your business through various social media channels. Create a presence on relevant social platforms to engage with potential customers. Alternatively, consider hiring a digital marketing expert to help promote your business.

How should I insure my business?

There are several types of insurance available for startups that can protect your business against unforeseen circumstances. Consider obtaining vehicle insurance, Public Liability Insurance, and Professional Indemnity cover.

How can I brand my business?

Effective branding begins with a memorable name. Ensure that it stands out from your competitors, that the online domain is available, and it aligns with your business. To ensure that your business name is unique in Australia, consider registering your business as a trademark.


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