How to start a takeaway business from home How to turn your love of food into a takeaway business in the time of Covid-19 Aimee Bradshaw January 10, 2022 8 min read About us Startups was founded over 20 years ago by a multi-time entrepreneur. Today, our expert team of writers, researchers, and editors work to provide our 4 million readers with useful tips and information, as well as running award-winning campaigns. Our site is governed by the Startups editorial manifesto. This article was co-authored by: Aimee Bradshaw Senior Writer Robyn Summers-Emler Grow Online Editor If there have been any winners from the chaos of Covid and lockdown, then the takeaway sector has certainly been among them.With millions of us locked indoors during various national and regional lockdowns, local eateries were given a huge boost of business as we left the kitchens behind and turned instead to the ease of a takeaway menu. Delivery giants like Uber Eats and Deliveroo also thrived.Think of a traditional takeaway kitchen and you'll probably imagine lots of different forms, from high street fish and chip shops to curry houses. But as consumer needs have changed post-Covid – with people now looking for a more intimate and personalised customer dining experience – a huge number of small, home-run takeaway businesses have launched in the past couple of years.All this means now is a great time to set up a takeaway business and begin directly catering for 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. The first step to starting any business is sourcing funding, but it can be difficult to know where to start.Use our free online comparison tool to compare the best business loan providers across the UK, and get the best deal available. Now we're cooking! Startups.co.uk can help your business succeed At Startups.co.uk, we're here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today. What Does Your Business Need Help With? Choosing a POS System Creating a Website Getting a Business Loan Running your Accounts Get Started Startups spoke to Jen from the Funky Chickpeas, who told us about her experience setting up a takeaway delivery business from her home“I had been producing vegan recipe and restaurant recommendation content on Instagram for about a year when I had the idea of starting up a takeaway business from home. There were minimal vegan restaurants in my area, so I wanted to see if I could create one myself to be delivered through Deliveroo.”“To prepare, I created a menu with dishes that would be popular, and could be cooked relatively quickly; I made sure I had a kitchen set up that was slick; and I ensured I had a Level 2 Food Hygiene certificate.”“The process to sign up with Deliveroo was pretty simple through its website. I was assigned a business partner to guide me through the process and given continual support. The set up fee was approximately £500, which included a photography session, a tablet, and receipt printer – all of which was only repayable once my restaurant started making money.” In this article, we cover: Should you start a takeaway business now? Home takeaway business licenses Compare food delivery companies Online ordering systems (order and pay apps) The best online ordering systems for takeaway businesses What else do you need to consider? 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. Make sure you have the right home takeaway business licensesTurning 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. Government legislation states that you need to register your food business at least 28 days before opening. And if you’re already trading, you should register as soon as possible.Before you start a takeaway from home business, you should also make sure you have a Level 2 Food Hygiene Certificate. Virtual College offers a City and Guilds accredited Level 2 Food Hygiene course for £12. Need help staying on schedule?Starting a takeaway business takes time and effort, and it's important to make sure you don't waste any of either.We recommend using project management software to help streamline processes, track progress and assign tasks. Whether you're starting your business alone or with other people, it's a great way to keep things moving in the right direction.Find out which project management tools we recommend. Compare food delivery companiesThe three main delivery companies – Deliveroo, Just Eat, and Uber Eats – all have different fees, commission rates, and regulations. Here’s an overview. DeliverooJust EatUberEatsSign up feesAround £500 (includes equipment and professional photography)Sign up fees£295 (now waived due to Covid-19)Sign up feesAround £300 - £430 depending on package requiredCommission percentage10%-20%/orderCommission percentage14%/orderCommission percentage15%- 30%Delivery fee£2.50/orderDelivery fee£0.50 service chargeDelivery fee£2.50/orderThe 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 companyPros of using a third party delivery companyCons of using a third party delivery companyFairly easy to sign upStart business within a weekThey’ll market your business for youDeliveries taken care ofAssociated with a brand name that isn’t yoursCustomer service somewhat out of your handsCommission and delivery charges applyPayments can take up to seven days to transfer to your bank account 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. Free online ordering systemsFree online ordering systems allow you to create an ordering platform and take orders for free. But is there a catch? You’ll probably be expected to pay for the following optional services:A fee to have payments paid directly into your business account, rather than via your online ordering platformAny advanced marketing servicesA sales optimised websiteA branded mobile app The best online ordering systems for takeaway businessesChoosing 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 OnlineFlipdishOrdering DirectFood BookingTakeaway GenieFree?Free to set up with a Square accountFree?Free to set up Free?0% commissionFree?Free to set up yourself (requires basic computer skills)Free?Yes – but no custom domain, can’t accept cash payments, only for one locationAdditional fees2.5% of each transaction made through the platformAdditional fees7% order fee2.5% card processing feeAdditional fees£199 set up cost£8/week thereafterOptional £7/week for the appAdditional feesOptional £25/month for a sales optimised websiteAdditional fees£25/month for its essential package, which includes everything not included in its free packageSquare 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 companyOnline ordering systemDelivery company Set up costs£0 - £200£300 - £500Commission 0% - 7%10% - 30%Delivery?NoYesInstant engagementNoYesCompetition with other businessesNoYesSelf-marketing requiredYesNo What else do you need to consider?Create an attractive menuYou 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.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?Keep on top of your financesStarting 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 advantageSimilar 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:Get in touch with the different delivery companies or online ordering providers to see if their services are a feasible optionMake sure to register your business with the Food Standards Agency within 28 daysMake sure your kitchen is fully equipped, and you have the relevant food hygiene certificatesGet 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 adviceBrainstorm menu ideas and do some practice run throughs of each of your dishes by cooking for people in your household Startups.co.uk can help your business succeed At Startups.co.uk, we're here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today. What Does Your Business Need Help With? Project Planning Creating a Website Getting a Business Loan Business Bank Account Get Started Share this post facebook twitter linkedin Tags Featured guides Aimee Bradshaw Senior Writer Aimee is Startups' resident expert in business tech, products, and services. She loves a great story and enjoys chatting to the startups and small business community. Starting her own egg delivery business from the age of 12, she has a healthy respect for self-starters and local services.