Case Study of Existing Food Startup

1. GRUB-BITE CASE
Food delivery
IIM KASHIPUR
CASE -1
12 March 2016
About Grub-Bite
Grub-Bite is college based start-up which started delivering night food in college
that provide food from Dominos, Pizza delight and several other restaurants in Kashipur.
Delivering food in a city like Kashipur is always difficult and always a
big challenge as its include logistics problem but also problem related to food as some-
times the food may be not so hot enough as expected.
problem related to investment was always there from when its started and money
was going from the founder & co-founder pocket.
Grub-bite Existence :-
Grub-bite began its operation in the year 2013 feb’14 in Jamshedpur and then fur-
ther extended to small city like Kashipur.
At kashipur the operation started from 2016 20th feb , in the first day itself it
achieved no loss no profit but there was huge problem in operation which was making
things more difficult what was expected.
INITIAL PROBLEMS :-

2. GRUB-BITE CASE
In kashipur the initial problem that came was with chain of restaurants as after
several talk with them , they could not full-fill the on time criteria which was our USP
which was not only creating a bad image of our company but also making its hard to in-
clude further things in grub-bite as the basic things was not full fill by us at right time.
Change of plans
after several problem from the customers , it was hard to work on new ideas
rather than refining older ideas , so one of our member came up with a idea of (DIT-OIT)
Delivering in time -Ordering in time which include taking order for a fixed time
interval which was from 8pm to 10pm and informing the restaurant one our before and
then the delivery boy would go and collect the food from the respective restaurants at
exact time and delivering the food at right time.
20%
3%
3%
25%
50%
dominos chawlas pizza delight gautami others

3. GRUB-BITE CASE
Technological advantage :-
Grub-bite had been always been up in technical whether its can App or website.
The App and website was created by bharat singh Bandar who is presently working in
Singapore in a software firm and is creating app for other company.
the app and website would be an easy medium for people to order food in exact
time creating a managed database that is required for any start-up, but it was successful
in a city like jamshedpur but faced huge problem in kashipur as relying on app and web-
site was not secure and people were more used to believe in oral order which make the
database more complex and operation more difficult.
so thinking apart from app and website was an easy option was a difficult in oper-
ation , so as trial period we concluded with this method i.e. oral order.
Collaboration & Further problems :-
In kashipur we have collaboration with dominos , pizza delight , gautami, manor ,
and other major restaurants of kashipur.
on the first day of operation they assure us that they would be delivering at right
time and giving discount of 10% and above depending on the order but on the first day
Order time Order time at restaurant Take order from
restaurants
delivering to students
8-10pm 1 hr before the order 10:30PM 11PM

4. GRUB-BITE CASE
restaurants as promise didn’t perform the way they expected , as order minimum than
150Rs , they were not providing any discount as they want order more than 500Rs
which was making more difficult to operate as money was going from our pocket.
About delivery boy
on the first day of our operation we collaborated with auto rickshaw which was
charging around Rs6000/- per month which was very much as we do not know how
much order can come each day and what will be our profit.
As for example the first revenue was Rs 80 which was more than what we ex-
pected but we have to give 200 per day to auto-rickshaw which made us to face loss on
the first day itself.
So to overcome this problem we hire a person on order basis that will bring order
when orderer by the customers and paying him Rs50 per day which was much cheaper
than was expected and order do come on time which was one of the most important
thing that we come across after we switch to this.
How Grub-bite operate ?
From the first day we designated work to every person which mentioned below.
CRM Taking Order Taking Money Delivering Order
Nilesh jeewan Ginny, Shashank Rohit
CREATIVE TEAM BRAND TEAM ADVERTISEMENT TEAM
Ankush Shashank, Nilesh Ginny,Jeewan

5. GRUB-BITE CASE
ordered deliver to restaurants
Money Received by our TM TEAM and database updated by our TO Team.
GRUB-BITE TAKES ORDER
Update in database by our TO
Team
ordered delivered to delivery boy
Ordered
received by
delivery
boy
Ordered handover to the customers

6. GRUB-BITE CASE
Other’s competitors in the market :-
There was no such competitors in kashipur but the major problem was coming
from the restaurants and outlet like Dominos which do not deliver at college if the order
is less thank Rs 1500 which was creating a huge problem as most of the order will be
between 500-1000 and huge bargaining need to be done so that they accept.
kashipur is small city nearby to start-up city like Gurgaon, New Delhi , Noida etc
which could be probable competitors in the coming years which not only have invest-
ment from investor like tiger partner , sequoia etc , which could come and destroy our
market base in kashipur.
Food-panda , just eat and several others delivery start-up could be the probable
competitors.
Mergers :-
Mergers are the important part for growth of any start-up if its facing problem in
the city its started.
As a initial start-up we came across two probable investor who wanted to invest in
our startup but on two condition.
The first investor Exubator wanted us to collaborate with company he started with
similar concept and expand the business in Northern region which was not possible by
our side.

7. GRUB-BITE CASE
Problem Statements :-
1. The case as said always faced problems related to logistics , supply chain
management and operation , what could be your suggestion to overcome this prob-
lem after looking the exhibit 1.
2. The case as discussed deliver food delivery at night with less revenue , so
what do you think that company should expand its product apart from delivery sys-
tem taking into account in a city like Kashipur where facilities play an important role.
3. company achieved its profit in the first day itself but faced management , op-
eration , database problem.
So what is your view how the company should have started .
Grub-Bite

8. GRUB-BITE CASE
Marketing
Investment done in Rupees
₹ 0.00 ₹ 1,500.00 ₹ 3,000.00 ₹ 4,500.00 ₹ 6,000.00
Facebook App Website Offline Marketing

9. GRUB-BITE CASE
Exhibit-1
Exhibit-1 explains us how much order has been done weekly through grub-bite for the first four
week of the company.
Exhibit-2
Exhibit-2 denotes how much grub-bite invested offline and online.
Note :- The app and website cost was in the year 2013 , so the investment done after
launching in Kashipur include Facebook promotion cost and Offline marketing.