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The OrderUp Digital Franchise: Innovative Model, Hot Industry, Proven Success

Why is the OrderUp franchise opportunity generating so much excitement within our team, among the OrderUp franchisees we’ve already brought on board, and from seemingly every entrepreneur who learns about us? Simple: we’ve introduced a truly game-changing franchise model in an extremely hot industry, and we have proven success.

Game-changer: OrderUp’s digital franchise model offers huge advantages over traditional franchising

Rarely is anything in the franchise world described as truly innovative. To generate buzz among consumers, a franchise might introduce a tastier product, an attractive promotion, or a celebrity endorsement. To attract new franchisees, franchisors might offer a discounted franchise fee or tweak their royalty structure. While these tactics might lead to more sandwiches being sold or franchisee deals being closed, it’s all, as they say, been done before. Franchised businesses are remarkably similar - whether you’re selling tacos, lawn care, ink cartridges, or no-hassle divorces, the vast majority of franchise owners are operating traditional brick-and-mortar businesses, businesses with high startup costs, overhead and administrative burdens. Franchise owners have to show up every morning to turn the lights on, and then spend the rest of the day dealing with rent, utilities, employees, and accounts receivable. The costs add up quickly; on average, the initial investment to open a brick-and-mortar restaurant franchise is $450,000.
Enter OrderUp, a truly innovative digital franchise. OrderUp.com will allow customers in markets around the country to order food online for delivery or takeout from a wide array of restaurants. By becoming an OrderUp franchisee, an entrepreneur makes money on every order placed from a restaurant within his or her territory, and the initial investment is less than one tenth of the average brick-and-mortar franchise. The office, the employees, the accounts receivable? Not part of the equation. OrderUp franchisees are unencumbered by the daily headaches that traditional franchise owners navigate, and instead spend their time signing up restaurants for online ordering, securing great deals, and marketing the site in their territory. All of the technology, training and support is handled by OrderUp - OrderUp has a top-notch technology team constantly keeping the product on the cutting edge; training is personal, with franchisees learning from the best in the business; and, OrderUp runs a round-the-clock call center to take the support burden off the franchisee.

Online food ordering is a rapidly-growing, massively untapped industry

In 2004, 10% of Americans placed an order for food online, with that number growing to 13% in 2007 and 33% by 2011. The trend shows no signs of letting up, with a recent study by Cornell professor Sheryl E. Kimes stating that over 40% of American adults have ordered food online. When you consider that quick service restaurant sales in 2011 totaled $168 billion dollars, you can understand what the excitement over and attention paid to the online ordering industry is all about.
Industry experts and investors see delivery and takeout food going the way of airline tickets, restaurant reservations, and countless other industries that have seen online sales go from close to zero to essentially 100% in the past several years. Bill Gurley of Benchmark Capital states that he sees “no reason why [online food ordering] won’t follow the same pattern…” as airline ticketing and restaurant reservations, and Philip DeSorbo Jr. of Subway believes that ordering online will eventually surpass picking up the phone.
Online ordering growing rapidly makes total sense. Customers love it, as they can quickly view all of their options and available deals in a one-stop location, and then place an order without worrying about inaccuracies which can plague phone orders. Restaurants love it, as they get discovered by new customers, it frees up employees who otherwise would be taking phone orders, and most importantly, Professor Kimes of Cornell reports that “restaurants using electronic ordering report increases in both average check and order frequency.”
The market is still greatly untapped, both vertically and horizontally. Only 10% of orders are placed online, and there are hundreds of markets around the country that have little to no online food ordering presence to speak of. This leaves a lot on the table, so to speak.
OrderUp has a top-notch team and a proven model of success
We’ve been doing this for years, and are currently in over 20 markets around the country. We’ve made mistakes along the way, learned from them, and refined the product and model in accordance with best practices.
Perhaps most importantly, we’ve learned that a hyperlocal focus is critical to success in the online food ordering business. Food ordering has been relatively slow to move online because it is a highly fragmented industry - 62% of locations are single unit mom and pop shops. In order to provide a user with great content, there is simply no substitute for having your feet on the ground in the market. That local knowledge, the personal relationships with restaurant owners and a nuanced understanding of the community is what makes our model so successful. An airline ticket aggregator site can hit up the several major carriers and have its site populated with content in no time. But if you’re hungry for a cheesesteak in Norfolk, VA and want to see all your options, you need a site that really knows Norfolk. The OrderUp franchisee in Norfolk has worked to bring you the best restaurants and the best deals, leaps and bounds above anything you’d be able to find on a national portal.
OrderUp franchisees benefit from personal mentorship and training from our industry experts, including our CEO and COO, who have a combined 20+ years of experience. We take training and our on-going relationship with franchisees very seriously, and since our interests are aligned, you don’t have to just take our word for it - we have a vested interest in OrderUp franchisees running very successful sites.

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