Canton online food ordering company
is adding more franchises to its current 14 as the company prepares to take a bigger bite of the $188 billion quick-service food industry. The company will be spending an initial $1.5 million to $2 million this year to support that initiative, says CEO Chris Jeffery.
The company is currently working with new franchise owners to launch in several new markets over the next few months. Jeffery says franchise units generally have a population of about 100,000, and include 200 to 400 restaurants.
OrderUp has identified thousands of units around the country that meet what Jeffery calls, “benchmarks for growth.” With OrderUp’s digital franchise model, the initial franchise fee is $32,500.
Many franchisees buy multiple units. Jeffery cites Norfolk, Va., as an example of a franchisee that bought two units that cover the city’s downtown area.
OrderUp facilitates local online meal orders for delivery or pick-up. OrderUp runs the Baltimore market, where residents can order from 65 restaurants, including the Cross Street Kabob House, Grilled Cheese & Co. and Ultimate Pizza. The company is starting to expand into Baltimore County.
Chris Jeffery and Jason Kwicien cofounded OrderUp in 2009, when they saw the growing consumer demand for an online food delivery service that aggregated the menus of a fragmented restaurant industry. In December 2012, OrderUp adopted a new business model to establish its own national online food delivery brand selling franchise units to entrepreneurs in local markets across the country.
“OrderUp is the liaison between the restaurant and the consumer,” Jeffery says.
In addition to expanding its franchise reach, OrderUp this year is updating its technology platform and providing franchisees with training and support in using social media tools.
Jeffery says OrderUp has doubled revenue in 2013, with 36 months of straight growth.
OrderUp is privately financed. The company has 28 employees, of whom 16 work from its Canton headquarters. The company is looking to hire three staffers in digital marketing and support.
Source: Chris Jeffery, OrderUp
Writer: Barbara Pash