Template

PRD Template for Food Delivery Products

A product requirements template for food delivery product managers. Covers three-sided marketplace dynamics, real-time dispatch algorithms, restaurant integration, courier operations, and the food safety requirements that standard templates miss.

Why food delivery PRDs must balance three sides

Food delivery is a three-sided marketplace: consumers, restaurants, and couriers. Every product decision affects all three sides, often in opposing ways. Faster dispatch improves consumer experience but may reduce courier earnings per delivery. Lower restaurant commissions attract more restaurants but reduce platform revenue. Aggressive order batching improves courier efficiency but risks food quality degradation.

The operational complexity compounds this challenge. You are orchestrating real-time logistics involving perishable goods, unpredictable traffic, variable restaurant prep times, and a workforce of independent couriers who can stop working at any moment. Your dispatch algorithm must make thousands of decisions per hour, each affecting someone's dinner, someone's livelihood, and someone's business.

This template addresses the unique challenges of food delivery product management with three-sided guidance in every section. It includes dedicated sections for dispatch algorithm requirements, food safety and operational constraints, and the unit economics that determine whether your marketplace is sustainable.

The complete food delivery PRD template

Ten sections tailored for food delivery products with three-sided marketplace guidance, dispatch specs, and operational requirements.

01

Problem Statement

Define the food delivery problem across all three sides: consumers, restaurants, and delivery partners. Food delivery problems compound across the chain — a 5-minute delay at the restaurant becomes a 15-minute delay for the customer and an unpaid wait for the courier.

Example: "Average order-to-delivery time is 52 minutes, with 38% of delays caused by inaccurate restaurant prep time estimates. Couriers spend an average of 8.3 minutes waiting at restaurants for orders that are not ready, reducing their effective hourly earnings from $18 to $14.20. Customer satisfaction drops 12 percentage points for every 10 minutes beyond the estimated delivery time. 24% of customer support contacts are about delivery time — each contact costs $3.40 to resolve."

Tips

  • Quantify the problem for all three sides: consumer wait time, restaurant operational burden, courier earnings
  • Identify which part of the delivery chain causes the most delay: order processing, prep, dispatch, transit, handoff
  • Include the support cost of the problem — delivery complaints are expensive to resolve
  • Reference competitor delivery time benchmarks in your market
02

Goals and Objectives

Balance speed, accuracy, and unit economics. Faster delivery at the cost of courier earnings is not sustainable. Set targets for all three sides with explicit guardrails.

Example: "Primary: Reduce average order-to-delivery time from 52 to 38 minutes within 90 days. Restaurant: Reduce courier wait time at restaurant from 8.3 to under 3 minutes through improved prep time prediction. Courier: Increase average deliveries per hour from 2.1 to 2.8 without extending working hours. Unit economics: Maintain or improve contribution margin per order at $1.20. Guardrail: Food quality rating must not decrease below 4.2/5 average."

Tips

  • Set guardrails for all three sides: delivery speed must not harm courier earnings or food quality
  • Include unit economics targets alongside experience targets
  • Define targets by order type: single-restaurant, multi-restaurant, grocery, catering
  • Account for peak vs off-peak performance differences
03

User Stories

Food delivery serves consumers, restaurant staff, and delivery couriers — each with distinct workflows, device contexts, and stress levels. Restaurant stories happen in a loud kitchen. Courier stories happen while navigating traffic.

Example: "As a consumer, I want to see a real-time estimated delivery time that updates as my order progresses so that I can plan when to be available to receive the delivery. Acceptance criteria: ETA displayed immediately after order placement; ETA updates in real-time based on restaurant prep progress and courier location; push notification sent when courier is 5 minutes away; accuracy target: actual delivery within 5 minutes of displayed ETA for 80% of orders. As a courier, I want to see the order details and restaurant pickup instructions before I arrive so that I can go directly to the pickup counter without searching."

Tips

  • Design restaurant stories for high-stress kitchen environments: large text, simple actions, loud notifications
  • Courier stories must work one-handed while navigating — voice-enabled or minimal-tap interactions
  • Consumer stories should cover the full journey: browsing, ordering, tracking, receiving, rating
  • Include edge cases: incorrect items, missing items, closed restaurants, courier emergencies
04

Functional Requirements

Food delivery functional requirements span ordering, dispatch, routing, restaurant operations, and real-time tracking. The dispatch algorithm is the core differentiator — specify its behavior precisely.

Example: "FR-1: Dispatch algorithm must assign couriers to orders within 30 seconds of restaurant accepting the order, optimizing for: estimated total delivery time, courier current location, courier active order load (max 2 concurrent), and restaurant prep time estimate. FR-2: Real-time tracking must show courier location with updates every 10 seconds and accuracy within 20 meters. FR-3: Dynamic prep time estimation using restaurant-specific historical data: average prep time by menu item category, current order queue depth, and time of day. FR-4: Order batching: system may assign 2 orders from the same restaurant to one courier if delivery addresses are within 1.5 km and combined delivery time is under 15 minutes above single-order time."

Tips

  • Specify dispatch algorithm inputs, constraints, and optimization objective precisely
  • Define order batching rules: when is it acceptable, what is the maximum delivery time impact
  • Include restaurant menu management: item availability, prep time per item, order throttling during peak
  • Address payment split: consumer payment, restaurant commission, courier payout, platform fee
05

Operational and Safety Requirements

Food delivery involves food safety, courier safety, and regulatory compliance. These requirements are often overlooked in product specs but can lead to health violations, accidents, and regulatory penalties.

Example: "OP-1: Food safety — maximum time from restaurant handoff to customer delivery must not exceed 45 minutes; orders exceeding this threshold trigger automatic quality alert and customer notification. OP-2: Courier safety — app must not display new order notifications while courier is actively navigating (speed above 5 km/h); no in-app actions requiring text input during active navigation. OP-3: Restaurant food safety certification verification during onboarding — valid health department permit required. OP-4: Temperature-sensitive items (ice cream, sushi) must be flagged in dispatch to prioritize direct delivery without batching."

Tips

  • Define maximum delivery time limits for food safety — this affects dispatch and batching algorithms
  • Include courier safety requirements: no distracting notifications during active driving/riding
  • Address food allergen communication: how are allergen warnings passed from restaurant to consumer
  • Include insurance and liability requirements for courier accidents and food safety incidents
06

Success Metrics

Food delivery metrics must balance the three-sided marketplace. Track consumer satisfaction, restaurant operational efficiency, courier earnings, and platform unit economics simultaneously.

Example: "Delivery speed: Average order-to-delivery time. Baseline: 52 min. Target: 38 min. ETA accuracy: Percentage of deliveries within 5 min of estimated time. Baseline: 58%. Target: 80%. Consumer: Order satisfaction rating. Baseline: 4.1/5. Target: 4.4/5. Restaurant: Average courier wait time at restaurant. Baseline: 8.3 min. Target: under 3 min. Courier: Average deliveries per active hour. Baseline: 2.1. Target: 2.8. Economics: Contribution margin per order. Baseline: $1.20. Target: $1.50."

Tips

  • ETA accuracy is often more important than absolute speed — consumers hate surprises more than waits
  • Track courier earnings per hour, not just deliveries per hour — earnings determine courier retention
  • Monitor restaurant acceptance rate and cancellation rate as leading indicators of restaurant satisfaction
  • Include refund and credit rate as a guardrail metric — excessive refunds destroy unit economics
07

Timeline and Milestones

Food delivery timelines must account for restaurant onboarding, courier recruitment, and market-by-market launch. Each market has unique characteristics: restaurant density, traffic patterns, and courier supply.

Example: "Phase 1 (Weeks 1-4): Core ordering, dispatch, and tracking. Milestone: End-to-end order flow working with 5 test restaurants. Phase 2 (Weeks 5-8): Prep time prediction and dynamic dispatch optimization. Milestone: Predicted prep time within 3 minutes of actual for 70% of orders. Phase 3 (Weeks 9-10): Restaurant onboarding portal and courier app. Milestone: 50 restaurants onboarded, 100 couriers activated. Phase 4 (Weeks 11-14): Soft launch in single market (1 city zone). Milestone: 500 completed orders with 4.0+ average rating. Phase 5 (Weeks 15-20): Market expansion to full city."

Tips

  • Launch market-by-market, not nationally — each market needs sufficient restaurant and courier density
  • Restaurant onboarding takes longer than expected: menu digitization, tablet setup, staff training
  • Plan courier recruitment ahead of launch — you need courier supply before demand arrives
  • Test dispatch algorithm with real orders before scaling — simulation does not capture real-world complexity
08

Risks and Mitigations

Food delivery risks include three-sided marketplace imbalance, food safety incidents, courier safety and classification issues, and the negative unit economics that plague the industry.

Example: "Risk: Peak demand overwhelms courier supply, leading to 60+ minute delivery times and mass cancellations. Likelihood: High (every Friday/Saturday evening). Impact: High. Mitigation: Dynamic pricing (surge) to attract more couriers during peak; order throttling when courier supply drops below 1:3 ratio; proactive customer communication about extended delivery times. Risk: Courier classified as employee rather than contractor by labor regulator. Likelihood: Medium. Impact: Critical (business model change). Mitigation: Ensure courier flexibility (choose hours, decline orders, multi-app); legal counsel on classification in each operating market."

Tips

  • Peak demand management is the most operationally critical risk — plan for Friday night at 7 PM
  • Address courier classification risk: gig economy regulations vary by jurisdiction and are evolving
  • Plan for food safety incidents: contamination, allergen reactions, temperature violations
  • Include weather contingency plans: rain and snow dramatically affect delivery times and courier availability
09

Integrations

Food delivery products integrate with restaurant POS systems, payment processors, mapping services, and communication platforms. POS integration is critical — it determines whether orders flow into the kitchen automatically or require manual entry.

Example: "Integration 1: Restaurant POS — Square, Toast, Clover direct integration for automatic order injection; fallback: tablet-based order acceptance. Integration 2: Mapping — Google Maps Platform for routing, ETA calculation, and geocoding. SLA: 99.99%. Integration 3: Stripe Connect — consumer payment, restaurant settlement, and courier payout with real-time split. Integration 4: Twilio — masked phone numbers for consumer-courier communication; SMS order status updates. Integration 5: Segment — event tracking for consumer funnel, conversion, and retention analysis."

Tips

  • POS integration dramatically reduces restaurant friction — prioritize the most common POS systems in your market
  • Use masked phone numbers for all consumer-courier communication (privacy and safety)
  • Mapping provider SLA directly affects ETA accuracy — include fallback provider
  • Payment split must handle tips, refunds, and promotional credits correctly across all three parties
10

Open Questions

Document unresolved decisions about pricing strategy, courier compensation model, market expansion order, and restaurant partnership terms.

Example: "Q1: Should we implement dynamic pricing (surge) during peak demand or maintain flat delivery fees? Surge improves courier supply but frustrates consumers. Decision owner: CEO. Needed by: Week 3. Q2: Should couriers be able to see the delivery tip amount before accepting an order? Transparency improves acceptance rate but may lead to cherry-picking. Decision owner: Head of Operations. Needed by: Week 2. Q3: What commission rate for restaurants? Industry ranges from 15-30% — lower rates attract more restaurants but hurt unit economics. Decision owner: Head of Partnerships. Needed by: Week 4."

Tips

  • Pricing model decisions affect all three sides — model the impact on each before deciding
  • Tip transparency is a contentious issue: transparency vs cherry-picking tradeoff
  • Restaurant commission rate directly affects restaurant acquisition and retention
  • Market expansion order should prioritize by restaurant density and courier availability, not just population

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