diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -1,3 +1,78 @@
-# FastAPI Application
+# Food Delivery API
 
-This is a FastAPI application bootstrapped by BackendIM, the AI-powered backend generation platform.
+A backend API for a food delivery application built with FastAPI and SQLite.
+
+## Features
+
+- User authentication and registration
+- Restaurant management
+- Menu item management
+- Order processing
+- Delivery tracking
+- Role-based access control
+
+## Tech Stack
+
+- **FastAPI**: Modern, fast web framework for building APIs
+- **SQLite**: Lightweight, file-based relational database
+- **SQLAlchemy**: SQL toolkit and Object-Relational Mapping (ORM)
+- **Alembic**: Database migration tool
+- **Pydantic**: Data validation and settings management
+- **JWT**: JSON Web Tokens for authentication
+- **Uvicorn**: ASGI server for running FastAPI applications
+
+## Project Structure
+
+```
+.
+├── app
+│   ├── api
+│   │   └── v1
+│   │       ├── api.py
+│   │       └── endpoints
+│   │           ├── auth.py
+│   │           ├── deliveries.py
+│   │           ├── menu_items.py
+│   │           ├── orders.py
+│   │           ├── restaurants.py
+│   │           └── users.py
+│   ├── core
+│   │   ├── config.py
+│   │   └── security.py
+│   ├── crud
+│   ├── db
+│   │   └── session.py
+│   ├── models
+│   ├── schemas
+│   ├── services
+│   └── utils
+├── main.py
+└── requirements.txt
+```
+
+## Getting Started
+
+1. Clone the repository
+2. Install dependencies:
+   ```bash
+   pip install -r requirements.txt
+   ```
+3. Run the application:
+   ```bash
+   uvicorn main:app --reload
+   ```
+
+## API Documentation
+
+Once the application is running, you can access the API documentation at:
+
+- **Swagger UI**: [http://localhost:8000/docs](http://localhost:8000/docs)
+- **ReDoc**: [http://localhost:8000/redoc](http://localhost:8000/redoc)
+
+## Environment Variables
+
+Create a `.env` file in the root directory with the following variables:
+
+```
+SECRET_KEY=your_secret_key
+```
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diff --git a/app/__init__.py b/app/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/__init__.py b/app/api/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/v1/__init__.py b/app/api/v1/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/v1/api.py b/app/api/v1/api.py
new file mode 100644
index 0000000..142d321
--- /dev/null
+++ b/app/api/v1/api.py
@@ -0,0 +1,12 @@
+from fastapi import APIRouter
+
+from app.api.v1.endpoints import users, auth, restaurants, menu_items, orders, deliveries
+
+api_router = APIRouter()
+
+api_router.include_router(auth.router, prefix="/auth", tags=["Authentication"])
+api_router.include_router(users.router, prefix="/users", tags=["Users"])
+api_router.include_router(restaurants.router, prefix="/restaurants", tags=["Restaurants"])
+api_router.include_router(menu_items.router, prefix="/menu-items", tags=["Menu Items"])
+api_router.include_router(orders.router, prefix="/orders", tags=["Orders"])
+api_router.include_router(deliveries.router, prefix="/deliveries", tags=["Deliveries"])
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diff --git a/app/api/v1/endpoints/__init__.py b/app/api/v1/endpoints/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/v1/endpoints/auth.py b/app/api/v1/endpoints/auth.py
new file mode 100644
index 0000000..1028714
--- /dev/null
+++ b/app/api/v1/endpoints/auth.py
@@ -0,0 +1,19 @@
+from fastapi import APIRouter, Depends
+from fastapi.security import OAuth2PasswordRequestForm
+from sqlalchemy.orm import Session
+
+from app.db.session import get_db
+
+router = APIRouter()
+
+
+@router.post("/login")
+async def login(
+    form_data: OAuth2PasswordRequestForm = Depends(),
+    db: Session = Depends(get_db),
+):
+    """
+    OAuth2 compatible token login, get an access token for future requests
+    """
+    # Authentication will be implemented in a later step
+    return {"detail": "Authentication endpoint placeholder"}
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diff --git a/app/api/v1/endpoints/deliveries.py b/app/api/v1/endpoints/deliveries.py
new file mode 100644
index 0000000..1d28705
--- /dev/null
+++ b/app/api/v1/endpoints/deliveries.py
@@ -0,0 +1,15 @@
+from fastapi import APIRouter, Depends
+from sqlalchemy.orm import Session
+
+from app.db.session import get_db
+
+router = APIRouter()
+
+
+@router.get("/")
+async def get_deliveries(db: Session = Depends(get_db)):
+    """
+    Get list of deliveries
+    """
+    # Delivery retrieval will be implemented in a later step
+    return {"detail": "Deliveries endpoint placeholder"}
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diff --git a/app/api/v1/endpoints/menu_items.py b/app/api/v1/endpoints/menu_items.py
new file mode 100644
index 0000000..8eb6678
--- /dev/null
+++ b/app/api/v1/endpoints/menu_items.py
@@ -0,0 +1,15 @@
+from fastapi import APIRouter, Depends
+from sqlalchemy.orm import Session
+
+from app.db.session import get_db
+
+router = APIRouter()
+
+
+@router.get("/")
+async def get_menu_items(db: Session = Depends(get_db)):
+    """
+    Get list of menu items
+    """
+    # Menu item retrieval will be implemented in a later step
+    return {"detail": "Menu items endpoint placeholder"}
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diff --git a/app/api/v1/endpoints/orders.py b/app/api/v1/endpoints/orders.py
new file mode 100644
index 0000000..7118193
--- /dev/null
+++ b/app/api/v1/endpoints/orders.py
@@ -0,0 +1,15 @@
+from fastapi import APIRouter, Depends
+from sqlalchemy.orm import Session
+
+from app.db.session import get_db
+
+router = APIRouter()
+
+
+@router.get("/")
+async def get_orders(db: Session = Depends(get_db)):
+    """
+    Get list of orders
+    """
+    # Order retrieval will be implemented in a later step
+    return {"detail": "Orders endpoint placeholder"}
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diff --git a/app/api/v1/endpoints/restaurants.py b/app/api/v1/endpoints/restaurants.py
new file mode 100644
index 0000000..0e55f83
--- /dev/null
+++ b/app/api/v1/endpoints/restaurants.py
@@ -0,0 +1,15 @@
+from fastapi import APIRouter, Depends
+from sqlalchemy.orm import Session
+
+from app.db.session import get_db
+
+router = APIRouter()
+
+
+@router.get("/")
+async def get_restaurants(db: Session = Depends(get_db)):
+    """
+    Get list of restaurants
+    """
+    # Restaurant retrieval will be implemented in a later step
+    return {"detail": "Restaurants endpoint placeholder"}
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diff --git a/app/api/v1/endpoints/users.py b/app/api/v1/endpoints/users.py
new file mode 100644
index 0000000..d4965ca
--- /dev/null
+++ b/app/api/v1/endpoints/users.py
@@ -0,0 +1,15 @@
+from fastapi import APIRouter, Depends
+from sqlalchemy.orm import Session
+
+from app.db.session import get_db
+
+router = APIRouter()
+
+
+@router.get("/")
+async def get_users(db: Session = Depends(get_db)):
+    """
+    Get list of users
+    """
+    # User retrieval will be implemented in a later step
+    return {"detail": "Users endpoint placeholder"}
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diff --git a/app/core/__init__.py b/app/core/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/core/config.py b/app/core/config.py
new file mode 100644
index 0000000..1262bef
--- /dev/null
+++ b/app/core/config.py
@@ -0,0 +1,35 @@
+import os
+from pathlib import Path
+from typing import List
+
+from pydantic import AnyHttpUrl
+from pydantic_settings import BaseSettings
+
+
+class Settings(BaseSettings):
+    API_V1_STR: str = "/api/v1"
+    PROJECT_NAME: str = "Food Delivery API"
+    VERSION: str = "0.1.0"
+    DESCRIPTION: str = "Backend API for a Food Delivery Application"
+    
+    # CORS configuration
+    CORS_ORIGINS: List[AnyHttpUrl] = []
+
+    # JWT secret key
+    SECRET_KEY: str = os.getenv("SECRET_KEY", "supersecretkey")
+    ALGORITHM: str = "HS256"
+    # 60 minutes * 24 hours * 7 days = 7 days
+    ACCESS_TOKEN_EXPIRE_MINUTES: int = 60 * 24 * 7
+
+    # Database
+    DB_DIR = Path("/app") / "storage" / "db"
+    DB_DIR.mkdir(parents=True, exist_ok=True)
+
+    SQLALCHEMY_DATABASE_URL: str = f"sqlite:///{DB_DIR}/db.sqlite"
+
+    class Config:
+        case_sensitive = True
+        env_file = ".env"
+
+
+settings = Settings()
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diff --git a/app/core/security.py b/app/core/security.py
new file mode 100644
index 0000000..6feba2f
--- /dev/null
+++ b/app/core/security.py
@@ -0,0 +1,31 @@
+from datetime import datetime, timedelta
+from typing import Any, Union
+
+from jose import jwt
+from passlib.context import CryptContext
+
+from app.core.config import settings
+
+pwd_context = CryptContext(schemes=["bcrypt"], deprecated="auto")
+
+
+def create_access_token(
+    subject: Union[str, Any], expires_delta: timedelta = None
+) -> str:
+    if expires_delta:
+        expire = datetime.utcnow() + expires_delta
+    else:
+        expire = datetime.utcnow() + timedelta(
+            minutes=settings.ACCESS_TOKEN_EXPIRE_MINUTES
+        )
+    to_encode = {"exp": expire, "sub": str(subject)}
+    encoded_jwt = jwt.encode(to_encode, settings.SECRET_KEY, algorithm=settings.ALGORITHM)
+    return encoded_jwt
+
+
+def verify_password(plain_password: str, hashed_password: str) -> bool:
+    return pwd_context.verify(plain_password, hashed_password)
+
+
+def get_password_hash(password: str) -> str:
+    return pwd_context.hash(password)
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diff --git a/app/crud/__init__.py b/app/crud/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/db/__init__.py b/app/db/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/db/session.py b/app/db/session.py
new file mode 100644
index 0000000..ee00f4a
--- /dev/null
+++ b/app/db/session.py
@@ -0,0 +1,23 @@
+from sqlalchemy import create_engine
+from sqlalchemy.ext.declarative import declarative_base
+from sqlalchemy.orm import sessionmaker
+
+from app.core.config import settings
+
+engine = create_engine(
+    settings.SQLALCHEMY_DATABASE_URL,
+    connect_args={"check_same_thread": False}  # Needed only for SQLite
+)
+
+SessionLocal = sessionmaker(autocommit=False, autoflush=False, bind=engine)
+
+Base = declarative_base()
+
+
+# Dependency to get the DB session
+def get_db():
+    db = SessionLocal()
+    try:
+        yield db
+    finally:
+        db.close()
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diff --git a/app/models/__init__.py b/app/models/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/schemas/__init__.py b/app/schemas/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/services/__init__.py b/app/services/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/utils/__init__.py b/app/utils/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/main.py b/main.py
new file mode 100644
index 0000000..81a062b
--- /dev/null
+++ b/main.py
@@ -0,0 +1,53 @@
+from fastapi import FastAPI
+from fastapi.middleware.cors import CORSMiddleware
+from fastapi.openapi.utils import get_openapi
+
+from app.api.v1.api import api_router
+from app.core.config import settings
+
+app = FastAPI(
+    title=settings.PROJECT_NAME,
+    openapi_url="/openapi.json",
+    docs_url="/docs",
+    redoc_url="/redoc",
+)
+
+# Set CORS middleware
+app.add_middleware(
+    CORSMiddleware,
+    allow_origins=settings.CORS_ORIGINS,
+    allow_credentials=True,
+    allow_methods=["*"],
+    allow_headers=["*"],
+)
+
+# Include API router
+app.include_router(api_router, prefix=settings.API_V1_STR)
+
+
+# Health check endpoint
+@app.get("/health", tags=["Health"])
+async def health_check():
+    return {"status": "ok"}
+
+
+def custom_openapi():
+    if app.openapi_schema:
+        return app.openapi_schema
+    openapi_schema = get_openapi(
+        title=settings.PROJECT_NAME,
+        version=settings.VERSION,
+        description=settings.DESCRIPTION,
+        routes=app.routes,
+    )
+    app.openapi_schema = openapi_schema
+    return app.openapi_schema
+
+
+app.openapi = custom_openapi
+
+
+if __name__ == "__main__":
+    import uvicorn
+
+    uvicorn.run("main:app", host="0.0.0.0", port=8000, reload=True)
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diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..ec416c6
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,13 @@
+fastapi>=0.95.0
+uvicorn>=0.21.1
+pydantic>=2.0.0
+pydantic-settings>=2.0.0
+sqlalchemy>=2.0.0
+alembic>=1.10.0
+python-jose[cryptography]>=3.3.0
+passlib[bcrypt]>=1.7.4
+python-multipart>=0.0.6
+ruff>=0.0.262
+email-validator>=2.0.0
+python-dotenv>=1.0.0
+tenacity>=8.2.2
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