Restaurants

Delivery platforms boost restaurant revenues in London, study suggests

A new report by Deloitte, issued by UberEats, has found that third-party platforms are helping restaurants sell an extra 1.6 million meals a week in London, Madrid, Paris and Warsaw, boosting the sector’s revenue.

According to the report, new technology is helping restaurants respond to shifts in consumer preferences, better utilise assets, expand and innovate.

According to the ‘Delivering Growth’ report, third party platforms such as Uber Eats, Deliveroo and Just Eat, has increased the number of restaurant meals sold by over 4% in Paris and London and around 2% in Madrid and Warsaw.

Independent restaurants, in particular, have benefited from the rise of delivery services, accounting for over 729,000 of the extra meals sold.

Technology is helping restaurants respond to a significant shift in consumer preferences, as demand for convenience in the sector rises, with more than 70% of adults aged 18-39 ordering food on a third-party platform in the last seven days.

The report said this is largely being driven by the “ease of ordering and payment” on third party platforms, and consumers having less time to cook at home.

Although some restaurants have offered delivery using their staff for many years, the rise of new marketplace apps (e.g UberEats) has helped many restaurants enter the growing food delivery market for the first time. 

According to a survey to support the report, only one in three restaurants in London, Paris and Warsaw offered delivery before partnering with Uber Eats, with a slightly higher number in Madrid (52%). 

Despite delivery accounting for just 2-5% of meals eaten at restaurants, according to the report, around 20% of meals ordered via third-party platforms in London, Paris and Warsaw represent growth in the restaurant industry, helping restaurants take a larger share of meals consumed. 

Commenting on the report, Stephane Ficaja, head of Europe at Uber Eats, said: “As the most popular food delivery app in Europe, it is our top priority to help restaurants adapt and thrive in the growing food delivery market. 

“Whether a small mum and dad operation or a household favourite, we are committed to providing restaurants with access to technology, insights and expertise they need to grow their delivery business.”

Sam Blackie, partner at Deloitte, added: “New technology is helping restaurants respond to a significant shift in consumer preferences, with rising demand for more convenient ways to eat. 

“By making it easier for restaurants to offer delivery services to customers, third-party platforms have helped grow overall revenue and profit in the restaurant sector.”

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