Deliveroo 'rescue team' to offer restaurants dark kitchen space

By Sophie Witts contact

- Last updated on GMT

Deliveroo 'rescue team' to offer restaurants dark kitchen space

Related tags: delivery, Deliveroo, Restaurant

Deliveroo has hired a team to identify ‘struggling’ restaurants and offer them space in its delivery-only Editions kitchens.

The company says its ‘Restaurant Rescue Team’ will look for businesses ‘at risk of closing, or who have closed down’ that it believes would perform well in an Editions site.

A spokesperson says Deliveroo will use its “local networks and knowledge and be asking restaurants in local areas to get in touch if they believe this could be of benefit to them”.  

The programme will launch in London before expanding to other areas of the UK. It will not be restricted to partners that currently work with Deliveroo.

Restaurants that enter Editions through the Rescue Team will receive ‘preferential commission rates’ on delivery and Deliveroo will cover costs such as rent and equipment for a ‘limited period’.

This is the latest bid by Deliveroo to woo restaurant operators, many of whom have spoken of issues with the platform. Last year Pho managing director Mark Smith said the group struggled​ with a lack of control over drivers and packaging costs.

Red Dog Saloon founder Tom Brooke told BigHospitality​ earlier this year​ that Deliveroo’s commission rate was “basically a 35% tax” on a restaurant.

Deliveroo says it is “committed to supporting” the industry and has launched initiatives including a £25,000 restaurant makeover grant​ and an extended perks for its partners.

US tech giant Amazon led a £450m funding round in Deliveroo in May, though its investment has been paused by the UK competition watchdog​ while it investigates concerns the two companies could 'cease to be distinct'.

Related topics: Business

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