Just Eat has launched a programme aimed at giving independent restaurants a platform for growth.
It comes on the back of research from the delivery operator which claims three in five independent restaurant owners believe they will grow their business in the next five years. Just Eat suggests this would boost the economy by £1.1bn and create an additional 55,000 jobs in the takeaway sector by 2023. However, the Just eat poll also showed 65% have expressed concern about being able to maintain their current level of profitability.
In response Just Eat has partnered with former Dragon’s Den star and sector investor, Sarah Willingham, to offer mentoring and support to five restaurant businesses.
Willingham told MCA the initiative was about instilling some of the mentality of chain restaurant in an independent business.
She said: “Big businesses have the luxury of being able to pour over the data that’s available to them. The problem for smaller businesses is that you’re so involved in the day-to-day running of the business that even though that data is there, they just haven’t got the time to look at it. What we’re saying is that even taking an hour day, you can hone in on the data that can transform your business.”
She said key areas including looking at the sales mix, and where targeted price rises could have maximum impact, productivity in leaner trading periods and procurement.
She said: “In every restaurant business there’s almost guaranteed to be a bottleneck. Once you’ve found that, there’s very often an easy solution to fixing it.”
On the problems experienced by casual dining brands in recent years, she said: “There is a consumer focus on local businesses and a willingness to experiment that has definitely turned some customers away from chains. But, there will always be a place for brands that stand for consistency.
“What has probably had more of an impact is this obsession on multiples and brands rushing towards that and in the process signing up to rents and premiums that make no sense. Obviously businesses strategies change with your scale but it’s as if people completely lost sight of what was a reasonable price to pay.”
Graham Corfield, UK Managing Director at Just Eat said: “As the market leader in online food delivery, we are committed to helping independent restaurants thrive. Whether it’s using our technology to help them reach a broader customer base, our data to help restaurant owners make more informed business decision, or our scale in negotiating nationwide deals to help reduce costs.
“The restaurants that we partner with in the UK are important pillars of high streets up and down the UK. If we can help them a local level, to improve profitability and efficiencies, the combined impact on the economy could be huge. Restaurant partners are the beating heart of our business, which is why we are so pleased to be launching our Business Booster initiative to support them in running even more successful businesses. Sarah’s experience of growing her own restaurant brands means she is the perfect partner to help us achieve this aim.”
Mike Springer, owner of Big Mike’s Calypso Kitchen in Croydon, said: “As an entrepreneur, it’s easy to dream big but it’s not so simple to make those ambitions a reality. I started off as a one-man band in my garage. By focusing on my online presence, I built up a good customer base and as our popularity grew, I was able to secure a permanent location at a local pub. Business is booming, to the extent that we plan to open five more sites in the next year.
“But the journey I’ve been on over the past three years hasn’t always been plain sailing. There is so much more to running a successful food business than just cooking great dishes and it’s easy to lose sight of that when you’re running a busy kitchen. For me, admin was always a big concern, but with support from Just Eat I’ve now built a much better understanding of managing my finances, staff and how to implement effective marketing. This has given me the confidence I need to expand Big Mike’s Calypso Kitchen to more locations.”
The Business Booster initiative is open to any of the 28,900 restaurants on Just Eat. Restaurant owners can apply online by visiting ww.just-eat.co.uk/campaigns/businessboosters, and five successful applicants will be selected. Applications open today and will close on 1 July.
