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How online food delivery reshaped the restaurant market

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The hospitality industry has had to evolve as consumers embrace smartphone apps that link hungry couch-bound customers with local restaurants, via a delivery driver.

Shipping containers house a freezer, dry store and office, with plywood walls and a roof encapsulating a kitchen that pumps out meals for 40 different brands: everything from kebabs and burgers to bubble tea and toasted sandwiches.Hannah Godlevsky, the company's brand manager, said they had opened a second site within 10 kilometres and were planning 10 more in the next year.

Deliveroo opened its own dark kitchen last year. It paid for the real estate and utilities and restaurants covered just staff and ingredients.In return the app took an even more substantial cut — rumoured to be up to 35 per cent — of the overall item cost. The rapid pace of change has hit restaurants hard. Hospitality expert Wendy Hargreaves from Fiveofthebest.com expects many more restaurants to close their doors."Now, with the apps taking the extra money, there's really nowhere for them to go.

 

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