Deliveroo Unveils ‘Food Procurement’ Service - New Team Dedicated to Cutting Restaurant Ingredient Bills by 20%

Deliveroo has continued to expand the services it offers to restaurants by launching ‘Food Procurement', a service that allows restaurants to purchase cooking ingredients and supplies at reduced prices thanks to deals negotiated by Deliveroo. The new scheme, which Deliveroo has been trialing for over a year, is saving restaurants over 20% on their ingredients bills, with smaller independent restaurants saving up to 40% on ingredients while also improving the quality of their ingredients and the produce they use.

The scheme saves restaurants money on their ingredients from vegetables to meat, as well as on cleaning supplies and packaging products. These savings are helping restaurants to boost their profits and will help smaller restaurants to expand, bringing diversity to the high street at a time when many are facing economic challenges. This is vital support for restaurants at a time when food costs have increased by as much as 50% in the last 5 years and when food costs typically make up 20-40 % of an average restaurant’s sales. The support is particularly impactful for smaller restaurants who do not have the economies of scale of large restaurant groups.

The service is part of Deliveroo’s drive to be the partner of choice for restaurants, offering more than just delivery. A dedicated team has been established at Deliveroo’s London HQ.

More information on ‘Deliveroo Food Procurement’:

• The scheme sees Deliveroo negotiate the cost of ingredients and other items, leveraging its size, existing partnerships with both restaurants and suppliers and industry know-how to get lower costs.
• By creating efficiency within the supply chain Deliveroo is supporting suppliers, who will be able to access more restaurants, and restaurants by reducing costs of items.
• Passionate about food, Deliveroo makes it a priority to help restaurants to source ingredients that are fresher, cheaper and more reliably sourced.
• Deliveroo’s ‘Food Procurement’ has saved restaurants nearly 40% on the cost of individual ingredients, such as avocados.

Deliveroo is the first food delivery platform to offer this sort of service in the UK. Several hundred restaurant partners are already using the scheme, and the company expects this number to be at 5,000 by the end of the year. The programme will be live by the end of the year in Spain, France, UK and UAE.

Commenting Ajay Lakhwani , VP of New Business at Deliveroo, said:

“Food Procurement is an exciting new service for restaurants, which will cut costs while raising the quality of ingredients. By using our size and scale to negotiate great prices we can both simplify the procurement process and help independents and chains can make big savings. Restaurants and their suppliers are the winners. And of course this is great news for customers, as restaurants cook with better quality ingredients.”

Tamer Elkhayat, Managing Director, Pinza, said:

“I was always hesitant to reveal my pricing as I thought I had the best deal ever. Working with Deliveroo saved me almost 35% on some premium meats and around 15%-20% on Vegetables. The procurement team is very hands on - always following up with the supplier to ensure they meet all the requirements and using their great negotiation skills.”

Umit Acar, General Manager, SSBD said:

“Food purchasing for chefs and restaurants is a pretty complicated business for a restaurateur to deal with daily. An inefficient purchasing process can lead to inflated costs of goods that in turn negatively impact the firm’s bottom line. What all operators need is the product they want at a price that allows them to make a profit. Deliveroo’s new Food Procurement program is enabling us to get the best possible price when buying products in an efficient and cost-effective manner and resulted in significant savings.”

Naz Askari, Founder, Bowlful said:

“Getting consistent and good quality ingredients at the right price are the biggest challenge for every restaurant. Through Deliveroo’s procurement program I was able to get access to the best in class suppliers in the market and achieve a significant cost saving at the same time. Being able to get transparency in an industry where the lack of information is what we are familiar with was a big breath of fresh air. We, as operators, deserve to have access to the best quality in the market and not pay exorbitant rates for it.”