It may be the right time to join forces with a food procurement service, as it has just received impetus with Deliveroo, an online food delivery service, launching its new food procurement service aimed at restaurants.
Deliveroo announced that it has been running trials of it for over a year and results have been astonishing. The service has helped restaurants save more than 20% on the purchase of ingredients. The smaller restaurants and eateries, on the other hand, have enjoyed a higher saving of up to 40%. Using the service has also enabled restaurants to procure high-quality ingredients and produce.
The scheme is designed to help restaurants save money when sourcing ingredients, packaging products and cleaning supplies. As a result, they can increase their profits. It is anticipated that the food procurement service will enable smaller restaurants to expand and this, according to Deliveroo, will give diners more options while helping these restaurants to overcome the economic hurdles they are facing.
Deliveroo added that food costs have increased by 50% in the last five years and these costs account for, on average, 20 to 40% of a restaurant’s sales. Therefore, the procurement service provides restaurants, especially the smaller ones, support to buy quality products and ingredients at affordable prices.
The company was the first food delivery platform in the UK to offer food procurement. It has already managed to attract hundreds of restaurants to participate in its scheme and expects the number to increase to 5,000 by the end of 2019. Besides the UK, the scheme will be launched by the end of the year in the UAE, Spain and France.
Ajay Lakhwani, the vice president of New Business at Deliveroo, said that food procurement will help restaurants cut procurement costs while ensuring they buy high-quality ingredients. The company will be negotiating competitive prices on behalf of the restaurants and will simplify the entire procurement process to help small and big restaurants enjoy significant savings.