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Deliveroo set to create 70,000 jobs in UK restaurant sector

A major new economic study today reveals the positive impact Deliveroo is having on the UK restaurant industry and the wider economy as the food delivery company announces it’s UK expansion continues at pace.

The analysis comes as Deliveroo reveals that it continues to broaden its expansion across the UK, opening in 10 new towns in a week.

Analysis by Capital Economics has found that the leading food delivery company has helped create 25,000 jobs in the UK restaurant industry since its launch six years ago. According to Capital Economics, this is nearly 10% of the total number of employees in its partner restaurants, and is on top of the 25,000 self-employed riders Deliveroo provides flexible, well-paid work to in the UK.

The study finds that if Deliveroo were to continue adding restaurants to its platform at the current rate, the food delivery company’s operations would help create almost 70,000 restaurant jobs in the UK in 2020.

The advent of food delivery has changed the face of the UK food industry, giving restaurants the opportunity to reach new customers without having to operate a delivery service themselves.

The report finds that in the 12 months to November 2018 Deliveroo helped its partner restaurants and their supply chains generate additional revenue of £1 billion, with independent restaurants enjoying a £320 million boost. Significantly, 63% of partner restaurants say they saw their ‘in-restaurant’ revenues rise as a result of working with Deliveroo, meaning more people are dining in after ordering from restaurants on Deliveroo.

This increase in revenue not only bolsters restaurants’ finances at a time when the industry faces a number of challenges on the high street, it also provides them with an opportunity to expand their business, whether opening a new premises, extending opening hours or adding more options to menus.

Deliveroo’s contribution to the restaurant industry and wider economy in the UK is mirrored in its overseas markets. If Deliveroo continues to grow at the same rate, Capital Economics estimate that the company will create over 176,000 jobs in the restaurant sectors in the markets in which it operates.

Deliveroo is committed to helping restaurants succeed. Whilst the industry is facing increasing cost pressures, Deliveroo is supporting them by not only helping them increase their revenue, including through the company’s delivery-only Editions kitchens programme, creating ‘virtual brands’ so restaurants can expand their menus, and also by negotiating deals with a range of providers to reduce their day-to-day costs such as energy bills and kitchenware.

Deliveroo founder and CEO Will Shu said, “Deliveroo is expanding rapidly across the UK, bringing more people amazing food and helping restaurants to grow their businesses by increasing sales.

“At a challenging time for the high street, Deliveroo offers restaurants access to new customers they wouldn’t otherwise be able to reach. We also help our restaurant partners cut costs and use unique data insights so they can make the most of the opportunity delivery offers. As a result, Deliveroo is helping to create thousands of jobs in high streets across the UK.

“As we grow, we will create more jobs on Britain’s high streets, bring more revenue to restaurants, create work for more riders and, of course, bring exciting foods to offices and homes across the UK.'

Minister for Digital and the Creative Industries, Margot James said, ‘It is great to see Deliveroo go from strength to strength and show why Britain is Europe’s leading tech hub.

‘We’re working hard to make the UK the best place to start and grow a digital business and these findings further acknowledge our consistent track record of producing internationally successful tech firms.’