Deliveroo will be negotiating prices on ingredients and supplies on behalf of restaurants © Sean Gallup/Getty Images
Deliveroo will be negotiating prices on ingredients and supplies on behalf of restaurants © Sean Gallup/Getty Images

Deliveroo to cut costs with Food Procurement scheme

22 July 2019

Under the scheme, Deliveroo aims to simplify purchasing processes for restaurants and generate savings.

It will use its scale and existing partnerships with both suppliers and restaurants to negotiate deals on ingredients, packaging and cleaning products.

Restaurants will be able to purchase ingredients and supplies at reduced prices directly from suppliers, allowing them to source ingredients that are fresher, cheaper and more reliably sourced, Deliveroo said. 

The scheme, which has been trialled in the UK for a year, is claimed to have saved restaurants over 20% on their food bills and up to 40% on individual ingredients such as avocados.

The scheme will be live by the end of the year in the UK, Spain, France and the UAE.

“This is vital support for restaurants at a time when food costs have increased by as much as 50% in the last five 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 company said.  

Deliveroo said the service will create efficiency within the supply chain and support suppliers by providing them with access to more restaurants.

Ajay Lakhwani , VP of new business at Deliveroo, said: “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.”

Karthik Ramakrishnan, group operations manager at restaurant chain Banana Tree, said: “Deliveroo's Food Procurement not only helps reduce costs, but also makes it easier to get the right ingredients at the right time. The scheme matches the needs of our business, and has quickly become a vital cog in our procurement operations.”

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