Forum Topic

Anita has exercised informed consumer choice to move off these delivery apps but their business model relies on people not doing this and hoping that the undoubted convenience that they offer will avoid people looking at them too closely. Steve Taylor is a classic example of this although he seems very confused about where he is ordering from. I'm not entirely convinced he isn't confusing Deliveroo with the food brought to him by Age UK or social services. Whatever the case his view that Dark Kitchens don't operate on delivery apps is hilarious.I don't know when the Dark Kitchen tower comes on line in North Acton but anyone who believes that it won't have a profound impact on the restaurant business in Chiswick is deluding themselves. 240 new businesses will be operating which will be targeting this market.As it stands existing restaurant businesses have to pay 25-35% commissions to apps like Deliveroo which obviously means a huge crunch in profit margins unless they hike up prices. When the dark kitchen facility comes online it will likely include lots of businesses signed up directly with the apps such as the Deliveroo Editions programme. They pay even higher commissions in return for start up support and more prominence when people are ordering.Not only does a real business pay a swingeing commission to be on the app but it gives up all its ordering and customer data. So even if you buy from your favourite restaurant they have no idea who you are and can't do anything to secure your loyalty.The apps on the other hand can look at what people order, what dishes sell best and what prices diners are willing to pay to create rival operations through the dark kitchen network. Sometimes these can initially undercut existing businesses with targeted offers through the app with a view to changing customer ordering habits.You can choose to shut your eyes to what is happening but it is almost inevitable that any independent business in Chiswick which relies heavily on delivery will close over the next few years unless it can build up a network of loyal customers who order direct. Other than this Chiswick will have expensive restaurants which make all their money from dining in and everything else will offer a menu determined by an algorithm.

Mark Evans ● 19d

You need to speak to people in the hospitality industry before reaching a firm conclusion that this is a win win. Better still talk to someone who used to work in that sector but saw their business fail. The way that a company like Deliveroo works is that it analyses the data it collects to work out its market share in particular food types. If it is not doing well let's say in Chinese food in the W4 area it will approach local providers and encourage them to sign up. The terms are not particularly attractive for the restaurant but it is made plain that if they don't join, the app will push competitors in the area.  The competitors are not actually proper restaurants but so called dark kitchens in industrial estates where people on the minimum wage put together lists of ingredients. Because of the high turnover in the restaurant business people assume a restaurant which they are told is in their area is real but it isn't. This process is just beginning because, as others have highlighted on this forum, a mega dark kitchen facility is being built in North Acton, about a 10 minute delivery time away from Chiswick which will contain over 240 restaurants. These will become direct competition for the independent restaurants in our area and allow companies like Deliveroo to extract even more onerous terms from those that survive. I understand that people have busy lives and, particularly if you live on your own, it is valuable to be able to order up a cuisine of your choice for delivery. However, it doesn't take much extra effort to get the takeaway menu of the places you order regularly from and place your order by phone.

Andrew OSullivan ● 25d