Food delivery firm investing in off-site kitchens to solve restaurant supply issues

Deliveroo

Deliveroo, the on-demand delivery service for restaurant food, has launched a new initiative called ‘Roobox’ that will see it develop special off-site production kitchens.  

The move is designed to provide partner restaurants with access to fully-equipped external kitchens in locations where there is a high demand for delivery, but where restaurant supply is low.

The company is kicking off proceedings in London, with Tommi’s Burger Joint and Yoobu Sushi named as two London restaurants involved from the start.

Deliveroo’s management believes the creation of off-site kitchens will allow restaurant owners to test locations through a delivery offering and grow their business without having to shoulder the burden of opening a full restaurant and kitchen offering in those locations.

Deliveroo takes responsibility for developing the kitchen as well as the capital investment needed to make it happen, reducing the risk for the partner restaurants. Ultimately, the company could get to a stage where it is building larger kitchens producing food for multiple restaurant brands.

Co-founder Will Shu told business website Techcrunch that for the time being the focus is solely on achieving better customer service and expanding to more locations within a city.

“Deliveroo’s on a mission to transform takeaway, and RooBox is an exciting step towards that,” he said. “Not only will this expand the options available to customers in areas of limited restaurant supply, but it also helps our partner restaurants expand to new areas at low risk.”

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