Just Eat restaurant saves £10k a year by exploiting centralised agreements

Just Eat claims that some of its restaurants are already saving more than 60% of the commission they pay it just through the dedicated membership services it provides – with one operator benefitting to the tune of £10,000.

The company, which works with 28,000 restaurants, has recently increased the services and products it provides to partners, including discounts and cheaper rates on items such as energy and card transaction.

It offers a cash rebate system for restaurants ordering through food wholesaler Booker, agreements with FMCG companies, a partnership with Global Payments for card transactions and free utility saving advice from self-styled saving experts MakeIt Cheaper.com.

“Restaurants love it, and we love it because it’s helping our restaurants, there’s nothing in it for us,” says Robin Clark, business partnerships director at Just Eat. “This is not about a revenue stream for Just Eat. We have a very simple revenue model, 14% on every order, but we’re helping our restaurants to save. If you think about the top three deals — food, card payments and energy — we know that from the data we have got already restaurants will save over 60% of the commission that they pay to Just Eat.”

Mr Clark cites The Fat Pizza in Essex, which is one of Just Eat’s top 500 partners, as a shining example of how much money restaurants can save engaging with the platform’s ‘Restaurant Services’ division.

It is one of the operators to embraces all of the services available to it, including using its data to locate future sites and drive growth, and utilising its food, insurance, payments and utilities deals to achieve cost savings.

This, claims the firm, has already led to savings in excess of £10,000 a year — more than a quarter of the restaurant’s Just Eat commission.

Just Eat insists hundreds more restaurants stand to save more than their total commission by making use of the services it has arranged.

Last year we revealed how Just Eat is also exploring ways to offer restaurants better rates on catering equipment.

Mr Clark revealed that Just Eat had already begun conversations with different catering equipment manufacturers, although he did not specify who was talking to or how many suppliers he would be looking to limit any agreements to.

“I think the focus for us is to drive the top three services at the moment — card transactions, utilities and food — but over the course of 2018 we will also be exploring how we do something in this space. The average restaurant probably spends about £40,000 to £50,000 to set up the equipment in their kitchen. And if you think about the replacement cycle, perhaps once every nine or 10 years, then if you do the maths — and people have told tell me this might be right or wrong — but maybe it’s about a £300m market with our restaurants.”

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