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Delivery services protected 100,000 kitchen jobs during lockdown

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A major new study has revealed the critical role that delivery services had on the UK restaurant sector at the height of the pandemic earlier this year.

As the country faces further restrictions on the hospitality sector, the report underlines why delivery services will be vital for the sector to maintain some trading activity, to protect jobs and prevent mass closures.

The new report by Capital Economics, ‘The Value of Delivery Services’, surveyed restaurant partners of Deliveroo and found that the ability to provide delivery services from online platforms protected around 100,000 jobs from being lost or furloughed over the period between April and June.

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The report also suggests that delivery services supported turnover worth £1 billion for Deliveroo’s restaurant partners during this period.

The survey shows that Deliveroo’s partners used the furlough scheme at a lower rate than the hospitality sector as a whole (33% versus 73% respectively), underlining the value of the trade generated by delivery services to both restaurants and to the exchequer.

The Capital Economics report states: “Delivery services have helped to keep parts of the hospitality sector operating in a challenging environment and the cost to government would have been even higher without them. They have helped to keep more people at work in the hospitality sector which has been one of the hardest hit sectors from lockdown restrictions and changes in peoples’ behaviour.”

During the pandemic restaurants across the country have recognised the benefits of food delivery in helping them protect jobs and stay open.

13,000 restaurants have joined the Deliveroo platform since March – nearly 8,000 are small independent restaurants.

Will Shu, CEO and founder of Deliveroo, said: “Delivery enables restaurants to sell their amazing meals to a wider customer base than they otherwise wouldn’t be able to reach. Thousands of restaurants have joined our platform and customer adoption has accelerated hugely.

“As Deliveroo and food delivery becomes an essential service, we will continue to improve our offer to customers, for example expanding our grocery range, as well as our service to restaurants.”

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Andrew Seymour

The author Andrew Seymour

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