DELIVEROO AND BE THE BUSINESS PUBLISH NEW REPORT REVEALING HOW TECH ADOPTION FOR HIGH STREET SMEs IS DRIVING PRODUCTIVITY

Friday 13th December: A new report from Deliveroo and Be the Business reveals how tech adoption amongst SMEs in the hospitality industry is increasing productivity and enabling them to scale.

In a survey of restaurant partners who use Deliveroo, a third said it was the first piece of technology that they’d integrated into their business. Meanwhile 65% who use a platform like Deliveroo said it has equipped them to adopt further productivity enhancing technology in the future. For instance, a Customer Relationship Management (CRM) system to engage their consumers or financial management software to streamline how they manage their finances.

Deliveroo’s platform allows businesses to bring in more customers. The platform also gives access to a wealth of data on orders, customer demand and demographics, and allows business leaders to track KPIs across delivery and operations, sales and marketing, to revenue. For example, thanks to Deliveroo insights, Remedy Kitchen realised that their advertising for healthy products worked best at the start of the week and invested their marketing budget to meet this consumer demand.

The report recommends targeted financial support for SMEs who embrace technological innovation in a move that would improve productivity of SMEs and support growth:

• Business rates relief for SMEs who participate in programmes aimed at improving productivity through tech adoption or management training. The productivity gains from this would likely offset any relief over the long term through increased tax revenues.
  
  
• Smoothing VAT payments where demand fluctuates due to seasonal patterns. Quarterly payments could be increased in busier periods to offset quieter ones to aid cash flow and reduce reliance on VAT loans. In turn, more certainty on cash flow provides room for investment in technology or training.
  
  

Carlo Mocci, Chief Business Officer at Deliveroo said: “The UK economy is underpinned by SMEs who dare to start businesses, bringing people together, creating jobs and contributing vibrancy to our towns and cities. Yet the last few years haven’t been easy for SMEs, and for hospitality and high street businesses in particular.

“We believe technology can be a powerful enabler, whether it’s new restaurants trying to engage customers digitally for the first time or established businesses looking to increase productivity and scale. Supporting SMEs to invest in technology could have a major impact on the growth of their business, while championing local economies across the UK.”

Anthony Impey MBE, Chief Executive, Be the Business said: “Our research shows that a mere 1% productivity improvement across the hospitality industry could inject £3.5bn into the economy over five years.

“Whilst we applaud the efforts to enhance technology use amongst businesses to date, given the critical role that SMEs play in driving innovation, economic growth and supporting local communities, it’s vital that they receive adequate support to adopt new technologies and stay competitive.”

SME spotlight

Remedy Kitchen London-based Remedy Kitchen provides colourful meals with bold flavours,vitamins and nutrients. The business currently employs 43 people and ingredients such as meat and vegetables are sourced from local suppliers wherever possible.

Owner Fadi Chafi launched the business in November 2020 - the height of the pandemic. He first began operating exclusively with a delivery kitchen in Swiss Cottage through Deliveroo Editions, the company’s delivery-only kitchens.

Fadi said: “The platform gives us a lot of visibility; someone in Kings Cross will know that there’s a Remedy Kitchen in Swiss Cottage. Whereas if I was just sitting there with a single shop, without making use of Deliveroo’s technology, they wouldn’t know.”

Fadi now has two more site openings planned, taking the total to seven - all of which, he says, have been facilitated by Deliveroo.

*“Deliveroo Editions helped to get us to a place where we were able to open physical stores. It was a low-risk, quick set-up, easy operation. Without it, I would be two or three years behind.

“What made all the difference was the ability to experiment with new offers and menu sections - even the layout of the menu.”*

MAKI & RAMEN Maki & Ramen is a lifestyle brand on a mission to bring sushi, noodle soup and Japanese-inspired cocktails into the British mainstream. Established in Edinburgh in 2015, the company steadily opened more locations around the city before expanding into Glasgow and, soon after, Manchester and Leeds.

It has leveraged Deliveroo’s Edition sites to test new locations, and uses the customer demand data to inform acquisition strategy on the high street. It has informed them when demand is likely to be higher, allowing the company to capitalise on events like Freshers Week.

The strategy is paying off. Maki & Ramen plans rapid expansion in the near future with the acquisition of new sites around the UK, creating hundreds of jobs.

Michael Salvador, COO at Maki & Ramen said: “As of the last payroll, we employ 302 people.”

“With the addition of Aberdeen, Birmingham and Sheffield Meadowhall, we expect to add 75 more staff by the end of 2025, taking the total to 375 to 400. We then plan to open six more restaurants a year for the next three years.”

ENDS