Does Deliveroo Franchise in the UK?

does deliveroo franchise

Deliveroo is a UK-based delivery business that aims to enable consumers to enjoy their favourite restaurant dishes in the comfort of their own home. Deliveroo customers can use the company website or app to discover the restaurants that are delivering in their local area, select their restaurant and menu items, place their order and track it as it leaves the restaurant and travels to their chosen address.

Food is brought to customers by delivery riders on bicycles and motorbikes, who zip through the traffic to distribute the order in an average of 32 minutes. Whats more, customers have the freedom to order food up to 24 hours in advance, scheduling their delivery to save time and effort further down the line.

Deliveroos Journey

This all began in 2013, when banking analyst Will Shu moved to London from New York. Shu was surprised by the different food culture here and started cultivating a plan to help consumers order food from great restaurants that didnt deliver beforehand. Shu went on to become the founder and CEO of Deliveroo, which partnered with the best restaurants in the business from local eateries to big-name brands.

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The Success of the Brand

Deliveroo has proved itself hugely successful, seeing a turnover increase of 650 percent year on year, which makes it one of the fastest-growing businesses in the world. Moreover, restaurants who become affiliated with Deliveroo also benefit, boosting their revenue by up to 30 percent. The business maximises its profitability by utilising predictive technology that finds the most efficient method of distributing food, taking into account the location of restaurants, riders and customers.

Today, Deliveroo is a hugely recognisable brand. In the UK, it employs more than 600 software engineers and 15,000 delivery riders, and provides its services to consumers in 100 towns and cities. To date, the delivery business has forged alliances with more than 8,000 partner restaurants nationwide, offering its customers a huge range of choice. On a global scale, Deliveroo manages 60,000 delivery riders across 500 towns and cities and has 80,000 restaurant partnerships, delivering its popular service to markets across the world.

Increasing Revenue

The delivery company has also introduced a number of initiatives to further increase its reach. Deliveroo Plus enables regular customers to sign up to a subscription membership plan by paying a fixed monthly fee in return for unlimited free deliveries on all orders and exclusive restaurant deals that are only available to Deliveroo Plus members.

Deliveroo Editions, on the other hand, aims to boost profitability for the company as well as its partner restaurants. It identifies local consumer demand for certain foods and invests in the restaurants that can cater to them. As a result of the scheme, restaurants can expand to different regions, customers experience new, local restaurants and Deliveroo benefits by delivering these popular cuisines that are new to the area.

Is Deliveroo a franchise?

Unfortunately for investors, Deliveroo does not currently offer franchising opportunities. However, every employee that works under the Deliveroo label gets equity in the business, demonstrating the community focus that drives it.

Other Delivery Franchises

Despite the current backlash against fast and unhealthy food, delivery services are becoming more and more popular as consumers are increasingly opting to order restaurant-quality food to eat at home rather than eat out or cook from scratch. In fact, it is thought that just under £10 billion was spent on takeaways in the UK in 2016 (Statista).

Therefore, there is plenty of potential to profit from investment in a takeaway franchise. Lets take a look at one example:

Coffee Bike

This company allows you to serve coffee from unusual locations. Specialised bikes developed and produced in Osnabrueck, Germany enable vendors to cycle to their desired selling spot. Equipped with a professional portafilter machine, coffee grinder, juice squeezer and storage space, coffee bikes provide customers with a diverse offering in places that would usually not offer refreshments. They have the facilities to make coffee, tea, hot chocolate and freshly-pressed orange juice and sell a range of snacks.

Coffee bikes can operate for up to 18 hours without a water or electricity supply and can be booked for special events. Once a bike is up and running in a particular spot, consumers can discover its location via the Coffee Bike website or app.

This novel business is keen to expand and offers franchising opportunities. Investors who would like to get involved should attend a Discovery Day to find out more. Franchisees could see a quick return on investment due to flexible franchise fees and low set-up costs. As this is a mobile business, investors do not need to scout out a suitable site and pay expensive set-up costs. Once enrolled, franchisees benefit from a four-week interactive online course in the companys dedicated Online Academy, which will equip them with all the skills and know-how to thrive in the Coffee Bike game.

Other Opportunities at Point Franchise

Point Franchise offers a selection of food, restaurant and delivery franchises in the franchise directory.

One Delivery

Like Coffee Bike, One Delivery offers investors low set-up fees. With a minimum investment of just £495, investors can own their own food delivery franchise and make a turnover of up to £50,000 after the first two years. One Delivery operates more than 100 franchises in over 65 major cities across the UK, delivering food from local independent outlets as well as big-name brands such as McDonalds, KFC and Burger King.

When investors come on board, they gain access to an induction scheme, welcome pack and training programme. In addition to this, a dedicated franchise manager will help new franchisees through the process of setting up and running their new business venture. With the current demand for familiar and high-quality takeaway food options, franchisees of takeaway brands stand to make a good profit if their business is successful.

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