Q&A: Does Deliveroo Franchise in the UK?
Deliveroo is the third biggest takeaway delivery provider in the UK, behind Just Eat and Uber Eats. So, it’s no surprise entrepreneurs are eager to find out whether there are Deliveroo franchise opportunities. Let’s find out…
If you don’t know what Deliveroo is, here’s a quick description: Customers use the company’s website or app to discover the restaurants offering takeaway deliveries in their local area. They then select their chosen restaurant and menu items, place their order and track it as it travels to their address. The food is brought to customers by delivery riders on bicycles and motorbikes, who deliver orders in an average of 32 minutes.
Deliveroo also has a number of additional initiatives, such as Deliveroo Plus. This allows regular customers to subscribe to a membership plan and pay a fixed monthly fee in return for exclusive restaurant deals and unlimited free deliveries on all orders.
Deliveroo Editions is another offshoot. It identifies local consumer demand for certain foods and invests in 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.
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History of Deliveroo
Deliveroo was founded in 2013, when banking analyst Will Shu moved to London from New York. He was surprised by the different food culture in the UK and started cultivating a plan to help consumers order food from great restaurants that hadn’t previously delivered. 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.
Since then, the delivery company has become highly successful. It has seen a turnover increase of 650 percent year on year, which makes it one of the fastest-growing businesses in the world. Restaurants who partner with Deliveroo also benefit, as they can boost their revenue by up to 30 percent.
Did you know? Over a quarter of people in the UK order takeaway at least once a week.
Today, Deliveroo is a hugely recognisable brand. It uses predictive technology to find the most effective way to distribute food, considering the location of restaurants, riders and customers. It also employs more than 600 software engineers and 15,000 delivery riders, and provides its services to consumers in 100 towns and cities in the UK alone.
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, bringing its popular service to markets across the world.
Does Deliveroo franchise?
Unfortunately for investors, there are currently no Deliveroo franchise opportunities.
How to get involved with Deliveroo
Although it’s not possible to open up a Deliveroo franchise unit, you can get involved in the business by becoming an employee. Every staff member who works under the Deliveroo label gets equity in the company, demonstrating the community focus that drives it.
The food delivery market in the UK
As more and more people rely on quick and easy meal options, the popularity of takeaway deliveries in the UK is soaring. In fact, there’s more demand here than in any other country in Europe. On average, we spend around £5.10 on takeaways every week, helping food outlets generate a combined revenue of £4.5 billion. There are a few clear frontrunners in the industry, and Domino’s pizza contributes £1.26 billion to the total.
The demand is clear to see; in 2018, UK consumers aged between 16 and 64 were asked, ‘How frequently do you order takeaway food via a food delivery/service app or website?’ The results are fairly surprising.
Over a quarter said they bought takeaway food at least once a week, while 13 percent order it two or three days a week. And three percent of Brits rely on it every day or nearly every day. In the US, these figures are even higher, with 11 percent ordering takeaways every day or nearly every day, and a quarter ordering them two or three days a week.
Similar franchise opportunities
Despite the ongoing backlash against unhealthy fast food, delivery services are becoming more and more popular as consumers are increasingly opting to order restaurant-quality food to their homes. Here are just two food delivery franchises you could invest in if you’d like to join the takeaway sector.
One Delivery was established in 2013 and now operates more than 100 franchise branches across the UK. It delivers dishes from independent and chain restaurants, as well as famous fast food outlets such as KFC, Burger King and McDonald’s. Customers can then enjoy their favourite food in the comfort of their own home in more than 65 cities, from Cardiff and Brighton to York, Leeds and Aberdeen.
- Becoming a One Delivery franchisee: Across its network of franchises, One Delivery handles over £1 million worth of orders every month, which means you could make up to £50,000 in revenue after two years. To learn more and sign up, click here.
- How much you need to invest: This delivery business has one of the lowest minimum investment requirements of any franchise on our site. Investors can devote just £495 to their new business venture – but bear in mind you will have to pay £1,995 in franchise fees in order to access the tools and support provided by the franchisor. However, you’ll still invest under £2,500 in a One Delivery business, which makes it highly affordable as a franchise.
- What you get for your investment: If you join One Delivery as a franchisee, you’ll be treated to a comprehensive induction scheme, which gives you access to a training programme and a dedicated franchise manager to support you throughout your time with the franchise.
This famous chain delivers its tasty thick crust pizza, dough-based snacks, drinks and desserts to consumers across the UK. Papa John’s was founded in the US in the 1980s and expanded into the UK in 2000. Now, it has more than 5,000 branches across 45 countries worldwide, achieving an annual revenue that exceeds $3 billion.
- How to become a Papa John’s franchisee: Investors looking for a slice of the action do not need previous experience with a food franchise as long as they are business-oriented and have good communication skills.
- How much you need to invest upfront: A minimum investment of £100,000 and £18,500 in franchise fees will be required to get a Papa John’s store up and running.
- What you get for your investment: New franchisees will benefit from a six-week training scheme that includes marketing support, as well as a royalty reduction programme and free oven.
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Becoming a food delivery business franchisee
There’s great potential for success when you join an established food delivery franchise in the UK. Although there are no Deliveroo franchise opportunities at the moment, it’s likely other delivery businesses will experience a similar level of success, as consumers’ lives become increasingly busy.
We’ve listed two of our most popular food delivery businesses, but you can see our entire list of food franchises here.
Alice Tuffery, Point Franchise ©
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