EXCLUSIVE: Deliveroo looks to fill market gaps via delivery-only brands
It now has 2,000 virtual brands on their UK platform.
Virtual brands have been the focus of Deliveroo in recent years.
The global aggregator has earlier announced its £1 million investment in promoting healthy eating, and supporting partner restaurants in developing healthy meals and healthy virtual brands.
Also called delivery-only brands, these concepts “allows restaurants of all sizes to create new bespoke menus for customers from their current kitchen, under new branding,” the delivery firm defined.
With Deliveroo’s data and insights support at their disposal, restaurants launching virtual brands can see the “gaps” in the local market, the “most popular” cuisine types and “tailor virtual brands to meet customer demand” through operational adjustments such as finding the “best price points”.
“The delivery-only brands serve as a new, distinct revenue stream for restaurants. They allow restaurant partners to reach new customers but without the costs and risk associated with starting an entirely new venture, which could traditionally entail the cost of setting up new premises on the high street,” Deliveroo global director of health Tom Peters told QSR Media in an exclusive interview.
Now with more than 2,000 UK virtual brands on their platform, Deliveroo claimed these concepts achieve 88% more revenue each week on average, providing 75% in additional orders to their mother brands.
Deliveroo has more than 4,500 virtual brands available on their platform across 13 markets.
Current market gaps
Deliveroo’s investment was preceded by internal research, which revealed that the number of healthy orders on their platform has risen by 181% since 2017, with seven in 10 customers polled wanting to see an increase in healthy food offerings via delivery apps.
This trend was seen significantly among young people, with nine in 10 customers aged 18-24 said they would buy food for delivery more regularly if there was a wider selection of healthy meals.
Particularly, orders of vegan dishes, Peters said, almost doubled year-on-year last January, increasing by 78%.
Among these, Wagamama’s Nikko Curry, Byron’s Cali Cheese Burger and Honest Burger’s Bacon Plant Burger are the popular vegan orders, the firm emphasized.
“People want to see more healthy takeaway options; food that requires minimum fuss, can be shared with family and friends, and is affordable and tasty,” Deliveroo’s partner nutritionist Rhiannon Lambert underscored.
“Customers want to eat healthy food that doesn’t cost the earth or mean a complete change in lifestyle,” she added.
Lambert’s support with menu design, ingredient sourcing, staff training, branding and marketing investment will aid partner restaurants to develop their own healthy dishes and menus, helping to “diversify” restaurant offerings.
Deliveroo said they want to share their “vision for making healthy food as affordable and accessible as possible” to partner restaurants.
“We want our brands to be prepared to experiment as we develop exciting ideas about what works best for consumers, restaurants and Deliveroo,” Peters added.
Peters has earlier cited their partnership with Barburrito in launching The RhiNourish Bowl, made with healthy ingredients, including spinach, rainbow slaw, avocado and omega seeds.
More partnerships in launching virtual brands are expected to be forged within the year.
