Historical article: The article record is dated 19 June 2020, but the body is a snapshot of the position on 20 March 2020, when hospitality venues were first ordered to close for on-premises service. The planning concessions and delivery-platform offers discussed below were temporary and should not be read as current business or planning guidance.
Thames Williams has been closely documenting the on going economic changes due to the current Coronavirus outbreak for our clients.
On 20 March 2020, the UK Government told cafes, pubs, bars and restaurants to close for on-premises service. Takeaway services could continue.
At the time, planning permission was generally required for a change of use to a hot food takeaway. On 17 March 2020, the government announced a temporary relaxation so pubs and restaurants could operate as hot food takeaways during the coronavirus outbreak.
This opens up new opportunities not just for Pubs and Restaurants, but also for businesses such as Cafés and Catering Companies to now take advantage of two of the largest delivery platforms in the UK. Both have taken measures to help UK businesses during the disturbance caused by the Coronavirus outbreak.
For businesses that had not previously offered home delivery, this created an immediate need to consider whether takeaway or delivery could provide an alternative revenue stream while on-premises trade was restricted.
Just Eat
For the 30 days from 20 March 2020 to 19 April 2020, Just Eat announced that it would waive its standard sign-up fees for new businesses. Restaurants still needed to meet the platform's normal requirements, including relevant food-business registration and hygiene requirements.
From a £10m+ emergency support package, Just Eat will rebate a third (33%) of commissions paid by restaurants. Furthermore, they will remove the commissions due from collection orders with the hope of reducing the strain on restaurants’ delivery operations, where collection is available.
Further to these measures, Just Eat will continue to pay restaurants weekly, including the rebate and relax any arrangements with independent partners that may be in place. This will enable businesses to work with other delivery providers, regardless of existing contractual terms.
Just Eat has 35,700 Restaurant Partners in the UK, delivering to 95% of UK postcodes.
Uber Eats
Uber Eats is waiving delivery and activations fees in the UK to support restaurants hit by decreasing demand during the Coronavirus crisis. This currently applies to over 15,000 independent restaurants registered on their platform.
On top of waiving the activation fee for new restaurants joining the platform, they are introducing fast-tracked onboarding to help them be available for delivery in less than 48 hours after signing up.
Finally, to help to create a more reliable and immediate source of cash flow, they’re rolling out a new payment option for restaurants. This new feature will allow restaurants of all sizes to opt into daily payments on all Uber Eats orders, rather than the typical weekly billing cycle provided by other platforms.
These measures will only be available until 31 March 2020, when their outcomes will be reviewed.
Conclusion
The promising near-immediate response from the likes of Just Eat and Uber Eats is a positive sign. As this could see the way Cafés, Catering Companies and Independent Restaurants generate alternate revenue streams outside of normal methods.
We can see the growth of a new market and the way we consume our food will further evolve.
