Summary
Large restaurant chains have been using delivery apps to appear as small independent restaurants by adopting different names. This practice has led to concerns that real independent restaurants are struggling to compete. Delivery app companies say that virtual brands help all businesses, including small ones, by expanding their customer reach.
Key Facts
- Large chains like Pizza Hut and TGI Fridays create separate brands on delivery apps using different names.
- Independent restaurant owners find it hard to compete with larger chains posing as small businesses.
- Delivery apps such as Just Eat and Deliveroo offer these virtual brands to any business.
- Delivery app companies claim they provide transparency by showing the registered address of the food provider.
- Restaurant owners are calling for better verification processes to protect genuine small businesses.
- Justina John, an independent restaurant owner in Cardiff, describes the difficulty of competing in this environment.
- Apps state that virtual brands allow restaurants to utilize their existing kitchen resources to reach more customers.
- Business owners worry that the practice could harm the survival of small independent restaurants.
