Deliveroo to launch 'Food Procurement' service

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Deliveroo is expanding its operation with a new ‘Food Procurement’ service that it says could save restaurants ‘up to 40%’ on ingredient costs.

Following a trial period of more than 12 months, Deliveroo has announced it is making the service available to all restaurants in the UK this summer.

Deliveroo claims to be ‘leveraging its size, existing partnerships with both restaurants and suppliers, and industry know-how’ to help it negotiate bespoke deals for ingredients and other items such as cleaning supplies and packaging products.

On average the delivery specialist says restaurants using the service are saving more than 20% on ingredient bills, while some smaller independent restaurants are making savings of up to 40%.

The service is said to be part of a drive by the restaurant delivery platform to be ‘the partner of choice for restaurants’.

“Food Procurement is an exciting new service for restaurants, which will cut costs while raising the quality of ingredients,” says Ajay Lakhwani, vice president of new business at Deliveroo.

“By using our size and scale to negotiate great prices we can both simplify the procurement process and help independents and chains make big savings, so it’s the restaurants and their suppliers that are the winners.”

The service has already proved to be a hit with some operators, with Yanni Spitadakis, group country manager for Sushi Shop UK, saying it has improved the chain’s whole procurement process.

“With food prices on the rise, Deliveroo's Food Procurement Programme has been vital in helping us keep a lid on our overheads," he says.