Deliveroo has today launched its latest innovation, Virtual Brands, to help boost business for Irish restaurants and food businesses. The team at Deliveroo has already successfully rolled out Virtual Brands across other markets in recent months, which has resulted in providing new revenue streams while also offering customers greater choice.
In markets where Deliveroo has already launched Virtual Brands, participating restaurants have seen an increase of 75% in order volume. 84% of customers ordering from the virtual brand have never ordered from the original restaurant menu, highlighting that the service provides new revenue streams.
The idea behind Virtual Brands is that a restaurant can set-up and run a second or multiple food offerings from the existing premises. The new virtual brand offers the restaurant an opportunity to increase its revenue stream and attract new customers with minimal costs or risk. The new offering is run out of the same kitchen with food prepared by the same chefs but under a different brand name. This also provides restaurants with an opportunity to better utilise staff outputs and reduce food waste.
The process for establishing a virtual brand sees Deliveroo partnering with restaurants, from concept and design to brand launch. Firstly, Deliveroo analyses data to identify a gap in the local market for a particular type of cuisine. Deliveroo then works with a restaurant partner to help develop a new brand and menu offering to meet this gap using the existing kitchen and team.
Deliveroo also helps launch the new brand on the platform and provides ongoing support using its knowledge and insights.
Dan Warne, UK & Ireland Managing Director for Deliveroo said:
“We are delighted to be launching Virtual Brands in Ireland, which will allow local restaurants to increase sales while offering customers even greater choice. Virtual brands have already helped restaurants across the globe, and we are excited to match this success in Ireland. We are able to identify opportunities by analysing specific markets where popular cuisines are missing or under-supplied and where customer demand is increasing. Because of this, we expect to create hundreds of virtual brands in Ireland in 2019.
“The advantage for restaurants is the low risk and low cost involved in establishing a second brand using existing chefs, space and ingredients. It also gives restaurants and chefs a chance to test the market with new and exciting menus and dishes in real time.”