Just Eat

Author
Discussion

Countdown

39,885 posts

196 months

Sunday 13th June 2021
quotequote all
Dr Jekyll said:
What is a typical gross margin for a takeaway?
About 40%

Let me rephrase - cost of sales is 40% of Sales

Dr Jekyll

23,820 posts

261 months

Sunday 13th June 2021
quotequote all
Countdown said:
Dr Jekyll said:
What is a typical gross margin for a takeaway?
About 40%

Let me rephrase - cost of sales is 40% of Sales
So providing they are selling to additional customers it's worthwhile. I can see why they do it.

Countdown

39,885 posts

196 months

Sunday 13th June 2021
quotequote all
Just to bear in mind - in terms of delivery charges - I assume the 20% extra charge for delivery is applied only when the takeaway/restaurant doesnt have its own delivery drivers.

My brother has his own drivers so it would be ridiculous for him to pay 20% to JE

Countdown

39,885 posts

196 months

Sunday 13th June 2021
quotequote all
Dr Jekyll said:
Countdown said:
Dr Jekyll said:
What is a typical gross margin for a takeaway?
About 40%

Let me rephrase - cost of sales is 40% of Sales
So providing they are selling to additional customers it's worthwhile. I can see why they do it.
Bear in mind the JE charge comes out of Net profit. Out of the 60% there's staff costs, overheads (eg delivery driver insurance is a killer). JE is profitable but its annoying for the owners that JE is making more than they are from each sale.

dontlookdown

1,722 posts

93 months

Sunday 13th June 2021
quotequote all
Countdown said:
Dr Jekyll said:
Countdown said:
Dr Jekyll said:
What is a typical gross margin for a takeaway?
About 40%

Let me rephrase - cost of sales is 40% of Sales
So providing they are selling to additional customers it's worthwhile. I can see why they do it.
Bear in mind the JE charge comes out of Net profit. Out of the 60% there's staff costs, overheads (eg delivery driver insurance is a killer). JE is profitable but its annoying for the owners that JE is making more than they are from each sale.
Exactly this. No-one would begrudge JE taking a fair cut, but 30% is excessive for what they do. They don't produce the food, without which they would not have a business.

Trophy Husband

3,924 posts

107 months

Sunday 13th June 2021
quotequote all
dontlookdown said:
Exactly this. No-one would begrudge JE taking a fair cut, but 30% is excessive for what they do. They don't produce the food, without which they would not have a business.
JE goal is to ensure that the takeaway will cease to exist without JE. It is almost a protection racket!

philv

3,943 posts

214 months

Sunday 13th June 2021
quotequote all
So on you average 40 quid order, around 13 quid goes to just eat.

Rediculous.
For a stty app that is a pita compared to phoning.

Driver101

14,376 posts

121 months

Sunday 13th June 2021
quotequote all
Now that the takeaways are open I won't be using their app again. If I don't have the time to wait I'll be making sure I phone in or use their own website.

Jamescrs

4,479 posts

65 months

Sunday 13th June 2021
quotequote all
I use Just Eat for most of my orders now but the thing is this- it shows me take aways and I end up 9rdering from places I wouldnt have otherwise found or used so in my circumstances it is bring ING additional orders to some places I wouldnt have otherwise used.

I'm not minded to keep the mountain.of takeaway menus which drop through the letterbox on an almost daily basis.

mw88

1,457 posts

111 months

Sunday 13th June 2021
quotequote all
dontlookdown said:
Exactly this. No-one would begrudge JE taking a fair cut, but 30% is excessive for what they do. They don't produce the food, without which they would not have a business.
They may not make the food, but they invest god knows how many millions in to advertising and the JE Platform. According to Just Eat's restaurant sign up page, 12 million people use JE a month. Keeping all that data moving quickly and secure isn't going to be cheap.

Not all restaurants will be paying 30% - If they have their own drivers, it will be 14% (+ VAT), plus 50p if they've paid by card. I would also presume places like McDonald's and KFC will have negotiated a better deal.


SpeckledJim

31,608 posts

253 months

Monday 14th June 2021
quotequote all
Trophy Husband said:
Never used any of them and never will.
It is another scramble to the bottom.
How does a takeaway make margin when an app is taking 30%?
Simple.
Smaller portions and cheaper ingredients.
Thus, you don't get what you want for your tenner whilst somebody takes the 3 quid that would make it what you wanted.
If you use it you are the problem that makes my takeaway sub standard.
Agree completely. The money for everything comes from the customers, and 30% disappearing means you inevitably get less for that money.

If you know where you're buying from, just go direct. Otherwise you're just buying prime time advertising space, and there's not much to fill your belly in that.




Aunty Pasty

616 posts

38 months

Monday 14th June 2021
quotequote all
It's yet another unnecessary middle-man taking a cut from the transaction.

Edited by Aunty Pasty on Monday 14th June 12:09

Sy1441

1,116 posts

160 months

Monday 14th June 2021
quotequote all
I have a friend who has always worked in the late night industry, DJ, nightclub manager etc. During this last lockdown he has used the kitchen of one of the social clubs he's involved with to start an American Diner style dark kitchen being delivered via just eat. For him it's a bit different as he modelled around the use of just eat so priced accordingly and it's doing well for him.

Another friend owns a franchise of a competitor to just eat "(Insert town name here) Eats" and offers the same service at 8% commission which is good for the restaurants.

As a consumer just-eat is so east to use and ubiquitous.

okgo

38,037 posts

198 months

Monday 14th June 2021
quotequote all
Most of them have a deliveroo menu price which is more than buying it from them, they don't have my sympathy. Adapt or die, like everything else in the world. If you don't like it, shut your doors.

If they were all pointless middlemen they wouldn't be on every single persons phone in London. As usual with PH, the older men that live in the middle of nowhere are applying their views to a country that is bigger and younger than they are and wants something totally different.

Edited by okgo on Monday 14th June 12:18

SpeckledJim

31,608 posts

253 months

Monday 14th June 2021
quotequote all
okgo said:
Most of them have a deliveroo menu price which is more than buying it from them, they don't have my sympathy. Adapt or die, like everything else in the world. If you don't like it, shut your doors.
Takeaway: Works hard for their money but loses
Customer: Works hard for their money but loses
Just Eat: Doesn't work hard at all but wins.

Mind if I insert myself between you and your customer, and absorb 30%? You and your customer can 'adapt or ...'.

(yes, yes, it's all voluntary. But it's self-defeating for customers.)


okgo

38,037 posts

198 months

Monday 14th June 2021
quotequote all
SpeckledJim said:
Takeaway: Works hard for their money but loses
Customer: Works hard for their money but loses
Just Eat: Doesn't work hard at all but wins.

Mind if I insert myself between you and your customer, and absorb 30%? You and your customer can 'adapt or ...'.

(yes, yes, it's all voluntary. But it's self-defeating for customers.)
So why are JE/Deliveroo popular, do you really think they offer nothing? Nothing at all?

Your analogy is borderline braindead to be honest.

Insert Coin

1,965 posts

43 months

Monday 14th June 2021
quotequote all
About 3 years ago my friendly local Chinese takeaway asked me to call direct and stop using JE as they were ‘eating’ into her profits.

I didn’t realise how much JE were taking from their clients, I wrongly assumed it was 5-10%.

We always call direct now, never use JE or their rivals.

okgo

38,037 posts

198 months

Monday 14th June 2021
quotequote all
Insert Coin said:
About 3 years ago my friendly local Chinese takeaway asked me to call direct and stop using JE as they were ‘eating’ into her profits.

I didn’t realise how much JE were taking from their clients, I wrongly assumed it was 5-10%.

We always call direct now, never use JE or their rivals.
Great if you know what you want, their menu and have payment card and are willing to have that conversation or cash. Meanwhile I have zero interest going onto someones website/asking them what their menu is, I do not want to be reading my card out down the phone, I don't want to phone anyone at all, and I don't have cash here more often than not.

Meanwhile at the click of a button (I've just looked) I have 219 places that will deliver me a burger of some sort, 140 that sell asian food, 85 that do a wrap, the list goes on, I can get stuff from a petrol station if I want. All with their menus online, pictures, reviews, prices, my payment is already in the app and so is my address. I could order a pizza from somewhere I've never even heard of in seconds, meanwhile you'd still be on the phone or trying to google to find their menu online.

Deliveroo has meant I've ordered from a huge amount of places I would never have even knew existed prior.

The simple fact is that it DOES offer something, hence they're as popular as they are. If a place doesn't like the charges they can decide not to, but funny isn't it how most places are on one of the apps, can't be that bad for business. And as I said, many of them jack up their prices anyway, which is fine, for all the reasons I mention above I do not care about paying a few quid extra to see everything in one place and not have to speak to someone.

Edited by okgo on Monday 14th June 12:37

SpeckledJim

31,608 posts

253 months

Monday 14th June 2021
quotequote all
okgo said:
SpeckledJim said:
Takeaway: Works hard for their money but loses
Customer: Works hard for their money but loses
Just Eat: Doesn't work hard at all but wins.

Mind if I insert myself between you and your customer, and absorb 30%? You and your customer can 'adapt or ...'.

(yes, yes, it's all voluntary. But it's self-defeating for customers.)
So why are JE/Deliveroo popular, do you really think they offer nothing? Nothing at all?

Your analogy is borderline braindead to be honest.
They're popular because the people who use them haven't realised how much of their dinner isn't getting supplied, as a result of their absent-minded choice of ordering channel.

Hence the usefulness of threads like this, to help awareness of the parasitic nature of these ordering platforms. There will be an organised push-back at some point, hopefully sooner than later.

I'm not saying they offer 'nothing'. I'm saying what they offer is disproportionately small in comparison to what they cost the customer, via what they cost the takeaway.

It's exploitative. Yes, yes, yes, it's 'voluntary'. You don't normally directly associate 'voluntary' with 'adapt or die' though.




Insert Coin

1,965 posts

43 months

Monday 14th June 2021
quotequote all
okgo said:
Great if you know what you want, their menu and have payment card and are willing to have that conversation or cash. Meanwhile I have zero interest going onto someones website/asking them what their menu is, I do not want to be reading my card out down the phone, I don't want to phone anyone at all, and I don't have cash here more often than not.

Meanwhile at the click of a button (I've just looked) I have 219 places that will deliver me a burger of some sort, 140 that sell asian food, 85 that do a wrap, the list goes on, I can get stuff from a petrol station if I want. All with their menus online, pictures, reviews, prices, my payment is already in the app and so is my address. I could order a pizza from somewhere I've never even heard of in seconds, meanwhile you'd still be on the phone or trying to google to find their menu online.

Deliveroo has meant I've ordered from a huge amount of places I would never have even knew existed prior.

The simple fact is that it DOES offer something, hence they're as popular as they are. If a place doesn't like the charges they can decide not to, but funny isn't it how most places are on one of the apps, can't be that bad for business. And as I said, many of them jack up their prices anyway, which is fine, for all the reasons I mention above I do not care about paying a few quid extra to see everything in one place and not have to speak to someone.

Edited by okgo on Monday 14th June 12:37
Don’t get me wrong, they offer a service and nobody is forced to use them, but where I live there’s only a handful of takeaways so it’s a different situation to your area.