Restaurants say big chains pretend to be independents on apps

Independent restaurants have accused global companies of being “sneaky” and “murderous” against family businesses by posing as independents on delivery apps.

Chain restaurants such as Pizza Hut, TGI Fridays, Frankie & Benny’s, Las Iguanas and Barburrito have branding on apps such as Deliveroo and Just Eat, giving them different names and giving the appearance of being small or independent businesses.

Justina John, owner of ONJA Taste of Tanzania in Cardiff, said trying to survive was “like little fish trying to swim with sharks”.

TheDelivery.World CEO Peter Backman said the app could only be misleading if customers were deliberately trying to support independent restaurants and takeaways.

Justina, 45, from Cardiff, opened her restaurant about a year ago and said she noticed the “overwhelming presence of chain restaurants, sometimes masquerading as independents” on delivery apps.

“It’s very insidious, it’s not fair to small businesses,” he added.

“The only thing that keeps us alive is originality; there are some things you can’t fake.”

Justina wants delivery platforms to take more responsibility, verify listings and help truly independent businesses by segregating them within apps so customers can easily support them if they wish.

Just Eat, Deliveroo and Uber Eats stated that all of these virtual brands can be used by any business, including independents.

Just Eat said it supports independent businesses to reach new customers and that virtual brands give partners “the opportunity to expand their food offerings and diversify their revenue streams”.

He added that they are transparent because customers can see the address of the location they are ordering from “to help them make informed choices.”

Deliveroo said its “core mission is to support local businesses” and that virtual brands enable restaurants “to create a delivery-only brand by leveraging existing kitchen facilities and capacity, giving them the opportunity to reach new customers and earn additional income in an increasingly digital world.”

Uber Eats said it was committed to “leveling the playing field” for sellers on its platform, adding: “We have a growing team of dedicated account managers working to create custom solutions and equal visibility opportunities on the app, accelerating rather than competing with our partners’ sales.”

Jamie Rees, 36, who co-owns Cardiff’s Fowl and Fury, said he first noticed chains creating digital brands three years ago but now it is “literally everywhere”.

He singled out Frankie & Benny’s, where TGI Fridays is “pretty big,” as “the worst offender in recent memory.”

While in Cardiff, logging into Deliveroo, the BBC checked out some of these packs by pressing the ‘allergens and info’ option which gives you the registered address of the company providing the food.

Bird Box and Stacks were from Frankie & Benny’s, Mother Clucker was from TGI Fridays, Wing Street was from Pizza Hut, Hot Chick Coyote was from Ugly, and Badass Burritos was from Barburrito.

Jamie understood why companies do this and that you can’t stop it, but he was disappointed because he said the apps (theoretically) create a more level playing field.

“But then when they come up with five different restaurants under the same roof, I’m no longer equal,” he added.

“They have more money for advertising, promotion and photographers.”

He would like to see legislation regarding transparency regarding where kitchen workers’ food comes from and the parent company behind it.

“What I fear is that these little guys will eventually go out of business because they are much less visible on these platforms.

“It feels a little unethical because nine out of 10 people who order from these ghost kitchens do so because of the branding.”

He said this is a very serious problem for Fowl and Fury because most consumers order online.

Friends suggested creating a standalone delivery service only, but he said it couldn’t compete with Uber Eats, Just Eat and Deliveroo.

Rajendra Vikram Kupperi (45), manager of Vivo Amigo, which opened in Cardiff in 2020, said ghost kitchens diluted the takeaway industry and were unfair to independent businesses.

“The number of ghost kitchens that opened during Covid was endless. It’s a killer,” he said.

“Big brands can lower prices and offer good offers.”

Vivo uses Amigo, Deliveroo, Uber Eats and Just Eat, but Rajendra feels his business is directly affected by the practice of using ghost kitchens.

Mexican food brands have sub-brands online. For example, Kick-Ass Burrito and Barburrito from Las Iguanas serves as itself on Deliveroo, but also serves as Death Valley Burrito, Badass Burritos and Twisted Health Kitchen.

He said he wants ghost kitchens and big brands to be separated from independent restaurants to avoid misleading consumers.

“This may encourage customers who want to support independent brands, but things are mixed at the moment,” he said.

“Customers really can’t differentiate.”

Barburrito said virtual brands are “one way restaurants can better utilize existing kitchens, reduce waste and respond to customer demand.”

The model “is not exclusive to large chains and many independent operators can create virtual brands on their delivery platforms,” ​​the statement said.

Coyote Ugly said: “The issue is not competition, but whether businesses can survive.

“Ultimately, this is about keeping doors open, protecting jobs and giving hospitality a fighting chance to thrive.”

Peter Backman of theDelivery.World notes that major chain restaurants are “creating ghost restaurants for extra revenue, they have the capacity, why not?” he said.

He said he’s not sure customers care, but “it’s tricky if they really believe they’re supporting their local business.”

“But what does it matter if the consumer just says ‘oh, I want some wings’?”

He said he has always favored transparency and thought distribution apps with a page for independent businesses were a good idea, but questioned its practicality.

Frankie & Benny’s, TGI Fridays, Pizza Hut and Las Iguanas were asked for comment.