Propel Newsletter Archive Page

Deliveroo to cut about 350 jobs: British-based employees are expected to bear the brunt of hundreds of job cuts at Deliveroo. Will Shu, the company’s chief executive and founder, told staff yesterday (Thursday, 9 February) that it would cut 9%, or about 350 jobs, at all levels. However, the redundancies would not include riders who deliver its takeaways because they are self-employed. In a blog post, reported by The Times, Shu said the job cuts were one of the hardest things he had ever done and he took responsibility for overhiring. “In recent years we grew our headcount very quickly,” he wrote. “This was a response to unprecedented growth rates supported by covid-related tailwinds. By contrast, we now face serious and unforeseen economic headwinds. We have also recently exited markets, meaning we do not require the same size workforce to support our operations. Quite bluntly, our fixed cost base is too big for our business.” The final number of jobs lost may be closer to 300 as the company aims to redeploy 50 people if possible. Deliveroo thrived during the pandemic, which drove demand for its services as lockdowns kept people at home. This has reversed as restrictions have been eased. The company was founded in London in 2013 by Shu and Greg Orlowski. It works with about 176,000 restaurants and grocery partners, deploying about 150,000 riders to deliver food to customers, operating in ten markets including France, Hong Kong and Italy. Deliveroo shares closed flat at 89p.

Restaurant Marketer & Innovator videos to be sent to Premium readers on Monday, next edition of Blue Book released today: Propel Premium subscribers are to be given access to the entire recording of the 2023 Restaurant Marketer & Innovator European Summit Conference. Subscribers will be sent 30 separate video presentations, featuring more than 80 speakers, on Monday (13 February), at 9am. The videos include: Oakman Group head of marketing Kelly Beard discussing how the business is balancing efficiencies with customer experience in delivering effective technologies; Tao Group Hospitality category director Simon Farrowtalking about the company’s approach to new product development and creating the right menu mix, its processes, cross-business workflows and how it goes about testing; Oglivy consulting director Daniel Bennett discussing how hospitality and psychology are a match made in heaven; and Andrea Mulligan, chief customer experience officer at Paytronix, talking about loyalty and customer engagement. Meanwhile, the next edition of the Propel Turnover & Profits Blue Book will be sent to Premium subscribers today (Friday, 10 February), at noon. The Blue Book, which now features 705 companies, is updated each month and ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Subscribers also receive the Propel Multi-Site Database, produced in association with Virgate; the New Openings Database; the UK Food and Beverage Franchisor Database; and the Who’s Who of UK Food and Beverage. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Subscribers also receive access to Propel’s library of Friday Wrap interviews and also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel group editor Mark Wingett. In this week’s Propel Premium, which will be sent to subscribers today at 5pm, David Murdin, formerly of British Airways, Sky Sports, Whitbread, Costa Coffee and Wagamama, looks at how to learn from past mistakes when it comes to launching a new concept. Meanwhile, Tom Johnson, managing director of insights firm Trajectory Partnership, explains why there may be room for consumer optimism and why quality over quantity has never been more important.

British Street Food Awards founder fails in bid to secure £60,000 investment on Dragons’ Den: Richard Johnson, founder of the British, European and USA Street Food Awards, failed in his bid to attract investment on BBC show Dragons’ Den. Johnson appeared on the programme yesterday evening (Thursday, 9 February) seeking out a £60,000 investment for a 9% stake in his business, Street Food Ventures. Having admitted how ‘terrified’ he was feeling about going on the show, he enthused about his passion for street food, explaining that in 2010, he set up the British Street Food Awards, which was followed by the European Street Food Awards seven years later. Revealing his plans to launch the awards in America, he shared that he was seeking an investment that would provide “sponsorship and global franchising opportunities”. However, the Dragons were left confused by his business model. But “Dragon” Deborah Meaden looked stunned halfway through the pitch as she recognised Johnson from BBC show Kill It, Cook It, Eat It, which “changed my life”. The show saw participants learn how animals become food by capturing and butchering their evening meal. Johnson presented the show in 2007. Julia Bradbury then took over as host in 2008. Meaden admitted the series had been very influential in her life, adding: “I was looking at you thinking...so that started my plant-based journey.”

Nando’s set to open in Bridgwater, Somerset operator to open second site: Nando’s has confirmed plans to open a restaurant at the £16m Northgate Yard development in Bridgwater, Somerset. It will be taking a unit at the flagship leisure and entertainment venue, opening in the spring or summer. Also coming to Northgate Yard is Mediterranean dishes and cocktails concept La Kasia, from Erdal Sahin, who also operates The Green Olive & Wild Rocket in Bridgwater. Cllr Duncan McGinty, leader of Sedgemoor District Council, said: “We’re excited to welcome Nando’s and La Kasia to Northgate Yard. It is hugely exciting to see Northgate Yard continue to develop.” A seven-screen branch of Scott Cinemas, complete with a cafe and bar area, opened at the development last October, while a new AllStars Sports Bowl is due to open there this spring.