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Restaurants diversify with virtual brands on delivery app

Restaurants looking to diversify their offering in Australia’s increasingly competitive food scene have started launching virtual brands on food delivery platform, Deliveroo.

Virtual brands allow existing restaurants to quickly tap into new food trends – such as poke or fried chicken – without the cost of renting new kitchens and hiring new staff.

Deliveroo on Tuesday said it has helped 26 restaurant owners create 70 virtual brands and said some brands have seen a 70 per cent increase in revenue after launching a virtual restaurant on its platform.

“I’m pleased to see how popular these menus have been for restaurants and customers. Virtual restaurants are great for consumer choice, restaurant finances and chefs who want to try new ideas,” Deliveroo’s country manager for Australia, Levi Aron, said.

The food delivery platform brings its expertise in food and customer trends to provide branding, pricing, ingredient sourcing and analytics support.

Besides increasing revenue, some restaurants are launching virtual brands to offer complementary menus to cut food wastage, a significant challenge in the restaurant industry.

Sydney-based MOO Gourmet Burgers launched a separate brand, Bucket of Balls, to utilise the produce, infrastructure and crew it already had in its kitchen, while producing two totally different products: burgers and meatballs.

Adam Gerondis, founder and CEO of MOO Gourmet Burgers & Bucket of Balls, said he is considering adding new virtual food concepts to the business moving forward.

 

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