Covid-19: Deliveroo initiates collaboration to help restaurants survive crisis

Deliveroo has initiated a collaboration between legal, property and restaurant industry specialists to help small and independent restaurants survive over the coming months as Covid-19 lockdown restrictions continue to impact the sector.

The move follows research from the online food delivery firm which has found that half of small and independent restaurants will go out of business in one to three months if the current situation continues. This is primarily due to not being able making enough profit if social distancing measures remain in place (75%) and the ability to pay rents in the near future (66%).

In the first stage of this initiative, Deliveroo has brought together a specialist advisor in the restaurant and leisure property sector in the UK, Shelley Sandzer, and the global legal company, Goodwin, to help restaurants and landlords work together in a mutually beneficial way at this time. The guidance covers areas such as the current legal position between landlords and tenants, considerations with rent negotiations and lease restructuring and the issues facing restaurants with reduced turnover.

Although the UK Prime Minister Boris Johnson last night unveiled plans for all non-essential retail stores to re-open from 15 June, the hospitality sector, including restaurants, will not be able to open their doors until at least July. Therefore, short-term cashflow is a major issue for restaurants, many of which are providing takeaway services for the first time during the crisis to continue bringing in revenue.

Will Shu, CEO and founder of Deliveroo, said: “Deliveroo is passionate about supporting our restaurant partners and we are committed to supporting them through this unprecedented time. We are pleased to work with cross-industry experts to create much-needed solutions for restaurant partners and help accelerate the recovery of the restaurant sector we all value and want to see thrive again.”

During Covid-19, Deliveroo has entered into a number of new partnerships with retailers to help expand their online delivery capacity, including Morrisons and Aldi.