A Hull restaurateur has launched a new online ordering platform which aims to save local independent food businesses thousands of pounds by offering low commission rates.
Jack Ryan, owner of burger bar Temptations, which operates four sites in Hull, Scarborough and Scunthorpe, has developed Hull Kitchens after he saw online orders more than double during the coronavirus, leading to commission bill with Just Eat of over £21,000.
Restaurant partners that sign up to the new platform will be charged a one-off £150 fee, a 7.5% commission per order plus a 50p admin charge. The site will limit the number of restaurants and takeaways that can join to 50 initially, with other interested parties being added to a waiting list.
The platform also promises marketing support.
Jack comments: “We want to work with restaurants and takeaways on a local level to help boost their businesses while driving down commission rates charged by the big boys. They are just too high for independent businesses.
“Across the year, we’ve paid out just over £21,000 in commission to Just Eat alone. If we could have that £21,000 - or even half of that - to put back into our business that would be an extra delivery driver on a night or two extra drivers on a Friday and Saturday night, which then helps offer a better service and reduces negative reviews.
“When I looked at what other food delivery platforms there were out there, I couldn’t find anything lower than 13-14% commission or that didn’t have a monthly fee. And those that charge a monthly fee meant I had to take an EPOS system and do card transaction through that and I just didn’t want that. I just wanted something that was low commission and user-friendly.”
Jack hopes to roll out Hull Kitchens to other cities, with York being next. Jack comments: “We’re looking at targeting bigger cities, anywhere with a population of over 150,000. We’re also looking at franchising the business too."
Plans are already underway to improve the service with the 50p admin fee being scrapped shortly and branded paper takeaway bags being provided free of charge to restaurant partners.
Jack adds: “A lot of takeaways use plastic bags still so one of the things we want to do is get them to swap to paper, which is better environmentally, but it will also help promote Hull Kitchen as a delivery platform and push people to use the app rather than sites like Just Eat or Uber Eats.”
The platform goes live in January with customers able to order from the website or app.