Impact of Just Eat on the Restaurant Industry

Hospitality Tourism 1
Global Hospitality Tourism

Hospitality Tourism 2
Contents
Overview..........................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................6
References........................................................................................................................................8

Hospitality Tourism 3
Overview
The main aim of this assignment is to highlight the feature of Just Eat which is online application
of food delivery. This assignment will entail information about the global issue related to the
hospitality and tourism industry and outline the evaluate theory and practice relating to global
issues. It will be divided into two tasks in which one will demonstrate the ability to outline and
evaluate theory and practice relating to global issues and other task will recommend whether the
restaurant industry should manage to diminish the genuine or latent impact of Just Eat.
Task 1
Concept of Just Eat
The concept of Just Eat is to operate the world’s leading online and mobile marketplace for
takeaway food, offering consumers with an easy and secure way to order and pay for food from
local takeaway restaurant. The company derives the huge majority of their revenues from
commission charged to restaurants on the sum range of unbeaten orders placed. The concept of
generating value in the system by Just Eat is to focus on four pillars that are technology,
scalability, people and Brand (CMA, 2017). The company is successful in the market by
adopting Simple, Success-Based Revenue Model. This concept of Just Eat is easy but has not
adopted by many restaurants in UK that bring huge competition in the market. The sharing
economy of UK has grown up rapidly in Europe, with dealings almost replication to7.4bn in
2015, and platforms taking home £850m of this total (Just Eat, 2019). The impact of Just Eat on
strong delivery challenges in the restaurant industry as it brings challenge for many restaurants to
losing loyal customer base, challenges in sales, supply chain problems and delivery staff issues.

Hospitality Tourism 4
Scale supply
Restaurants can opt to pay for further services like promotional to placement and branded
commodity products, which the company can supply at lower prices. The supply chain involves
three keys such as order processing, cooking and delivery of the food (Hudson, 2008). The
impact of Just Eat is huge on the restaurant industry. The scale of supply is huge of Just Eat, in
Europe; the company has considerable supply headroom with some markets at early
development stages.
Source: (Just Eat Plc. 2016).
The company is approaching to expand its Blue Ocean programme in order to expand the
presence of the company into smaller cities. For this, Just Eat has invested a lot of money in sales
team for the purpose of attaining the competitive advantages. The company is technologically
advanced that impact over the restaurant industry, people are now prefer to have food from
restaurant due to this online sites, because it allows customers to get order what they want,
without going anywhere by choosing any payment method. It develops the revenues of restaurant
industry (Just Eat Plc. 2016).