Impact of Just Eat on the Restaurant Industry

This assignment highlights the feature of Just Eat, the online application for food delivery, and evaluates its impact on the restaurant industry. It discusses the concept of Just Eat, its scale of supply, consumer demographics, disruptive innovation, and current trends in the food and beverage sector. It also provides suggestions for the restaurant industry to minimize the potential impact of Just Eat.

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Global Hospitality Tourism

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

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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.

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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).

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Source: (Just Eat Plc. 2016).
Consumer demographics
The company provides its services in a large manner and it has mass market services in which
they serve the huge segments with their family treat. The demographic customers of Just Eats are
students and families (Buhalis and Crotts, 2013). Generally, Families tend to order in high
quantity, on the other hand, the students prefer to order in cheaper rates and less quantity. Just
east is able to provide its services to both of them in an adequate manner. Lifestyles have shifted,
with customers looking for convenience options that fit with their more and more busy daily
routines. In the context of global issues in the hospitality and tourism industry, it has been found
that poor quality of foods and desired foods by the guests from famous restaurant on which they
cannot reach, they can order by Just Eat to get what they want in food.
The success of “Don’t Cook, JUST EAT”, the ensuing enlargement in orders and consciousness
was such that the company essential to extend our target audience demographic meant more
toward young specialized and families. The company enlarged its business and started a
campaign of, #minifistpump that has been launched in September 2014.

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Disruptive innovation
Just Eat is the adoption of the latest technology and count as in disruptive innovation. It has been
proclaimed by Fernando Fanton that it is the starting of a new era of disruption in food
technology. It has been found from the article that Just Eat is active in around 13 markets around
the glove, and in Ireland, the application has been downloaded 850,000 times since it was
launched. This application has brought artificial intelligence in the food business which is
considered as the learning to transform the fortunes of restaurants and consumers exponentially.
Just Eat can be considered as the disruptive innovation because it develops a new market and
price network ultimately disrupts an existing market.
Current trends in food and beverage sector
In the context of current trends in food and beverage sector, there are wide range of opportunities
for developing food and beverage businesses in 2019, but staying on peak of developing
technologies such as block chain, together with amending customer preferences and uprising
costs, at the time of innovating, will be required in this competitive marketplace. The currents
trends in food and beverage sector includes changing customer preference, food safety and
transparency, rising uncertainty, innovation and differentiation and mergers and acquisition
(Huang, Wu, Lu, Shyu and Wang, 2017).
Adventurous Consumers
The revolution in food has been moving strong for some time, and their impact on average
customers has been rubbing off (Sarin and Barrows, 2005). Many foods that were taken into
consideration in out of the ordinary are now taken into consideration in mainstream and highly
sought after.

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Snacking
There are many food manufacturers that has main focused on the development of the snack
market, but not just any snacks. The options of sugar-laden are being out and snacks making
health claims are in the competitive market.
Clean Labels and free from food
It can be seen that clear ingredients and label transparency controlled the food landscape, and it
will be strong in 2019. There is a huge chance that customers will place a product back on the
shelf and arrive at for another more natural option if they cannot generate an ingredient. The
demand of customers is increased towards foods free from fillers, artificial dyes and high fat
ingredients to regenerate their endeavoured and true recipes (Nielsan, 2019).
Task 2
From above task, it has been found that the potential impact of Just Eat over restaurant industry
is excellent because it covers all area of people, who are interested in having foods but bound to
have it due to distance from home. There are some suggestions which should be adopted by the
restaurant industry in order to minimise the potential impact of Just Eat.
Effective use of technology and innovation
To minimise the impact of Just Eat on the restaurant industry, the restaurant industry should be
active in technology and innovation and can start to join the application in order to cover large
area of market (Bergfors and Larsson, 2009). The potential impact of Just Eat can be reduced by
empowering the strategy of restaurant industry by providing their customer instant discount on
their visit in the restaurant.

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Digital connectivity and strategic drift
Strategic drift is the critical concept with the realms of strategic management and it does happen
within the organization when the companies are not ready to immediate change in the
environment, it is necessary for the restaurant industry to be active in the online platform as Just
Eats enlarged its business (Tribe, 2016). It increases the competition in the industry and people
prefer to food online instead of going outside. Due to not getting mingled with this latest
technology, the restaurants can wind up sooner due to higher competition.
Concept to assist with the strategic decisions making: TOWS Strategic Matrix
INTERNAL FACTORS
EXTERNAL FACTORS
INTERNAL STRENGTHS

 Prefer by people to
have foods
 Variety in foods
 Provide a wide range
of services in different foods
 Having long-term
contracts
INTERNAL WEAKNESS
 Less involvement in
the latest technology
 Located in different
place that is hard to customers
to reach
EXTERNAL
OPPORTUNITIES
S-O STRATEGIES
 The restaurant can
W-O STRATEGIES

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 Growth rates
 Entering into new
markets
 New opportunities
creating due to the global
demands.
cross the doorstep new
markets and have a taste of
accomplishment by their
ample range of services
 Producing innovative
services in order to make the
long term contract with the
customers
 The restaurant can gain
the trust of clients by making
innovation in the different
foods which should be
available on then visiting of
the customers.
EXTERNAL THREATS
 Worldwide economy
crisis
 Increment in
development of restaurant on
theme based
 Strict environmental
regulations
 Intense competition
S-T STRATEGIES
 Strict regulations can
be dealt by focusing on the
long-term contract with the
government companies.
W-T STRATEGIES
 Avoid deal for new
merger

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References
Bergfors, M.E. and Larsson, A., 2009. Product and process innovation in process industry: a new
perspective on development. Journal of Strategy and Management, 2(3), pp.261-276.
Buhalis, D. and Crotts, J., 2013. Global alliances in tourism and hospitality management.
Routledge.
CMA, 2017. Just Eat and Hungryhouse. Available [online]
https://assets.publishing.service.gov.uk/media/5a0d6521ed915d0ade60db7e/justeat-
hungryhouse-final-report.pdf Accessed at 15th March 2019.
Huang, H.W., Wu, S.J., Lu, J.K., Shyu, Y.T. and Wang, C.Y., 2017. Current status and future
trends of high-pressure processing in food industry. Food control, 72, pp.1-8.
Hudson, S., 2008. Tourism and hospitality marketing: a global perspective. Sage.
Just Eat Plc. 2016. Just Eat: Leveraging Growth In The Takeaway Economy. Available [online]
https://seekingalpha.com/article/4020351-just-eat-leveraging-growth-takeaway-economy
Accessed at 15th March 2019.
Just Eat, 2019. Market Overview. Available [online]
http://www.annualreports.com/HostedData/AnnualReportArchive/j/LSE_JE_2014.pdf.
Accessed at 15th March 2019.
Nielsan, B. 2019. Top 5 Food & Beverage Industry Trends For 2019. Available [online]
https://www.grandecig.com/blog/top-3-food-beverage-industry-trends-for-2018 Accessed at 15th
March 2019.

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Sarin, S. and Barrows, C., 2005. An examination of current food and beverage trends in India
and an assessment of potential demand for luxury food and beverage products: implications for
managers. Journal of services research.
Tribe, J., 2016. Strategy for tourism (No. Ed. 2). Goodfellow Publisher Limited.