Evolution of Just Eat’s Success and its impact on the restaurant industry

This article discusses the evolution of Just Eat’s success and its impact on the restaurant industry. It covers the concept of Just Eat, scale supply, consumer demographics, disruptive innovation, current trends in the food and beverage sector, and recommendations for the restaurant industry to reduce the potential impact of Just Eat.

Running head: BUSINESS & TOURISM
Business & Tourism
Name of student
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Table of Contents
Task 1 Evolution of Just Eat’s Success and its impact on the restaurant industry..................................2
Concept of Just Eat............................................................................................................................2
Scale supply.......................................................................................................................................4
Consumer demographics...................................................................................................................5
Disruptive innovation........................................................................................................................5
Current trends in food and beverage sector........................................................................................5
Task 2 Recommending whether the restaurant industry should strategize to reduce the potential
impact of Just Eat..................................................................................................................................7
Effective use of technology...............................................................................................................7
Concept to help with strategy............................................................................................................9

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Task 1 Evolution of Just Eat’s Success and its impact on the restaurant industry
Concept of Just Eat
Just Eat has used an online app by investing in the delivery services to compete with
UberEats, Deliveroo, etc. within the growing food takeaway market in United Kingdom.
With the emergence of multiple takeaway and online food delivery apps available, Just Eat’s
motive is to expand its delivery services by partnering with more restaurants and generate
higher amounts of revenue. With the increase in active users, it is clear that the business has
managed good content in the website and ensured sharing and transfer of right messages and
information about the brand to its clients (Nickson 2013).
Figure: Active users of the app of Just Eat
(Nickson 2013)

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There have been scopes create to expand funds and increase the operations in
Denmark and UK as well. This would improve the working capital for Just Eat and make sure
to increase the shares, which was earlier 23 percent. The sales were up by 45 percent to
£385m, and has been expected to reach more than £160m the present year. The City investors are
more concerned with the spending on Just Eat rather than Uber and Deliveroo, which should ensure
managing proper budgetary procedures to keep the business functional and stay afloat in the
competitive business environment with ease and efficiency (Okumus 2013). The company used
the technique used by another restaurant business named SkipTheDishes, which enables
providing remuneration to the clients and ensures transferring the food by the couriers from
the restaurant to the customers with a very nominal fee (Xu and Gursoy 2015).
Data to demonstrate growth
With the advancement in technological aspects, the Information and communication
technologies have facilitated collaborative consumption and managed peer to peer based
activities for creating positive impacts on the businesses like Just Eat in UK with a generated
revenue of more than £ 3.6 billion and managing £ 28 billion transactions (Just Eat 2019).
This specific app is designed to act as an intermediary between the clients and end suppliers
for a particular service fee. With the increase in convenience food and doorstep delivery the
growth of delivery market has increased from £ 2.4 billion to £ 4.2 billion (Evans 2015).

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Figure: Traffic management at the website
(Just Eat 2019)
The company partnered with more than 82000 restaurants and more than £ 21.5
million active clients have further contributed to the business’ revenue generation and proved
ability to sustain in the marketplace (Mok, Sparks and Kadampully 2013).

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Figure: Total visits into the website
(Huang et al. 2017)
Current trends in food and beverage sector
The business organisations within the food and beverage sector in UK have
progressed to keep up with the changing demands and expectations of the clients. These
emerging trends have been considered as opportunities and scopes to manage growth and
adapt the local conditions to respond to the tastes of customers that change from time to time.
Food on the go are the latest trends, which mean that people can take the food items and
consume eat while moving from place to place (Wood 2013).

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Figure: UK food and beverage market
(Wood 2013)
One of the most important trends is the convenience, because nowadays, customers
are time poor and due to increased working hours, there has been evolvement in terms of the
demands and preferences for convenience and food on the go (Jermann et al. 2015). The
trend has been considered as great opportunity by Just Eat to ensure that the orders are placed
online with the help of this app, which can ensure delivering the food items right at the
doorsteps of the customers. Another major trend is the use of new delivery channels that can
help in managing online ordering system and ensure providing a better customer experience
by allowing them to place orders and check the company products with their association with
social media channels and through virtual assistants (Mok, Sparks and Kadampully 2013).
The social media platforms are the places where customers remain online most of the times
and thus their association with the company is high considering their acqusitions of

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knowledge and information about the products along with placing orders too. The delivery of
food items with the help of robots is another major trend that has helped in transforming
through AI technologies. The navigation has been possible for the robots with the use of GPS
signals and cameras, which ensures speedy delivery at the destination and then the customers’
needs to put a code, that should match the order placed (Nickson 2013). The new augmented
reality feature has allowed Just Eat to present the food items in a new way and rouse interest
among the clients, which also encouraged them to make purchases from the company
(Okumus 2013).
Task 2 Recommending whether the restaurant industry should strategize to reduce the
potential impact of Just Eat
Effective use of technology
Few of the potential impacts of Just Eat include falling behind the expected growth
due to the presence of competitors and even sharing the profit with third parties associated
with the restaurant business prioritising on the online food delivery services. Just Eat also
created some issues within the workplace, which affected the communication between

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employees and hindered the scheduling of employees while the rise in minimum wages also
contributed to some major potential issues. The restaurant industry should aim to strategize
for reducing the potential impacts of Just Eat with the use of Point of Sale system. The Point
of sale or POS system is a transactional hub that could help in recording the transactions
along with monitoring data pints, payments’ processing and management of inventories too.
The labour reports are assessed which could also help in making decisions regarding money
saving (Davis et al. 2018). It is an effective way by which the restaurant industry can save a
lot of money rather than remaining dependent upon the third parties. The use of POS system
could also streamline the business functions and processes, furthermore save money on the
management of inventories along with use of loyalty programs that can increase the placing
of orders from the customers.
With the advanced technologies, the restaurant industry could also opt for setting up a
self-ordering kiosk for the convenience of customers while placing any orders. This terminal
should automate the orders placed by the customers and process the payments for restaurants,
which could also ensure an easy-to-use interface where the customers would be able to place
their orders on their own. The self-ordering kiosk would help in maximising the front-of-
house staffs as well as generate higher revenue in business though considering the labour
costs lowered (Handford et al. 2015). This could bring more convenience for them to make
purchases through placement of orders, furthermore ensure that the customers are able to add
side dishes and make any upgrades to the orders placed by them. The use of robotics within
the restaurant industry is another effective strategic approach to manage automation of
services and allow the businesses within the restaurant industry to cope up with the issues of
rise in minimum wages, as faced by Just Eat (Huang et al. 2017). There is no need to replace
the staffs, rather a lot of money will be saved with the use of robotics technology and
automation procedures, furthermore ensure better customer experience, better brand

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exposure, consistency of placing orders and reduced chances of human made errors (Just Eat
2019).
Concept to help with strategy
The concepts related to the strategies, as stated above, within the restaurant industry
could help in connecting with wider group of audiences and at the same time, create
opportunities for overcoming the potential impacts caused by Just Eat. These concepts
aligned with the strategies should facilitate use of new technologies, enable innovation and
ensure coping up with the changing demands and expectations of clients with much ease and
efficiency (Evans 2015).
TOWS STRATEGIC MATRIX
Restaurant industry Strengths
 Good network and
strategic partnerships
 Strong business as
well as industry
value proposition
 Established financial
position and
increased growth
(Hoque 2013).
Weaknesses
 Restaurant industry
is competitive
 Heavily dependent
upon the advanced
technologies
 Sharing profit among
third parties that
diminish profit level
Opportunities
 Acqusitions of data
and information
should help in
SO
 The good networks
of takeaway partners
and restaurants
WO
 The market leaders
should be acquired,
which can allow Just

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assessing consumer
trends
 Online food ordering
and delivery within
the restaurant
industry allows for
expansion of market
 The use of AI and
Augmented reality
are responsible for
managing better
services’ delivery for
the restaurant
industry
within the industry
can assist in creation
of customised offers
for the consumers
 The high revenue
generation
contributes to the
economic growth
 The better data
collection has
allowed for the
assessment of
consumers’ trends
and buying
behaviours (Huang et
al. 2017).
Eat to operate within
a place where the
technologies are
quite inferior and
this can allow for
getting hold of the
market in India
 The collection of
data and information
for offering
customers’
personalised services
could prevent lack of
personal
communication and
also between
business and its
consumers (Jermann
et al. 2015).
Threats
 Threats of
competitors
 Fat Tax placed on
the snacks and
unhealthy food items
ST
 The minimum wages
issue could be
overcome
 With the lower
commission rate, the
WT
 With the use of Point
of sales system and
self-ordering kiosk,
the management of
orders would be

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 Increased pressure of
Government
 Rise in minimum
wages
 Poor communication
between staffs can
degrade business
performance within
the restaurant
industry
restaurant industry
should retain
strategic partnership
with the other
businesses too with
the management of
economic laws, rules
and regulations too.
easier and this would
also create
convenience for the
customers to place
orders online without
any need to remain
dependent on the
online food delivery
options.

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References
Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage
management. Routledge.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Handford, C.E., Dean, M., Spence, M., Henchion, M., Elliott, C.T. and Campbell, K., 2015.
Awareness and attitudes towards the emerging use of nanotechnology in the agri-food sector.
Food Control, 57, pp.24-34.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation
and performance. Routledge.
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.
Jermann, C., Koutchma, T., Margas, E., Leadley, C. and Ros-Polski, V., 2015. Mapping
trends in novel and emerging food processing technologies around the world. Innovative
Food Science & Emerging Technologies, 31, pp.14-27.
Just-eat.co.uk. (2019). Order takeaway online from 20,000+ food delivery restaurants | Just
Eat. [online] Available at: https://www.just-eat.co.uk [Accessed 5 Mar. 2019].
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
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