Will Deliveroo's Dark Kitchen Plan Hurt Chiswick Businesses?

Delivery app firm plans large operation in Isleworth warehouse

The delivery operation will run from Unit 6. Picture: Google Streetview

Some Chiswick restaurant owners are expressing concern about plans by online food delivery company Deliveroo to set up a large 'dark kitchen' facility in Isleworth.

The 860 square metre site will contain 14 kitchens which could be operated by both established brands or start up restaurants and offer food delivery to the W4 area.

Under a system called Deliveroo Editions the businesses pay no rent for the kitchens but must supply their own chefs and ingredients. All food made at the kitchens must be paid for and delivered through the Deliveroo app and a commission is paid to Deliveroo.

Local restaurant owners are reluctant to talk on the record about Deliveroo but some feel the advent of the delivery app and other similar operations has had a negative impact on their business. There is anxiety that the dark kitchens based in the warehouse or other similar operations may start to serve more customers in Chiswick.

One Chiswick-based restaurateur said, “I don’t think the centre in Isleworth will make that much difference to us directly but these dark kitchens are proliferating. There is no choice but to deliver through these apps and I can understand why people love them for their convenience but the margin we make on every order is tiny due to the commission we must pay. All restaurants will have a number on their web site. If you want them to survive it makes a massive difference to them if you eat in rather than order for delivery. If you do choose to eat in, try phoning the restaurant directly to place your order. That will benefit both the establishment and the delivery drivers who get paid more that way.”

Another operator said, “Deliveroo Editions is presented as an opportunity for independent food operations to get started but these are really just part of the growing empire of that company. It may be that Isleworth is too far away for many Chiswick takeaway orders to be placed there but that will be determined more by Deliveroo’s algorithm rather than consumer choice.

“Lots of food businesses in Chiswick have survived to now due to the furlough scheme, government financial support and the forbearance of landlords but that is set to change. The way the delivery apps have hit our profit margins means that a surprisingly large proportion of local businesses will not be here next year and people will be eating food made on an industrial estate.”

The Isleworth site will be accessed from 8am by the restaurants for food preparation. Customers, however, are only able to place orders from 12pm with last orders are placed at 10:45pm and the restaurants should close at 11pm.

Deliveroo says the busiest period for orders across its existing sites is currently between 6pm and 9pm.

Based on survey data from a Deliveroo site in Swiss Cottage, the Friday peak hour traffic generation is expected to be 255 deliveries movements, two way. Typically 45% of deliveries are made by motorcycle or scooter, 34% by pedal bike, 15% by car and 6% by electric bike. Deliveroo says the expected mode split of delivery riders suggests a peak of 53 bicycles per hour, 60 scooters and 20 cars.

Deliveroo was founded in 2013 with a handful of riders and partner restaurants, and now works with 80,000 restaurants and 60,000 riders across 500 cities in 13 markets . The company’s founder, Will Shu, was the first rider and the company says he still makes deliveries to this day. The company is headquartered in London, with 2,500 employees around the globe and 1,500 i n the UK.

We asked Deliveroo for comment on the suggestion that the dark kitchen operation presents a threat to local restaurants and await a reply.

The application reference is P/2021/3435.

September 19, 2021