Just Eat orders see sharp tumble as cost-of-living pressures grow

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Just Eat boss Jitse Groen said restaurants raised prices “too high” amid rising food inflation

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Tea

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The squeezed earnings stress on the food delivery sector was laid bare today after Just Eat Takeaway reported a sharp drop in the number of orders.

They fell 15% in the UK and Ireland in the three months to September, while orders in southern Europe, Australia and New Zealand fell 17%.

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Gross transaction value, a measure of order size, fell only 5% in the UK and Ireland, suggesting that the value of individual orders has increased. But in Southern Europe the value of transactions fell by 15%.

Despite declining sales, Just Eat said it returned to earlier-than-expected profitability after introducing a series of cost-cutting measures, including halting hiring at its head office. Its shares fell 1.6% to 1,310p.

This comes as data released today showed that food inflation had soared to 14.6% in September.

Just Eat boss Jitse Groen said the firm’s partner restaurants set prices “too high … this percentage”. [14.6%] Not typical for me – you see prices going up quite a bit, especially in Europe.

“We are aware of the consumer background, we are trying to reduce the prices” [and] We are trying to ensure that there are more number of affordable options in restaurants.”

Just Eat said its €1.8 billion (£1.6 billion) sale in Brazilian business iFood in August gave it the cash it needs to pay off debt, strengthen its balance sheet and capture future growth.

Groen told the Standard that the start of the World Cup tournament in November would boost the firm’s sales.

“I believe it will have an effect – some people don’t watch football but I don’t know what’s wrong with those people – but we would expect some benefit from it.”

Credit: www.standard.co.uk /

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