Delivering innovation: How tech and food innovation are transforming hospitality 

Chris kicked off the discussion with a question about kitchen efficiency and how technology continues to transform kitchens at all levels.  

“We've got a lot of technology that can really support our kitchens, but we're obviously maintaining the quality of the food for the end consumer,” commented Jess. “We've been working with restaurants over the years firstly to make sure that their prep time is as efficient as possible. Then it’s making sure their food gets to the pass as quick as it can, it's available for the rider, the rider gets there on time and then it gets to the consumer. We use a lot of technology that assists that.  

“We work with a lot of data, and the data our app generates can really support in kitchens with stock planning and much more. They can see if they're going to get a peak, which could be driven by promotions or week-on-week growth. Our algorithm and data in the background can often see that and support with reducing waste in kitchens.”  

Organisations like Deliveroo are not the only ones that can benefit from managing large amounts of data. Iain commented that Boparan Restaurant Group, which operates a diverse range of brands including Carluccio’s, Giraffe, Gourmet Burger Kitchen (GBK), and Slim Chickens, has the ability to use data insights in ingredients ordering to limit food waste and automate ordering processes.  

“With prep levels and the volume of ingredients in each batch, the more automated is it the easier it is,” he explained “We know how much we need to prepare, and we know the shelf life” 

Oliva, who in addition to consulting for Market Halls was a Founder of Sessions, the growth platform for original food brands and experiences, commented that food halls and delivery kitchens have a lot of commonality, in the sense that they’re looking at specialist menus and always seeking ways to streamline in the face of high volume.  

“I'm a huge supporter of tech initiatives, but I don't want to see 100% non-human kitchens and service areas in my life,” she argued.  “I'd love to see it as a support system for front of house, in-house and also within back of house, marketing, tech and data.  

“My focus now with food halls is looking at efficiencies with KDS (Kitchen Display Systems). That means getting further knowledge on how to optimise speed and really having great understanding of the barriers and the bottlenecks.” 

Chris then asked Jess to explain more about how the data-driven approach works at Deliveroo, who explained: “We use AI a lot at Deliveroo in our day-to-day work.  

“Where it's really worked is helping with customer service, also helping with that prep time model, managing large orders, and making sure that whole end to end journey is as efficient as possible. 

“I think we were the first to launch our Plus subscription model. We've got a lot of loyal customers, over 40% of our volume goes through our Plus subscription, and what the data can show is how people are choosing their food. It's about personalisation and efficiency, and we can see the restaurants that have got the best operations because they progress up the algorithm and consumers then purchase more from those.” 

Delivery vs dine-in: Striking the right balance 

From an operator point of view, Iain added that deliveries are a big part of what they do. 

“Originally, we put GBK almost like a dark kitchen into Carluccio’s,” he said. “We had a separate pass for the food to sit on and be plated up. You have to think about how you’re setting up kitchens now. The whole point for us is that you've still got a dining experience and we want it to be a proper restaurant. We want people to come in and enjoy it. There are the people that you can get the extra business from through delivery, but you don't want that to impact the dining experience.  

“You always want a separate little section of your kitchen where you've got drivers coming in, where the food's getting picked up, taking it away from your dining customers.” 

Turning to the future of virtual brands and ghost kitchens, Olivia shared a candid perspective shaped by years of experience. 

“I'm not a massive supporter of the full extent virtual brands Sessions was set up with a founder brand in mind. One of the reasons I work in food halls is because I want to champion founder brands,” she said. 

“There's opportunity there but it's a really challenging area because you haven't got a face-to-face or street front version of yourself to represent your product and brand. You need something that is highly attractive, hitting all the trends and supported on the delivery platform so it’s got high visibility. 

“The challenge with a virtual brand is that a consumer may purchase it once, but will they purchase it again? Trust and familiarity are key to customer retention and virtual brands will always struggle there.” 

Jess added her thoughts from Deliveroo’s perspective. 

“I think having a high street or a restaurant with bricks and mortar is very important. In addition, delivery kitchens can support because you can get a wider reach,” she said. 

“We like to think that Deliveroo is a bit like a digital high street. You get to see more brands and a lot of restaurants may never actually be visited by someone, but actually they'll get it from Deliveroo. Marketing is really important, and founder-led brands are amazing. People have a high affinity for those but marketing them effectively is also really important. 

“At Deliveroo we have what we call a restaurant hub where restaurants can plug in and play. They can set their own ads to improve their visibility, they can run offers which are targeted to students, for example. For a lot of restaurants that are new to this kind of technology, this will be the first time they have the experience of marketing their restaurants in this way.” 

Chris asked how this played out operationally in environments with multiple brands and deliveries running concurrently. 

“We've not put a dark kitchen where we don't have a Carluccio’s,” Iain responded. “We've never put it in an area of the country where we're just trying to sell it, because we want people to come to the restaurant. 

“We always look at ourselves as being more than a restaurant. We've got the deli, we've got the food shop, we got all the products we bring in from Italy. The more people we get into the restaurant, the better. We've just opened it up as a new factor to get the younger generation, who are maybe used to ordering online after Covid. 

Jess offered examples of success stories that have come out of Deliveroo’s dark kitchen partnerships. 

“If you look at some of the winners that we've had in Deliveroo, like Wingstop, for example: Wingstop started 100% in our delivery kitchens, now they're in 12 sites across the country. It's fuelled the growth of the brand because they were able to scale a lot faster with lower initial costs,” she said. 

“I think it can work both ways. It depends on if it's a growing brand or if it's more established. It's about switching the consumer groups that you're talking about, but we do have success with both. Dishoom is also a great example.” 

Iain added: “There's a bit of a discovery piece to be done around delivery. I think it's a great tool to understand the cities you're going into, and the data that Deliveroo owns, which enables people to understand how the market might behave, is really valuable.” 

“I think with AI we're going to see a lot more clever usage of data,” Olivia commented. “I think Deliveroo has been progressive with that, but a lot of businesses probably haven't had an analytics team or a logistics team that can work with it effectively.  

“When we launched Sessions, we had a system analyst in before we had an HR team. How you develop your menus, your strategies, your brand, etc. Can all be informed by clever data that comes through AI tools. 

“One of the wonderful things about dark kitchens is the opportunity to test your product before you’ve invested in a higher CapEx environment, which is similar to food halls as well. You’re getting your feet on the ground before you have to actually invest.” 

Designing for delivery: Menus, packaging and sustainability 

Chris raised the question of basket sizes and the potential uplift that comes with self-ordering at kiosks. 

Jess explained, “It’s the psychology of when you buy for yourself and someone isn't watching. The Deliveroo basket is almost double what you would get in kiosk. Deliveroo as an aggregator has a higher AOV (average order value) than other aggregators, but does depend on the brand, the occasion, the time of day.” 

Chris then asked how that shift impacts menu development. 

Iain shared how crucial it is to design menus specifically for delivery. “We spent a lot of time looking at food that can be delivered as well. When we first brought this in, we put everything on there. Then suddenly you get an Eggs Benedict going out at 11pm and start to wonder how well that’s going to travel! We looked at the menus and transported them to see what would work.” 

From there, the conversation turned to the challenge of packaging and sustainability.   

Olivia pointed out the growing relevance of sustainable thinking: “I think sustainability will be a constant. Eco catering in general is increasing and you're going to see, not just with packaging, but also your supply chains, more efficiencies aligned with it. Whether it’s a priority...I sometimes think design and functionality will slightly outweigh it, and we have to find a balance with that. Obviously, a combination of both is heaven. 

“I'd love to be able to say that there's a really functional, sustainable product and packaging out there that can tick every box. Every item that goes in has to be in a unique, bespoke container for it to sustain the journey, and the key elements within delivery QSR or food halls are value, quality and speed.” 

Chris asked Iain how that translates into the kitchen reality. 

“It's about food turning up in one piece and being hot when it arrives,” he commented. “When McDonald's went from polystyrene containers to cardboard (and that's something you're eating straight away) people complained about their burgers being cold. It is more environmentally friendly, but is your end consumer going to complain if it's not what they're expecting? We need to make sure that we have something that can be recycled, is sustainable, and is fit for its purpose.” 

Jess added that Deliveroo is taking a proactive role. “I think the end consumer sees this as being important. At Deliveroo we've got a packaging store. We've tried and tested things ourselves, so we know what travels well. We have open access to all our partners on the app, and they can get discounted rates for tried and tested material.” 

What’s next: Growth, loyalty and new openings 

Looking ahead, Chris asked each panellist to share what’s coming up for them and their businesses. 

Jess spoke first about how Deliveroo is expanding into new territory. “We change every day and it’s a fast-paced environment. What we've seen this last year is we've included grocery and retail and that's growing at quite a pace. 

“We're opening up the platform to more consumers. You get a lot more cross-shopping, which has been really interesting. We've also launched loyalty programmes tied to those retailers. You can connect your Boots Advantage Card or Co-Op card to the Deliveroo platform.” 

Turning to Olivia, Chris mentioned Market Halls’ latest opening in Paddington.  

“It's very exciting. I'd say it's probably the most elevated site that we have in the portfolio, which gives us room to catch up with all the others,” Olivia commented: “It's got a really good food line-up and it's always nice to have shiny new sites!” 

She added that delivery and digital remain part of the broader strategy. “Moving forward, we do have delivery at some of the sites. With food halls, the challenge is always around finding a purpose for every time of day. There is an opportunity with delivery because you’re fulfilling a customer profile for multiple parts of the day. 

“What’s great with Paddington is that the area hasn’t had much nightlife for a while and suddenly there’s live music and DJs on site, which seems to have really pleased everybody.” 

Iain concluded by sharing: “We’ve got Carl’s Jr coming in Cardiff this year. In terms of franchise opportunities, we’re still pushing airports with Giraffe and Carluccio's. GBK is also opening abroad, so the future is looking bright.” 

Chris closed the session on a positive note: “Times are always hard in hospitality, there are evergreen problems, but the reality is that delivery has boosted what we do, and long may it continue.”