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Struggling restaurants claim Deliveroo is undercutting them with new service during COVID-19 crisis

Struggling restaurants claim Deliveroo is undercutting them with its new service and leaving them unable to compete with the food delivery giant

  • Deliveroo opened an ‘essentials’ store off Chapel Street in Windsor, Melbourne 
  • The food delivery giant says they are helping those who can’t leave home 
  • Restaurants are only allowed to serve takeaway food during coronavirus crisis 
  • Business owners say they are struggling following the opening of essential store

Struggling restaurants claim Deliveroo has undercut them after launching an ‘essentials’ store during the coronavirus pandemic.

The food delivery giant opened the store off Chapel Street in Windsor, Melbourne, to provide for residents who can’t leave their homes during the health crisis.

‘We at Deliveroo are doing our bit to help customers who are unable to leave their homes during the spread of COVID-19,’ the Deliveroo website says.

‘We have created an Essentials store where you can order the products you really need straight to your door.’ 

But restaurateurs on the Chapel Street precinct claim they are struggling to compete with the new essential store.

Struggling restaurants claim Deliveroo has robbed them from business after launching an ‘essentials’ store during the coronavirus pandemic (stock image)

Paul Kasteel, owner of Hoo Haa bar and Miss Kuku restaurant, told news.com.au Deliveroo Essentials ‘is the final nail in the coffin’.

‘I don’t know how we’re going to survive now.’

Restaurants and cafes have only been allowed to serve takeaway food and drink since March 24, after the Australian Government introduced strict social distancing measures to combat the spread of coronavirus.  

Mr Kasteel, who has owned Miss Kuku for 15 years, said he tried to make some money through selling basic grocery items.

The website says: ‘Hoo haa may be closed but Miss Kuku is still cooking! Some of our staff have no access to government support.’

‘By ordering pickup from us, or purchasing a gift certificate to pay it forward, your money goes back into our business and helps us keep our staff employed.

‘Miss Kuku’s delicious food is available for takeaway and pickup from Hoo haa Tue – Sat 12-9pm. We also have a range of alcohol and grocery essentials available.’

Other eateries – including Ladro Italian, Lucky Penny Café, LaManna & Sons Delivery and Alison’s Corner Shop – have also begun to sell grocery items.  

The food delivery giant opened the store off Chapel Street in Windsor, Melbourne, to provide for residents who can't leave their homes during the health crisis. Pictured: Chapel Street

The food delivery giant opened the store off Chapel Street in Windsor, Melbourne, to provide for residents who can’t leave their homes during the health crisis. Pictured: Chapel Street

Chrissie Maus, general manager of the Chapel Street Precinct Association, slammed Deliveroo’s latest business move.  

‘Deliveroo’s action is shortsighted and a simple money grab at the expense of the Chapel Street Precinct cafes and restaurants,’ she said.

The Chapel Street Precinct website encourages shoppers to support local business during the coronavirus pandemic. 

‘The best way you can support your favourite locals is to call them direct and collect,’ the website says.

‘Our great restaurants and cafe’s have followed Government health guidelines around sanitisation and social distancing measures to make picking up your order safe and many would be happy to bring your order to your car if you are parked nearby. 

‘By ordering direct you will be helping these businesses make it through and retain as many of the wonderful staff you’ve come to know and love.’

Deliveroo told news.com.au they wanted to ensure people could access food during this ‘worrying’ period.  

‘We hope we can play a role in supporting people who have to isolate to get the food they need whether that’s household items or restaurant food.’

Daily Mail Australia has contacted Deliveroo for comment.   

Restaurateurs on the Chapel Street precinct claim they are struggling to compete with the new essential store

Restaurateurs on the Chapel Street precinct claim they are struggling to compete with the new essential store

Read more at DailyMail.co.uk