Takeaways hit by cost of living crunch: Deliveroo orders down

Britain’s appetite for takeaways is succumbing to the rising cost of living.

In a dismal update, Deliveroo said it received 37.7 million orders in the third quarter of the year – 4 percent less than in the previous three months.

And the takeout app warned of “consumer headwinds” as well as a normal summer lull.

While orders were up 5 percent from the same period last year, that was a long way from the nearly 60 percent growth seen 12 months ago.

The update suggested that takeaways are feeling the pinch as households rein in spending in the face of a tight cost of living.

The Deliveroo update came just days after arch-rival Just Eat Takeaway reported an 11 PC drop in orders.

Inflation is at a 40-year high of 10.1 percent – with food prices up 14.6 percent and energy bills rising. Deliveroo founder and CEO Will Shu (pictured above) warned of “ongoing economic uncertainty”.

The company warned that the slowdown in the UK was also reflected elsewhere.

The international arm received 35.1 million orders in the third quarter, a decrease of 10 percent from the second quarter and 7 percent from the third quarter last year.

Despite declining orders, rising prices pushed the total order value on the platform up 8 percent during the quarter to £1.7bn. But Deliveroo warned the tightness would continue as it lowered its full-year forecast. It said order value will grow by up to 8 percent this year, down from a previous forecast of up to 12 percent.

Hargreaves Lansdown analyst Sophie Lund-Yates said expensive food deliveries are “just the kind of luxuries” customers are cutting back on. And she said they won’t see any improvement until the economic outlook clears up.

Despite the slowdown, Deliveroo shares rose 3.5 percent, or 2.88p, to 84.84p, but fell 58 percent this year.