Are big restaurant chains secretly masquerading as independent eateries on delivery apps, and is this practice killing small businesses? It’s a controversial tactic that’s sparking outrage among independent restaurant owners. Here’s the scoop: Global chains like Pizza Hut, TGI Fridays, and Frankie & Benny’s are accused of creating virtual brands on platforms like Deliveroo and Just Eat, often under different names, to appear as small, independent businesses. But here’s where it gets controversial—is this just clever marketing, or is it deceptive?
Justina John, owner of ONJA Taste of Tanzania in Cardiff, calls it a ‘David versus Goliath’ struggle. ‘It’s like small fish trying to swim with the sharks,’ she says, highlighting how these chains dominate the digital space, making it harder for genuine independents to thrive. Justina, who opened her restaurant a year ago, has noticed an ‘overwhelming presence’ of these chain-backed virtual brands, which she calls ‘very sneaky.’ Her solution? She wants delivery platforms to verify listings and clearly separate independents from chains, giving customers the choice to support local businesses knowingly.
But here’s the part most people miss—delivery giants like Just Eat and Deliveroo defend the practice, claiming it helps businesses expand and diversify. Just Eat argues that virtual brands allow partners to ‘expand their food offerings and diversify revenue streams,’ while Deliveroo insists its ‘core mission is to champion local businesses.’ Uber Eats adds that it’s ‘levelling the playing field’ with dedicated account managers and equal exposure opportunities.
Is this a fair fight, or are independents being pushed out? Jamie Rees, co-owner of Cardiff’s Fowl and Fury, says chains creating multiple digital brands under one roof makes competition unfair. ‘They have more money for advertising, promos, and photographers,’ he explains. He’s frustrated because apps were supposed to democratize the market, but now he feels ‘unequal.’ Jamie even suggests legislation for transparency, revealing the kitchen and parent company behind each listing. ‘Eventually, smaller guys will go out of business because they’re less visible,’ he warns.
Rajendra Vikram Kupperi, director of Vivo Amigo, agrees. He calls ghost kitchens ‘a killer’ for independents, especially during the pandemic when they proliferated. ‘Bigger brands can undercut prices and offer better deals,’ he says. For example, Barburrito operates under multiple names like Death Valley Burrito and Twisted Health Kitchen, blurring the lines for consumers. Rajendra wants a clear separation between independents and chains to prevent customer confusion.
But is this practice unethical, or just smart business? Chains like Barburrito argue virtual brands reduce waste and meet customer demand, while Coyote Ugly claims it’s about survival—keeping doors open and protecting jobs. Peter Backman of theDelivery.World sees it as a revenue play: ‘They’ve got the capacity—why not?’ But he admits it’s deceptive if customers believe they’re supporting local businesses.
So, what do you think? Are virtual brands a clever strategy or a sneaky way to dominate the market? Should delivery apps do more to support independents? Let’s debate—comment below and share your thoughts!
