Why are some takeaway places split?

[robfosters]

What I mean is lately on food delivery services, I have noticed that some of the dark kitchen places are split into two different entities that sell the same food.

For example, I go to a really good burger place called Sobe. Their main menu is beefburgers, but they have a section called guests where they sell chicken burgers.

There’s another place called Chick ‘n’ bun. Their main menu is chicken, but they have the same Sobe beefburgers under the guests section, all with exactly the same names.

There is another split burger restaurant locally as well. Their menu is identical, but ones called Sin City burgers and the other is 88th street burger bar.

Is there a business or underhand reason for operating Like this?

 

[Derek W]

Possibly from a tax point of view assuming the two places are owned by the same family?

 

[m@rty]

I've no idea how the fee system works with these places, but they might have realised they are better off splitting their orders across two entities in order to save on overall fees paid to the delivery service.

 

[robfosters]

I've no idea how the fee system works with these places, but they might have realised they are better off splitting their orders across two entities in order to save on overall fees paid to the delivery service.

I can’t see how tbh. Uber charge a flat 30% commission on all orders

 

[Chris Wilson]

A VAT registered fast food business is considering splitting the business for VAT purposes. Let's say the owner has started a delivery service from the existing business under a new name. There is separate phone line and a new business name for the new delivery services. From this new business the owner just provides food by delivery services. I think it's possible to split the business for VAT like that, as in the case of running a small pub where for example the husband could sell the drink and the wife say could run the catering business without registering for VAT as they are considered to be separate business even though their turnovers, if aggregated, would reach the VAT threshold.

(That's what Google suggests anyway).

 

[Dis86]

Can also be a way of limiting risk in the event one aspect of the business struggles. Means the debts aren't applicable to everything.

 

[Pawnless Endgame]

I've seen similar with a curry house. It was next door to a pub but the 2 were linked by an internal door or hatchway and drinks could be ordered from the pub to have with your curry. There might have been a tax reason for this isntance, but I don't think it's illegal in general though because it's quite common for curry houses to be unlicensed and allow you to being your own alcohol.

 

[Chuk_Chuk]

Sounds like you are talking about ghost kitchens. It’s to dominate the pages for the food delivery services and make it more likely for you to order from them

 

[Feek]

The cafe over the road from us had about four separate businesses on Just Eat and they all had the same menu just organised differently. So one of them was called [something] Pizza and their pizzas were at the top of the list. Another one was called [something else] burgers and again, their burger range was listed first.

Perhaps it’s because people would rather order a burger from a restaurant that appears to specialise in burgers rather than a pizza place. Or a chicken place.

 

[robfosters]

The cafe over the road from us had about four separate businesses on Just Eat and they all had the same menu just organised differently. So one of them was called [something] Pizza and their pizzas were at the top of the list. Another one was called [something else] burgers and again, their burger range was listed first.

Perhaps it’s because people would rather order a burger from a restaurant that appears to specialise in burgers rather than a pizza place. Or a chicken place.

I get that, but these are two places that both market themselves as specialist burger places.

On another note, the amount of these places popping up is getting ridiculous. Our high street has literally become some sort of takeaway industrial estate

 

[Malevolence]

Around here it's for money laundering purposes.

 

[Bassmansam]

What I mean is lately on food delivery services, I have noticed that some of the dark kitchen places are split into two different entities that sell the same food.

For example, I go to a really good burger place called Sobe. Their main menu is beefburgers, but they have a section called guests where they sell chicken burgers.

There’s another place called Chick ‘n’ bun. Their main menu is chicken, but they have the same Sobe beefburgers under the guests section, all with exactly the same names.

There is another split burger restaurant locally as well. Their menu is identical, but ones called Sin City burgers and the other is 88th street burger bar.

Is there a business or underhand reason for operating Like this?

Where is Sobe?

 

[Participant]

Assuming for valid business purposes, wouldn't it just be to diversify from the same fixed cost base?

 

[robfosters]

Where is Sobe?

Avenue road in Bexleyheath, near the train station. Can’t walk in though, delivery only. Lovely burgers.