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Appetise Takes on the Online Takeaway Giants

2017-09-25 22:40

LONDON, Sept. 25, 2017 /PRNewswire/ --

  • Online food ordering has experienced substantial growth recently, attracting substantial investment.
  • The largest share of the UK market has been captured by JustEat Plc, the London Stock Exchange-listed company.
  • Appetise has quietly built its business in the South West and West Midlands since 2008 but is a UK marketplace available nationwide.
  • Appetise takes on the online food ordering giants with some key value differentiators:
    • No transaction fees for consumers when paying online.
    • No joining fees for restaurants to be on its platform.
    • Lower commission rates charged to restaurants.
    • Enables consumers to view and choose restaurants based on their Food Standards Agency hygiene ratings.
  • Appetise has launched an IPO.

Appetise Ltd ("Appetise"), one of the original English online food ordering companies, relaunched its platform at earlier this year. The currently privately-held Appetise has flown under the radar since its original launch in 2008 but has become well-entrenched in a number of towns in the South West and West Midlands. Appetise has approximately 90,000 registered users and 400 restaurants on its platform, with a national footprint and a particularly strong presence in Birmingham. Following an infusion of capital from a New York-based institutional investor last year, Appetise is now taking on the larger competitors in the UK online food ordering industry head-on.

No transaction fees to consumers

The industry giants, led by Just Eat Plc, wield a substantial amount of market power. Consumers ordering through online platforms typically pay a 50 pence transaction fee when paying online by credit or debit card in addition to the price of the meal. These fees can make it more expensive for consumers to order through an online platform than it would be if they ordered directly from the restaurant.

Unlike most other online platforms, Appetise does not charge a card transaction fee to consumers when they pay online, making online ordering no more expensive than ordering directly from the restaurant. Consumers' perks do not end there. Appetise runs a generous loyalty point system, with every order adding to the customer's loyalty point balance for further discounts. This can make ordering through Appetise even cheaper than ordering directly from the restaurant.  

No joining fees to restaurants and lower commissions

Restaurants wishing to join the major online food ordering platforms can pay upfront fees of up to £699, in addition to commissions of up to 14% of the value of the order, a percentage that meaningfully reduces and sometimes wipes out completely the slim profit margins of the restaurants, especially the smaller family run shops. Appetise, with its lean infrastructure, does not charge restaurants joining fees. In addition, the commission rate that Appetise charges to the restaurants does not exceed 10%, which is gentler on the small restaurant business than the industry norm.

Hygiene ratings

The Food Standards Agency assigns a food hygiene rating to restaurants on a scale of zero to five. Most online ordering platforms partner with restaurants regardless of their food hygiene ratings, and do not make information about their partner restaurants' hygiene rating readily available to consumers. Recognising that food safety, quality and hygiene are critical to consumers and that ordering online can make it harder to assess a restaurant, Appetise enables consumers to make educated choices by allowing them to view the hygiene ratings of its restaurant partners and to screen their search according to a minimum hygiene rating. This ensures that each consumer can tailor their order to the minimum food hygiene standard that is acceptable for them.


While conventional wisdom suggests that London is the main on-line food ordering market, Appetise is focusing on the markets outside of London. For instance, in the first three months of this year Appetise increased the number of restaurants in Birmingham on its platform by nearly 100.

As Appetise ramps up its growth strategies, its Australian holding company Appetise (Holdings) Limited is undertaking an IPO on the Australian Securities Exchange (the ASX), a market that has been receptive to smaller technology companies and has recently seen some food and beverage and food and beverage tech successes.

For restaurant enquiries contact:
Konstantine Karampatsos
Telephone: +44 (0) 7917 311425

For media and corporate enquiries contact:
Petre Norton
Telephone: +44 (0) 20 3170 6046

This communication is not for publication or distribution, directly or indirectly, in or into, or to any person located or resident in, any jurisdiction where it is unlawful to release, publish or distribute this communication, including without limitation, the United States of America, including its territories and possessions, any state of the United States of America and the District of Colombia (collectively, the U.S.). This communication does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of an offer to purchase or subscribe for, any securities, and, without limitation, is not an offer of securities for sale into the U.S. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the U.S., except pursuant to an applicable exemption from registration. No public offering of securities is being made in the U.S.

The offer of ordinary shares by Appetise (Holdings) Limited ("Appetise Australia") in Australia and to qualifying investors outside of Australia (if any) is made under a replacement prospectus which has been lodged with the Australian Securities and Investments Commission. The replacement prospectus is available and can be obtained from Investors should consider the replacement prospectus in deciding to apply for securities.  Anyone wishing to apply for securities in Appetise Australia will need to compete an application form attached to or accompanying the replacement prospectus. A copy of the replacement prospectus can also be requested from Appetise's Chief Financial Officer Richard Hateley at

This communication, and any other material related thereto, has not been approved by a UK authorised person and is directed only at persons who: (i) fall within the definition of investment professional under article 19(5) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Financial Promotion Order"); or (ii) are high net-worth entities falling within article 49(2)(a) to (e) of the Financial Promotion Order; or (iii) are certified sophisticated investors falling within article 50 of the Financial Promotion Order (in respect of whom this press release is exempt from the restriction in section 21 of the Financial Services and Markets Act 2000 on communication of invitations or inducements to engage in investment activity); or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) may otherwise be lawfully communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). This press release is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this press release relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.  Any investment or investment activity to which this press release relates may expose a Relevant Person to significant risk of losing capital invested and any person who is in any doubt about such investment or investment activity should consult an authorised person specialising in advising on such kind of investments.  This communication, and any other material related thereto, is required to be approved by an authorised person unless a relevant exemption applies.

Source: Appetise Holdings
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