A significant controversy is engulfing the digital food delivery sector as several major restaurant groups stand accused of employing deceptive marketing tactics by creating misleading “ghost brands” on platforms such as Deliveroo and Just Eat. Critics argue that this practice allows large corporate entities to masquerade as independent or local eateries, unfairly dominating search results and exploiting consumer preference for supporting smaller businesses.
Corporate Entities Under Fire
The allegations center on established national and international chains that have launched multiple distinct, often obscurely named, virtual brands operating out of their existing kitchens. This strategy effectively multiplies their presence on delivery platforms, obscuring their corporate ownership and creating the illusion of a diverse, independent marketplace.
Among the prominent chains identified in this practice are Pizza Hut, TGI Fridays, Frankie & Benny’s, Las Iguanas, and Barburrito. These groups are reportedly leveraging their infrastructure to list numerous separate brands, often without clear public association with the parent company. This allows them to capture market share that might otherwise be directed toward genuine independent operators.
The Independent Struggle
The proliferation of these corporate-backed virtual brands has drawn sharp condemnation from the independent restaurant community, which claims it is being systematically marginalized in the high-stakes digital environment. The competitive imbalance created by this tactic is severe, pitting small, local establishments against the vast marketing budgets and operational scale of multinational corporations.
The sentiment among independent owners was powerfully articulated by Justina John, who highlighted the existential threat posed by the practice. John described independent restaurants as “small fish trying to swim with the sharks,” underscoring the immense difficulty local businesses face when competing against chains that can flood the market with multiple listings.
Implications for Consumer Trust and Transparency
Beyond issues of competitive fairness, the controversy raises critical questions regarding consumer transparency and trust in the digital marketplace. A significant segment of delivery app users actively seeks out independent or locally owned options, often prioritizing them over large chains. The use of undisclosed corporate brands undermines this choice, potentially misleading consumers about the origin and ownership of the food they are purchasing.
As the reliance on third-party delivery services continues to grow globally, industry observers suggest that regulatory bodies may soon face pressure to mandate clearer disclosure requirements. Such measures would aim to ensure that the ultimate ownership of all brands listed on high-traffic digital platforms is transparently communicated to the consumer, restoring integrity to the competitive landscape.
