Home food delivery service Menulog has announced it will cease operations in Australia, effective from midnight on November 26. The unexpected decision was revealed in a statement on Wednesday, citing “challenging circumstances” as the primary reason for the closure.
“Unfortunately, today we announced Menulog will no longer operate in Australia,” the company stated. “As the only Australian-born platform, Menulog has a proud history but ultimately, as a business, we have been navigating challenging circumstances and the decision was made to close local operations.”
Impact on Customers and Operations
The announcement specified that Menulog’s website and app will continue to function until 23:59 AEDT on November 26, but no orders will be accepted beyond this date. Customers with existing credits or vouchers are encouraged to use them within the next two weeks, as Menulog has committed to honoring these credits.
“Menulog will honour any unused account credits or vouchers over the next two weeks. If you have any questions about using your voucher or account credit, our team is here to help.”
Founded in Sydney in 2006, Menulog was acquired by UK-based Just Eat in 2015, which later merged with Dutch-based Just Eat Takeaway.com in 2020. The closure in Australia follows the company’s exit from the New Zealand market last year.
Competitive Landscape and Market Pressures
Menulog’s departure from the Australian market highlights the intense competition within the food delivery sector. The company has faced increasing pressure from global giants such as Uber Eats and DoorDash, which have rapidly expanded their presence and market share in Australia.
Menulog gained widespread recognition through its innovative marketing campaigns, including a memorable music-video style advertisement featuring rapper Snoop Dogg. Despite these efforts, the company struggled to maintain a competitive edge against its rivals.
Menulog will now join the likes of Deliveroo, which closed its operations in Australia in November 2022.
Industry Reactions and Future Outlook
Industry experts suggest that Menulog’s closure could signal further consolidation in the food delivery market, as companies strive to achieve profitability in a sector characterized by thin margins and high operational costs. The exit of Menulog, alongside Deliveroo’s earlier departure, may lead to reduced competition, potentially impacting pricing and service options for consumers.
According to sources familiar with the industry, the decision to cease operations in Australia may allow Menulog’s parent company, Just Eat Takeaway.com, to focus on more profitable markets and streamline its global operations.
Meanwhile, customers and restaurant partners are left to adjust to the absence of Menulog, which has been a staple in the Australian food delivery landscape for nearly two decades.
As the industry continues to evolve, the focus will likely shift towards technological innovations and strategic partnerships to enhance service efficiency and customer experience. The closure of Menulog serves as a reminder of the dynamic nature of the food delivery market and the challenges companies face in sustaining long-term success.
The implications of this development will unfold in the coming months, as remaining players in the market adapt to the changing landscape and seek to capitalize on the void left by Menulog’s exit.
