Australia’s biggest food delivery company, Menulog — the Australian market leader that has existed for almost two decades — is closing its doors. This change will go into effect at midnight on Wednesday, November 26. This decision marks a significant win for workers in Australia’s food delivery sector. Menulog has been the real standout, even more so as the Australian market starts to see an increase in competition.
The news was confirmed by Menulog’s chief executive, Morten Belling, who said the decision had not been an easy one. Nearly 120 employees would lose their jobs as a result of the shutdown. To help people affected, Menulog has offered its staff redundancy packages and employment assistance. In addition to this, eligible couriers will get a four-week voluntary redundancy payment as part of the transition to independent contracting.
Similarly, Menulog urged its local customers to spend any outstanding credits or vouchers ahead of the closure deadline. In addition to reducing the level of perceived customer abandonment, this board directive assists the company’s efforts in transitioning away from providing utility services.
“Today is a tough day for the Menulog business and I would like to reassure everyone this decision was not taken lightly,” Belling stated in a public communication regarding the closure.
Menulog has a really tough road ahead of it, but it’s not the only one with that uphill battle. Other big companies such as Deliveroo and Foodora have already fled the Australian market, with Deliveroo closing shop in 2022 and Foodora going bankrupt in 2018. This trend highlights just how cut-throat and competitive Australia’s food delivery industry has become.
Menulog’s statement highlighted its intent to focus on “navigating challenging circumstances” and to “accelerate growth and investments in other markets” as it winds down its Australian operations.
