JustEat Seals North East as Investment Hotspot

Just Eat Is Expanding Its Workforce

The new 1,500 Just Eat jobs in Sunderland will consist of a variety of customer service roles and join the existing 2,000 UK-based workforce .

The move comes as part of Just Eat’s £100m five-year investment into the region and has already seen the recruitment of 300 new staff to replace previously outsourced jobs to the Philippines, India and Bulgaria.

If Follows An Impressive Sales Growth

Just Eat has reported a 52% growth in sales in the first six months of 2021, expanding on its outstanding pandemic performance. Despite this, Just Eat has actually made a loss, which has largely been attributed to the company’s huge marketing splurge. This includes headline sponsorship of Love Island this year and a place as one of the six official sponsors of Euro 2020 earlier this summer.

Hybrid Working Expected To Support Growth

However, executives remain optimistic and have argued that the spend will help to ensure Just Eat’s future as a household name. UK Managing Director Andrew Kenny is confident that Covid-19 behaviours will continue as the hybrid working model becomes permanent.

Since the start of the year, Just Eat has expanded its connected restaurants from 50,000 to 58,000, and home workers are likely to enjoy the recent additions of McDonald’s, Greggs, Pret A Manger and Leon.

Backing A New Worker Model For Couriers

Another explanation for the company’s pre-tax loss is its recent commitment to a new worker model for couriers. This means 4,500 staff are now entitled to the minimum wage, pension contributions and statutory and sick pay.

The Significance Of Its North East Commitment

Just Eat’s investment in the region seals the North East as an investment hotspot. According to the Department for International Trade, the North East created 125 jobs for every 100,000 people (working-age population) in 2018/19, and this figure improved to 179 jobs for every 100,000 people in 2019/20. 2,500 of the 2020 jobs were created by foreign investment.

Since then, job creation and investment in sectors such as business services, digital, offshore wind and advanced manufacturing have catapulted the North East, notably Sunderland, to become the best performing areas in the country outside of London.

Other notable investments you should know about include a £1bn investment plan from Japanese car manufacturer Nissan to turn Sunderland into a futuristic electric vehicle hub and a £100m pledge from financial services Legal & General to regenerating the city.

Talking points:

• What other companies have committed to the North East?
• How has Brexit played a role in the creation of a Sunderland-based electric vehicle hub?