Menulog solicitor and accountant Adam Ahmed talked with Proactive about the company’s decision to exit the Australian market after nearly two decades of operation.
Ahmed outlined key financial and legal pressures that likely influenced Menulog’s closure, including rising labour-related costs and regulatory uncertainty surrounding the classification of gig economy workers. “The costs that they allocate to labour might be double what they actually had provision for,” he said, highlighting the impact of payroll tax, superannuation, and worker entitlements under Australian law.
The interview also examined the company’s declining market share—from 80% in 2014 to below 25%—and how this loss in volume undermined its business model, which relied heavily on scale and margin. Ahmed attributed part of the decline to intense competition from platforms like UberEats and to marketing shortcomings.
He also warned that Menulog’s cost issues could be systemic among gig economy firms that have not fully accounted for local compliance requirements. “If you’re wrong, you’re going to get hit with a very big bill and it’s going to go back,” he added.
Ahmed advised Australian businesses to better understand employment law to avoid similar financial risks.
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