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14 - Chapter 5
14 - Chapter 5
5.1 Findings
Of the total sample size of 505, 362 respondents belonged to the age groups of 21-30
years, followed by 73 from below 20 years, 61 from 31-40 years, 5 from 41-50 years
and 2 respondents belonged to the age groups of above 50 years. Thus, out of the total
100%, 72% belong to the age groups of 21-30 years, followed by 14.5% percent from
below 20 years, 12.07% from 31-40 years, 1.0% from 41-50 years and 0.4% from the
age groups of 51 and above years of age.
Gender Categorization
Of the total sample of 505, 292 are males and 213 are females. Thus, out of the total
100%, 57.8% are male respondents and 42.1% are female respondents.
Occupation categorization
Of the total 505 respondents, 239 respondents are from the employed category, 180
belong to the student category, 83 are self-employed and 3 are home-makers. Thus, out
of the total 100%, 47.3% of respondents belong to the employed category, 35.6%
belong to the student category, 16.4% respondents belong to the self-employed
category and 0.6% belong to the home-maker category.
Of the total 505 respondents, 266 respondents order weekly from the Online Food
Delivery apps, 145 order one in a month from these apps, 50 order once in 3 months
from the Online Food Delivery apps, 33 orders daily from the Online Food Delivery
apps, 8 respondents order once in 6 months and 3 respondents order once in a year.
Thus out of the total 100%, 52.7% respondents order weekly from the Online Food
Delivery apps, 28.7% order once in a month, 9.9% order once in 3 months, 6.5% order
daily, 1.6% order once in 6 months while 0.6% order once in a year.
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City categorization
Of the total 505 respondents, 105 respondents are from Mumbai, 100 from Navi-
Mumbai, 100 are from Thane, 100 are from Pune, 50 are from Nagpur and 50 are from
Nashik. Thus out of the total 100%, 20.79% respondents are from Mumbai, 19.8% are
from Navi-Mumbai, Thane, Pune respectively and 9.9 % belong from Nagpur and
Nashik respectively.
Of the total 505 respondents, 270 respondents preferred ordering online when they did
not want to cook. 132 respondents preferred online when they wished to try a new dish
and 103 respondents ordered on occasions like get-togethers, birthdays, anniversaries
or celebrations. Thus, out of the total of 100%. 53.5% ordered online when they did not
want to cook, 26.1% ordered when they wished to try some new dish online and 20.4%
ordered on occasions and moments of celebrations.
Of the total 505 respondents that 395 respondents ordered online any day, while 60
respondents ordered online on weekends and 50 respondents ordered online on
weekdays. Thus, out of the total 100%, 78.2% of respondents ordered online on any
day, 11.9% ordered online on weekends and 9.9% ordered online during weekdays.
93.86% have ordered food online from Zomato apps and 83.76% have ordered from
Swiggy app. Thus, out of the total 505 respondents 474 respondents have used Zomato
app for ordering food online and 423 respondents have ordered food from Swiggy app.
73% respondent chose to order online due to the discounts offered by the Online Food
Delivery apps, 66% respondents ordered online as they find it convenient to order
online, 51.30% ordered online find ordering online time-saving, 36.4% ordered online
as it offers more variety, 30.8% order online as it ensures good food quality and 19.90%
of the total sample size consider that they receive better service when ordered online
compared to when experienced offline.
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Thus, of the total 505 respondents, 367 respondents ordered online due to the discounts
offered by the Online Food Delivery apps, 332 prefer ordering online due to the
convenience online ordering provides, 258 respondents ordered online as they find it to
be time-saving, 183 respondents online food ordering options to provide with greater
variety, 155 respondents consider online food ordering offers better food quality and
100 find online food ordering is a better service option than offline service.
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restaurant, ordering during the special offer period, visiting restaurant after having
enjoyed it meal through Online Food Delivery app, deliver online order in time,
ordering through restaurants on Online Food Delivery apps, loyalty benefits received
when ordered through Online Food Delivery apps and ordering less from restaurants
visited often but not available on online food delivery apps respectively.
i. Customers have a positive perception towards saving money when ordering through
online food delivery and the service quality received when ordered through Online
Food Delivery apps.
ii. Customers prefer ordering from an online food delivery app.
iii. Customers read online reviews when ordering through online food delivery apps
and believe that positive ratings make them want to visit or order from the restaurant
and negative online reviews of a restaurant would make them avoid visiting or
ordering from the restaurant.
iv. Customers have visited restaurants after having enjoyed the meal ordered through
the Online Food Delivery app.
v. Customers prefer ordering during a special offer period like discounts, cashback of
bundle offers. Customers believe that ordering online provides loyalty benefits.
vi. Customers find Online Food Delivery apps convenient and secure in terms of
payment as well. Customers also affirm that Online Food Delivery apps provide
prompt delivery.
vii. Customer prefers ordering online from restaurant visited often and less from the
restaurant which is visited often but is not available on any of the Online Food
Delivery apps.
viii. Customers' responses suggest that there are restaurants they started liking after
trying them for the first time online. They order from a few selected restaurants
online.
ix. Customers have also recommended restaurants to others which they came across
and tried through the online food delivery app.
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There is no significant difference in the average perception of male and female with
respect to preference on ordering from online, online reviews, positive ratings, visiting
restaurant after enjoying the meal ordered online from the restaurant, service received
when ordered through Online Food Delivery app, cost-saving on ordering online,
special offers, loyalty benefits, the security of payment on Online Food Delivery apps,
ordering online from restaurant visited often and less from restaurants not available on
Online Food Delivery apps and recommending restaurants after having ordered online
from them.
However, a significant difference is observed in the perception of male and female with
respect to the impact of negative ratings of a restaurant online on ordering from that
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restaurant, convenience of ordering from Online Food Delivery apps, delivery on time,
and like a restaurant after having tried it online for the first time.
The findings suggest that for negative ratings, females have a higher mean suggesting
that the negative online reviews would make them avoid ordering or visiting the
restaurant more than males.
In the case of the convenience factor, males have a higher mean than female reflecting
a better perception towards the convenience of ordering online compared to females.
In case of delivery on the time factor, female have a higher mean compared to males,
suggesting that females have better perception than males and believe that ordering
through online apps ensure faster delivery.
In the case of acquisition, males have a higher mean than females, indicating a better
perception of males when it comes to liking a new restaurant after trying it on the Online
Food Delivery apps than females.
However, for positive ratings, special offers, ordering online, ordering offline and
recommendation there is a significant difference in the average perception of customers
from different age groups.
1. The age group of below 20 years has a stronger agreement to the statement that the
positive ratings make them order or visit from that restaurant compared to the age
group of 31- 40.
2. The age group of below 20 years has a stronger agreement to the statement that they
prefer ordering online when there are special offers available compared to the age
group of 31- 40.
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3. The age group of below 20 years has a stronger agreement with the statement that
they prefer ordering online from a restaurant they visited often compared to the age
group of 21-30.
4. The age group of below 20 years has a stronger agreement to the statement that they
prefer ordering less from restaurants not available on online food delivery platforms
compared to the age group of 21-30.
5. the age group of below 20 years has a stronger agreement to the statement that they
recommend restaurants they have liked after trying them online to others compared
to the age group of 51 and above.
6. The age group of 21-30 years has a stronger agreement to the statement that they
recommend restaurants they have liked after trying them online to others compared
to the age group of 51 and above.
7. The age group of 31-40 years has a stronger agreement to the statement that they
recommend restaurants they have liked after trying them online to others compared
to the age group of 51 and above.
For factors like the preference for ordering online, positive ratings persuading to order
from a restaurant, negative ratings of a restaurant influencing to avoid ordering from
the restaurant, visiting the restaurant, service received when ordered online, cost-saving
from ordering online, loyalty benefits, convenience, the security of paying on Online
Food Delivery apps, delivery on time, ordering less offline, liking a restaurant after
having tried it online, ordering frequently from few selected restaurants and
recommending restaurants to other after having tried it online, there exists no significant
difference in the average perception of customers from different occupation categories
ordering online.
However, for online reviews, special offers and ordering online, there exists a
significant difference in the average perception of customers belonging to different
occupations.
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For factors like the preference for ordering online, online reviews of restaurants online,
positive ratings persuading to order from a restaurant, negative ratings of a restaurant
influencing to avoid ordering from the restaurant, visiting the restaurant, cost-saving
from ordering online, special offer, loyalty benefits, convenience, the security of paying
on Online Food Delivery apps, delivery on time, ordering online from restaurant visited
often, ordering less offline, liking a restaurant after having tried it online and
recommending restaurants to other after having tried it online, there exists no significant
difference in the average perception of customers from different occupation categories
ordering online
However, for service received when ordered from the Online Food Delivery apps and
ordering frequently from a few selected restaurants, there exists a significant difference
in the average perception of customers belonging to different occupations.
1. Customers from Mumbai have a stronger agreement with the statement that they
receive a better quality of service when ordered online compared to customers from
Pune.
2. Customers Thane have a stronger agreement with the statement that they receive a
better quality of service when ordered online compared to customers from Pune.
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3. Customers Thane have a stronger agreement with the statement that they receive a
better quality of service when ordered online compared to customers from Nashik.
4. Customers from Navi-Mumbai have a stronger agreement with the statement that
they order online from the same restaurants repeatedly compared to customers from
Thane.
5. Customers from Pune have a stronger agreement with the statement that they order
online from the same restaurants repeatedly compared to customers from Mumbai.
6. Customers from Pune have a stronger agreement with the statement that they order
online from the same restaurants repeatedly compared to customers from Thane.
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Chapter 5: Findings, Conclusion and Recommendation
Negative ratings reflect a negative relation with preference for ordering online which
suggests that and increase in the negative ratings of restaurants decrease the preference
of customers to order online from these restaurants.
Negative ratings reflect a negative relation with preference for ordering online which
suggests that and increase in the negative ratings of restaurants decrease the customer
acquisition capability of the restaurants with negative ratings.
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Chapter 5: Findings, Conclusion and Recommendation
There exists a statistically significant relationship between customer retention and cost-
saving, special offer and loyalty benefits. The variables have a positive correlation with
customer retention implying that an increase in savings, special offers and loyalty
benefits in these factors will result in improving customer retention.
Factors like service, convenience, secure payment and delivery on time have a
significant impact on preference for ordering online. The findings of data analysis
suggest all the service factors influencing ordering through Online Food Delivery apps
to have a positive regression with preference for ordering online suggesting that
increase or improvement in these service variables will lead to increase in the
preference for ordering online. From among the above service factors, convenience is
the most influencing factor followed by service quality, secure payment and delivery
on time respectively.
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Chapter 5: Findings, Conclusion and Recommendation
Factors like cost-savings, special offers and loyalty benefits have a significant impact
on preference for ordering online. The findings of data analysis suggest all the saving
factors influencing ordering through Online Food Delivery apps to have a positive
regression with preference for ordering online suggesting that increase or improvement
in these service variables will lead to increase in the preference for ordering online.
From among the above saving factors, cost-saving is the most influencing factor
followed by special offers and loyalty benefits respectively.
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Chapter 5: Findings, Conclusion and Recommendation
Factors like cost-savings, special offers and loyalty benefits have a significant impact
on customer acquisition. The findings of data analysis suggest all the saving factors
influencing ordering through Online Food Delivery apps to have a positive regression
with customer acquisition online suggesting that increase or improvement in these
service variables will lead to increase in the customer acquisition by restaurant on
Online Food Delivery apps. From among the above saving factors, cost-saving is the
most influencing factor followed by special offers and loyalty benefits respectively.
Factors like service, convenience, secure payment and delivery on time have a
significant impact on customer retention. The findings of data analysis suggest all the
service factors influencing ordering through Online Food Delivery apps to have a
positive regression with customer retention for restaurants on Online Food Delivery
apps suggesting that increase or improvement in these service variables will lead to
increase in the customer retention. From among the above service factors, service
quality is the most influencing factor followed by convenience, secure payment and
delivery on time respectively.
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Chapter 5: Findings, Conclusion and Recommendation
Factors like cost-savings, special offers and loyalty benefits have a significant impact
on customer retention. The findings of data analysis suggest all the saving factors
influencing ordering through Online Food Delivery apps to have a positive regression
with customer retention suggesting that increase or improvement in these service
variables will lead to increase in the customer retention by restaurant on Online Food
Delivery apps. From among the above saving factors, loyalty benefits is the most
influencing factor followed by savings and special offers respectively.
Factors like service, convenience, secure payment and delivery on time have a
significant impact on customer recommendation. The findings of data analysis suggest
all the service factors influencing ordering through Online Food Delivery apps to have
a positive regression with customer recommendation for restaurants on Online Food
Delivery apps suggesting that increase or improvement in these service variables will
lead to increase in the customer retention. From among the above service factors,
service quality is the most influencing factor followed by convenience, delivery on time
and secure payment respectively.
Factors like cost-savings, special offers and loyalty benefits have a significant impact
on customer recommendation. The findings of data analysis suggest all the saving
factors influencing ordering through Online Food Delivery apps to have a positive
regression with customer recommendation suggesting that increase or improvement in
these saving variables will lead to increase in the customer recommendation for
restaurant on Online Food Delivery apps. From among the above saving factors, loyalty
benefits is the most influencing factor followed by special offers and savings
respectively.
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From out of the total 250 respondents, 155 respondent belong to the age group of 18-
30 years, followed by 90 respondents belonging to the age group of 30-40 years and 5
respondents belonging to the age group of 40-50 years. Thus, out of the total 100%, 62
% respondents belong to the age group of 18-30 years, 36% belong to 30-40 years of
age group and 2 % belong to the age group of 40-50 years.
From the total 250 respondents, 155 respondents are males and 95 respondents are
females. Thus, out of the total 100%, 62 % respondents are males and 38% respondents
are females.
From the total 250 respondents, 135 respondents are employed, followed by 90
respondents who are self-employed, 23 respondents who are students and 2respondents
who are home-makers. Thus out of the total 100%, 54 % respondents are employed,
36% are self-employed, and 8.2% are students while 0.8% are home-makers.
From the total 250 respondents, 125 respondents are from Mumbai followed by 60
respondents from Thane, 37 respondents from Pune, 23 respondents from Navi-
Mumbai, 3 respondents from Nashik and 2 respondents from Nagpur. Thus out of the
total 100%, 50% respondents are from Mumbai followed by 24% respondents from
Thane, 14.8% respondents from Pune, 9.2% respondents from Navi-Mumbai, 1.2%
respondents from Nashik and 0.8% respondents from Nagpur.
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Out total 250 respondents, 170 respondents stated a positive response (Yes) to
considering Online Food Delivery as future of restaurant business, 65 respondents
responded with uncertainty (Maybe) to considering Online Food Delivery as future of
restaurant business and 15 respondents responded negatively (No) to considering
Online Food Delivery as future of restaurant business. Thus out of the total 100%, 68%
respondents stated a positive response (Yes) to considering Online Food Delivery as
future of restaurant business, 26% respondents responded with uncertainty (Maybe) to
considering Online Food Delivery as future of restaurant business while 6%
respondents responded negatively (No) to considering Online Food Delivery as future
of restaurant business
240 respondents ordered online because they craved outside food, 205 respondents
ordered online as they considered it safe to order from restaurants through Online Food
Delivery app during lockdown, 190 respondents ordered online because they are tired
of eating home-cooked food, 165 respondents ordered online because of the
convenience offered by ordering through Online Food Delivery apps, 130 respondents
ordered online as they seek variety in their diet and fulfil the same by ordering from
restaurants through Online Food Delivery apps, 95 respondents order online as they are
tired of cooking at home, 80 respondents order through Online Food Delivery apps as
they need break from household chores, 75 respondents do not find adequate groceries
in the market and thus order from restaurants through Online Food Delivery apps and
40 respondents order online as they are tired of washing utensils after cooking at home.
Thus, 96% respondents ordered online because they craved outside food, 82%
respondents ordered online as they considered it safe to order from restaurants through
Online Food Delivery app during lockdown, 76% respondents ordered online because
they are tired of eating home-cooked food, 66% respondents ordered online because of
the convenience offered by ordering through Online Food Delivery apps, 52%
respondents ordered online as they seek variety in their diet and fulfil the same by
ordering from restaurants through Online Food Delivery apps, 38% respondents order
online as they are tired of cooking at home, 32% respondents order through Online
Food Delivery apps as they need break from household chores, 30% respondents do not
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find adequate groceries in the market and thus order from restaurants through Online
Food Delivery apps and 16% respondents order online as they are tired of washing
utensils after cooking at home.
From out of the total 250 respondents, 205 respondents consider Swiggy Online Food
Delivery app to be safe to order from and 140 respondents consider Zomato Online
Food Delivery app to be safe to order from during the COVID-19 lockdown. Thus, out
of the total 100%, 82% consider Swiggy Online Food Delivery app to safe to order
from during the COVID-19 lockdown while 56% consider Zomato Online Food
Delivery app to be safe to order from during the COVID-19 lockdown.
i. Customers strongly agree that online food ordering business can help restaurants
businesses and their migrant staff to sustain in the period of COIVD-19 lockdown.
ii. Customers strongly agree that the Online Food Delivery staff strictly adhere to
contactless delivery
iii. Customer agree online food ordering is a win-win situation for the customers as
well as the restaurant business and consider online food ordering to be safe during
the lockdown.
iv. Customers agree that they recommend online food ordering to their friends and
family during the lockdown.
v. Customers also agree that they believe the restaurant and the delivery staff to
observe hygienic practices.
vi. Customers are satisfied with the overall online food delivery experience and trust
the online food delivery from restaurants through Online Food Delivery apps to be
safe.
vii. Customers agree to order repeatedly from restaurants through Online Food Delivery
apps in case of prolonged lockdown.
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Chapter 5: Findings, Conclusion and Recommendation
viii. Customers agree that there are limited delicacies available on the online food
Delivery platforms during lockdown period.
Contactless delivery and hygienic practices observed by restaurant and delivery staff
have a significant impact on safety perception towards online delivery. Contactless
delivery and hygienic practices are found to have a positive regression with safety
perception suggesting that an increase in contactless delivery and hygienic will improve
the perception of customers towards online food delivery to be safe. Hygienic practices
is the most influencing factor affecting safety perception followed by contactless
delivery.
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contactless delivery and hygienic will increase customers’ trust towards online food
deliver. Hygienic practices is the most influencing factor affecting safety perception
followed by contactless delivery and safety precautions respectively.
City categorization
Out of the total 392 restaurants surveyed, 66 restaurants are from Mumbai, 65 are from
Navi-Mumbai, 64 from Thane, 66 from Pune, 65 from Nagpur and 66 from Nashik.
Thus, from the total from 100%, 16.8% of the sample is from Mumbai, 16.6% from
Navi- Mumbai, 16.3% from Thane, 16.8% from Pune, 16.6% from Nagpur and 16.8%
from Nashik.
However, for competition and customer retention, there exists a significant difference
in the average perception of restaurateurs from different cities with respect to these
factors.
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Chapter 5: Findings, Conclusion and Recommendation
1. Restaurateurs from Pune have a stronger agreement to the statement that being on
Online Food Delivery apps has helped them face competition better compared to
restaurateurs of Navi-Mumbai.
2. Restaurateurs from Nagpur have a stronger agreement to the statement that being
on Online Food Delivery apps has helped them face competition better compared
to restaurateurs of Navi-Mumbai.
3. Restaurateurs from Pune have a stronger agreement to the statement that being on
Online Food Delivery apps has helped to retain customers compared to restaurateurs
of Navi-Mumbai.
4. Restaurateurs from Pune have a stronger agreement to the statement that being on
Online Food Delivery apps has helped to retain customers compared to restaurateurs
of Thane.
5. Restaurateurs from Nagpur have a stronger agreement to the statement that being
on Online Food Delivery apps has helped to retain customers compared to
restaurateurs of Thane.
Relationship between promotion and competition with customer attraction
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Chapter 5: Findings, Conclusion and Recommendation
The online food ordering help to convert fixed cost into a variable cost. In the case of
offline ordering and delivering the order the restaurant has to bear the salary of the
delivery staff per month which is fixed. However, in the case of online ordering, the
cost borne is just the commission per order thus varying according to the number of
orders.
Bruciato, Navi-Mumbai
In the backdrop of the online food industry booming, the restaurants in the gestation
period of launching its own online food ordering app.
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Chapter 5: Findings, Conclusion and Recommendation
Chenab, Navi-Mumbai
The restaurant has been operating for 19 years and believes that this many years of
existence has improved the visibility of business with a little role of Online Food
Delivery apps. The restaurant, however, admits that being on online food delivery apps
has helped the business with an increase in the number of orders for the youth and tech-
savvy crowd.
The restaurateur believes that online ordering is suitable for the restaurants which are
new in the business and is not of much help which is well-established with a strong
customer base.
Heritage, Mumbai
Online Food Delivery discounts have helped in attracting a large number of customers
into ordering online and has inculcated the habit of eating outside more often which
may lead to health problems in long term and thereby burn a hole in the pockets of
customers while going through treatment of medical ailments endured due to imprudent
munching.
Being on the Online Food Delivery apps has helped save vehicle maintenance costs and
labour cost. The cost associated with online orders just the commission paid to the
Online Food Delivery apps.
The Online Food Delivery apps allow customers to discover restaurant located in
faraway places from their locality.
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Chapter 5: Findings, Conclusion and Recommendation
70 Beans, Navi-Mumbai
Online food delivery apps allow customers to discover menu items and also the
ingredients which go into making the dish thus facilitating to make a shrewd choice.
With most of the IT companies located in Airoli, the crowd largely comprises of
bachelors. The Online Food Delivery apps, considering the populace, customizes its
menu to suit their needs including a single-serve menu through the pop-menu, party
menu etc. Airoli witnesses most of the online orders from the bachelors in the areas.
The restaurant has listed itself on the Online Delivery apps mainly to face competition.
The cost of orders through online food delivery apps includes a 25% commission of the
total price of the food item in addition to the packaging and delivery staff charges.
Service standards are communicated by the Online Food Delivery apps in terms of
acceptance of order time and a maximum of 30 minutes are provided to the restaurants.
Online Food Delivery apps call the restaurant in case of the order not being accepted
for 5 minutes. If the order is not accepted after 5 minutes then the restaurants are
charged for the delay.
Weekly and monthly statistics are provided to every restaurant individually to give
them their performance review and also suggest the scope of improvement. The ratings
are also communicated to the restaurant to facilitate improving their performance.
As the commission of Online Food Delivery apps is high (27% in case of Zomato for
the restaurant) increasing the cost of the restaurants leaves it with little choice but to
increase the prices of the food items to earn a higher profit.
Shabari, Thane
The concept of Online Food Delivery has been of great help to food and beverage
businesses operating through the home with no dine-in facilities.
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Chapter 5: Findings, Conclusion and Recommendation
There has been no change in the amounts of profits as the increased cost of paying
commission and charges to the Online Food Delivery apps is compensated by saving
on employing restaurant delivery staff and vehicle maintenance costs.
The restaurant states that the business has neither increased nor decreased as the
customers who usually visited the restaurant now order online.
The restaurant admits that is charges twice the price on the food item on the Online
Food Delivery apps and then offers a 50% discount on the price.
A marginal increase in the order has been witnessed after being on the Online Food
Delivery apps. The customers who before the restaurant being on Online Food Delivery
apps ordered directly from the restaurant are now advised to order through Online
Delivery apps after having a presence on these apps so as to avoid the deployment of
staff delivery for the purpose.
The restaurant the volume of online food orders is equal to 3 deliveries for every 100
walk-ins.
Online Food Delivery apps serve within a radius of 7 kilometers of the restaurant. The
online ordering is of great assistance in times of bad weather or during parties organized
at homes.
Veeraswami, Nagpur
The restaurateur believes that online food delivery apps have not brought much increase
in the business. In certain situations when the Online Food Delivery apps are not
operational, the customers visit the restaurant to enjoy the meal.
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Chapter 5: Findings, Conclusion and Recommendation
The taste and texture of the meal is enjoyed better when just out of the kitchen and
consumed at the restaurant table. The delivery time differs the taste and the texture of
the food item which may make the food item not quite delectable.
The restaurants believe discounts to be the main reason for customers' predisposition to
order through Online Food Delivery apps.
The restaurants have observed 20-30% of its existing customers ordering through
Online Food Delivery apps. The decrease in the number of walk-ins has been offset by
a proportionate increase in the online orders.
Online Food Delivery apps have reduced the number of walk-in in the restaurant.
Consequently, the restaurant receives 75% of the business from the customers who visit
the restaurant and 25% for online deliveries.
A marginal increase in the profits has been witnessed, as revenue from online orders
have to be shared with the Online Food Delivery apps. However, the 25% commission
and charges of the Online Food Delivery apps are tolerable when compared to the
business it brings.
The profit from the online business depends on the number of sales it brings. If the
volume of online orders is high then the profits are substantial as well.
The restaurant states that it witnesses 45% of its business through online orders during
the discount period and without a discount, the restaurant manages to witness 15% of
business through online orders.
The restaurant states that online deliveries have disturbed the number of walk-ins at the
restaurant.
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The restaurant has no issue with the commission and charges of the Online Food
Delivery apps as otherwise; it would have been incurred by the restaurant in form of
petrol charges, extra manpower salary and maintenance of the vehicle.
The Online Food Delivery app delivers within a 7 kilometres radius of the restaurants
and thus the profits depend on the area served, the residents of offices in the area and
the discount seekers in the area.
The restaurant states that it has not witnessed many improvements in the profits
however it has the sales volume has increased as customers who would not order
otherwise also order due to attractive discounts.
A marginal decrease has been witnessed in the profits due to the packaging and the
commission charges borne by the restaurant. Dining out at the restaurant has decreased
due to the Online Food Delivery apps. 80-90% of the customer’s order through Online
Food Delivery apps.
Online orders in large numbers are witnessed during the discount period as customers
take the benefits of the discount period.
The profits of being on Online Food Delivery apps are substantially higher compared
to the losses.
The discount received by customers is shared by the restaurants and the Online Food
Delivery apps. For example, in the case of a 50% discount on the order, 30% is borne
by the app, in case of Zomato, while 20% is borne by the restaurant.
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The online competition is a bit problematic for conventional restaurants which are
apprehensive of the tech-savvy method and making a gradual shift online.
Online Food Delivery apps have reduced the number of walk-in customers by 50%.
The decrease in the number of offline orders has been offset by the commensurate
increase in the number of online orders.
The contemporary situation has made the restaurant to be on the Online Food Delivery
apps as every other restaurant is gradually making a shift online.
The presence of Online Food Delivery apps helps to also identify the most ordered
dishes by the customers and incorporate the same in the menus.
Restaurants insist on receiving orders through online food delivery apps as it allows
restaurants to save on manpower while simultaneously catering to an increase in the
delivery orders.
The extra margin of profits diminishes due to the increase in the cost of commission
paid to the Online Food Delivery apps.
The restaurant believes that being on both apps has improved the scope of business by
contributing more than 50% of the volume of the business.
Ordering food through the Online Food Delivery apps makes it convenient for the
customers as it allows them to avoid the hassle of walking to the restaurant.
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The Online Food Delivery apps can prove to be more beneficial in Mumbai city and
likewise where customers are more tech-savvy. Unlike customers in Mumbai, the
crowd in Nashik where only limited people find it comfortable to order food from
Online Food Delivery apps.
The restaurant does not witness much repeat orders from online customers as these
customers order because of heavy discounts during which customers order without
much forethought.
The restaurant considers its offline business to fare well compared to its business
operated through Online Food Delivery apps.
There exists trust issues within customers with respect to the quality in case of online
ordering leading to inexpensive order and thus risking less money in online ordering.
In the case of the city like Nashik, where people are free from their work by 6:00 pm
prefer dining out rather than ordering food through Online Food Delivery apps.
Mughal’s, Nashik
In a few cases, poor service on the part of Online Food Delivery apps can adversely
impact the reviews and ratings of the restaurant on the app. For instance, in case of
delay in delivery by the Online Food app delivery staff may lead to the food being
delivered cold affecting customer experience and impacting the ratings of the Online
Food Delivery apps.
The restaurant's experience has been that it earns a revenue equal to serving 10 tables
from approximately 25 online deliveries.
The restaurant recommends streamlining the selection process through a hygiene test
as the basis of approving restaurants with a place on the Online Food Delivery app and
considering food license and registration as a criterion for selection. Negligence of
Online Food Delivery apps and without much consideration for hygiene even road-side
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food stalls have managed to be listed on Online Food Delivery apps giving competition
to restaurants with proper quality and registration standards.
20% of the crowd in Nashik which hitherto visited restaurants for dining has shifted
online.
The restaurants receive payment on a weekly basis from the Online Food Delivery apps
for the orders delivered from their restaurants through these apps. On the other hand,
In the case of offline orders or dine-in, the revenue is instantly generated on the payment
for the order.
15-20% of the cost of the restaurants includes commission and packaging charges
imposed by the Online Food Delivery apps and these charges have managed to wipe
off the extra profits from online orders.
Most of the times there has been a delay in delivery observed when delivered through
Online Food Delivery apps.
The restaurants are forced to offer discounts in collaboration with the Online Food
Delivery apps as in the absence of discounts not much online order is witnessed.
Online Food Delivery provides the customer with the option to cancel the order any
time before delivery which gives customers the power to cancel order when already
been prepared but not yet delivered of not hungry anymore.
The benefit of dine-in is that it may lead to customer expansion as the customers can
be persuaded to try new food items on the menu.
The restaurant witness 20-30 orders a day without promotion and with promotional
offers the restaurants manage to garner 100 orders a day through the Online Food
Delivery apps. In case of offering a 50% discount, the break-up of the same includes
20% borne by Zomato and 30% borne by the restaurant.
The restaurant does not see many new customers ordering. The regular customers who
due to some of the other reason cannot manage to visit the restaurant due to bad weather
or personal reason order online.
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The Online Food Delivery apps are not of much use to old restaurants but prove to be
quite beneficial for new restaurants that face difficulty in the starting years of
commencement to receive the needed demand to sustain the business.
The restaurant further mentions that it believes the Zomato delivery staff is not trained
in a professional manner to handle the delivery and thus the restaurants do accept
limited orders from Zomato.
The restaurant states that are on the Online Food Delivery app to face intense
completion in the industry.
The restaurateur is of the opinion that the concept of Online Food Delivery apps works
best for big restaurants as they can afford to offer heavy discounts required to attract
online orders. Customers order less in the absence of discounts. During the period of
discount, the customer who in general does not order online will also be ordered online
to benefit from the heavy discount offered by the restaurant on the Online Food
Delivery app.
The specialty of the restaurants in South Indian cuisine and believes that in case of
delivery of the food item, like dosa, the taste and the texture of the food item is different
when served hot immediately after cooking at the restaurant kitchen. The same is
impacted when delivered at home after 20 to 30 minutes of cooking and may taste bad.
This may affect the review of the restaurants from the customers. The change in the
taste and texture are factors that are beyond the control of the restaurant and affects
their rating adversely.
The restaurants did witness an increase in the business in the beginning when it offered
a 60% discount through the Online Food Delivery. However, later observing that the
increase in sales volume did not have much impact on the profits and thus desisted the
offers.
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The element of being on Online Food Delivery apps has adversely impacted the
Return on Investment owing to a lack of optimum utilization of the restaurant space
due to a decrease in the number of footfalls in the restaurant.
Promotion and competitive edge can be attributed to word-of-mouth publicity.
Online delivery apps have facilitated many restaurants to shut down their dine-in
services and operate business just through the delivery of online orders
The reviews shared on the online food delivery apps are 100% genuine and have a
system in place for weeding out fake reviews.
5.2 Conclusion
1. Most of the customers ordering from the Online Food Delivery app belongs to the
age group of 21-40 years of age.
2. Most of the customers who order online belong to the employed category, followed
by students and self-employed customers.
3. Most of the regular customers order through Online Food Delivery apps once a
week.
4. Customers preferred ordering online usually when they wanted to avoid cooking.
5. Most of the customers ordered on Online Food Delivery app on any day of the week.
6. The most used Online Food Delivery app is Zomato followed by Swiggy.
7. Most of the customers stated discounts and convenience offered by the Online Food
Delivery app as a reason for ordering through Online Food Delivery apps.
8. Favourable perception
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delivery on time, ordering online from restaurants on Online Food Delivery apps, Order
less from restaurants not on Online Food Delivery apps, liking a restaurant after having
ordered online, ordering from few selected restaurants and recommending restaurants
after trying them on Online Food Delivery apps.
Customers prefer ordering from an online food delivery app. They read online reviews
when ordering through online food delivery apps and believe that positive ratings make
them want to visit or order from the restaurant and negative online reviews of a
restaurant would make them avoid visiting or ordering from the restaurant. Customers
have visited restaurants after having enjoyed the meal ordered through the Online Food
Delivery app.
Customers believe that the service quality when ordered through Online Food Delivery
apps is good. Customers also realise more savings as a result of ordering food from the
restaurants through Online Food Delivery apps.
Customers prefer ordering during a special offer period like discounts, cashback of
bundle offers. Customers believe that ordering online provides loyalty benefits.
Customers find Online Food Delivery apps convenient and secure in terms of payment
as well. Customers also affirm that Online Food Delivery apps provide prompt delivery.
Customer prefers ordering online from restaurant visited often and less from the
restaurant which is visited often but is not available on any of the Online Food Delivery
apps. Customers have started liking after trying them for the first time online. They
have a few selected restaurants from which they order online repeatedly over Online
Food Delivery apps. Customers have also recommended restaurants to others which
they came across and tried through the online food delivery app.
9. Ranking of factors
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Online Food Delivery apps, negative ratings making customers avoid ordering from a
restaurant, service quality when ordered online is better that when ordered directly from
the restaurant, ordering during the special offer period, visiting restaurant after having
enjoyed it meal through Online Food Delivery app, deliver online order in time,
ordering through restaurants on Online Food Delivery apps, loyalty benefits received
when ordered through Online Food Delivery apps and ordering less from restaurants
visited often but not available on online food delivery apps respectively.
Customers prefer ordering online from a restaurant once visited often, as it is available
on Online Food Delivery apps. Customers order less from a restaurant once visited
often, as it is not available on the Online Food Delivery app.
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More male customers have liked a restaurant after trying it on the Online Food
Delivery app than females.
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Customers from Thane have a better perception when compared to customers from
Nashik towards the quality of service they receive when ordered through Online
Food Delivery apps.
The customers from Navi-Mumbai order more from the few selected restaurants
repeatedly over the Online Food Delivery apps compared to customers from Thane.
The customers from Pune order more from the few selected restaurants repeatedly
over the Online Food Delivery apps compared to customers from Mumbai and
Thane.
16. Impact of factors influencing ordering online on preference for ordering online
Service factors:
When the service quality is improved it also makes the preference to order online
stronger. An increase in the convenience offered by ordering online through Online
Food Delivery apps is also likely to make the preference for ordering online stronger.
If the online payment system assures improved safety and security measures then
customers are more likely to prefer ordering online. If the food ordered online is
delivered within the guaranteed time of earlier, then customers will prefer ordering
online more.
All the service factors, that is, service quality, convenience, secure payment and
delivery on time have a significant influence on the preference for online ordering.
Convenience has a strong influence on preference for ordering online followed by
service, secure payment and delivery on time respectively.
Savings factors:
If ordering from restaurants through Online Food Delivery platforms result in more
savings for customers then customers will prefer ordering through Online Food
Delivery platforms. Better and more special offers and loyalty benefits offered by
restaurants on Online Food Delivery apps also improve the preference for ordering
online.
All the saving factors, that is, cost-savings, special offers and loyalty benefits have a
strong influence on preference for ordering online. Cost-saving on ordering through
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Online Food Delivery apps is the most significant factor influencing preference for
ordering followed by special offers and loyalty benefits respectively.
17. Impact of online reviews and ratings on preference for ordering online
Online ratings, both positive as well as negative has a strong influence on preference
for ordering online. However, positive ratings has a positive influence on preference
for ordering online whereas, negative ratings have a negative influence on preference
for ordering online. An increase positive rating increases the preference of customer to
order from restaurants with such ratings through Online Food Delivery apps. Negative
ratings; on the other hand, decreases the preference of customer to order from
restaurants with such ratings through Online Food Delivery apps.
Positive ratings has a stronger influence than negative ratings on preference for ordering
online and can thus be useful in predicting preference for ordering online.
Service factors:
When the service quality is improved, it also improves the customer acquisition
capability of the restaurants on Online Food Delivery apps. An increase in the
convenience offered by ordering online through Online Food Delivery apps is also
likely to improve the customer acquisition rate for restaurants on Online Food Delivery
apps. If the online payment system assures improved safety and security measures then
customers are more likely to order from restaurant through Online Food Delivery app.
If the food ordered online is delivered within the guaranteed time of earlier, then
customer acquisition rate will also improve.
All the service factors, that is, service quality, convenience, secure payment and
delivery on time have a strong influence on the customer acquisition capability of
restaurant on Online Food Delivery apps. Service quality experienced when ordered
from a restaurant through Online Food Delivery apps has a strong influence on
customer acquisition capability of restaurants on Online Food Delivery apps followed
by convenience of ordering through Online Food Delivery platforms, secure payment
and delivery on time respectively.
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Savings factors:
If ordering from restaurants through Online Food Delivery platforms result in more
savings for customers then customer acquisition will improve for restaurants on Online
Food Delivery platforms. Better and more special offers and loyalty benefits offered
by restaurants on Online Food Delivery apps also improve the customer acquisition
capability of restaurants on Online Food Delivery apps.
All the saving factors, that is, cost-savings, special offers and loyalty benefits have a
strong influence on customer acquisition capability of restaurants on Online Food
Delivery apps. Cost-saving on ordering through Online Food Delivery apps is the most
significant factor influencing customer acquisition capability of restaurants on Online
Food Delivery apps followed by special offers and loyalty benefits respectively.
Online ratings, both positive as well as negative has a strong influence customer
acquisition capability of restaurants on Online Food Delivery apps. However, positive
ratings has a positive influence on customer acquisition whereas, negative ratings have
a negative influence on customer acquisition. An increase positive rating increases the
customer acquisition rate for restaurants with such ratings on Online Food Delivery
apps. Negative ratings; on the other hand, decreases the customer acquisition rate for
restaurants with such ratings on Online Food Delivery apps.
Positive ratings has a stronger influence than negative ratings on preference for ordering
online and can thus be useful in predicting preference for ordering online.
Service factors:
When the service quality is improved, it also improves the customer retention capability
of the restaurants on Online Food Delivery apps. An increase in the convenience
offered by ordering online through Online Food Delivery apps is also likely to improve
the customer retention rate for restaurants on Online Food Delivery apps. If the online
payment system assures improved safety and security measures then customers are
more likely to order from restaurant through Online Food Delivery app. If the food
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ordered online is delivered within the guaranteed time of earlier, then customer
retention rate will also improve.
All the service factors, that is, service quality, convenience, secure payment and
delivery on time have a strong influence on the customer retention capability of
restaurant on Online Food Delivery apps. Service quality experienced when ordered
from a restaurant through Online Food Delivery apps has a strong influence on
customer retention capability of restaurants on Online Food Delivery apps followed by
convenience of ordering through Online Food Delivery platforms, secure payment and
delivery on time respectively.
Savings factors:
If ordering from restaurants through Online Food Delivery platforms result in more
savings for customers then customer retention will improve for restaurants on Online
Food Delivery platforms. Better and more special offers and loyalty benefits offered
by restaurants on Online Food Delivery apps also improve the customer retention
capability of restaurants on Online Food Delivery apps.
All the saving factors, that is, cost-savings, special offers and loyalty benefits have a
strong influence on customer retention capability of restaurants on Online Food
Delivery apps. Loyalty benefits offered by restaurants and Online Food Delivery apps
collectively is the most significant factor influencing customer retention capability of
restaurants on Online Food Delivery apps followed by cost-savings realised on ordering
from restaurant through Online Food Delivery apps and special offers respectively.
Service factors:
When the service quality is improved, it also improves the chances of customer
recommending the restaurant to family and friends. An increase in the convenience
offered by ordering online through Online Food Delivery apps is also likely to improve
the chances of customer recommending the restaurant to family and friends. If the
online payment system assures improved safety and security measures then customers
are more likely to recommend the restaurant on Online Food Delivery apps to family
and friends. If the food ordered online is delivered within the guaranteed time of earlier,
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then the customer will strongly recommend the restaurant on Online Food Delivery
apps to family, friends and others.
All the service factors, that is, service quality, convenience, secure payment and
delivery on time have a strong influence on the customer recommendation. Service
quality experienced when ordered from a restaurant through Online Food Delivery apps
has a strongest influence on customer recommendation for restaurant on Online Food
Delivery apps followed by convenience of ordering through Online Food Delivery
platforms, timely delivery and secure payment online respectively.
Savings factors:
If ordering from restaurants through Online Food Delivery platforms result in more
savings for customers then the chances of customer recommending the restaurant to
family and friends will improve for restaurants on Online Food Delivery platforms.
Better and more special offers and loyalty benefits offered by restaurants on Online
Food Delivery apps also improves the chances of customer recommending the
restaurant on Online Food Delivery apps to family and friends.
All the saving factors, that is, cost-savings, special offers and loyalty benefits have a
strong influence on customer recommendation. Loyalty benefits offered by restaurants
and Online Food Delivery apps collectively is the most significant factor influencing
customer recommendation followed by special offers and cost-savings realized on
ordering from restaurants through Online Food Delivery apps respectively.
22. Elaborative online reviews allow customers to consider those choices with respect
to the selection of restaurants. Online reviews also provide customers with the idea
of the best dishes served by the restaurant and their specialties.
Most of the customers who order during the lockdown belong to the age group of
18-30 years
Males order more from the Online Food Delivery apps during the lockdown
compared to females
Most of the customers who order from the Online Food Delivery apps during the
lockdown belong to the employed category.
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Customers from Mumbai order more from Online Food Delivery apps during the
lockdown followed by Thane and Pune.
Most of the customers are of the opinion that online food delivery business will be
the future of the restaurant industry.
Customers order from restaurants through Online Food Delivery apps as they crave
outside food and believe online food delivery to be safe during the COVID-19
lockdown.
Customer perceive Swiggy Online Food Delivery app to be safer compared to
Zomato Online Food Delivery app.
If the delivery staff adhere to contactless delivery then customers are more likely to
perceive online food delivery from restaurant through Online Food Delivery apps to be
safe. If hygienic practices are increased and improved among the restaurant staff and
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delivery staff then customers’’ perception towards Online Food Delivery system to be
safe will be improved.
Thus, contactless delivery and hygienic practices have a strong influence on customers’
perception of online food delivery system to be safe. When compared individually,
hygienic facilities has a stronger influence than contactless delivery on customer
perception.
If the delivery staff and restaurant staff adhere to safety precautions then it will increase
customer trust towards online ordering from restaurants through Online Food Delivery
apps. If the delivery staff observe contactless delivery then customers are more likely
to trust online food delivery from restaurant through Online Food Delivery app. If
hygienic practices are increased and improved among the restaurant staff and delivery
staff then it will increase customer trust towards online food delivery from restaurants
through Online Food Delivery apps.
Thus, safety precautions, contactless delivery and hygienic practices have a strong
influence on customers’ perception of online food delivery system to be safe. When
compared individually, hygienic facilities has a stronger influence on customer trust
followed by contactless delivery and safety precautions.
Restaurateurs reflect a favourable perception with respect to all factors suggesting that
being on Online Food Delivery apps.
Online Food Delivery app has provided the needed visibility to the Casual Dining
restaurants through promotion on the Online Food Delivery platforms. The restaurants
listed on the Online Food Delivery platforms have been benefited by the popularity of
the apps.
Restaurants have been able to face competition better after being listed on Online Food
Delivery platforms.
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Restaurants have been able to attract more customers through Online Food Delivery
apps and have also been able to retain customers by securing repeat orders from new as
well as existing customers.
The restaurants by being on Online Food Delivery apps gain from the improved
visibility sand the competitive edge offered by the Online Food Delivery apps. Increase
in promotion can increase the new customers to the restaurant on the Online Food
Delivery app. The competitive advantage of being on the Online Food Delivery
platform also increases the rate of customer attraction for a restaurant on the Online
Food Delivery app.
Thus, promotion and competitive edge as a virtue of being on Online Food Delivery
apps have a strong influence on attracting new customers. When compared individually,
promotion has a stronger influence than competitive advantage on customer attraction.
An increase in the amount of promotion has helped restaurants to face competition. The
promotion and visibility offered by Online Food Delivery apps have attracted new
customers to the restaurants listed online and also has helped in retaining the new as
well as existing customer base. An increase in customer attraction and customer
retention has also helped restaurants to improve profitability.
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The restaurants by being on Online Food Delivery apps gain from the improved
visibility and the competitive edge offered by the Online Food Delivery apps. Increase
in promotion can increase the new customers to the restaurant on the Online Food
Delivery app. The improved capability to face competition by being on the Online Food
Delivery platform also increases the rate of customer attraction for a restaurant on the
Online Food Delivery app.
Thus, promotion and competitive edge as a virtue of being on Online Food Delivery
apps have a strong influence on attracting new customers. When compared individually,
promotion has a stronger influence than competitive advantage on customer attraction.
The restaurants by being on Online Food Delivery apps gain from the improved
visibility and the competitive edge offered by the Online Food Delivery apps. Increase
in promotion can increase the customer retention capability of restaurant on the Online
Food Delivery app. The improved capability to face competition of being on the Online
Food Delivery platform also increases the rate of customer retention for a restaurant on
the Online Food Delivery app.
Thus, promotion and competitive edge as a virtue of being on Online Food Delivery
apps have a strong influence on retaining customers. When compared individually,
promotion has a stronger influence than competitive advantage on customer retention.
The Online Food Delivery apps has helped restaurant to improve their rates of customer
attraction and customer retention and in turn has elevated the profits of the restaurants.
Customer attraction and customer retention has a positive influence on profitability of
the restaurants.
An increase in the new customers ordering from the restaurants on Online Food
Delivery apps has increased the profits of the restaurants on Online Food Delivery apps.
An increase in the number of customers ordering repeatedly from the restaurants on
Online Food Delivery apps has also improved the profitability of the restaurant
business.
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Thus, customer attraction and customer retention as a virtue of being on Online Food
Delivery apps have a strong influence on profits of restaurants on Online Food Delivery
apps. When compared individually, customer retention has a stronger influence than
customer attraction on profitability of restaurant business.
Restaurants in Mumbai, Navi-Mumbai and Pune with more tech-savvy customers and
working 9 hours a day exploit the benefit of the Online Food Delivery app. Cities in
Nashik where customers usually get free from work or office by 6 pm in the evening
usually prefer dining out and are not comfortable with ordering food through the Online
Food Delivery app.
Online Food Delivery apps have led to existing customer hitherto dining at the
restaurants are now ordering online. While the sales have remained constant, as the
offline customers have shifted online use of the dining space of the restaurant has not
been put to its optimum use. IN certain cases, the advent of Online Food Delivery apps
has also made restaurants close down their dine-in service completely and just operate
online through Online Food Delivery apps.
Restaurants have more online orders during their discount period, not much order when
they do not have any discounts over the Online Food Delivery app. Discounts, and
special offers are the biggest attraction for most of the customers to order online. During
the special offer period, not only orders from new customers is witnessed but also
existing customer prefer to order online to benefit from the discount.
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The discounts offered by Online Food Delivery are shared between the Online Food
Delivery app in the ratio of 20:30 between the restaurants and Online Food Delivery
apps.
Restaurants state that it has not witnessed a change in its cost as the cost of paying
commission and charges paid to the Online Food Delivery apps is compensated by
saving on employing restaurant delivery staff and vehicle maintenance cost.
The restaurant industry has made a gradual shift online by being On Online Food
Delivery apps. This has given the restaurants to take advantage of the popularity of
well-established Online Food Delivery apps without having to go through the hassle of
creating their own app. Being on Online Food Delivery apps has provided the needed
visibility in the locality and has helped in promoting the business. The Online Food
Delivery apps have been crowded by restaurants and thus to face competition it has
become the need of the hour to be on these apps.
Some restaurants currently using the space on Online Food Delivery apps are
considering starting their own personalized apps to cater to its customer base as the
online food industry is thriving and flourishing.
The commission rates charged by the Online Food Delivery apps are in the range of 20-
27% per order. Zomato app charges 27% per order from the restaurant and Swiggy
charges 20% per order from the restaurant.
Restaurants believe that being on Online Food Delivery apps has facilitated to increase
in 20-50% business in the form of online orders. Online food ordering promises
convenience to the customers and acts as the link between customers and restaurants
which gives the restaurant the benefit to serve the customers conveniently through
Online Food Delivery apps. Convenience is the most important reason as observed in
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the findings and thus attracts the crowd to the restaurant in the form of online orders,
thus increasing the volume of business for restaurants.
41. Promotion
Unlike franchises, Casual Dining restaurant does not have many options for extensive
promotion. The most common practice of promotion for these restaurants is through
billboards or distribution of pamphlets and menus in the nearby locality. This
promotional strategy may be successful in offering limited visibility to restaurants.
Smartphone device has allowed businesses to reach a large number of customers
simultaneously. Being on popular Online Food Delivery application installed in most
of the customer’s smartphone device has benefited the restaurant by providing the
visibility and promoting their business at the mere cost of sharing the commission with
the Online Food Delivery apps. This has also allowed restaurants to face competition
better.
Online Food Delivery apps promise an increase in the volume of business but fail to
bring a proportionate increase in the amounts of profit. Though restaurant admits that
they have seen an upsurge in the number of online orders they receive during the day
and has helped them grow their business and reach more customers despite the limited
staff as delivery is handled by Online Food Delivery staff, the profits have increased
marginally as the price of the food item ordered online has to be shared with the Online
Food Delivery apps in the form of commission.
Online Food Delivery apps have been proved to be a boon for newly establishes
restaurants as it has helped them to get the needed visibility and promote the business
in order to cover up the early investment cost. However, for the well-established
restaurants with a matured customer base find Online Food Delivery futile. For such
restaurants, the promotion is their existing customer’s word-of-mouth and may find
commission to be paid to Online Food Delivery apps as an unnecessary cost.
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The taste and the texture of the food when ordered online differs from that served at the
restaurant table within minutes of being cooked. Although online food delivery apps
may beneficial for most of the restaurants, it may not suit all the cuisines or food items.
Certain food items do not taste as good as when served at the restaurant's table within
minutes of cooking. The temperature, texture, and taste of the food may not be quite
delectable when served through delivery after many 20 -30 minutes of cooking and may
adversely affect customer experience.
The concept of the Online Food Delivery app is not beneficial to small restaurants who
cannot afford heavy commission charged by Online Food Delivery apps.
46. The poor performance of Online Food Delivery apps affect restaurant ratings
An instance of poor service from Online Food Delivery apps has adversely affected the
performance reviews of restaurants. A poor indication of service on a popular Online
Food Delivery app may tarnish the image of the restaurants and adversely impact the
restaurant image. The consequence of poor service on part of the Online Food Delivery
apps should not be borne by the restaurants.
The concept of Online Food Delivery apps has proved to be beneficial to women
operating tiffin or food service from home by providing the needed visibility to their
business and has improved the scope of their business.
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5.3 Recommendations
Online Food Delivery should have stringent criteria in place to allow the listing of
Online Food Delivery apps. Without much checking of the food outlets, even the road-
side stalls have been able to take advantage of being listed on Online Food Delivery
apps. The registration and the hygiene standards of the food outlets should be checked
before being allowed to list on the Online Food Delivery apps.
It has been observed that customer has a favourable perception towards reviews and
customers do read reviews of the restaurants on the Online Food Delivery apps.
Findings also suggest that the Online Food Delivery app has a system of weeding out
fake reviews and only genuine reviews are displayed on the apps. The reviews
displayed on the Online Food Delivery apps are thus trustworthy and reliable. Customer
refers to reviews to make the choice of restaurant to order from and also identify the
specialties of the restaurant and their acclaimed dishes.
Online Food Delivery apps which have a system of only displaying ratings and allowing
customers to only rate a particular restaurant should add an additional section for
writing reviews and feedback to provide suggestion to the restaurants which can help
them to improve their service and also information to the other customers to help them
make a choice on ordering food.
Online Food Delivery apps act as a platform between customers and restaurants. The
app may be of great aid to a restaurant and also offer convenience to the customers.
However, there remains a gap between the restaurants and the customers as throughout
the process of online ordering no direct contact is allowed between restaurant and
customer. Online Food Delivery app should strive to enable its platform to become a
direct source of communication between the restaurant and the customers. There should
be feedback and a grievance system in place. In addition, restaurants should be allowed
to communicate with its customers through the Online Food Delivery apps to
communicate and redress their grievances. This can ensure better customer acquisition
and retention and enhance customer satisfaction. If this recommendation can be
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4. Separate review sections for Online Food Delivery apps and restaurants
Restaurants should not be held accountable for the poor service on the part of the
restaurants and vice-versa. An instance of delay in acceptance of an order may lead to
delay in preparation and thereby delivery. The consequence of poor service on part of
the Online Food Delivery apps should not be borne by the restaurants and the
repercussions of delay on the part of the restaurants should not be endured by the Online
Food Delivery apps.
There should be separate reviews and rating sections for Online Food Delivery apps
facilitated to the customers to ensure that neither the restaurant not the Online Food
Delivery apps are rated negatively for poor service on account of the other party.
5. Option for restaurants to use their own delivery staff for better service
Restaurants should be allowed to use their own delivery staff to deliver the parcels. This
can allow the restaurants in optimum utilization of manpower and also save on
commission in case of permanent delivery staff employed. The initiative can allow
restaurants to have more control on the entire process as well as benefit from promotion
on the Online Food Delivery apps as well as commission. The commission may be
reduced if the restaurants is using its own delivery fleet. Restaurants can also choose to
use the delivery staff of Online Food Delivery apps during weekends when they witness
an increased number of walk-ins and cannot cope with the number of increased online
orders due to limited staff engaged in restaurants.
Online Food Delivery apps should ensure to train their staff with respect to various
essentials of customer. The delivery staff should be trained with respect to handling the
food package and communication with the customer to enhance the customer
experience. Service has a strong impact on the preference of ordering online and
customer acquisition however, t has been observed through the findings that currently
customers have a negative perception towards service. Training the delivery staff can
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improve the service and in turn also help in improving customer acquisition by ensuring
a stronger preference for ordering online.
7. Focus on Service
Service has a strong impact on preference for ordering online and customer retention.
The Online Food Delivery apps, as well as restaurants, should focus more on improving
the service on Online orders by ensuring proper packaging, providing with use and
through miscellaneous cutlery which is bio-degradable, tissues and other elements of
service like well-spoken staff and helpline numbers to register complaints and quick
redressal of the same.
A better service may also lead in improving ratings. It had been observed in the findings
of the study that negative ratings have a negative regression with preference for
ordering online and customer acquisition. This means that a negative rating tends to
decrease the preference for ordering online suggesting losing a customer for Online
Food Delivery apps and also decrease the restaurant’s capability for customer
acquisition, suggesting a loss for restaurant business as well. Thus, efforts should be
directed towards improving the overall customer experience of online ordering with
collaborative efforts on the part of the Online Food Delivery apps as well as restaurants
to secure positive ratings.
Positive ratings have been observed to have positive regression with preference for
ordering online and customer acquisition. An increase in positive ratings will increase
the preference for ordering through Online Food Delivery apps and also the customer
acquisition capability of restaurants on Online Food Delivery apps.
Based on the observation of the study customers mainly order during the discount
period which does not allow the restaurant of the Online Food Delivery apps to gain
many profits. In such a situation, restaurants admit that they increase the prices of the
food items on the menu displayed on Online Food Delivery apps and offer discounts
on the same which allows restaurants to be in a profitable position. Despite the fact of
discounts and ordering most during the special offer period, customers have a negative
perception towards realizing savings when ordered on the Online Food Delivery app.
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A recommendation with respect to the above observation that the restaurant should
display the same rates of food items on Online Food Delivery apps as that of the rates
on the restaurant’s menu for dine-in customers and show the commission and packaging
charges as the service charges which increases the total cost of the food item. This may
allow the customer to make a cautious choice to order online or directly through the
restaurant.
Researchers can focus on the impact of Online Food Delivery apps on employment in
Maharashtra as the future scope of the study. The researches can cover the Human
Resource Management policies of Online Food Delivery apps, determination of
compensation package and welfare schemes for delivery staff. Employee satisfaction
with respect to the work profile, working, salary offered and working hours. Employee
satisfaction and retention policies of the Online Food Delivery staff can be surveyed in
future researches.
As the online food, industry is flourishing many fine dining and casual dining
restaurants are designing their own websites and apps catering to their customer base
exclusively. This may help the restaurant to save on the commission paid to Online
Food Delivery apps. However, the cost associated with delivering and designing online
service and the benefits of the app remains questionable. The restaurants opening their
own apps may have to bear the heavy promotional cost to keep up with the intense
competition from the well-established and popular Online Food Delivery apps and
restaurants listed on these apps. Thus, future researches can focus on the benefits of the
restaurant’s personalized app compared to Online Food Delivery apps.
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It has been observed through the findings and conclusion of the research that the advent
of Online Food Delivery apps has its adverse effects on the dining space of the
restaurants. Restaurants have witnessed their offline customers ordering online
dropping the number of walk-ins at the restaurant. This does not allow the restaurant to
use its space optimally and also the investment of the interior and décor to lure the
customers from competitors proves to be futile. Future researches can thus focus on the
impact of the advent of Online Food Delivery apps on Return on Investment of
restaurants in the dining space.
4. Role of Online Food Delivery apps in the thriving of Cloud Kitchen concept
Cloud kitchens are the term used for restaurants or food outlets with no dining space of
its own and thus no business offline. The cloud kitchen only receives its orders through
the Online Food Delivery apps and operate the business solely through online delivery.
Thus, these cloud kitchen brands and dependent on the Olean Food Delivery apps to
bring most of the business to them. Future research can focus on the role of the Online
Food Delivery apps in growing the businesses of the cloud kitchens and the future scope
for the business.
The advent of Online Food Delivery apps has forced many restaurants to operate most
of their business online. Some restaurants as observed through findings witness 50% of
the business received through online orders. However, in times of not receiving much
business, it is offset by walk-ins at the restaurants. On the other hand, cloud kitchen
operates business only through the orders received over Online Food Delivery apps and
nothing to compensate for the loss of business when Online Food Delivery apps are not
operational with no dining space. However, the dining space of a restaurant is a huge
investment and increases the operating cost for maintenance of the same and also
employing service staff.
In such a situation the question that lingers, whether restaurants are at benefit or cloud
kitchens. Future research can solve this riddle by the focus the research on cost-benefit
analysis of restaurants on Online Food Delivery apps and Cloud Kitchens.
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Researchers in the future can focus on undertaking a comparative study on the impact
of Online Food Delivery apps on well-establishes restaurant and start-ups in restaurant
industry. The research can focus on the role of Online Food Delivery apps in sustaining
the supremacy of Well-established business or restaurants who have been in the
business since many years are losing their competitiveness as a result of new emerging
models. The study can simultaneously emphasize on the impact of Online Food
Delivery apps in promoting the start-ups and customer acquisition considering limited
availability of options of promoting business in restaurant industry.
7. Comparative study between restaurants and cloud kitchens with respect to role of
Online Food Delivery apps
Future studies can focus on undertaking a comparative study between role of Online
Food Delivery apps in restaurants and cloud kitchen. Cloud kitchen is an emerging
concept in the restaurant industry with a different business model that the non-
contemporary restaurants. The Cloud kitchens rely prominently on Online Food
Delivery apps for customer acquisition and represent a major part of their business
operations. The prospect of the distinguishing the role of Online Food Delivery apps
can be of interest to future researchers.
Cloud kitchen is the pure online form of the restaurant industry and helps the business
to save on infrastructure cost and cater to the needs of its customers through Online
Food Delivery apps. Being on the Online Food delivery apps help cloud kitchens to use
the popularity of the apps to its benefit. With every business gradually and steadily
making a shift online in the technology era, can cloud kitchen be the future of the
restaurant's industry? Researchers can focus on the concept of cloud kitchens as the
future of the food industry.
It has been observed that being on Online Food Delivery apps does not require a
restaurant to meet the much required stringent criteria. In such a situation, the question
of quality compromise arises. It is a matter of concern whether the cloud kitchen listed
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on Online Food Delivery apps meet the hygienic standard and whether there is a
possibility of quality compromise from their end. The future research can focus on
understanding the customer perception towards the food delivered by cloud kitchens.
There lie three perspectives when online food delivery is considered, first, online
ordering from Online Food Delivery apps, second, pick-up from restaurant, and third,
delivery by Online Food Delivery staff. Ordering online provides customers with
convenience; however, the service quality of the Online Food Delivery apps may be
questionable. Future research can focus on understanding customer perception towards
services of Online Food Delivery apps.
When it comes to ordering online restaurants and Online Food Delivery play has to
strive together to provide a better service to customers. Both play an important role in
enhancing the customer experience. However, as observed through the findings of the
research restaurant have to sometimes endure the poor service on the part of Online
Food Delivery apps through negative reviews and ratings. The researchers in the future
can take up the topic of studying the impact of poor service delivered by Online Food
Delivery apps on restaurant ratings and performance reviews.
The convenience offered by Online Food Delivery apps to the customers to order their
favourite food items from their favourite restaurants and get it delivered at the doorstep
and relishing the meal without having to step outside the comfort of their homes has
been observed to be the most important reason to order online as per the findings of the
study. In addition, special offers are one of the prominent reasons for ordering online
for most of the customers as observed from the findings of the study. However, as
suggested by many restaurants survey, customers order online to benefit from the
special offer. Sometimes, the customer who does not usually order may also order so
as not to miss out on an attractive discount. Both the reason may lead to unmindful,
unnecessary ordering and consumption of restaurant food which may not be as healthy
and hygienic when compared to home-cooked food and may adversely affect the health
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of the customers in the long run. Restaurants don not have to meet any stringent criteria
to be listed on Online Food Delivery apps which may also lead to raising doubts with
respect to hygiene standards. Researches in the future can study the impact of
unmindful online ordering on the health of customers.
In the times of digitization and e-commerce, where every business is trying to serve its
customer at the doorstep. Reduction in the number of vehicles on roads leading to a
reduction in emission of greenhouse gases and less traffic congestion on road may help
in preventing air pollution and noise pollution as well. An innovative and
environmentally friendly perspective can be adopted by the researchers in the future to
study the impact on online commerce on the environment.
14. A comparative study on ordering facility of the restaurant and through Online
Food Delivery apps
The future research can focus on the pros and cons of the ordering through the delivery
facility of the restaurant and ordering through the Online Food Delivery apps. The study
can focus on the customers view point as well as restaurant’s view point of operating
an independent delivery facility compared to a collaborated delivery facility with the
Online Food Delivery apps. Such a research will provide a better understanding to the
restaurant business with respect to the cost and benefits of the direct and indirect online
delivery facility and thereby facilitate a prudent decision.
It has been found through discussions with the restaurateurs in the process of the data
collection that the delivery time deteriorates the quality of food in terms of taste,
temperature and texture. The researches in future can focus on the impact of food
quality when delivered on customer satisfaction compared to the satisfaction derived
from food enjoyed at the restaurant. The study may be selective with respect to certain
kinds of restaurants. The research findings are expected to interesting considering
variety of cuisines available in India.
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16. Study on the online food delivery industry in the aftermath of Corona pandemic
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