FINDINGS/SUGGESTIONS/CONCLUSION

FINDINGS
• 2% of order received through mobile app.
• 50-70% of total revenue is generated through mobile app based food delivery services.
• Challenges faced during usage of mobile app based food delivery service is the increased competition from
other restaurant & high commission fees from the delivery platform.
• Operational cost increased to 38% due to additional delivery expenses.
• The factor which contributes most to the growth of mobile app based food delivery service is cost
effectiveness.
• 40% of growth rate increased moderately during the Covid-19 pandemic .
• 46% of overall growth and moderate impact of mobile app based food delivery services the restaurant revenue.
• The primary challenge faced by implementing mobile app based food delivery services is customer retention
and loyalty.
• Pricing & Promotion are the factors that influence customers to order from mobile app based food delivery
services.
• 40% of restaurants balance the need for profitability with the cost insured in implementing mobile app based
delivery services by optimising operational effectiveness.
• 10%-25% of total expenses is allocated to commission paid to online food delivery platforms.
• 40%-50% of restaurants have their own mobile app for food delivery.
• The level of competition among mobile app based food delivery services affected increased growth rates.
• The growth rate of mobile app based food delivery service is higher in urban area compared to rural area.
• The demographic segment which is driving the growth of mobile app based food delivery service is
Millennials.
SUGGESTION
Increased Reach: Online food delivery services provide restaurants with access to a wider customer
base beyond their physical location, allowing them to reach more potential customers.

Revenue Boost: Delivery services can increase a restaurant’s revenue by tapping into the growing
demand for convenience and delivery options. This can be especially beneficial during times when in-
person dining is limited or restricted.

Enhanced Customer Experience: Customers enjoy the convenience of ordering food from their
favourite restaurants with just a few taps on their smartphones, leading to increased customer
satisfaction and loyalty.

Operational Challenges: Implementing online delivery services may require restaurants to invest in
additional infrastructure, technology, and staff to manage orders effectively, which can increase
operational costs.

Competition and Pricing Pressure: Increased competition among restaurants on delivery platforms can
lead to pricing pressure and lower profit margins. Restaurants may need to offer discounts or
promotions to remain competitive, impacting their bottom line.

Dependency on Third-Party Platforms: Restaurants that rely heavily on third-party delivery platforms
may face challenges in maintaining control over their brand image, customer data, and pricing. They
may also be subject to the policies and fees of the delivery platforms.
• Shift in Business Models: Some restaurants may choose to focus primarily on delivery and takeout
services, leading to changes in their business models, such as smaller physical footprints or ghost
kitchens optimized for delivery orders.
CONCLUSION

• The study on the impact of online food delivery services on the restaurant industry reveals a nuanced
landscape with both opportunities and challenges.
• Online delivery services have provided restaurants with access to a wider customer base, increased
revenue streams, and enhanced customer satisfaction through convenience.
• However, they have also introduced operational complexities, pricing pressures, and dependency on
third-party platforms.
• As the industry continues to evolve, restaurants must adapt by leveraging the benefits of online
delivery while mitigating risks through strategic decision-making, investment in infrastructure, and
maintaining control over their brand image and customer experience.
• Overall, while online food delivery services have reshaped the restaurant industry, success lies in
navigating these challenges to thrive in the digital era of food delivery.
BIBLIOGRAPHY

www.ijprems.com

www.ijbmi.org
• www.ncbi.nlm.nih.gov
• www.mckinsey.com