Impact of Online Food Delivery APP on
Restaurant Business
Name : Smriti Bhadwal &
Bhojraj Merukar
College :Shivchhatrapati College,
Aurangabad
Class : B.B.A F.Y
E-commerce in India was expected to grow on wide
scale from the period of 2013 to 2020, which actually
came true in terms of numbers and figures. Amongst all
other developments in the field of E-commerce, the
sector of online food delivery is growing rapidly , this
current demand for online delivery also leaves an impact
on the small scale restaurants. The main objective of this
research is to study the impact of different food delivery
apps such as Zomato, Swiggy on restaurant business.
In today’s world service sector contributes 64.80% in
GDP. One of the food delivery app Zomato is one of the
most popular application that provide services to the user
to discover restaurants . The rise of digital technology is
reshaping the industries. The market size of food in India
is expected to reach Rs 42 lakh crore by 2020 reports
BCG. Presently the Indian food Market is around $350
billion .The space is coming up with a lot of innovation
catering to their customer convenience, satisfaction and
retention. This has also built room for a lot of new players
, are targeting specific group of people. The demand
online food ordering is real. It conveys to the customer
base that you are a modern growing restaurant and very
challenging to others that wants to be a convenient and
accessible for all the guests who used to order regularly.
To know the impact of food delivery start-ups like
zomato, swiggy, food panda, etc. on restaurant
business.
To evaluate the performance & acceptability in
terms of security, user friendliness, accuracy &
reliability.
This research is totally based on
secondary data. Secondary data included
collecting information about various
apps, the industrial position & effect on
the restaurants.
The various food apps available in India
service Provided
Apps Originated Delivery Online Expanded
Food Panda Singapore Yes Yes 1200 Restaurants
Zomato Portul Yes Yes 10000 Restaurants
Bees Cafe India No Yes 33 Restaurants
BOX 8 India Yes Yes 60 Stores
Fasoos India Yes Yes 125 Centers
Dominos India Yes Yes 800 Outlets
Just eat Denmark Yes Yes 2000 Restaurants
Swiggy India Yes Yes 500 Restaurants
Pizza Hut United States Yes Yes 1300 Outlets
These are the various food delivery apps
in the Indian market.
These are beneficial and also
disbenificial for the restaurant business.
Here are some benefit of food delivery
apps for the restaurant business:
Good platform for new start up restaurant:
By using food delivery apps they can easily promote
their restaurant and can also start from home. It is
good for small scale restaurant to increase demand
in customers of their restaurant.
Ratings & feedback immediately:
We can get immediate feedback & rating from
customer by using which we can improve or change
the items and can know the demands of the
customers.
Cost cutting :
Restaurants can do cost cutting in the space, extra
staff can be removed.
Locality development :
By using apps they can know the more user friendly
customer’s locality and provide them more offer’s to
enough them to order more.
More customers can be treated at a time :
Food delivery apps helps to get more orders and make
more money from customers. We can treated them at
a same time. It reduces the staff and increase money
more.
Distance Factor :
Food delivery apps helps restaurants to remove
distance factor and serve food to customer which
are at greater distance.
Time issue :
Food delivery apps helps to reduce time and find
delivery partners who can serve hot cooked food
to customers and make good connections with
the customer to get more orders from their
customer again.
Choosing a logistic Partner :
If the delivery partner delivers the food later than the
designated time or the food reaches the customer cold or in
damaged conditions, it is the restaurant that has just lost a
customer.
Decrease in footfall :
While the food delivery apps has increased the reach for
restaurant chains, it has eventually decreased the physical
footfall. This affects the restaurant chain in lot many ways.
They have to pay for staff, infrastructure, property etc to
maintain a restaurant chain. But if the outlet is relatively empty
all these things are shrinks the profit share.
Effects quality of service :
Food delivery apps have time boundations they have to deliver
the food within the set period of time. Hence the restaurant
chains have to take them as the priority and prepare their
order first. This affects the service quality of dine-in customers.
During rush hour, there is often delay in preparing the order of
a dine-in customer which causes a dissatisfaction for the
customer, affecting the overall rating reviews of the restaurant.
Revenue Sharing :
Connecting the restaurants with food delivery apps they have
to share tier revenue or profit with the delivery apps. The
money which restaurant owner can use to built his restaurant
or develop it more now he have to use his profit with delivery
apps.
The customer comforat is simply the primary fact
good thing about such, where as on the second
fact
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