What type of impact has Online food ordering made due to the COVID 19 outbreak?

Introduction:

The COVID-19 pandemic has had a significant impact on the restaurant business. The virus had forced many restaurants to close their doors, while others have had to drastically adjust their operations to remain open. The pandemic had affected every aspect of the restaurant industry, from food production to dining room service, and had created new challenges for restaurant owners and workers. Though despite the challenges presented by the pandemic, many restaurants found ways to adapt and thrive. As the world began to slowly reopen, restaurants used these strategies to stay afloat and adapt to the new normal.

The aim of this research is to show which types of adjustments on online food ordering have made the biggest impact for restaurants and customers. The COVID-19 pandemic had a devastating impact on the restaurant industry worldwide. With lockdowns and social distancing measures in place, restaurants had been forced to close their doors to dine-in customers, leading to a significant drop in revenue. In order to survive the pandemic, restaurant, chefs-owners, food associations had been frantically looking for solutions. Many restaurants shifted their focus to takeout and delivery services as a way to generate revenue. Online platforms like Grubhub and DoorDash have provided a much-needed lifeline for restaurants during this time. These platforms enable restaurants to reach a wider audience of potential customers and streamline the ordering and delivery process. How effective has these online food ordering services been? Which online food service collected more revenue than others?

Online ordering has allowed people to purchase items from the comfort of their own home, without having to leave the house and risk exposure to the virus. Online ordering has had a tremendous impact on the restaurant business. It has revolutionized the way restaurants do business, allowing them to reach more customers and increase their sales. Online ordering has made it easier for customers to order food from their favorite restaurants. Nowadays, a lot of people would rather order meals online and have it delivered to their homes than go out to a fancy restaurant. Customers can now order food from the comfort of their own home, without having to wait in line or worry about the restaurant being too busy. This has allowed restaurants to increase their customer base and reach more people. Online ordering has also allowed restaurants to offer customers more options. Customers can now order food from a variety of restaurants and can even customize their orders to their exact specifications. This has allowed restaurants to offer a wider range of menu items, as well as special deals and discounts. By the end of this research project, I hope to have properly recorded data on which online food ordering service has worked best for restaurants and their customer.

Study Methodology:

Due to the qualitative research study approach for this project, I have chosen to survey restaurant owners and manager participants. The objective of this survey approach is to develop an in-depth analysis on which types of online food ordering services work best for the restaurants in my neighborhood. The survey that I performed consisted of 7 Questions, 5 multiple choice and 2 Short Response Questions. These survey questions allowed me to dive deeper into what online food service platforms these local restaurants’ use, the money gained from these platforms, as well as responses and comments from their customers through these platforms. This research has been carried out in my local neighborhood Parlin, New Jersey which is more so suburban but well known for the local surrounding towns that gain their popularity from their diverse popular dinning. According to Places.Us.com located in Middlesex County, Parlin has a population of about 24,736 people per square mile with an average home value of $305,300. According to Statista.com it is projected that the revenue of full-service restaurants in New Jersey will amount to approximately 9.991,7 million U.S. Dollars by 2024.

Restaurants surveyed include: Blue Habanero, Nana’s Pizzeria, Nora’s Deli, Tommy’s Tavern and Tap, Jose Tejas, and Tio’s Taco’s and Tequila.

I would like to note that I contacted 15 resturants to partipate in my survey/interview research analysis and only 6 restaurants agreed to participate.

Below are the results of the questions asked to the participating restaurants:

QUESTION 1: As shown in the graph above, 88.9% of the surveyed restaurants voted that they use DoorDash as one of their main food ordering providers with UberEats and Grubhub following after. It is important to note that with the restaurants interviewed some use more than one system. For example, Tio Taco & Tequila surveyed that they use Doordash and Ubereats. With the customer sales and the business, it would be more than safe to say that using more than one platform allows you to meet a higher demographic of people in the neighborhood boasting their online sales.

QUESTION 2: The pandemic had taken a significant toll on businesses worldwide, and the restaurant industry has been hit particularly hard. Restaurants have always relied on foot traffic and in-person dining to drive business. However, with the pandemic, indoor dining was no longer a viable option, and many restaurants were forced to close their doors. This left many restaurant owners and workers struggling to pay their bills and keep their businesses afloat. However, with the rise of online ordering, restaurants were able to pivot and continue serving customers. Online ordering allowed restaurants to offer delivery and takeout services, which were essential during the pandemic. Through this research process it was important to keep note that restaurants using these online services pay high fees and commissions depending on the amount of revenue they bring, which eats into their profits. According to the survey results, the average amount of money obtained through these services included a range on $1,000-$5,000 and $5,000-$10,000+.

Question 3: The percentage of restaurant sales that stem from online orders varies widely depending on the restaurant’s location, type of cuisine, and marketing efforts. However, online orders have become an increasingly important source of revenue for many restaurants as more and more consumers opt for the convenience of ordering food online. According to the survey done in my town, only 25% to 50% of their sales stem from online food ordering. Some restaurants may see a higher percentage of sales from online orders than others, particularly those that specialize in delivery or takeout. While the percentage of restaurant sales that stem from online orders varies widely, it’s clear that online ordering has become an important part of the restaurant industry. As more consumers embrace the convenience of ordering food online, restaurants will need to adapt and invest in their online ordering capabilities to remain competitive in today’s market.

Question 4: Ensuring the quality of food during the delivery process is crucial to maintain the freshness and safety of the food. Packaging plays a vital role in protecting the food from external factors such as temperature, humidity, and physical damage. In this survey question, we discussed the different types of packaging used to ensure the quality of food during the delivery process. 50% of the restaurants surveyed that they used Paper bag packaging as well as 33.33% using Plastic. Paper bags are a popular choice for food delivery, but do they ensure food delivery safety? You would think that the Thermic Containers would be used more throughout the process because of its ability to ensure the temperature of the food is maintained throughout the transportation process but only 16.7% of the restaurants surveyed use that method.

QUESTIONN 5: The average delivery time for online food orders can vary greatly depending on a range of factors, including location, order volume, weather conditions, and restaurant or delivery service policies. The survey conducted estimated that the average delivery time for the restaurants in my neighborhood are 20 to 30 mins. and 30 to 40 mins per order. Restaurant located in a busy urban area, for example, may take longer for the delivery person to navigate through traffic to deliver the food. Conversely, if the restaurant is located in a more rural or suburban area, the delivery time may be shorter. It is important to note that some online food ordering systems, like Doordash for example, may be known for fast delivery time.

QUESTION 6: What are some changes you’ve made to accommodate with online food ordering?

Online food ordering has become a necessary part of our lives during the pandemic, and businesses have had to make significant changes to accommodate this shift. From implementing online ordering platforms to making changes to menus and packaging, businesses have had to adapt quickly to ensure that they can continue to serve their customers safely and efficiently. One of the changes that stood out to me the most was Tommy’s Tap and Tavern. In this short response question they wrote,” We offered to-go parking to our online food ordering customers along with a take-out and pick-up window within our host stand.” One of the most significant benefits of this strategy is that it makes it more convenient for customers to patronize a business. Customers who are busy or on the go often appreciate the ability to quickly and easily park their vehicle and grab their order without having to leave their car. Additionally, offering to go parking can help businesses attract more customers who may not want to come inside the store, such as those who are uncomfortable or unable to enter due to COVID-19 concerns.

QUESTION 7: How does the average rating for online ordering differ from in-person ordering?

The average rating for online ordering and in-person ordering can differ significantly, depending on various factors. Online ordering has become increasingly popular due to the convenience it offers consumers. However, this convenience can often come at the expense of quality, which can impact the overall rating of online ordering. When interviewing and surverying the General Manager for Tio’s Taco & Tequila they wrote, “Online ordering makes it easier to correct any errors and dislikes the customers may have. Takeout allows us to maximize sales by allowing us to serve people that dislike the full “sit down” dining experience.” There may be instances where the order does not meet the customer’s expectations. For example, the food may be too spicy, too salty, or not cooked to their liking. In such cases, online food ordering makes it easy for customers to correct any errors and dislikes they may have. They can simply go back to the online ordering system and make the necessary changes to their order. This eliminates the need to call the restaurant or go back to the establishment, saving time and effort.

Analysis:

Using qualitative data analysis, I was able to come up with the answer to how significant online food ordering systems really are to the restaurant industry. Online food ordering systems have become increasingly significant to the restaurant industry in recent years. Firstly, online food ordering systems provide a convenient way for customers to order food. Customers can browse menus, select their items, and pay for their orders all from the comfort of their own homes. Some of the most famous online food ordering systems include Grubhub, Doordash, Ubereats, and Postmates. Looking at the information gathered from a more statistical standpoint, 88.9% the restaurants that were surveyed that Doordash was the main online food ordering system that was being use. Known for its fast delivery times, the platform has an extensive network of restaurants and offers a variety of cuisines.

Report Back:

I had the opportunity to showcase my work to the New Jersey Restaurant and Hospitality Association located in Trenton New Jersey. This association, as well as Parlin, is located in Middlesex County. The New Jersey Restaurant and Hospitality Association (NJRHA) is a non-profit organization that represents the interests of the restaurant and hospitality industry in New Jersey. The association aims to provide advocacy, education, and networking opportunities to its members, as well as to promote the growth and success of the industry. One of the coordinators, Xadea Green, and I got the opportunity to speak via zoom call. I presented her my research assignment and my findings, and she offered me really insightful criticism. Before I contacted her I saw that she was a very active user of social media platforms like TikTok and Instagram. I contacted her through Instagram via DM about setting up a time where we can meet via zoom call to discuss my research and she relied! She was very proud about how much research I gathered and some of the resturamts that I interviewed she was familiar with, we went on to talk about some of the benefits of the research that I was doing explaining how she has never seen any project like CEEP. She explained that online food ordering has become increasingly popular within New Jersey in recent years, and for good reason. One of the primary benefits is increased efficiency. With online ordering, restaurants can process more orders in less time, which can help to reduce wait times and increase customer satisfaction. After the discussion I thanked her for the time she took out of her day to meet with me to discuss my work.

Discussion:

The main aim of this study is to address this gap and shed light on the impact of online food ordering services. The study will provide insights into the factors that influence customers’ decisions to use these services, the impact of these services on the food industry, and the challenges faced by food service providers. One of the primary benefits of online food ordering services is convenience. Customers can place their orders from anywhere, anytime, and receive their food at their doorstep. This convenience has led to an increase in the number of people using these services. Moreover, online food ordering services have helped restaurants and food service providers to reach a broader customer base. They can now cater to customers who prefer to order food online, which has led to an increase in revenue. the impact of online food ordering services on the food industry is significant, and there is a need for more research to understand this impact fully. The convenience and ease of ordering food online have led to an increase in the number of people using these services. However, food service providers have had to invest in technology to meet the demand, and this has led to increased operating costs. Moreover, online food ordering services have presented challenges such as increased competition and food quality issues. Overall, online food ordering services are here to stay, and it is essential to understand their impact on the food industry to make informed decisions.