Online Food Delivery Service - Free Paper Sample

Main Topic: The increase in operational costs for restaurant firms for online food delivery because of the change in trend from formally visiting a restaurant to casually placing food through a smartphone.

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In the modern digital world, the internet has dramatically transformed the face of the retail market by giving customers various alternatives and features to review services and products, make buying decisions, and give feedback via online platforms. In the current society, unlike other businesses, the food industry has grown rapidly. With just a single tap on their phones, clients can order their favorite dishes from various restaurants given the many online food delivery mediums (Bajaj & Mehendale, 2016). Online food delivery services have gained popularity majorly because of the numerous benefits, ranging from cashless payment options to doorstep food deliveries. With online food delivery, sales have grown significantly, and researchers have predicted that in the future, there is a possibility that most of the meals will be ordered online and that most people will prefer this to cook at home.

The enhanced development in technology has significantly increased the availability and hence accountability of data. Constant revolution, together with globalization, has resulted in the continuous growth of the business environment. A phenomenon like mobile adaptability, together with social media, has substantially changed enterprises, and the impact of this is an ever-increasing demand for transformation and, therefore, the change's management. Readily accessed data has led to unparalleled evaluation by both stockholders and the media and resulted in excess pressure on the management. Although the business environment is experiencing lots of change, organizations must be given time to embrace the change (Bajaj & Mehendale, 2016). The capacity to embrace and manage an organizational change is a critical ability that is needed in the modern-day workplace. Yet, rapid and significant change is very hard because habits, culture, and structure often depict a continuous and hard-to-remove imprint of past periods that often resist radical change even as the recent organizational environment changes rapidly. The rise of the internet has resulted in lots of cultural swings in both the business world and society, and it has also encountered massive responsive transformations. Due to the advances, new situations and events have come into existence.

The recent trend in the online food delivery system in the market includes enhanced frequency and customers ordering food online, the crucial function played by technology and enormous competition among restaurants, and online platforms that make the deliveries. Below this fierce competition among key players, restaurants are struggling to buy technologies that would enable the online ordering of food and, at the same time, retain the recent workers; otherwise, they will not be able to compete in the market and eventually survive. With over thirty percent of meals consumed at home, restaurants have not ignored delivery as most customers tend to directly relate the quality of food to the delivery (Collison, 2020). Questions about the reliability and the efficiency of delivery have come up with many people asking how restaurants and delivery services have planned to increase online demand. Hence, the question arises of how efficient and reliable the delivery is. How are restaurants and delivery services planning to cope up with the growing online demand?

Before the invention of smartphones, people only visited restaurants and bought food to carry home or eat there. If they craved their delicious meals, they would either visit the restaurants or order the food through phone calls, limited to some of the well-known and big food chains such as Pizza Hut. However, small-scale restaurants could not afford to do food delivery and hence only sold food to the people who were there physically (Singh & Verma, 2020). After the rise of smartphones, many things changed, and dramatic change was also noticed in how the food was and was ordered.

With everything coming into existence with the touch of the internet, whether services or products, food chains also had no option but to change their traditional ways of providing food. Due to increased demand, food chains have also introduced their choice's online delivery system (Collison, 2020). Restaurants have currently embraced the strategy of online communication when dealing with their client. The following are some of the significant findings that have been seen in utilizing the online food ordering system (Collison, 2020).

Increased worker productivity

In the past, workers would spend a lot of time taking orders, writing them down, making phone calls, and ensuring that the orders were correct. By taking orders on the phone, there were enhanced possibilities of misunderstanding, which subsequently made the workers stay longer on the phones making sure that they had taken the correct order before finally ending the call. By coming up with an online ordering system, workers can now spend less time on the phone to take orders hence spending most of their time preparing the orders for delivery to the clients. The online delivery service is still beneficial because it allows the client to pre-order orders and set precise times for pick-up and delivery.

Accuracy of Orders made

Taking orders through phone calls always resulted in miscommunication. Yet now the online ordering system enables the client to choose and modify their orders precisely the way they would love it to be. The order is then directly sent to the restaurant printer without any fear of misunderstanding or miscommunication (Suhartanto, Helmi Ali, Tan, Sjahroeddin & Kusdibyo, 2019). The ability to get the order directly from the printer substantially reduces the order's inaccuracy and saves the restaurant from the waste of money or even bad reviews.

Business growth

The online delivery service has aided the food chain businesses to grow dramatically. The service is convenient and preferred by many people. This has led to massive profits and subsequent growth in these businesses.

E-marketing

Online delivery of food has also been used as an e-marketing tool. Every time a client places an order, the seller gets the opportunity to capture data like mail addresses and use this data to create databases. The databases can help communicate with the clients and provide them with e-marketing and loyalty programs. Moreover, digital platforms have been significantly integrated into marketing and day-to-day life, and so many people have started using various digital platforms instead of physically visiting shops.

Customer relationship management

Online ordering services have essentially aided food chains in strengthening their long-term relations with their clients. The created client databases have been used to understand the employers' and restaurants' ordering trends, and restaurants have set their menus based on their client’s wants (Suhartanto et al., 2019). This enhances customer relationship management.

With the extreme growth in online food delivery, it is evident that the trend will not decline but will continue to trend even more. The online food delivery sector is expanding at a high rate worldwide because of inconvenience and relatively reduced service costs. One of the primary factors contributing to this is the rise of the internet and smartphones, making food delivery services accessible easily. Yet despite this enormous growth in the modern days, the industry has remained young, and many critical issues still have to be addressed (Singh & Verma, 2020). The strain of timely delivery, the competition for reduced costs, and the lack of service in rural areas are also critical issues that have not been adequately solved. To respond to this, firms have emphasized increasing logistic abilities and customer experiences. Today, many firms embrace improved delivery methods that can help speed up delivery and help reduce operational costs like drones and robots.

Conclusion

Online food delivery is critical for the growth of all food chains. With convenience becoming significant for everyone, it is becoming the driving force for food chains to amend their approaches and strategies and take advantage of online delivery trends. With the enhanced online orders getting in, it is also imperative that restaurants strategically manage their inventory. Operating with too little or too much inventory costs them in many ways. Therefore, effective and appropriate inventory management would be critical to hinder the restaurants from having wastages or even getting out of stock even as they continue with online food delivery services.

References

Bajaj, K., & Mehendale, S. (2016). Food-delivery start-ups: In search of the core. Prabandhan: Indian Journal of Management, 9(10), 42-53.

Collison, J. (2020). The Impact of Online Food Delivery Services on Restaurant Sales.

Singh, R. K., & Verma, H. K. (2020). Influence of Social Media Analytics on Online Food Delivery Systems. International Journal of Information System Modeling and Design (IJISMD), 11(3), 1-21.

Suhartanto, D., Helmi Ali, M., Tan, K. H., Sjahroeddin, F., & Kusdibyo, L. (2019). Loyalty toward online food delivery service: the role of e-service quality and food quality. Journal of foodservice business research, 22(1), 81-97.