MOBILE APPLICATIONS IMPACT AND FACTORS AFFECTING ONLINE FOOD DELIVERY APPLICATIONS ON THE OPERATIONS OF THE RESTAURANT BUSINESS

 
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MOBILE APPLICATIONS IMPACT AND FACTORS AFFECTING ONLINE FOOD DELIVERY APPLICATIONS ON THE OPERATIONS OF THE RESTAURANT BUSINESS
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
                                                                  ISSN 2651-4451 | e-ISSN 2651-446X

   MOBILE APPLICATIONS IMPACT AND FACTORS AFFECTING ONLINE
     FOOD DELIVERY APPLICATIONS ON THE OPERATIONS OF THE
                     RESTAURANT BUSINESS

                                     R. Naveena1, V. Mathan Kumar2
                     1,2
                        Karpagam Academy of Higher Education (Deemed to be University),
                                       Coimbatore, Tamil Nadu, India.
                                     2
                                       mathankumarcom@kahedu.edu.in

                                                    ABSTRACT

    In the digitalized era, numerous services are provided by the Indian service sectors such as finance sector,
    food sector, transportation sector, business services, insurance Sector etc. Nowadays, digitalization in food
    delivery services has been grown strongly. These online services increase the ability to choose from many
    restaurants with the touch of a smartphone. With this research, we were able to understand the benefits of
    integrating e-commerce delivery applications in the restaurant industry and the impact of e-replication
    applications on restaurant inventory management. The study also lists the problems faced by restaurants that
    restaurants need to keep in mind in order to provide better customer service and earn a better margin.
    Technology development made the food delivery as a separate business service. Food services can be
    delivered in various forms such as application, social media and websites. The study is focused on third –
    party food services applications on the basis of consumer’s preference. The study is to investigate the factor
    that influences the attitude of food delivery application users in Coimbatore city.

    Keywords: Mobile Applications, Consumer preference, Digital food application and third – party service
    providers.

                                             I.      INTRODUCTION
Service sector plays an important role in India’s economic growth. 55.39% is contributed by service sector to
India’s Gross Value in the financial year 2019- 2020. In all industries, digitalization started growing rapidly.
Also, in food delivery industry, digitalization is in growing phases. Digital services are the process that delivers
the food from the restaurants to customers at doorsteps through websites or applications. Nowadays, numerous
services are provided by the third-party food delivery applications to consumers such as Swiggy, Zomato, Uber
Eats and Kovai Delivery Boys. The consumers are being specific; the food applications are gaining popularity by
providing more services like selecting local restaurants, cuisine type, payment methods, location and delivery at
doorsteps. Digitalization in food delivery service sector had created tremendous potential in the Indian Market
Sector. This study is focused on consumer preference that is customer’s decision making and factors influencing
the consumers to prefer the digital food applications.

                                       II.        REVIEW OF LITERATURE
Dinesh Elango, Kitikorn Dowpiset and Jirachaya Chantawaranurak (2018), the study was conducted to
investigate the impacting factors of the customer preference towards online food delivery applications. The
sample size of the study was 392 respondents in Bangkok. Percentage analysis and multiple linear regressions
were used to analyse the data. They found that social influence, self-efficacy and usefulness are the factors that
influencing the customer intention towards online food delivery services.

Azizul (2019), the study was conducted to analyse the influences of digital food delivery applications attributes
on customer perceived values. Convivence, design, trustworthiness, price and variety of food choice are attributes
that influence the customers' value. The study was conducted with 271 respondents. From the study they found
that there is a positive relationship on online food delivery application features convenience and customer
perceived value.

www.turkjphysiotherrehabil.org                                                                              1056
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
                                                                   ISSN 2651-4451 | e-ISSN 2651-446X

Mrs. A. Mehathab Sheriff and Dr. N. Shaik Mohamed (2019),analysed about the perception of the customers
and satisfaction towards food ordering through online. The study was conducted in Tiruchirappalli with 175
respondents. Chi-Square analysis was used to analyse the data. They concluded that the most preferred online
shopping application was Swiggy and most respondents were ordering in family celebrations. The challenges
faced in digital food application were application related issues, network or server problems. The suggestion
provided by customers for online food delivery application is to deliver the food quickly.

Bhavik Shah and Dr.RamakantaPrusty (2019), conducted a study on both third-party delivery services and top
customized services applications in India about the factors influencing customer’s perception and attitudes. The
study was taken in two different dimensions those are demand drivers and supplier drivers. Demand drivers are
standard of living, changes in lifestyles, rising number of working women and the supplier’s drivers are a variety
of cuisines, growing of delivery, extension of services and new trends. The sample size of the study was 150
respondents. From the study, they concluded that the most of the respondents were preferred Swiggy and the
factor influencing the respondents to prefer Swiggy was cost-effectiveness and low delivery charges.

Dr.Sudhanshu Sing (2018),conducted a study on factors influencing and perception of customers on food
delivery applications with 160 respondents. The percentage analysis method was used to analyse the data. From
the analysis, the researcher concluded that the most od the customers preferred application was Zomato and
followed by Swiggy and other home delivery applications[46][47]. The major factor that influenced the customer
was the easy availability of food at an affordable cost.

After analyses of many literature reviews, it shows that most of the research on digital food application has been
done in India and also in different countries by using different topics and areas. But research on digital food
application has not been done in Coimbatore city and also on Coimbatore consumer’s preference on digital food
application. Therefore, the present study has been undertaken on consumer preference towards digital food
applications in Coimbatore city.

Digital food applications change the traditional way of food services like table servings. Digital food applications
provide the services to the customers to order their food from their location at any time and also preferred menu
and restaurants through mobile applications. It provides speckled choice of food varieties, restaurants at different
locations and payment modes. This service will help both the third-party service providers and restaurants to
acquire new customers. Even traditional customers also attracted by multi cuisine and regional foods in the menu.
Digital food applications have entered as a business with all the features which attracted the customers to go with
ordering the food through online. Hence, this study is conducted to know the consumer preference, view and
needs of the customers to take adequate measures to improvise the services. It will help the restaurant owners and
third-party service provider to improvise their services.

The followings are the objectives of the present study:

•   To analyse the socio - demographic profile of the online food application consumers.

•   To know the factors which influence consumers towards digital food application

                                           III.     SCOPE OF THE STUDY
The impact of web food applications on the restaurant business is being studied. The study is conducted from the
perspective of the restaurant, how it manages its inventories, in view of the growing demand of customers and the
pros and cons of working with third-party food logistics. The geographical scope of the study is the city of
Guwahati in Assam, India. This study will help new restaurateurs understand how to manage their inventory in
the age of food delivery and what they need to pay attention to meet customer needs.

                                     IV.          RESEARCH METHODOLOGY
Source of Data
1. Primary Data:Structured questionnaire is distributed among the respondents to collect the primary data on
   digital food application consumers

2. Sampling Method:Convenience sampling methods is adopted and data collected from 104 respondents
   residing in Coimbatore city.

www.turkjphysiotherrehabil.org                                                                              1057
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
                                                                 ISSN 2651-4451 | e-ISSN 2651-446X

3. Framework Work of Analysis: Collected data have been analysed by employing Simple Percentage
   Analysis and weighted average rank.

4. Findings: Consumer perception towards Digital Food Application in Coimbatore city. These data are key
   and were collected using a structured questionnaire consisting of closed and open-ended questions. For
   research purposes, simple sampling was used as the sampling method and the survey sample size was
   considered 125. The researchers used in this study were percentages, correlation analysis, diagrams, chi-
   square tests and descriptive statistics.

                               Figure 1. Analysis of using mobile apps for restaurants

                  Table 1: Socio Demographic Profile of Respondents – Simple Percentage Analysis
            Socio Demographic Profile        Factors                     No of Respondents   Percentage
            Gender                           Male                        34                  32.7
                                             Female                      70                  67.3
            Age                              Up to 19 Years              18                  17.3
                                             19 years to 31 Years        74                  71.2
                                             Above 31 Years              12                  11.5
            Educational Qualification        Higher Secondary School     10                  9.6
                                             Under Graduate              21                  20.2
                                             Post Graduate               41                  39.4
                                             Professionals               32                  30.8
            Occupation                       Student                     25                  24.0
                                             Home Maker                  9                   8.7
                                             Business                    5                   4.8
                                             Salaried                    55                  52.9
                                             Professionals               10                  9.6
            Family Members Adults            Up to 2                     37                  35.6
                                             2 to 5 Members              62                  59.6
                                             Above 5 Members             5                   4.8
            Family Members Child             No Child in the Family      50                  48.1
                                             1 to 2 Child                47                  45.2
                                             Above 2 Child               7                   6.7
            Earning Members in the Family    Up to 2 Member              82                  78.8
                                             Above 2 Members             22                  21.2
            Family Monthly Income            Up to Rs, 13,000            12                  11.5
                                             Rs, 13,001 to 1,18,000      80                  76.9
                                             Above 1,18,000              12                  11.5
            Family Monthly Expenditure       Up to Rs, 5000              7                   6.7
                                             Rs, 5001 to Rs 15,000       22                  21.2
                                             Above Rs. 15,000            75                  72.1
            Marital Status                   Married                     49                  47.1
                                             Unmarried                   55                  52.9

Source: Primary Data

www.turkjphysiotherrehabil.org                                                                            1058
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
                                                                         ISSN 2651-4451 | e-ISSN 2651-446X

The above table 1 shows the socio-economic profile of the respondents of digital food applications. 67.3% (70) of
the respondents were female, 71.2% (74) of the respondents were in the age group of 19 – 31, 39.4% (41) were
post graduate, 52.9% (55) were salaried, 59.6% (62) were 2 to 5 adult members in the family and 48.1% (50) of
the respondents have no children in their family. 78.8% (82) were up to 2 earning members in the family, 76.9%
(80) of the respondent’s monthly income is between Rs. 13,001 to Rs. 1,18,000, 72.1% (75) were monthly
expenditure of the family is above Rs. 15, 000 and 52.9% (55) were unmarried.
                           Table 2: Factors Influencing Consumer to Online Food Application
                                                         Factors                       No of Respondents         Percentage
            Digital Food Applications                    Swiggy                        90                        86.5
                                                         Zomato                        8                         7.7
                                                         Uber Eats                     2                         1.9
                                                         Kovai Delivery Boys           4                         3.8
            Influences to Buy                            Friends                       43                        41.3
                                                         Family                        14                        13.5
                                                         Advertisement                 45                        43.3
                                                         Relatives                     2                         1.9
            Period of Usage                              Less than 6 Months            33                        31.7
                                                         6 Months to 1 Year            16                        15.4
                                                         1 Year to 2 Years             25                        24.0
                                                         Above 2 Years                 30                        28.8
            Frequency of using Food Applications         Twice in a week               17                        16.3
                                                         Once in a week                18                        17.3
                                                         Once in a month               25                        24.0
                                                         Occasionally                  44                        42.3
            Amount spent per Order                       Less than Rs.500              54                        51.9
                                                         Rs.500 to Rs.1,000            30                        28.8
                                                         Rs.1,000 to Rs. 1,500         17                        16.3
                                                         Rs. 1,500 to Rs. 2,000        3                         2.9
            Mode of Payment                              Cash on Delivery              58                        55.8
                                                         Debit Card                    12                        11.5
                                                         Net Banking                   12                        11.5
                                                         Payment Applications          12                        11.5
                                                         Credit Card                   10                        9.6
            Occasions                                    Business Event                2                         1.9
                                                         Family Get Together           16                        15.4
                                                         Friends Get Together          20                        19.2
                                                         Don’t Want to Cook            62                        59.6
                                                         Social Event                  4                         3.8

Source: Primary Data
The above table shows that 86.5% (90) of the respondents were using Swiggy to order the food through online,
43.3% (45) of the respondents were come to know about digital food application through advertisement, 31.7%
(33) of the respondents were using digital food applications less than 6 months, 42.3% (44) of the digital food
application respondents were used occasionally, 55.8% (62) of the respondents were used cash on delivery as a
payment method, 59.6% (62) of the respondents’ reason for preferring digital food application is that they don’t
wish to cook.
                        Table 3: Factors Influencing Consumers to Prefer Digital Food Application
                         (SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree, SDA – Strongly Disagree)

       Factors                                             SA      A      N       DA     SDA      Total     Mean Score    Rank
       Fast Delivery                                       125     188    96      0      0        409       3.932692      8
       Door Step Delivery                                  310     144    12      0      2        468       4.5           1
       Easy to Access                                      280     100    63      0      2        445       4.278846      2
       Availing different mode of Payments                 175     164    78      0      2        419       4.028846      6
       Easy to compare the price                           125     248    45      0      2        420       4.038462      5
       Time Saving                                         215     184    24      10     2        435       4.182692      3
       Ordering Food at anytime                            190     176    39      6      6        417       4.009615      7
       Secured personal and payment information’s          100     188    105     4      0        397       3.817308      9

www.turkjphysiotherrehabil.org                                                                                                1059
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
                                                                    ISSN 2651-4451 | e-ISSN 2651-446X

       Accessibility of Number of Restaurants         175    184   51    12   0     422   4.057692      4
       Respondents to Customers Grievances            85     160   120   14   0     379   3.644231      10

Source: Primary Data
From the above table it is inferred that out of 10 variables, door step delivery ranks 1 in consumer preference
towards digital food applications; easy to access ranks 2 in consumer preference; followed by online food
services save time, accessibility of variety of restaurants, easy to compare the price, availing different mode of
payments, online food service offers possibility of ordering at all time, personal details & location and payment
are kept secure and respondents to grievances.

                                                Figure 2. Days of ordering
Food orders were not limited to weekdays or weekends, but were ordered by the majority of respondents at any
time of the week, whenever needed.

                                     Figure 3. Time of Usage of food delivery app

                                                Figure 4. Preference of app

                                           Figure 5. Amount spent per week

www.turkjphysiotherrehabil.org                                                                               1060
Turkish Journal of Physiotherapy and Rehabilitation; 32(3)
                                                                              ISSN 2651-4451 | e-ISSN 2651-446X

                                                         V.         SUGGESTIONS
Digital food application should improve their customer care facilities, so that companies can come to know about
the customers complaints. Customer feedback management is to be taken care by focusing on online reviews.
Rectifying the complaints will increase the customer’s satisfaction. Delivery speed of the services should be
improved to retain the customers and to get the new customers.

                                                         VI.        CONCLUSION
Everyday awareness and usage of E-Commerce are getting more familiar in India; the E-Commerce changes the
lifestyle of the people and increases the ordering of the food through online. It provides innovative chances to
online food service industry by offering the services like door delivery, payment modes and online applications.
It makes major change in online food services industry and it increases growth of online sales. This makes it the
most popular and convenient place to order food from Swiggy’s for many Zomato and Uber meals in the back.
All the factors studied had a significant impact in communicating its impact to consumers on food consumption,
food consumption, price, data, speed of service, emergency complaints, brands, offers and advice to all the
friends. Although considered important, the taste of food is very important to the people (56.43%) and also has
the second highest average of 4.2531 which is very important to people. The present study found that the most
used food application in Coimbatore city is Swiggy and followed by Zomato, Uber Eats and Kovai Delivery Boys
and the major factor that influences the food delivery application is door step delivery and followed by other
factors such as easy to access, time saving and convenient.

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