The Impact of Delivery Services on the Restaurant Service
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Added on 2020-05-16
The Impact of Delivery Services on the Restaurant Service
Added on 2020-05-16
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Running Head: RESTAURANT SERVICE DELIVERY1The Impact of Delivery Services on the Restaurant Service
RESTAURANT SERVICE DELIVERY 2Introduction It is universally acknowledged that in the present market, it is really difficult to start a business with the high level of competition present. In such scenario, the companies try to develop their competitive advantage and always try to be ahead in the competition. As discussed by Chien & Lin (2015),restaurant is a highly competitive business and it is important to deliver high quality services to retain the customers. In the present, the technology has intervened the operations of the restaurant and they are using it for multiple purposes ranging for marketing, sales and other operational areas. In the restaurant business, online ordering systems are becoming quite popular. In the present times, every person is squeezed in for time and most of the people are finicky while placing an online order. According to Oliveira, Schneider, de Souza & Rodrigues, (2015), the customers of the present are attracted towards online ordering system as it has high visibility of the items offered, price, and simplified navigation for the orders. The online ordering system can be used to create an interactive and up-to-date menu with all the available options which can be used for different purposes. However, the expansion in business with the online food ordering system can increase the wait in time and delay in food to the restaurant. In this regard, the present literature review will present the current knowledge about the impactof technology in increasing the wait-in time for the restaurants. It will also evaluate the impact of wait-in time in the customer satisfaction of the people. Online Ordering Services It is discussed by Kim, Miao, & Magnini (2016) that the restaurants can offer online ordering services through variety of channels such as website, mobile application, through multi-restaurant app or through Facebook. The restaurants proactively registers on the online ordering applications as it is associated withincreased revenue, enhancement in capacity management, improved productivity, transactional marketingand customer relationship management. It is an established fact that the restaurant experience an increased sales as a result of taking online orders. The customers are also attracted towards online
RESTAURANT SERVICE DELIVERY 3ordering system as it gives them more control and convenience. The major hurdles in the acceptance of online order is that the desire for interaction through online mediums and technology anxiety. The users of online ordering system were generally younger in age, and patronized the restaurant due to several reasons. Another advantage of online ordering system is the accuracy in order taking and receiving. Otherthan that, convenience and ease of ordering is another feature of the online ordering system which makes it highly convenient for use. However, in the perception of Chou, Wu & Huang (2014), the operators structure their online ordering system so that it aligns with the revenue, capacity management, productivity and customer satisfaction. The online ordering system has become popular in the recent years. Most of the restaurant owners use external vendors to design the mobile application. Other than that, an outside vendor is also used for the management of website. The online ordering system can be used by using cash and additional transaction fees or delivery charges. Most of the orders are managed through point-of-sale system, faxes, IP printer and emails. There are also different factors which impact the efficiency of the online ordering system. While developing an online ordering system, the organization must make efforts to reduce the number of employees required for online order taking. The restaurant owners are concerned about the potential impact of the staffing on other parts of the restaurants. The online ordering has a potential impact on the staffing requirements of the organization. The online order taking has little impact on staffing in the front or back of the house; however, it results in decrease in the staff who wait or the customers. It can be critiqued that online order taking result in decrease in the staff for order taking and an increase in the stafffor delivery. According to Axelsson, Malmberg & Zhang (2015), one of the major challenge in the online ordering is that it can overload the kitchen and increase the burden on the cooks. The online ordering overload the kitchen; however, a few restaurants state that they have a separate production line for the online orders. Another approach to manage the capacity of the kitchen is to use a metering system to manage the number of orders at a single time. The metering system can be used to notify the customers when their
RESTAURANT SERVICE DELIVERY 4orders will be ready. In terms of revenue, it can be stated that online ordering can increase the revenue by increasing the frequency in the orders, and increasing the order volume for the organization. As discussed by Axelsson, Malmberg, & Zhang (2015), increase in the online ordering not only increases the number of order, but also, the volume of orders. The restaurants which are using online ordering have identified that there is an increase in bulk orders due to the ease in placing the orders. The group and catering orders increases through online ordering as a large number of people can easily access the restaurant through online orders. As per the discussion of Heo (2016), there are also certain advantages of online ordering as the restaurant can obtain key information and market insights through online ordering. The online ordering can be used to attain key information about the local customers it can be used to develop marketing strategies, promotional campaigns and target promotions. It can be used to develop off-peak demands, identify customer segments and designing loyalty bonus and coupon strategies. Most of the restaurant owners develop online promotional campaigns. It is important to understand that the online promotions work better than traditional promotional campaigns. However, as discussed by Kim, Li & Brymer, (2016) there is challenge that online ordering system canreduce the customer satisfaction with service. Online ordering is impersonal and it can overwhelm the employees of the kitchen. However, there are several benefits of online marketing which can increase the satisfaction of the customers with the services. The restaurant can obtain the orders accurately and can deliver it at the homes of customers. However, it is important to restaurants notify the time to the customers beforehand, so that there is no decline of the customer satisfaction through online services. Theonline ordering services is also important for the restaurants owners as the initial investment in the online services is low; however, the return on investment is comparatively higher. In the views of Chavan, Jadhav, Korade & Teli (2015), there are also several other benefits of the online ordering system for the restaurant owners. In the absence of online platforms, the restaurant
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