Exploring the Motivation, Benefits, and Issues for Adopting Online Food and Ordering Food

Abstract

Online food delivering system is the process where various restaurants and food outlets deliver their foods and drinks according to the demand of the customer and give the maximum customer satisfaction and quality service. Although, there are various factors that depends on demand and supply and what goes in the customer’s mind. What motivates the customers, what benefits they will be having by ordering food online and what are the issues they face while adoption online food and ordering it. This paper will provide information of such factors. It is discussed what are the biggest reasons for same, how people achieve the benefits. How and where people face the issues and how can we solve it. In times of outbreak of Covid-19, technology helped in different ways. One of them was to deliver food to people in those tough times when people were sick, could not go out of their houses and protecting themselves and others as well. Hassle-free online payment made the things easier and still doing the same.

Introduction

I. INTRODUCTION

In recent years, people tend to use of online food delivery services more often as compared to when the concept of it was introduced in the market. Online meal ordering is basically a practice many small and big restaurants or cafes adapted to provide food from their kitchen to the homes or offices so people can enjoy their favourite food wherever they are. A consumer can select their desired restaurant, cuisine style, delivery option, pick-up option, and payment method. Cash or a card (debit or credit) can be used to make the payment, and a portion of the money is given back to the online food business.

With people's schedules become busier, the ability of online meal delivery apps to let users order food online and have it delivered quickly is a huge benefit. so many companies.

Thanks to the internet, every person who wishes to start the business or restaurant and wants more and more people to reach can take help of online food delivery service and earn from it.

In 2020, when the pandemic hit and due to lockdown, the restaurants had no choice but to stop the dine in service for the customers, Online food delivery service saved their business from shutting down and going on loss. People who lost their jobs due to covid-19 breakout found the employment by delivering food to people and earning basic salary as the demand of food ordering went up. Approximately 67 percent of locals, when the COVID-19 outbreak hit India, people used online delivery services to order food. Mostly people got attracted to the fact that they can order food from anywhere without going out and risking their health. Even the delivery got contactless as restaurants implemented a policy of online payment only and no cash delivery and instructed the employees to leave the package on the door and ring the bell or call the customer to inform that they had delivered the food at location which gave the customers confidence they did not had in first place to go out of their shell and order food online. Before knowing, it became casual thing for people to order food.

II. ONLINE FOOD DELIVERY SYSTEM

People who are working or lives outside their hometown have more tendency to order food online in comparison to the people who can cook their meal without any problem. On their way to work, people who missed breakfast order in. Additionally,

the ease of ordering groceries through a computer browser or mobile app has undoubtedly reduced the popularity of the reputable "Kirana" businesses. No one thought that the idea of ordering food online will be so beneficial in the first place when people get home after a long day or do not have groceries. With single click, people can get the food they have been craving for whole day and some restaurants or fast-food chain gives the service 24 hours in case of late-night cravings. Sure, there are many malls who have food courts but mostly people refer to be in their comfort zone in their houses and have the meal.

Firms with sharp mind and who follows and understand the trend and goes with it have the potential to survive longer than the ones who sticks with the same thing and are rigid in the market when it is not easy to get replaced in the first place.

A. Consumers and the Motivation for Adopting Online Food Ordering

The factors which motivate people to get food online rather than dine-in restaurants are as follows:

1. Availability of Huge Selection of Foods: You will be ecstatic to find out many different options in food when you open a food as many times it happens you discover multiple dishes that was not on your sight while checking the menu card of any café or restaurant. Online food websites and apps provides all kind of food such as Pasta, Biryani, Pizza, Paneer, noodles, etc.  Huge variety of food helps when people have house/ office party and everyone has difference tastes and opinions so rather than being restricted to limited food items, people can order whatever they want to eat and enjoy the get-together.
2. Simplicity and Convenience: Because of convenience or laziness, people would rather order food online than to go to a restaurant. To place an order, just select your preferred dish by scrolling through the app. Services with no hassles are not only practical but also reassuring.
3. Better Customer Satisfaction: For maximum satisfaction to customer, online food providers ensures that there is a healthy space between the both customer and the delivery person so they can interact if one is facing any problem with the order or finding the location. When an order is placed, customer gets notification that provides the name, phone number and live location of the delivery person and how far he is from the location needed to reach so there will be transparency. If needed, you can call the delivery person and arrange for hassle-free delivery of the food. People choose online meal delivery over going to restaurants as a result of these virtual guest experience efforts by food apps. For the purpose of increasing customer satisfaction, some applications additionally provide unique services like a meal plan for one person or delivery with no extra charges.

4. Hassle-Free Payment Options: The objective of these apps is to provide consumers with a simple experience so they provide the service for them to pay online through their bank cards, UPI, wallets and even cash on delivery. In order to promote online payments, several food apps also provide additional offers. Although, some restaurant owners find the online payment risky because sometimes the payment don’t go through but the customer shows the proof of their money getting deducted so they have to wait and meanwhile they can’t stop the food too so the consumer don’t get upset and review bad.

5. Discounts, Offers and Rewards: Deals and coupons provided by online food apps are real eye-catcher for the people who love food and more when it is inexpensive. When you frequently eat out, then these discounts or coupons would greatly increase your savings. When ordering food online, using premium memberships with additional services will lead in even bigger discounts. In order to help their customers, save even more money, online meal delivery firms also publicize special deals like 50% off, free delivery, and buy one get one free on holidays, the IPL, the World Cup of Cricket, etc.

B.  Biggest Issues of Adopting Online food delivering System

1. Shifting Consumer Choices: The main aim of any restaurant or food service provider is to increase its market share and customers but incurring the minimum loss. To Gain profit in the market, food delivery providers have increased the things in their menu with low prices and good discounts despite knowing that the competition is increasing. As a result, brand loyalty has just become only word and nothing that has meaning. Food delivery companies are trying to reduce their customer churn rate with the help of various marketing strategies.
2. Changing In Prices Rapidly: Pricing of the food can get affected by various reasons such as weather, location, fluctuation in prices due to inflation, Demand of the food and festive season as well. This makes consumer think twice while ordering food due to hike in prices. Food deliver services should focus on fixing the price or increasing it by little and little so the common man does not have to think a lot before ordering a common food.
3. Fulfilling: If a food delivery business cannot keep up with the expectations of customer, then it’s a waste attempt to stay in a market. Major factor that drives the sales and profit of the customer is making them feel satisfied about the price, quality of food, courtesy. The basic expectation that customer keeps is to maintain a healthy and safe contact from the point of ordering to the point of getting the food but maintaining the coordination in this scenario is a big challenge.
4. Threat of Bigger Players: Well-established companies who already have reputation in the market takes up all the space and leaves very little room for other to do business and they suffer with high loss or sometimes shut down their business. Acquiring a new client is already a big challenge and when a company gets one, they already have threat of losing them to the bigger player because of the image they have built already in their mind.

III. FACTORS BOOSTING INDIA'S INCREASE IN ONLINE FOOD DELIVERY SERVICES

A. Demand Factors

1. Age: When someone talks about the country with large population or more specifically, people who loves to eat fast food then in any case India will be on top of above all the countries. India is the country who has youngest populations in a world since half of its consumers are under 25, and the remainder are under 35. The age group of 18 to 40 represents a significant share of the fast-food demand. Additionally, it is anticipated that by 2025, it will be 550 million white collar workers in India. One of the major factors is that the people of young age are increasing the demand of pre-made food so they order it online in case they are living in hostels or working late in the offices or having party.
2. Increasing Income and Consumption: Their lifestyle and disposable income have increased due to the growing number of teenage Indians being profitably hired in profitable businesses like the banking and IT sectors. The World Bank says that since 2006, there has been an incredible 50% growth in per capita income. The social climate in urban India has changed noticeably, which has driven growth of fast-food outlets there. Another major factor influencing India's consumption level is higher income of the individual.
3. Positive Lifestyle Change: Due to more income at home, dual income for both partners, and hectic work schedules, consumers tend to order more online and get habit of doing that every once in a while. Food that is both inexpensive and fresh is becoming more and more in demand. People need food delivered to their doorsteps due to a lack of time and a wish to spend quality time with loved ones.

B. Supply Factors

1. Low Investment: As compared to opening a restaurant, an online food delivery service requires far less capital. Setting up a restaurant involves significant costs, such as rent, interior design, furniture, and so forth. Most service providers are willing to dedicate their time and money to the format used to deliver food to customers' doorsteps due to this cost. Labour costs as well as expenses for ambiance and high-quality real estate have significantly decreased.
2. New Trend in the Delivery Sector: It is impossible to ignore the role played by the increasing use of smartphones and website-based systems. Online food delivery services are doing well because to increased internet access and rising literacy rates. Numerous major corporations, including Pizza Hut and Dominos, have ties to an online meal delivery service and a smartphone app. For instance, Food Panda increased their earnings by two times between 2015 and 2017.

IV. LITERATURE SURVEY

This table contains names of the research paper I have taken into consideration and help with before starting to write the literature review. By [1] had an insight of what Online-ordering system is and what is a core of it. Similarly, [4] helped me to understand what kind of attitude and things influence customer to order online food such as wide range of options, convenience and accuracy that matters. [3] Gave an idea of how food delivery services is bringing opportunities & changes in the world of entrepreneurship and how entrepreneur can build their own business through it. With all the changes coming to the society it is normal to think that new trends will get introduced too so [8] helped to get to know about the latest trend related to the food delivery apps such as custom notifications on festivals, Birthdays, or the premium memberships.

Conclusion

The changing urban lifestyle of the typical Indian is quite in favour of online food delivery model to emerge at higher profits. The shift of high population to metro cities and long traveling hour’s motivators for the convenient, ready-to eat and cheaper options of getting food and groceries delivered at the doorstep. Companies that are aware of future trend and opportunities will thrive for balance between online and offline models but only the fittest will survive. The study indicated that the online food delivery business model is highly demandable, potential and money efficient. This space is increasing in leaps and bounds because of the size of market. Every human needs to eat multiple times and variety in a day. So, it ensures repeat in order and growing business. Due to repeat customers, Profit margins are high. Ordering online is nowadays is fashion or a way of life. Ordering online is much comfortable and less expensive than dine out. The changing urban lifestyle of the typical Indian is quite in favour of online food delivery model to emerge at higher profits. The shift of high population to metro cities and long traveling hour’s motivators for the convenient, ready-to eat and cheaper options of getting food and groceries delivered at the doorstep. Companies that are aware of future trend and opportunities will thrive for balance between online and offline models but only the fittest will survive. The study indicated that the online food delivery business model is highly demandable, potential and money efficient. This space is increasing in leaps and bounds because of the size of market. Every human needs to eat multiple times and variety in a day. So, it ensures repeat in order and growing business. Due to repeat customers, Profit margins are high. Ordering online is nowadays is fashion or a way of life. Ordering online is much comfortable and less expensive than dine out Increasing urban lifestyle of Indians is extremely beneficial to the expansion and increase in sales of the online food delivery concept. The motivation for the simple, economical, and instant options of getting food delivering right to home is the high population density in urban areas and the frequent travel durations. Only the most durable companies will survive, but those who are aware of upcoming trends and opportunities will succeed in order to maintain a balance between online and offline business models. According to the analysis, the business model for online meal delivery is very profitable, popular, and successful. Because of the size of the market, this sector is growing quickly. A variety of meals are required by every human being throughout the day. Regular customers contribute to significant profit margins. Online ordering is standard, perhaps even a way of life. Compared to eating out, online ordering is far more practical and economical.

References

[1] Patil, M. M., Kharate, S. S., Gavali, S. B., Chaudhary, R. P., & Deshmukh, D. P. REAL TIME MULTI-VENDOR HOMEMADE FOOD SERVICE USING ANDROID APPLICATION. [2] Frederick, D. P., & Bhat, G. (2021). Review on Customer Perception Towards Online Food Delivery Services. [3] SC B, S. A. S., & Andrew, S. A. (2021). Emerging Trends Towards Online Food Delivery Apps in India. Available at SSRN 3837117. [4] Ray, A., Dhir, A., Bala, P. K., & Kaur, P. (2019). Why do people use food delivery apps (FDA)? A uses and gratification theory perspective. Journal of Retailing and Consumer Services, 51, 221-230. [5] Gupta, V., & Duggal, S. (2020). How the consumer’s attitude and behavioural intentions are influenced: A case of online food delivery applications in India. International Journal of Culture, Tourism and Hospitality Research. [6] Gupta, M. (2019). A Study on Impact of Online Food delivery app on Restaurant Business special reference to Zomato and swiggy. International Journal of Research and Analytical Reviews, 6(1), 889-893. [7] Saxena, Anupriya. (2019). An Analysis of Online Food Ordering Applications in India: Zomato and Swiggy. [8] Chandrasekhar, N., Gupta, S., & Nanda, N. (2019). Food delivery services and customer preference: a comparative analysis. Journal of Foodservice Business Research, 22(4), 375-386.

Copyright

Copyright © 2023 Sushant Rajvanshi, Tejna Khosla, Vinay Kumar Saini. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.