A Impact of Delivery Service on Restaurant - MyAssignmenthelp.com

Question: Discuss about the A Impact of Delivery Service on Restaurant. Answer: Introduction 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, pr ice, 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 impact of 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 with increased revenue, enhancement in capacity management, improved productivity, transactional marketing and 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 ordering 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. Other than 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 or dering 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 staff for 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 orders 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 can reduce 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. The online 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 owners used the telephone for attaining online orders. It made it mandatory for the restaurant owners to tie a person with the online services. Therefore, the most important benefit of the online services is the labor saving as the restaurant owner does not have to keep a labor tied up on the phone. According to Namin (2017), he staff time is not being used to attend the customers, attending phone or maintaining the accounts at the cash register. As a result, the overall impact of the online ordering system is that it reduces the labor requirements in the organization. In addition to the labor saving, the restaurant owners can increase the efficiency of the online orders. It can increase the convenience of the guests, nurture the marketing efforts, eases the order processing of the organi zation and increases the average check-ins at the restaurant. However, there are also significant impacts of online ordering which can reduce the customer satisfaction with the services. The foremost issue are least guest interaction, technical issues and guest errors. Consumer Perception of Online Ordering Services In the views of Kim, Miao Magnini (2016) the consumer perception of online ordering system also impacts the efficiency and the acceptance of online ordering system. A well-designed computer ordering system can provide the customers substantial control over the type and pace of transaction. They can also control the extent of the personal interaction with the restaurant personnel. In most of the cases, an increased level of control can result in high customer satisfaction. It will increase the intent of the customers in using and recommending the services. However, it is important to understand that increase in control is not important for all the customers, especially for those customers who hope for personal contact through the ordering system. Therefore, while designing the application for the online orders, the designer must focus on the extent of control to the customers. Moreover, the customers will be using the application in the absence of an operator; therefore, it must be e asy to use and accessible. It can be discussed that Ramanathan, Di, Ramanathan (2016) another important factor which influence the consumer perception in the online ordering system is the perceived convenience of the consumers. The convenience of the system increases the adaptation rate as well as increase the satisfaction of the customers with the services. The online ordering system can be used to increase the convenience of the employees. Another challenge for the online ordering system is that it increases the technology anxiety and the human interaction of the people. However, Dharmawirya, Oktadiana, Adi (2012) have discussed that the most critical issue in the fast food and restaurant online food service is the problem of consumer waiting time. It is a significant issue and most of the restaurant owners consider the design and satisfaction of the customers. In the present fast lifestyle of the consumers, time has become more and more significant for the consumers. With the diversification of the service quality and consumers have started paying attention to the waiting time in each order. The long waiting time in the fulfillment of the orders can increase the dissatisfaction and complaining of the consumers. Therefore, it is important to minimize the waiting time in the restaurants in the present environment of intense competition. In the perception of Mittal (2016) with the advent of multi-restaurant app, the manner in which the companies communicate with the customers has changed. Different strategies are used to reduce the waiting time with the arrival of these apps. The companies can use app to understand the demand of the customers and the same apps are used to buy the products through online platforms. The mobile applications should be designed in such a manner that they demonstrates the accurate waiting time while receiving orders. The restaurants should manage its order in an efficient manner without the costly method of capacity expansion. In the traditional approach, the restaurant owner tries to reduce the waiting time with table management. It is the approach through which the host assign different tables to the restaurant visitors. It is apparent that the restaurant owner can increase the revenue and the financial outcome by determining the seats of the customers. Efficient table management can increase the revenue by increasing the overall turnover of the organization. Previously, the restaurant owners used to combine tables to increase the flexibility to match the party size and achieve high seating capacity. Efficiency in the table management can reduce the waiting time for the customers (Hwang, 2008). The present conceptual map discusses various factors which impacts the customer satisfaction in restaurants. There are several factors such as food quality, behavior of waiters, food taste and waiting time which impacts the customer satisfaction. The satisfaction of the customers depends on the overall waiting time for which the customers have to wait. With the advent of online order technology, the average waiting time of the customers has increased which has reduced the satisfaction of the customers. Independent variable: Waiting time: The waiting time of the customers have a severe impact on the satisfaction of the customers in a business organization. Dependent variable: Registration on Different websites: The registration on different online websites can increase the traffic on the consumer website. Online Orders: The inflow of online orders can increase the workload on the kitchen of the organization. High table strength: If there is high flow of customers, then the restaurant kitchen will be overloaded. Summary In the present times, the online mediums are commonly used by restaurants to increase their efficiency in different operations. It is commonly used in marketing efforts, service delivery and daily operations of the organization. With the advent of technology, several restaurants develop their own website, mobile application and register on multi-restaurant websites to drive their sales. However, with the increase in the customer demand, the overload on the kitchen also increase. Traditionally, the restaurants used different techniques such as table management to reduce the overhead of the restaurant. It is the best manner to control the overhead on the organization. In the present, the companies can use metering technique to reduce the customer satisfaction with the organization. References Axelsson, L., Malmberg, B., Zhang, Q. (2015). 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