What Impact Does Delivery Services Has On The Restaurant Services Of Horn Please Restaurant? What Are The Strategies To Resolve These?
From the results obtained from the research questions, it can be said that the HORN PLEASE restaurant uses various types of delivery ordering applications such as UberEATS, Foodora, Deliveroo, MenuLog and EatNow third party delivery apps. The restaurant has been using all these applications for delivering food to the customers in time.
From the data gathered from the question number 2, it can be said that the restaurant made the transition in the food delivering system because it was convenient for both the customers and the restaurant. The managers and the owner of the restaurant strongly agreed that the shift in the delivery ordering application was necessary and convenient for the restaurant and the customers. On the other hand, the managers and the owner of the restaurant strongly agree with the fact that this transition in delivery ordering application helps in attracting the customers much easier. Attracting the customer pool easily provides an opportunity for the restaurant to sustain in the competitive market. However, on the contrary, the results from the question 2 reveals that the managers and the owner agree that the transition in the delivery ordering application poses lesser mistakes and lesser problems both for the restaurant and the customers of availing the food delivery service by the restaurant. In addition to, the managers and the owner of the restaurant strongly agree that transition to the delivery ordering application has helped the restaurant to maximize productivity thereby, gaining an upper hand from the competitors in the sector.
According to the managers and the owner of the restaurant, transition to the delivery ordering application has helped the restaurant to retain their valuable customers by loyalty programs. As a result, the customers keep on coming back to the restaurant that eventually helped the restaurant to enhance the brand’s visibility thereby, boosting the sales.
From the results gathered in question number 2 highlighted that the restaurant had 15 employees that include 7 kitchen staff and 7 front staff along with the manager for the restaurant service. The restaurant manager and the owner strongly agree that using third-party application is highly beneficial for the restaurant, as it is convenient for both the customers and the restaurant along with attracting the customers easily. However, the managers and the owner of the restaurant have felt that the restaurant might encounter more or fewer mistakes due to the use of third party apps. In addition to, the managers and the owner of the restaurant strongly agree that using the third party helps in increasing productivity, retaining customers, minimizing the delivery staffs, their costs thereby, increasing revenue.
From the results gathered from question 5, the managers and the owner of the restaurant agree that there are some challenges for using third-party apps for the restaurant. The managers and the owner of the restaurant agree that one of limitation of using third-party apps is that installing the apps are costly. For instance, using UberEats charges up to $700. However, Deliveroo, EatNow provides own iPads. The managers and the owner strongly agree that the third-party apps take up to 25% of the restaurant’s profit. Some of the customers have complained of receiving cold food for using apps to receive their food whereas some of the customers have disagreed with the rest. The restaurant needs to consider the transport while delivering food thereby, agreeing that it has less control over food delivery and has high commission fees. The manager and the owner feel it creates a negative image of the restaurant, increases competition and rush in the kitchen, as the customers keep on ordering food from various apps.
Thus, the managers and the owner of the restaurant agree that signing up for third-party apps have impacted the restaurant both positively and negatively. The positive impact on the restaurant includes increased sales, brand visibility, revenue and cutting separate cost for delivery staffs. However, the negative impact on the restaurant includes increased rush time, customer complaints and delayed restaurant service.
Apart from the negatives for using third-party mobile ordering apps, other issues highlighted by the managers and the owner that the restaurant encounters include bad weather, spoken English problem of the delivery staffs and inadequate knowledge about roads. Thus, the strategies developed and implemented by the managers and the owner of the restaurant to overcome the daily issues includes explaining the drivers properly and providing the necessary information and cross-checking the delivery order. In spite of the potential challenges, the managers and the owner of the restaurant agree that signing up for third party delivery apps has increased the profit for the restaurant greatly. This adds additional profits to the restaurant, as during bad weathers the customers are too busy to cook at home and thus, orders food form the restaurant to dine in at home.
The managers and the owner of the restaurant have agreed that the use of the third-party apps has increased the expense for the restaurant but it is bearable. The additional expenses that the restaurant has to do for signing up for third-party apps include iPads, printers and commission fees for registering as the third party users. But being registered as the third party users has saved the restaurant from additional costs of hiring extra staffs, accommodating fewer customers in the restaurant but serving double customers as well as saving the cost of light, extra wages and rent. The only cost the restaurant has to bear is the cost of take-way containers and delivery charges. The restaurant managers and the owner confirm that the online orders provide 10% business and they were satisfied to outsource the required information for the survey.
Apart from the restaurant managers and the owner, the chefs in the kitchen agree that online food delivery has increased the overall cost operations for the kitchen along with doubling the work load during deliveries. As a result, the kitchen staffs have been increased but the waiting staffs have been cut down. Online delivery has reduced the workload at the restaurant that has positively influenced the restaurant business by cutting the fixed charges whereas the negative impact includes cutting down dine-in customers. Additionally, the online service is easier for the kitchen staffs, as this saves them from garnishing the food thereby, saving them time, attracting more customers.
From the data gathered from question 1, it can be said that the restaurant uses various delivery ordering applications such as UberEats, Foodora, Deliveroo, MenuLog and EatNow as the third party delivery apps. As commented by He, Zha and Li (2013), mobile, food text and online food order is gaining huge popularity in the food delivery industry and is highly preferred by both the customers and restaurant. This is because the use of inline food services is providing pace, ease and precision while ordering food that helps in increasing the revenue of the restaurant by fulfilling the increased demand of the customers. Incorporating technology played a huge role in reforming the food delivery service industry, as this helped in satisfying the ever-changing demands of the customers (Kang, Tang and Fiore 2014). Additionally, making the transition to third-party delivery apps has allowed the restaurants to attract the huge customer base, encounter fewer mistakes and problems, increasing the productivity and brand visibility (Rutsaert et al. 2013). The result gathered from question number 2 also highlights the support of the managers and the owner of the restaurant and justifies their choice of switching to online food ordering and delivery options.
From the data gathered in question 3, it can be said that now-a-days the restaurant has an equal number of kitchen and front staffs and that too extremely less. As commented by Kacen, Hess and Chiang (2013), the use of online food ordering and delivering has provided an opportunity for the restaurant to save the cost of qualified and trained staffs for providing service to the customers. As a result, the restaurant is able to save additional expenses in terms of hiring and training the staffs but use those cost for improving their online delivery service thereby, increasing revenue and building loyal customer base (Jiang, Yang and Jun 2013). From the results obtained from question 4, it can be said that the managers and the owner of the restaurant have agreed that using third-party apps has been beneficial for the restaurant in terms of revenue and customers. As supported by Choi, Lee and Ok (2013), 50.8% of the individuals prefer online food delivery, as this saves the customers from cooking, eating according to their convenience and waiting at the restaurant in the queue. Thus, online food ordering and delivery is both convenient and time-saving for the restaurants and the customers. Additionally, the major advantages of online food ordering include increased revenue, improved productivity, accuracy, customer relationship and capacity management Kareklas, Carlson and Muehling (2014). The results gathered from question 4 from the managers and the owner of the restaurant also supports the aforementioned advantages of online food ordering and delivery.
From the results obtained from question 5, it can be said that the managers and the owner of the restaurant agree that using third-party apps for the restaurant has potential limitations. As underlined by Chiu et al. (2014), the use of third-party apps results in increased cost for the restaurant as it includes the commission of registering as the third party user along with additional expenses. The managers and the owner of the HORN PLEASE restaurant also agree that registering as the third party users have incurred an additional cost of printers and software. Additionally, the restaurants have to bear the expenses of technological failure, as the online food ordering and delivery is based on technology. In addition to, the potential limitations of using third-party apps include the impact on the food quality thereby, affecting the customer satisfaction, the distribution channel and possible commoditization (Johnson et al. 2013).
As commented by Klaus (2013), using third-party apps takes huge profit from the business organizations in terms of commission and for ensuring effective use of technology. The managers and the owner of HORN PLEASE restaurant also agree that 25% of their restaurant’s profit is used up due to the use of third-party app thereby, reducing the profit margin. While some of the customers feel that the quality of food is hampered due to the use of third party apps, some of the customers beg to differ (Perera et al. 2014). For instance, complaints regarding the temperature and texture of the delivered food are highlighted due to third party apps whereas some agree to adjust with that as online food delivery at home is convenient for them and saves time (Hofmann et al. 2013).
According to Hauck et al. (2013), the companies have minimal or no control over it, as it is dependent on the delivery staff, the weather, the transport and the traffic at the current situation, once the food leaves the restaurant. The data obtained from the managers and the owner also agree with the aforementioned statement. On the other hand, it creates a negative impact on the customers if the food is delivered or the quality of the food is compromised. However, on the contrary, the customers recognize the effort undertaken by the restaurant and delivery staff for delivering them and tend to neglect other factors (Pepper and Brewer, 2014). The restaurant managers and the owner of the restaurant also support the above statement and agree and disagree with the fact that it causes negative image about the restaurant. According to Istfan (2014), in order to satisfy the ever-changing demand of the customers, the majority of the restaurants are opting for online food ordering and delivery thereby, increasing the competition. Thus, the restaurant has to implement unique and distinctive strategies in terms of price; delivery and food for stand out from the competitors and attract the customers. The restaurant managers and owner of HORN PLEASE restaurant support the findings of the author because the customers have plenty of options for online food ordering and delivery and it is necessary to stand out to sustain in the competitive market (Shimoff et al. 2013).
As mentioned by Yeo, Goh and Resaei (2017), it becomes difficult for the kitchen staffs to provide uninterrupted services to both the customers. This is because the kitchen has to prepare and service food to the online and dine-in customers without compromising the time, texture and quality. The managers and the owner of the HORN PLEASE restaurant strongly agree that the kitchen of their restaurant gets extremely busy during the peak hours.
From the data obtained from question 6, it can be seen that the managers and the owner of the HORN PLEASE restaurant agree that using third-party apps have both positive and negative impact on the restaurant service. As supported by Wong and Shen (2013), using third party apps in the restaurant service is beneficial as it increases sales, traffic at the restaurant and brand’s visibility. The sales of the restaurant maximize as the customers are able to get food regardless of the issues such as weather and traffic. Increased and uninterrupted services by the restaurant help in increasing traffic at the restaurant, as they are able to satisfy the customer needs and mark them in their eyes (Burns et al. 2013). As a result, the brand visibility of the restaurant improves with time thereby, generating them sales, productivity and business. The additional cost of staff hiring and training is saved due to third-party apps used by the restaurants. As supported by the restaurant managers and the owner, Neuhofer, Buhalis and Ladkin (2015) has underlined that the negatives of using third-party apps include rush in the kitchen thereby, increased customer complaints, delayed food delivery for the dine-in customers and the online customers and increased rush during the peak hours.
Studies suggest that using third-party apps gives rise to seasonal issues while operating the restaurants such as severe weather conditions and spoken English issues for the delivery staffs (Bakshi, Kanuparthy and Gilbert 2014). The managers and the owner of the HORN PLEASE restaurant agree that they have faced complaints due to improper English speaking abilities of the delivery staffs thereby, hampering their quality of service. Additionally, the incorrect address provided by the customers creates issues for the delivery staffs, as they are unable to locate the correct address thereby, delaying the delivery. On the other hand, lack of adequate knowledge of the surrounding locality for the delivery staffs hampers is also one of the negatives of using third-party apps that is supported by the restaurant managers and owner.
The managers and the owner of the HORN PLEASE restaurant agree with the fact it is essential for the restaurant to mitigate the issues encountered while using third-party apps for an online food order and delivery. The possible measures for mitigating the issues include cross-checking the orders before they leave the restaurant and giving strict instructions to the delivery staffs in order to ensure successful delivery of the food (Maity and Dass 2014). The income and expense of the restaurant are balanced after third-party apps are used for the food order and delivery. This is because the expense of the restaurant in terms of commission, registering as the third-party app users and printers are compensated by the increase sales, productivity, revenue and customers. The managers and the owner of the HORN PLEASE restaurant agree that online food has increased 10% of the business.
Based on the findings and discussion, the suitable recommendations include:
Having an attractive and user-friendly application: Complicated design of the website and the application prevents the customers from using the service of the restaurants (De Brito et al. 2013). Thus, having a user-friendly and attractive application will help HORN PLEASE restaurant to improve their online food ordering and delivering services. This is because easily accessible application of the HORN PLEASE restaurant will allow the customers to order food instantly and conveniently.
Tracking the delivery status: It is important for the customers to know the status of their order after the order is placed (Morganti et al. 2014). Thus, the ability to track the status of their order from being confirmed by the restaurant to the location of the delivery staffs will help HORN PLEASE restaurant to ensure better online food order and delivery services. The customers will be ready to pick up their order prior, as they will know the status of the order.
Recruiting own fleet of delivery staffs: HORN PLEASE restaurant needs to have their own fleet of delivery staffs those are well aware of using Smartphone and online food app. This provides an opportunity for the restaurant to ensure smooth service, as the delivery staffs will solely emphasize on giving their best service for the restaurant (Baindur and Macario 2013).
Aiming to deliver food within 20 minutes: In order to ensure effective customer service, the companies need to ensure that the order is delivered to the customer in minimum time (Wright et al. 2015). Thus, HORN PLEASE restaurant needs to ensure that the food ordered is delivered to the customers within 20 minutes. This will help the restaurant to deliver the food while it is still warm thereby, preventing the probability of compromising with the food quality.
Dividing the delivery area by locality: Reaching out nearby locality is easier compared to faraway places. Emphasizing on the nearby locality for delivering food will help in the faster delivery of food to the customers (Burden et al. 2015). Thus, HORN PLEASE restaurant will have to emphasize to serve customers within 5 kilometers from the location of the restaurant. This will help in ensuring faster delivery of food by the HORN PLEASE restaurant thereby, reducing complains and increasing sales and loyal customers.
Providing promo-codes: The customers are always attracted to discounts and promos, as they feel that the business organizations are concerned about their needs and demands (Burden et al. 2015). Thus, providing promo-codes at a regular interval will allow HORN PLEASE restaurant to influence customers to use their food order and delivery service. The options of promo-codes will attract the customers, as they will be getting discounts for ordering food from the restaurant.
Replacing the customer phone calls with custom messaging: It is often seen that the customers are annoyed to receive calls from the restaurant and delivery staffs after placing the orders, as this disturbs them at work. Thus, replacing the customer phone calls with custom messaging will help HORN PLEASE restaurant to provide uninterrupted service to the customers. Without any calls, the customers will be able to track the status of the order (Kuo, Lee and Tian 2013).
Reducing order processing time: Reports suggest that an estimated 2 minutes is taken for processing the orders by the restaurants. Thus, reducing the order processing time by HORN PLEASE restaurant will help in getting an upper hand from the competitors. If HORN PLEASE restaurant is able to reduce the order processing time to 45 seconds from 2 minutes, it will enhance the quality of service by the restaurant (Kuo, Lee and Tian 2013).
Improving order accuracy: Delivering the right order at the first go creates a positive image in the eye of the customers (Kuo, Lee and Tian 2013). Thus, it is essential for HORN PLEASE restaurant to improve the order accuracy. The restaurant can improve the order accuracy by cross-checking them twice before it leaves the restaurant.
Freeing the front staffs: Online ordering provides an opportunity for the restaurant to free front house staffs in the restaurant thereby, emphasizing on tasks that are crucial for the business (Kuo, Lee and Tian 2013). Thus, freeing up the front house staffs by HORN PLEASE restaurant will provide an opportunity to engage the staffs in other significant activities such as cleaning and stocking up for the peak hours.
Improving payment security: Online transaction deals with important information of the customers such as personal details and card details. Thus, it is essential for HORN PLEASE restaurant to ensure secured payment gateway for their application, as this will help in keeping the information of the customers safe and secured. Security of the customer information will influence them to use the service provided by HORN PLEASE restaurant (Kuo, Lee and Tian 2013).
Paying through both cash and cards: It is essential for the restaurants to consider the payment preferences of the customers. This is because not all customers prefer to pay by cash or card. Thus, it is essential for HORN PLEASE restaurant to keep both the option of payment ready for use. Having the option of paying by cash and card will help the customers to be flexible with their choice of payment (Kuo, Lee and Tian 2013).
Better refund policy: It is essential for the restaurants to have easy refund policies, as the customers are easily annoyed when they do not get what they expect in exchange for money. Thus, HORN PLEASE restaurant needs to have an easy refund policy, so that the customers can easily get the refund if they are unsatisfied or have other genuine reasons.
Service guarantee: It is essential for HORN PLEASE restaurant is ensure assured service guarantee so that the customers are delivered exactly what they have ordered. This will help in creating loyal customers and improve the brand visibility.
Polite and well behaved delivery staffs: As food order and delivery is a customer-oriented service, it is essential for the HORN PLEASE restaurant to hire polite and well-behaved delivery staffs, as they are the ones who will represent the restaurant and the services in front of the customers (Kuo, Lee and Tian 2013).
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