Impact of Online Food Delivery On The Financial Performance of Rwandan Restaurant Industry

IMPACT OF ONLINE FOOD DELIVERY ON THE FINANCIAL PERFORMANCE
OF RWANDAN RESTAURANT INDUSTRY
A CASE STUDY OF JUMIA FOOD RWANDA (2016-2018)
BY
NDAYISHIMYE Innocent
MFIN/REG/ 201410295
Thesis submitted in partial fulfillment of the academic requirements for the award of a
Master’s Degree in Finance.
Kigali Independent University ULK
October 2019
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DECLARATION
I, NDAYISHIMIYE Innocent declare that, this work is my original work, to the best of our
knowledge and it has never been submitted in any university for any award.
I therefore declare that this work is my own contributions to the fulfillment of the award of a
master’s degree in finance at Kigali independent university ULK
NDAYISHIMIYE Innocent
Signature of students……………………………..
Date: ……../………/……….
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CERTIFICATION
I, Dr. BIGIRIMANA Moïse, Hereby certify that this dissertation titled “impact of online

food delivery on the profitability of the Rwandan restaurant industry is under my supervision
and guidance.
Supervisor: Dr. BIGIRIMANA Moïse
Signature: ………………………………
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DEDICATION
To my lovely wife
To my children
And to my friends
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ACKNOWLEDGMENTS
I take this opportunity to thank the Almighty God for seeing me through the completion of
this thesis. Carrying out of this research has also been made possible by the continuous and
priceless support of many people. While it is not possible to name all of them, specific
mention goes to a few; I am eternally grateful to my supervisor Dr. BIGIRMANA Moïse,
Founder of ULK Dr. Professor RWIGAMBA BALINDA. For their relentless professional
guidance and advice. To my family for their encouragement, prayers and sacrifice to enable
me conclude on this study.
I would also wish to extend my sincere gratitude to my close friends and to all the ULK
masters’ student intake 6 for the teamwork and motivation. Thank you all.
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LIST OF ABBREVIATION AND ACRONYMS
AI : Artificial Intelligence
DR : Doctor
Pr : Professor
ROA : Return On Assets
ROE : Return On Equity
FRW : Rwandan Francs
SEO : Search Engine Optimization
SMES : Small and Medium Enterprises
TAM : Technology Acceptance Model
UK : United Kingdom
ULK : University Libre de Kigali
WWW : World Wide Web
% : Percent
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ABSTRACT
Online food delivery is becoming popular throughout the world including Rwanda. This
study is to determine the impact of online food delivery on the profitability of the Rwandan
restaurant industry. Previously studies have been done on the effect on the impact online
shopping on the financial performance in international context, but there was no research
related to the impact of online food delivery on the profitability in Rwanda. Research
Objectives to assess pros and cons of online food delivery in Rwanda, to assess the
effectiveness of online food delivery service in Rwanda and to examine the relationship
between online food delivery and the financial performance of the selected restaurant in
Rwanda.
In this research the researcher has used the analyzed both Primary data and secondary data. .
The research has reviewed the effectiveness of the Jumia apps system on the selected
restaurant, the result revealed that the Jumia apps system was effective besides on the some
associated problems; such as hidden ordering cost, price fluctuation, and unreliable delivering
time. And more than 26.6 % of the total respondents they face the challenge of unreliable
food delivering on the customer. .research revealed that online food sales (Jumia) on the total
sales at Meze fresh , in 2016 the Jumia has contributed 36% of the total sales at Meze fresh,
while in 2017 Jumia online sales has contributed 44% sales on the sales, while in 2018 it has
contributed 29% sales on the total sales, whereas Jumia sales on the total sales at Mr. chips
restaurant, in 2016, 30% of the total sales at Mr. chips, was made via online food delivery,
whereas in 2017 the online food sales to total sales increased from 30% to 40% and in 2018
food sales has increased from 40.2% to 42.1%. The result implies that online food sales
contribute to a higher proportional at Mr. Chip’s restaurant. Correlation analysis between
Jumia sale and total sales at Meze fresh restaurant, the research findings revealed that there is
a very positive correlation between the two variables at 0.855, whereas the research findings
revealed that there is a very positive correlation between the Mr.chips sales and Jumia sales at
0.032 thus means that Jumia food sales impact the total sales at those two restaurant
significantly.
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TABLE OF CONTENTS
DECLARATION......................................................................................................................ii
CERTIFICATION..................................................................................................................iii
DEDICATION.........................................................................................................................iv
ACKNOWLEDGMENTS.......................................................................................................v
LIST OF ABBREVIATION AND ACRONYMS................................................................vi
TABLE OF CONTENTS.....................................................................................................viii
LIST OF FIGURES...............................................................................................................xii
CHAPTER ONE: INTRODUCTION TO THE STUDY.....................................................1
1.1. Background of the study.....................................................................................................1
1.2. Problem statement...............................................................................................................3
1.3. Objectives of the study........................................................................................................4
1.3.1 General objective..............................................................................................................4
1.3.2 Specific objective..............................................................................................................4
1.4. Research questions..............................................................................................................4
1.5. Research hypothesis............................................................................................................5
1.6. Scope of the study...............................................................................................................5
1.7. Significance of the study.....................................................................................................6
1.7.1. Personal interest...............................................................................................................6
1.7.2. Academic interest.............................................................................................................6
1.7.3 Interest of selected restaurant and other restaurant...........................................................6
1.8. Organization of the study....................................................................................................7
CHAPITER TWO: LITERATURE REVIEW......................................................................8
2.1. Introduction.........................................................................................................................8
2.2. Theoretical perspective on food delivery............................................................................8
2.2.1. Technology Acceptance Model (TAM)...........................................................................8
2.2.2. Theory of Planned Behavior (TPB).................................................................................9
2.2.3. Purchase Intention and Consumer Behavior....................................................................9
2.2.4. E-commerce retail theory...............................................................................................10
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2.2.5. Online shopping evolution along with the technologies................................................11
2.2.6. Mobile Media theory......................................................................................................12
2.2.7. Marketing Mix theory....................................................................................................13
2.2.8. Search Engine Optimization (SEO) theory....................................................................15
2.3. Theory on profitability......................................................................................................16
2.3.1. Profitability indicators....................................................................................................16
2.3.2. Profitability Ratio...........................................................................................................17
2.4. Related case study (relationship between online selling and profitability).......................17
2.4.1. International related case studies...................................................................................18
2.5. Conclusion.........................................................................................................................20
CHAPTER THREE: METHODOLOGY............................................................................21
3.1. Introduction.......................................................................................................................21
3.2. The system approach.........................................................................................................21
3.3. The type of the study.........................................................................................................21
3.4. Study design......................................................................................................................22
3.5. Source of data....................................................................................................................22
3.5.1. Primary data...................................................................................................................22
3.5.2. Secondary data...............................................................................................................22
3.6. Population.........................................................................................................................22
3.7. Sample selection................................................................................................................23
3.7.1. Purposive sampling........................................................................................................23
3.7.2. Universal sampling.........................................................................................................23
3.8. Methods and techniques of data collection.......................................................................24
3.8.1. Questionnaire.................................................................................................................24
3.8.2. Observation....................................................................................................................24
3.8.3. Interview........................................................................................................................24
3.8.4. Document study.............................................................................................................25
3.9. Data processing.................................................................................................................25
3.9.1. Editing............................................................................................................................25
3.9.2. Coding............................................................................................................................26
3.9.3. Tabulation......................................................................................................................26
3.10. Data analysis...................................................................................................................26
3.10.1. Qualitative data analysis..............................................................................................27
3.11. Ethical Considerations....................................................................................................27
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CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION................................28
4.1. Demographic Information for Respondents......................................................................28
4.2. Analysis of effectiveness of Jumia online food delivery system......................................30
4.3. Analysis of impact of online delivery on the profitability of business.............................34
4.4. Quantitative analysis of impact of food delivery financial performance of selected AA A
A restaurant...........................................................................................................................37
4.5. Correlation analysis of Jumia sales over total sales..........................................................41
CHAPTER FIVE: SUMMARY OF FINDINGS, SUGGESTION, AND SUGGESTION
AND SUGGESTI AND SUGGESTION............................................................................44
REFERENCE.........................................................................................................................47
APPENDICES........................................................................................................................49
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LIST OF TABLES
Table 1: Shows gender distribution of respondents.................................................................28

Table 2: Shows age distribution of respondents......................................................................28
Table 3: Shows an educational background of respondents....................................................29
Table 4: Shows working experience of respondents in the food industry...............................29
Table 5: Staff’s experience in ordering via online/internet......................................................30
Table 6: Cleanliness of the system...........................................................................................30
Table 7: Payment process.........................................................................................................31
Table 8: Sensitivity of products via Jumia food app store.......................................................31
Table 9: Accurateness of the system........................................................................................32
Table 10: Timeliness of the system..........................................................................................32
Table 11: Problem associated with the system........................................................................33
Table 12: Cost of food delivering system................................................................................34
Table 13: Advantage of the system on the customers..............................................................34
Table 14: Online food order on total sales..............................................................................35
Table 15: Show the evolution of customers.............................................................................35
Table 16: Comparative table that shows restaurant income before and after joining online
online online food delivery...............................................................................................36
Table 17: Advantage of online food delivery..........................................................................36
Table 18: Financial status of Mr. chips restaurant over the past 3 years.................................37
Table 19: Analysis of Jumia sales over total sales at Mr. Chips restaurant.............................39
Table 20: Presentation of financial status at Meze fresh restaurant.........................................39
Table 21: Analysis of Jumia sales over total sales at Meze fresh restaurant...........................41
Table 22: Correlation analysis between Jumia sales and total sales at Meze fresh restaurant.42
Table 23: Correlation analysis between Jumia sales and total sales at Mr.chips restaurant....43
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LIST OF FIGURES
Figure 1: Elements of a successful marketing strategy (Harris 2017).....................................11

Figure 2: Marketing Mix Diagram (Jerome McCarthy 1960.)................................................12
Figure 3: omini channel marketing..........................................................................................14
Figure 4: An example of using Keywords on search engine...................................................16
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CHAPTER ONE
INTRODUCTION TO THE STUDY
1.1. Background of the study
Computers have become part of the life for accessing almost any kind of information. Life in
the 21st century is full of technological advancement and in this technological age it is very
difficult for any organization to survive without utilizing technology. The World Wide Web
contributes greatly to the creation of an ever-increasing global information database. It could
also be used as a mechanism to share information within an enterprise.
In today’s age of fast food and take-out, many restaurants have chosen to focus on quick
preparation and speedy delivery of orders rather than offering a rich dining experience. Until
very recently, all of these delivery orders were placed over the phone, but there are many
disadvantages to this system, including the inconvenience of the customer needing to have a
physical copy of the menu, lack of a visual confirmation that the order was placed correctly,
and the necessity for the restaurant to have an employee answering the phone and taking
orders.
What I propose is an online ordering system, which is a technique of ordering foods online
applicable in any food delivery industry. The main advantage of this system is that it greatly
simplifies the ordering process for both the customer and the restaurant. When the customer
visits the ordering webpage, they are presented with an interactive and up-to-date menu,
complete with all available options and dynamically adjusting prices based on the selected
options. After making a selection, the item is then added to their order, which the customer
can review the details of at any time before checking out. This provides instant visual
confirmation of what was selected and ensures that items in the order are, in fact, what was
intended.
This system also greatly lightens the load on the restaurant’s end, as the entire process of
taking orders is automated. Once an order is placed on the webpage, it is entered into the
database and then retrieved, in pretty much real-time, by a desktop application on the
restaurant’s end. Within this application, all items in the order are displayed, along with their
corresponding options and delivery details, in a concise and easy to read manner.
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This allows restaurant employees to quickly go through the orders as they are placed and
produce the necessary items with minimal delay and confusion.
In Africa, the concept of e-commerce is currently gaining, popularity, especially in the

private sector. To deal with the problems of lack of accountability and transparency in
procurement activities in the public sector, most African countries have also resorted to legal
reforms and adoption of electronic commerce. Tanzania for instance, put into place e-
procurement systems to allow e-sharing, e-advertisement, e-submission, e-evaluation, e-
contacting, e-payment, e-communication and e-checking and monitoring to ensure all public
procurement activities are conducted online (Leo Sun, 2009). According to Murphy (2010),
e-commerce is associated with increased efficiency, lower transactional costs, reduced
corruption and enhanced control and monitoring of the public procurement process. On the
other hand pointed out that e-procurement can lead to improved labor productivity.
Over the last decade, the Government of Rwanda has undertaken a number of reforms
including business registration, public finance management and procurement reforms which
have initiated changes to the law and regulations; it has also successfully developed Financial
management information system FMIS and has installed country wide fiber optic backbone –
both of these are huge developments and critical to the success of its vision. Building from
these achievements, the Government of Rwanda initiated a project to automate the public
businesses cycle and was designed to facilitate the transformation of the procurement
discipline within Rwanda for the future. More so, these strategies have enabled the private
sector to embrace the technology by engaging in electronic commerce which they of recently
have taken as their strategic mode of planning (MINECOFIN, 2015).
Rwanda has experienced significant progress in the deployment of ICT infrastructures that
connect the country to global networks. The existing national fiber optic backbone network
connects Rwanda to international sea cables and thus provides for affordable access to
Internet across the country. Legal and regulatory tools have been developed following
governmental initiatives to diffuse ICT and e-commerce-related technology among Rwandan
large and small companies. Focusing on SMEs, Rwanda has received a variety of
governmental and nongovernmental initiatives to foster ICT and e-commerce usage.
However, SMEs still face limitations, especially with regard to systems standardization and
payment solutions (NICI, 2015).
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JUMIA Food is a food delivery company operating in more than 11 counties in Africa,
Rwanda included. At JUMIA Food, they believe that ordering food online should be easy,
fast and definitely fun! JUMIA Food wanted to provide clients the best online food ordering
experience, so they made it. JUMIA Food is an online food delivery service, which simplifies
food ordering for Rwandan people. A client simply chooses the food they want on online
menus, and be delivered at home. JUMIA Food Rwanda is located at Remera KN 5 Rd,
Mathias house 2nd floor. Therefore, this study aimed at finding out the success story about
the implementation and the impact of e-commerce adoption as a competitive strategy in
Rwandan Market taking JUMIA Food Rwanda as a case study.
1.2. Problem statement
The challenges encountered by the existing system serve as a major drawback to the
realization of efficiency and customer satisfaction. The experience of ordering in most fast
food restaurants is not pleasant for the customers. Customers will have to make long queues
before placing their orders, especially during peak hours and then the ordering staff will
record customer orders. Having placed their order, the customer must then wait near the
counter until their order is ready for collection. The other problem in the food service
industry is that restaurants are not realizing the efficiencies that would result from better
application of technology in their daily operations. Fast food business in a very competitive
business and one way to stand out from competitors is through improving the business
process where business process automation can assist business improvement. The other
problem with the current system is that the customers are not able to see the ingredients of the
meals before they place their order and also they only have to pay for an order online.
As competition intensifies, many businesses continue to look for profitable ways to

differentiate themselves from competitors (Porter, 2010). Every organization needs to adopt
strategies which will enable it to have a competitive edge over the other players in the
market. Strategies concern the purpose and objectives of the organization. Strategies are the
things that organizations do, the paths they follow and the decisions they take in order to
reach certain level of success. Increased competition threatens the attractiveness of an
industry and impacts on profitability
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Rwanda as a landlocked country has widened its markets through integration and this needs
more knowledge in online food delivering and its profitability in each restaurant in order to
remain competitive on the markets.
The lack of necessary experience and skills to be equipped by staffs on online food delivering
matter to be applied in their restaurant in order to be competitive, incited the researchers to
conduct their study by assessing the impact of online food delivery as tools of the
profitability of the federation of restaurant in Rwanda, for a period of 3 years as from 2016 to
2018.
1.3. Objectives of the study
An objective of the study is composed by general objectives and specific objectives are as
follows:
1.3.1 General objective
The general objective of this research was to analyze the impact of online food delivery of the
financial performance of restaurants in Rwanda.
1.3.2 Specific objective
The specific objectives of this study are to be formulated as follows:

I. To assess the pros and cons of online food delivery in Rwanda
II. To assess the effectiveness of online food delivery service in Rwanda.
III. To examine the relationship between online food delivery and the financial
performance of the selected restaurant in Rwanda.
1.4. Research questions

The researcher will be guided by the following questions:
I. Is online food delivery apps effective in Rwanda?
II. To what extent does online food delivery financial performance of the selected
restaurant in Rwanda?
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1.5. Research hypothesis
It was a forecast regarding the possible outcomes of the study in terms of variables that were
investigated. Based on that, THE following answers were suggested:
 Online food delivery, at selected restaurant is effective
 Online food delivery affected the financial performance of the selected
restaurant in Rwanda.
1.6. Scope of the study
The research as any other scientific works limited in domain, space and time. The research
was limited as follows:
1.6.1. In Domain
This research conducted in domain of sales department in order to assess the impact of online
food delivering on the profitability of restaurant in Rwanda.
1.6.2. In Space
Due to the financial and time limitations, it was not possible to carry out this study restaurant
in Rwanda. The research was conducted at a restaurant that use online food delivery apps
’’Jumia’’
1.6.3. Period
The study limited to three years as from 2016 to 2018 and the data to be used in the research
will be ranged in that period; it facilitated the researchers to complete the purpose of the
study.
1.7. Significance of the study
There are the factors that motivated the choice of this topic based on the research interest,
academic, scientific and Mr Chips fast food interest.
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1.7.1. Personal interest
After conducting this research, the researcher extending knowledge on strategies used by
selecting restaurant to get more profit, the research gained new knowledge on the great notion
of online delivering service and based on approved final dissertation research, the researcher
will be awarded a master’s degree in finance
1.7.2. Academic interest
I. The student and academic organization benefited with a copy of this research to be
reported in ULK
II. Library for reference to enrich knowledge and practice orientation of other
researchers in ULK.
III. This study will be used as well as evidence for academic purpose in order to reward
researchers.
1.7.3 Interest of selected restaurant and other restaurant
The result of this work can be used in restaurant facilitating indeed the management staff,
especially working in the sales department to be aware of different views collected and
analyzed regarding online food delivering and to know where they can make efforts and
change strategies to achieve objectives of the organization. The research will also have a
significant contribution to the Rwandan restaurant because suggestions and recommendations
to be provided by researchers at the end of this study will remain helpful to ameliorate and
implement appropriate strategies in marketing in order to increase both the number of
customers and the quantity of minerals supplied in the federation. It will be useful also to
hedge against the competition.
1.8. Organization of the study
The study is divided into five chapters, as follows:

 The first chapter is made up of by introduction, background of the study, a statement
of the problem, research hypothesis, research questions, objective of the study,
significance of the study, scope of the study and organization of the study
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 The second chapter comprise of literature review, that cover what other authors have
written on the topic in the past.
 Third chapter covered the methodology to be applied in gathering the relevant data
 Chapter four dealt with data analysis, interpretations and presentations
 Chapter five presents summary of research findings, conclusion and recommendation
CHAPITER TWO
LITERATURE REVIEW
2.1. Introduction
This chapter focused on theoretical literature of related case studies, this chapter starts by
section 2.2. That has discussed theoretical literature, followed by section 2.3 that contains the
empirical literature on online delivery services and financial performance. And 2.4 contains a
summary or literature gap.
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2.2. Theoretical perspective on food delivery
Various theories have been discussing the argument that guide this study, these theories
includes, online evolution theories, and mobile media theories, marketing mix theory and
search engine theories.
2.2.1. Technology Acceptance Model (TAM)
TAM is an adaption of the Theory of Reasoned Action (TRA) and was used to assess user’s
computer acceptance, which is measured by the intention and the influence of attitude,
perceived usefulness, perceived ease of use toward the intention to use (Davis et al., 1989).
The result showed that perceived usefulness strongly influenced intention to use but
perceived ease of use only has a trivial effect on the intention to use. On the other hand,
attitude partially mediated the effects of perceived usefulness and ease of use on intention to
use (Davis et al., 1989). Since attitude did not play as an important determinant to influence
the variables, TAM was then modified by removing the attitude variable found in TRA. The
new TAM demonstrated the intention as a mediator to influence the relationship between
perceived usefulness, perceived ease of use and usage behavior (Venkatesh & Davis, 2000).
The result showed that perceived usefulness and perceived ease of use are determinant of
intention to use. This was supported by several previous studies (Heijden et al., 2003; Kim &
Hong, 2010; Kim & Song, 2010; Peng et al., 2008; Liu et al., 2010). A related study by Gong
et al. (2013); Roca et al. (2009); Yusniza (2007) found that perceived usefulness is an
important determinant of intention to use, but perceived ease of use has an insignificant
2.2.2. Theory of Planned Behavior (TPB)
The Theory of Planned Behavior (TPB) is the extension of the Theory of Reasoned Action
(TRA) (Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975) due to the salient limitation in the
previous theory in dealing with voluntary behavior while the latter theory proposed that
behavior is not completely under control thus a voluntary action (Ajzen, 1991). TRA posited
that a person’s positive attitude together with the individuals’ thought constituted to the
behavioral intention of one person. Opposition to TRA, TPB model provide a better
explanation of behavioral model that a person is assumed to perform certain behavior if that
person has actual control over the behavior (Ajzen, 1991). Thus, when a person has a more
8
favorable attitude and subjective norm, and with the acceralation of perceived behavioral
control and intention, that particular person will perform the actual behavior (Ajzen, 1991;
Caulfield, 2012). In TPB model, behavioral beliefs are expected to influence attitude, so as
the effect of normative beliefs on the subjective norms while control beliefs constitute the
foundation of behavioral control (Ajzen, 1991). Yet, the relationship between these variables
remained ambiguous (Ajzen, 1991).
2.2.3. Purchase Intention and Consumer Behavior
Ajzen (1991) suggested that intentions are presumed to be an indicator of to what extent
people willing to approach certain behavior and how many attempts they are trying in order
to perform certain behavior. According to the studies by He et al. (2008), lack of intention to
purchase online is the main obstacle in the development of electronic commerce. The theory
of planned behavior (TPB) applied on Thai consumers implied that the intention to shop
online was most likely to be affected by perceived behavioral control and subjective norm,
the sum of the attitudes from the people surrounding them (Orapin, 2009). Since these two
factors can influence consumers’ purchase intention , thus influencing their behavior towards
online shopping and eventually lead to actual action (Orapin, 2009). The shopping intention
as a substitute for purchasing behavior also needs to be explored. Although intention has been
determined as a salient predictor of actual behavior to shop online (He et al., 2008; Orapin,
2009; Pavlou & Fygenson, 2006; Roca et al., 2009), it should be acknowledged that purchase
intention does not translate into purchase action (Kim & Jones, 2009). Based on Technology
Acceptance Model (TAM), perceived ease of use and perceived usefulness determined the
online shoppers’ decision after online behavioral intention sink in (Hu et al., 2009).
An online website should understand the customers’ purchasing behavior in order to build
and maintain the good relationship with customers (Kim & Hong, 2010). Jamil and Mat
(2011) proposed that purchase intention may have a positive influence on actual online
purchasing and recommended to further investigate on the relationship between these two
variables in future studies. Limayem et al. (2000) admonished researchers to investigate on
the intention, assuming that behavior will automatically string along.
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2.2.4. E-commerce retail theory
To build a marketing strategy plan, a retail brand needs to perceive the main purpose of the
marketing plan process along with other supply chain management strategies. An
organization would need marketing information in order to build their strategies. A working
knowledge of their sources, marketing research and the uses of data collected through the
research. The market segmentation, targeting and positioning, knowing their customers and
the marketing mix are key elements for creating a successful fashion marketing plan.
On the subject of E-commerce marketing strategies, retailers need to start with developing a
mission statement, objectives and value position. In other words, companies must have key
performance indicator which is known as KPIs to measuring marketing efforts and record
performance by tracking number of users whom visiting their website and making purchase
for products (Harris 2017) Additionally, marketers need to clarify what is needed for
channels such as online paid, owned and earned media based on the new objectives, new
technologies and target customers.
Figure 1: Elements of a successful marketing strategy (Harris 2017)
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2.2.5. Online shopping evolution along with the technologies
Digital technologies are becoming the centre of lives. Digital networks merge with most of
our devices such as mobile phones, watches cameras with multiple accessibilities. From
artificial intelligence to the block chain, there are five significant inventions that push the
business of fashion to be more efficient, escalate the user experience and contribute an
improvement in consumer value proposition in general. Fashion companies that effectively
utilize the suitable technologies would be able to increase their competitive advantage
towards customizing products and shopping experiences, filtering logistical process that
nibbles away at budgets (Kati 2018.)
Firstly, the Artificial Intelligence (AI) is becoming one of the biggest technological
developments in retail business lately. Its ability has transformed a vast and diverse data into
valuable information that can help with exceeding speed, cost and flexibility towards the
value chain. In addition, AI can help retail brands with predicting, merchandising and
magnitude planning. Thanks to AI, consumers can appreciate better products availability,
faster and accurate deliveries (Kati 2018.)
One of the top e-commerce fashion retailer brand in the United Kingdom - ASOS had applied
Artificial Intelligence and launched their new visual search tool with the aim of shaking-up
their online shopping. The brand introduced the functionality on their IOS application, a
shopper can simply download the ASOS app, ticking the camera icon, then choose a photo of
their favourite items from camera rolls from their devices, ASOS's will search the similar
products within a seconds through ASOS catalogue's data (Clark Boyd 2017.)
2.2.6. Mobile Media theory
As mobile technologies develop, they have turned out to be a supercomputer in a mini size
that people can carry around. In the e-commerce business, developing mobile applications
besides desktop version is an essential work. With mobile devices, the user can access to the
Web store through an application, viewing in-store digital displays, choosing products that
they want, and easily purchase using mobile pay application. The mobile technologies
simplify all buying process via QR code scanning and Barcode reader.
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Following the functional mobile application which was designed to match with both ISO and
Android devices, fashion marketers have been embracing some visual innovations in mobile
app technology and explore the potential for connecting with consumers when they shop.
Figure 2: Marketing Mix Diagram (Jerome McCarthy 1960.)
2.2.7. Marketing Mix theory
In the past, Marketing Mix 4 Ps (Product, Price, Place, and Promotion) was designed with the
aim of selling products rather than services and the customer's roles were implemented in
helping the brand development. Over time, there are two elements are Process and Physical
Evidence added to the 7Ps of the Marketing Mix according to Jerome McCarthy in his book
Basic Marketing. Managerial Approach which is published in 1960 (Figure 5).
Starting with the Product in food industry, items are designed, made and sold to consumers.
Products require high quality which will present the success of a brand. Afterwards, Price
should be considered and measured based on the material and production costs in order to
decide the final price which will be offered. Since the service provision needs to be a balance
between customization and standardization, the process took part in the activity demand
special mention and attention. At the process stage, business will need to ensure the method
to deliver products to the customers. With an e-commerce business beside the physical
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location, the Place element is created to help business owner boosting the sale by selecting
the location with an ease of access. If it is an offline business, the store should be located in
the most attractive destination meanwhile; an online store should be established using the
most high-tech site. The Promotion fulfils the roles of marketing context by adding
markdown to reduced items, displaying through visual merchandising and public relations. In
both online and offline business, People is a significant role due to the need of being served
and effective communication in trading business. Many ecommerce services are offering 24/7
live chat as one of the customer services strategies. Especially, the affiliate marketing which
are product-focused referrals such as testimonials, products reviews from consumers. The
Physical Evidence acts as the existence of the brands through branding, websites, online
presence and emails (Jeroem MCCarthy 1960.)
Along with the development of technologies, the marketing has been changing from early
website platform to social media through participatory cultures, viral content, omnichannel
marketing strategy (Harris 2017) In the digital age, customers expect and demand to interact
with brands from anywhere, anytime and accessible on any devices. Even though nothing can
beat a human physical touch on the product, consumers still prefer an experience delivered
through at least one digital channel.
As a result, many brands start expanding their business not just interact with shoppers at a
physical store but also running their business online by investing for omnichannel succession.
13
Figure 3: omini channel marketing
Figure 6 Omni-Channel marketing is a definition of using many channels in a seamless way.

By using Omni-channels, customer’s experiences and interactions should be constant across
all channels, modes of delivery and devices used (Harris 2019, 29.)
An E-commerce business cannot be a success without a website as the main channel of

launching products, selling and advertising as well as connecting with customers. For many
retailers, a Website is the main hub of the digital marketing strategy. It is a portal to
communicate and collecting customer’s information to the database. The site can also
contribute an opportunity to show visitors their products, campaigns, personal advice and
guide them to the purchase method (Harris 2017) Marketer should collaborate with the
designer to work on the rough plan for a visualized Website's layout where they can reach the
sale target. An example is illustrated in figure 6 of which information should be listed on the
first page of the website. According to Harris, before creating a website, these questions
should be considered:
1. Is the website visible to any search engine optimization (SEO)?
2. Does it provide all information that customers needed? Is it update daily
3. Together with all attached sites?
4. Does it work properly in any web browsers?
5. Does it show the brand and its values?
6. Is it mobile friendly?
7. Is it connected to relevant social networks?
2.2.8. Search Engine Optimization (SEO) theory
Search engine optimization is the process of maximizing the number of visitors to a website
by making sure the site appears on the top search list. A search engine plays a key role
providing results to a search term and ranks them following the relevance of contents and the
importance of keywords. It evaluates the page contents, links, usability (Harris 2017,46.)
Search results are as known as organic due to their natural reaction which is based on
individual search engine's algorithm and none of the users can pay to be found at the top.
Consequently, some E-tailers need to find other solutions in order to push their ranking at
Google or other search engines.
14
There are three main criteria that search engines assess. Keywords are the first criterion due
to the realization whether or not the site is relevant to the search, then the search engines start
looking for keywords. The search engine decides the importance of these searched keywords
by evaluating the position of these keywords on the site and the times they are used (Miller
2012,131.) The second criterion is HTML Tags. The term HTML is shortened for a standard
coding language for creating a webpage. It determines the structure of a webpage and
connects that information to the browser. For instance, in Google Chrome browser, the
HTML codes can be easily found by opening any webpage via CTRL+U. According to
Miller, it is smart to include some keywords in the page title. The last criterion is inbound
links, which lead to a website.
Google had found out that once a site has big numbers of other sites linking back to it, the site
is considered as a powerful source thank useful and relevant contents that provided.
Therefore, adding high-quality links that lead to the sites should increase the search engine
rate (Miller 2012, 133.)
Figure 4: An example of using Keywords on search engine
15
2.3. Theory on profitability
2.3.1. Profitability indicators
The profitability indicators are designed to give you a sense of what the figures mean. They
allow you to compare the businesses to one another, and to see how the business itself is
performing year on year.
1. Initial return on assets shows you Gross profit (Operating income for finance
businesses, Gross Surplus for charities) as a percentage of the assets the business has.
The assets are the average of the assets at the start of the year and at the end of the
year.
2. Gross Margin shows you Gross profit (Operating income for finance businesses,
Gross Surplus for salaries) as a percentage of Revenue. A high percentage means that
the business is making a healthy profit on the goods or financial products it sells,
before administrative costs.
3. Efficiency shows you the administrative costs as a percentage of Gross profit or
Surplus. The higher the number, the less is being spent on administrative costs. A
figure of 100% would indicate that the business has no administrative costs at all,
whilst 0% would indicate that all of the gross profit is spent on administrative costs.
The number will be negative if the business has spent more on administrative costs
than it generated on gross profit, and so is in loss for the year.
4. Net Margin shows you Profit before tax as percentage of Gross profit (or Operating
income or Gross Surplus ), but before any payments to investors. So this is the
percentage of gross profit that is available to investors after all costs except tax.
Effective tax rate shows you the percentage of its profits that the business paid in
corporation tax.
Finally, net return on mean assets shows you the net profit that the business generates as a
percentage of the assets it has. The assets are the average of the assets at the start of the year
and at the end of the year.
16
2.3.2. Profitability Ratio
A profitability ratio is a measure of profitability, which is a way to measure a company's

performance. Profitability is simply the capacity to make a profit, and a profit is what is left
over from income earned after you have deducted all costs and expenses related to earning
the income. The formulas you are about to learn can be used to judge online food delivery
and profitability of restaurant in Rwanda.
 Return on Equity
Return on equity measures the rate of return on the ownership interest (shareholders' equity)
of common stockholders. Therefore, it shows how well a MR CHIPS uses investment funds
to generate earnings growth.
Annual Net Income
ROE =
Average Stockholders' Equity
2.4. Empirical review
Studies on the effect of interest rates on the commercial bank’s profitability are numerous
with the most of them studying e-commerce relationship with the profitability. This section
has reviewed on some other the studies.
Chaing and Roy (2003) focused on the consumer choice to shop on the internet and at the
physical stores during the information acquisition period. A convenience sample of 34
students enrolled in undergraduate marketing class to select the product for testing, 56
products were developed based on the popularity of online shopping. The result shows that
the consumer perceives shopping offline as inconvenient, online shopping intention was
expected to be greater for search products than experience product.
Soopramanien and Robertson (2007) conducted a study in UK on acceptance and practice of

online shopping. Their exploration shows that the online consumers choose different course
of action based on the apparent beliefs. They found that, how socio demographic variables,
attitude and beliefs towards internet shopping effect on the both decision to practice and use
of online shopping channels. They categorized online buying behavior as the one who
purchase from online sites and the one who only browse online sites and purchase from the
17
store, and third those who do not buy online. The study do not covered the buyers who
choose products in stores and buy online.
Jin and Kato (2004) attempted from that eBay market watch 88% of online graded cards are
graded 8 or above. According to Beckett price guide, the value of a card grade 8 often
doubles the value of card graded 7. This is collective to the experiment outcomes. It was clear
that most graded cards traded online are significantly superior in quality than ungraded cards
in both retail and online market.
Selvakumar (2014) concentrated on consumer’s perception of the product sold online and the
issues considered important to online shopping. This study was conducted among the online
shoppers at Coimbatore which is in Tamil Nadu state. It is to analyze the impact of consumer
opinion and the attitude. Questionnaire was made to collect the data from the population;
these questionnaires were given to college going students. The total sample size is 150
respondents. The finding of this study shows that improvement and accessibility influence the
customer’s intention to shop online.
Hausman and Siekpe (2009) analyzed an practical study in US regarding the effect of web
interface features on consumer online purchase intention. E-commerce system is different
from traditional information system.
It has both features of information system and marketing channels. It contains machine and
human element. An empirical finding shows that to know the motivation factors for online
shopper, cognitive and psychological factors do have meanings. The study finds both human
and computer factors are necessary for antecedent for online shopping.
Johnson et.al (1999) discussed to identify the factors influencing online shopping. This paper
seeks to identify web consumer’s demographic attitude toward shopping and reasons of
online buying behavior. This survey asked member of WVTM (Wharton virtual test market)
whether they have purchased anything online. This study conclude that the consumer shop
online or use online facilities to save time. The result of these study suggest several
suggestions for the design of online shopping environment such as shopping site should make
it more suitable to buy standard to repeat purchase items , they should provide the
information needed to make a purchase decision and purchasing process should be easy for
the consumer. This paper conclude that the consumer appears to value the web time saving
18
over its cost saving. The consumer attitude may change over time, accessibility rather than
cost saving. The results show that the people who spend more money online have a weird
lifestyle are on the net more and receives more emails compared to the other email users and
internet users.
Kim H R (2005) examined an empirical study in UK to develop an index of online customer

satisfaction; this study integrates and applies the concept of satisfaction from three field’s i.e.
marketing, management information system (MIS) and e-commerce. The main function of
this paper is an exploration of the factors affecting satisfaction. The results show that ten
factors on index are good exponent of satisfaction repurchase behavior and repurchase
intention.
Lee and Lin (2005) examined the relationship between internet service and the overall service
quality of the customer like their satisfaction level and their purchase intentions. The data
was collected from 297 consumers which is purchasing online. The positive and negative
factors was analyzed to examine the reliability and the validity of the model which measures
the factors. The structural equation modeling technique is done to test the model of the
research. The results shows that the design of the web, their reliability, the responsiveness
and the trust affects the overall service quality and the satisfaction of the shoppers. These all
are related to the consumer purchase behavior and the intention.
The dimension of the shopping is significantly related to the e-service quality of the sites and
the consumer satisfaction. The study suggest to enhance the purchase intention of the
consumer, the stores of online shopping should make some strategies and give trust to the
consumer about the products. the online sites should give reliability and dependency of the
web based services
Jayawardhena and Wright (2009) focused the antecedent of online shopper’s excitement, its
consequences for behavioral intentions as expressed by intent to return, and positive word of
mouth communication. A conceptual model is developed based on the literature; instrument
item scales to measures all constructs in the model were as informed by the literature and
adapted from prior studies. They found that the convenience, involvement, attribute of the
web site and merchandising all collectively influence shoppers excitement. E-shopper
excitement leads to positive word-of-mouth (WOM) and increases the intent to return. The
19
limitation of this study was that there is no differentiation is made between the types of goods
that e-commerce purchased.
Jimenez and Martin (2009) examined on the comparison of the difference that exist between
the adoption of e-commerce by potential purchase and the acceptance of the channels by
experienced e-customer .therefore this paper seeks to test the influence of online shopping
experience on electronic purchase intention. They use the conceptual model, an extended
technology, acceptance model (TAM), is tested using structural equation modeling technique.
They found that the influence of self-efficacy and usefulness increases as the consumer gains
online shopping experience. The motivations that lead a potential e-customer to make a
purchase are not the same as those that influence an experienced customer. This paper
demonstrated the evolution of customer behavior and the need to differentiate the perception
of consumers depending on their level of experience.
2.5. Research gap
The review of relevant literature has revealed that the majority of the studies have been
conducted on outside the country. There has been no study in the context the Rwandan
restaurant industry. And Most of the studies have focused on the impact of e-commerce on
customer satisfaction/behavior. This research is here to explore the impact of e-commerce on
the profitability of restaurant in Rwanda.
2.6. Conceptual framework
Dependent variables Independent variables
Online food delivery Financial performance:
1. Market reach 1. Sales volume

2. Accessibility of 2. Net profit
products
3. Operating cost
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CHAPTER THREE
METHODOLOGY
3.1. Introduction
This chapter will attempt to present the methodological that the researcher used to collect and
interpret this research data in order to achieve the stated objectives. It intends to describe and
discuss the methods and techniques that were used to collect and process the data.
Kenneth (1978:83) defines methodology as the set of methods and principles that are used
when studying a particular kind of work. A method comprises all intellectual processes, an
orderly system or arrangement that enables a researcher to reach an aspect of knowledge by
using various techniques.
3.2. The system approach
According to Riddick (1979:17), a system is an aggregation or an assemblage of objects

united by some form of local interaction or interdependence. He further defined it as a group
of diverse units so combined by nature or art as to form an integral whole, and to function,
operate more in union and often in obedience to some form control.
According to the freeman and stoner (1992:45), the system’s approach to the management
views the organization as unified, purposeful system composed of interrelated parts. This is
to say that the activities of one department affect other department’ activities.
3.3. The type of the study
The study was a survey. A survey is the types of the research methodologies whereby a
sample of subjects is drown from a population and studied to make inferences about
population.
According to Joseph F. hair, Robert Bush and David Ortinau (2006:221), survey research
methods are research procedures for collecting large amounts of raw data using question and
answer format.
In this study, the researcher will ask questions to 15 employees from 2 selected restaurants
21
3.4. Study design
This study employed a descriptive study design to establish the relationship between the two
variables.
According to Grinnell and Williams (1990:138), a study design is a total plan used to aid in
answering the research questions. Further, they contend that in part of the plan, the decision
as to what the researcher’ question would be, what data will be required to answer it, from
which data it will be obtained, and exactly what the best way of gathering data shall be must,
be answered.
3.5. Source of data
A data source is one of the materials the researcher uses for collecting information during the
investigation. The researcher will use both Primary and secondary sources of data to gather
the information.
3.5.1. Primary data
According to Daniel and Roger (1991:115), Primary data is a survey, observation or

experiment data collected to solve a problem under investigation.
In this study the sources of Primary data was obtained from the managers, finance, cash and
operation department of MR CHIPS through self-administered questionnaire and interview,
because of their responsibilities on online food delivery service.
3.5.2. Secondary data
According to Gilbert S. (1992:182), secondary data is the information no gathered for the
immediate study at hand but for some other purposes. Therefore, in this study the sources of
secondary data will be the main library of the ULK, JUMIA FOOD RWANDA, MR CHIPS ’
annual reports and information from different websites.
3.6. Population
According to Christensen (1991:10), a population refers to all events, things or individuals

that are to be presented in an investigation or study’s concern.
22
According to Laurence Lapin (1996:6), a population is a group of individuals, persons or
items from which samples are taken from measurements.
In this study the population targeted by the researcher was managers and employees of MR
CHIPS and MEZE fresh restaurant from finance and operation.
3.7. Sample selection
Most data are collected using a sample. This means that data is collected from a
representative group of things and this sample is used to estimate the characteristics of all
people or things.
The population was of the study was 35 respondents, and a sample of 15 respondents were
selected.
3.7.1. Purposive sampling
Kenneth (1978:83) argues that in purposive or judgmental sampling the investigator does not
necessary have quota to fill from within various strata, as in quota sampling, but neither does
he or she just pick the nearest warm bodies, as in convenience sampling.
For this reason the researcher will use his or her own judgment to choose and pick only
respondents who are well equipped with the information necessary to meet the purposes of
the study. Therefore, in this study, the researcher will purposifully select the employees in
charge of operations just because they were many and not all of them had the knowledge
about the research under study.
3.7.2. Universal sampling
According to Jill and Roger (2003:232), universal sampling is a technique of sampling, where
all the total population related to the research study is covered or taken
3.8. Methods and techniques of data collection
According to Grinnell and Williams (1990:228), questionnaires, observations, interviews and

document studies are methods used to collect accurate data from respondents because they
touch one’s perception, feelings and views.
23
3.8.1. Questionnaire
According to Kenneth Bailey (1978:9), a questionnaire is a set of questions handed to the

respondents and filled by them with no help of the interviewer.
For Grinnell and William (1990:228) there are two types of questions: close-ended and open
ended questions. They define the close-ended questions as a type of questions which require
the respondent to select the answer from a number of pre-determined alternatives. They
further stated that the open- ended question is a type of questions where respondents can give
personal responses or opinions in their own words, whereas with closed questions,
respondents have to select the answer from a number of predetermined alternatives.
Under this study the researcher decided to use both the close-ended and open- ended question
in order to facilitate the work of the respondents and at the same time to give them liberty of
expressing their views.
3.8.2. Observation
According to Mbabazi (1998:29), observation method is a technique where the researcher

himself or herself observes the variables of the interest.
The research could act as a Spector; that is not participating in the activities being observed
or could actively participate as he or she observes the proceedings. The researcher will use
his own observations in order to under to understand well Primary and secondary data
obtained.
3.8.3. Interview
According to Margaret Stacey (1969:72), an interview in the process of social interaction

which has the aim of getting truthful information from people on the subject about which
they are under no obligation to tell if they do not wish to. The researcher will use a structured
interview as the method of data collection gathers the necessary information.
Depending on the nature of the research study, the interview was used whereby questions
were written on the paper and read to the interviewee based on the sequence of questions.
The questions to ask have been made u of both open and closed ended questions. The aim of
24
this approach is to ensure that each interview is presented with exactly the same questions in
the same order.
3.8.4. Document study
Kenneth (1978:266) defines document study as careful reading, understanding and analysis of
any written material that contains information about the phenomenon a researcher wish to
study. He further states the some are Primary document or eyewitness; whereas others are
secondary documents provided by the people who were not present on the scene but who
received the information necessary to compile the document by interviewing the eyewitness
or by reading Primary document. The researcher will collect data from books, electronic
sources, journals, and reports of the surveyed financial institution. It is from this note that the
research will use the necessary and relevant written information under the study focusing on
among others MR CHIPS and Meze fresh annual reports, and any other financial institutions
documents that may be proved necessary and relevant to the study
3.9. Data processing
The collected data through the questionnaires, observation and interview and document study
will be edited and arranged in meaningful and organized form. More to this, the collected
data will be tabulated manually. For research to be more successful like any other scientific
research, the large quantities of information will be condensed, hence facilitating easy
analysis and processing of the data collected. After the whole process of editing, coding, and
tabulation, the findings will be presented in chapter four.
3.9.1. Editing
Kalton and Moser (1979:411) stated that editing of a survey is intended to detect and as far as
possible eliminate errors in the completed questionnaire. It is a routine work that involves
correcting and detecting errors done in the questionnaire and in the process of interviewing
respondents on the interview schedule. The aim of editing is to discover mistakes made
during the field study and monitor the accuracy and find out where there are some unfilled
spaces in the questionnaires and eliminate unwanted Responses. All this will be done to
ensure completeness, accuracy, uniformity, legibility and completeness of data.
25
3.9.2. Coding
According to Gilbert Churchill (1992:610), coding is the technical procedure by which data
are categorized; it involves specifying the alternative categories or classes into which the
responses are to be placed and assigning code numbers to the classes. The answers gathered
will be coded and tallies used to determine the frequencies of each response. Similar
responses will be grouped according to their different categories.
3.9.3. Tabulation
According to Gilbert Churchill (1992:51), tabulation refers to the orderly arrangement of data
in a table or other summary format achieved by counting the frequencies of responses to each
question. He further states that at this point the data might also be cross-classified with other
variables. Statistical table will be used to compare the number of occurrences of each answer
to the question asked. Up to this level, it is through mathematical and statistical tables that
numbers of occurrences of each answer in relation to the question asked will be converted
into percentage to make it so clear that one can get the message in complete.
3.10. Data analysis
Kenneth Bailey (1978:321) explained that not all data can be presented in their entirety. The
variables to be presented are those most central to the goals of the study, generally variables
included specifically in the research hypothesis.
Variables are generally analyzed in some fashion and the results presented in tables. The
content of these tables are usually percentages, frequencies or some summary statistical
measures.
After editing, coding and tabulation process the researcher will go on to analyze the data.
Actual statically tasks were taken and frequency distribution of each major variable will be
done. In the concept of this study both qualitative and quantitative means of analyzing data
were used.
26
3.10.1. Qualitative data analysis.
Kenneth Bailey (1978:51) asserted that qualitative attributes have labels or names rather than
numbers assigned to their respective categories. Qualitative variables are used extensively in
observation studies.
One function of qualitative analysis is that it makes the investigator feel so close to the
phenomena under investigation that this has little difficulty in formulating research questions
and theories about the process involved. The procedure of analysis will be applied while
dealing with unqualified responses. With this, the researcher is to make a clear observation on
the views of respondents on the existing phenomena. The tools that will be applied here will
be the data collection techniques of observations, interviews and documentary methods. The
researcher will analyze qualitatively the views of different respondents thought dialogues as
well as the written documents given to him.
3.11. Ethical Considerations
This research aims to obtain the information from the reports provided by the selected
restaurant, any information extracted from Primary source via interviews. In my research, the
research has emphasized on secondary and Primary data and research used data in
appropriate way ‘’ due to the confidentiality and ethical value of research the extracted data
will not be used illegally.
27
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
This chapter presents the findings and analysis of data collected based on the research
objectives of the study. Data analyzed related to demographic information on the
respondents, on the impact of online food delivery as tools of the profitability of the
federation of restaurant in Rwanda. Findings are based on a response rate of 90%.
4.1. Demographic Information for Respondents
The respondents were asked to provide demographic information such as, age and gender,
educational background and their working experiences.
Table 1: Shows gender distribution of respondents
Frequency Percent Cumulative Percent

Valid Male 7 46.6 46.9
Female 8 53.4 100.0
Total 15 100.0
Source; Primary data, 2019
Table1 shows; gender distribution of respondent whereby 53.4% of total respondent were
female, whereas 46.6% of total respondent were male. This implies that the majority of
respondents were females.
Table 2: Shows age distribution of respondents

Valid Below 24 5 33.3 33.3
Between 25-35 6 40.0 73.3
Between 36-above 4 26.7 100.0
Total 15 100.0
Source : Primary data,2019
Table 2 shows the age distribution of respondents, 33.3% of respondents were under 24
years, 40% of the total respondents were between twenty five years and thirty five years old,
28
while 26.7% of the total respondents were between thirty six and above. This implies a big
number of total respondents were above twenty five years.
Table 3: Shows an educational background of respondents

Valid Secondary 5 33.3 33.3
Bachelor 8 53.3 86.6
Masters 2 13.3 100.0
Total 15 100.0
Source: Primary data, 2019
The table 3 shows the educational background of the respondents according to the findings,
33.3% of the total respondents they have finished secondary, while 53.3 % they have finished
university, and while 13.3% have finished a master’s degree. This implies that a big number
of respondents have a bachelor degree.
Table 4: Shows working experience of respondents in the food industry
Cumulative
Frequency Percent Percent
Valid Less than 1 year 3 20.0 20.0
Between 2-4 years 7 46.6 66.6
Between 4years & above 5 33.4 100.0
Total 15 100.0
Table 4 shows working experience of respondents; according to the result 20% of the
respondents they have working experience in restaurant industry less than 1 year, while
46.6% of the total respondents they have been working in the industry between 2 years to 4
years, and 33.4% of the respondents they have been in the industry for 5 years and above.
This implies that a big number of our respondent was in the industry between 2-4 years
4.2. Analysis of effectiveness of Jumia online food delivery system
Table 5: Staff’s experience in ordering via online/internet
29
Valid Yes 15 100.0 100
Non 0 0.0 100.0

Total 15 100.0
The table 5 shows the staff knowledge via the process of online food ordering, the simple
question was raised, whereby the staff were asked if they have ever ordered the food via the
internet, and the results indicated that 100% have ordered online. This implies that s will act
the role of customers and role of restaurant staff during our research.
Table 6: Cleanliness of the system

Valid SA 4 26.6 26.6
A 6 40.0 66.7
N 2 13.3 80.0
D 3 20.0 20.0
SA 0 0.0 100.0
Total 15 100.0
Source: research findings; 2019
The table 6 shows the staff reaction towards displayed instruction while client is in placing
order on Jumia apps, the 26.6 of the total respondents strongly agree that the displayed
information is clear, 40% of the total respondent agree that the information displayed are
clear, 13.3% of the total respondent were neutral, while 20% disagree clearness of the
displayed information. This implies that the displayed information via Jumia apps is clear.
Table 7: Payment process

Valid SA 5 33.3 33.3
A 4 26.6 59.9
N 2 13.3 73.2
D 3 20.0 93.4
SD 1 6.6 100.0
30
Total 15 100.0
Source: Research findings, 2019
The table 7 above shows staff view on the payment process via internet food delivery, 33.3%
of the total respondents strongly agrees that the payment process is simple, while 26.6% also
agree that payment process is simple, 13.3% of the total respondent were neutral about the
payment process, while 20.0% of the total revealed that the payment system is not simple,
while 6.6% of the total respondents revealed that payment process is so hard. This implies
that the payment process is simple, but on other side it really needs a serious improvement.
Table 8: Sensitivity of products via Jumia food app store

Valid SA 6 40.0 40.0
A 8 53.3 93.3
N 0 0.0 93.3
D 1 6.6 100.0
Total 15 100.0
Table 8 shows staff view on the visibility of the images of the products (food drinks) on the
website, 40% strongly agree that images of products gives a good sense, 53.3% of the total
respondent agreed that displayed image gives a good sense, while 6.6% strongly disagree on
the given sense of products to the customer. This implies that posted images of the product
displayed on the website give a good sense.
Table 9: Accurateness of the system

Valid SA 4 26.6 26.6
A 7 46.6 73.2
N 1 6.6 80.0
SD 3 20.0 100.0
Total 15 100.0
Source: Research findings; 2019
The table 9; show respondent view on the accurateness the system, 26.6% of total respondent
they have strongly agree that system is accurate, while 46.6% agree with the accurateness of
the system , 6.6% disagree of the respondent were neutral while 17.1% of the total
31
respondents strongly disagree the accurateness of the system. This implies that system is
accurate.
Table 10: Timeliness of the system

Valid SA 6 40.0 40.0
A 4 26.6 66.6
N 0 0.0 66.6
D 3 20.0 86.6
SD 2 13.3 100.0
Total 15 100.0
The table10 shows respondent views on the time it takes customer to place online, 40% of the
respondents strongly agree that it doesn’t require a lot of time to place order via internet,
while 26.6% agree that system is time effective, none of total respondent were neutral, while
20% disagree the timeliness of the systems, and 13.3% strongly disagree. This implies that
online food delivery is time effective, but it really needs an improvement.
Table 12: Problem associated with the system
Cumulative
Valid Inability to cope with volume 1 6.6 6.6
Competition 2 13.3 20.0
Inconsistency in food quality 2 13.3 33.3
Unreliable deliver 4 26.6 60
price fluctuation 1 6.6 66.6
unclear website policies 1 6.6 73.2
payment confirmation missing 2 13.3 86.5
problem of hidden cost 1 6.6 93.1
limited interference 1 6.6 100.0
Total 15 100.0
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The table 11 shows the problems associated with online food deliver, 6.6% of the total
respondent they revealed that they face problem of inability to cope with the volume, while
20% they reported that they face competition as the main challenge, 13.3% they reported that
they receive claims on inconsistency food quality, 26.6% they reported the problem of
unreliable food delivering,6.6% they reported the problem of price fluctuation of their menu,
6.6% reported that system has unclear website policies, 13.3% reported that they have a
challenge whereby there is a missing in their payment confirmation, 6.6% of total respondent
they reported that the system has some hidden cost while 6.6% of respondent they reported
that system has a limited interference. This implies that the major challenge faced by online
food delivery restaurants is unreliable food delivery.
4.3. Analysis of impact of online delivery on the profitability of business
Table 13: Cost of food delivering system

Valid Strongly agree 5 33.3 33.3
Agree 6 40.0 73.3
Neutral 3 20.0 93.4
Disagree 1 6.6 100.0
Total 15 100.0
The table13:, shows staff’s opinion on the cost incurred on the service, the cost is the
determinant of price and profit in general, 33% of the total respondents strongly agree that
online food delivery has operating low cost, while 40% agree that the operating cost of online
food delivery service has low cost and 20% of the total respondent were neutral, whereas
6.6% of the total respondent disagree with it. This implies that online food delivery has a low
operating cost.
Table 11: Online food order on total sales

Valid Below 20 3 20.0 20.0
Between 21-50 8 53.3 73.3
Between 51-60 4 26.6 100.0
33
Total 15 100.0
Source: research findings, 2019
The table 14; shows staff view on the online food delivery sales on the total restaurant sales,
the findings revealed that 20% of total respondent revealed that of online food sales are
below 20% of the restaurant total sales, 53.3% of total respondent revealed that that online
food delivery sales over total sales are approximately 21% to 50%, while 26.6% online sales
over total sales are between 51% and above. This implies that online food delivery contribute
to a higher proportional of sales.
Table 12: the evolution of customers
Cumulative
Valid Strongly agree 7 46.6 46.6
Agree 4 26.6 73.2
Neutral 2 13.3 86.4
Disagree 2 13.3 100.0
Total 15 100.0
The table 15; shows staff opinion on the evolution in the number of customers due to online
food delivery, and 46% strong agree that online food delivery has increased the number of
customers, while 26.6% agree that online food delivery has increased number of customers,
25.7% didn’t give their opinion, while 13.3% of the total respondent disagree that online
didn’t increase the number of customers.
Table 13: Comparative table that shows restaurant income before and after joining
online food delivery
Ability to pay current Before joining Jumia After joining Jumia
liabilities
Respondents Percentage Respondents Percentage
Easily 3 20.0 11 73.3
Hard 9 60.0 1 6.6
Neutral 3 20.0 3 20.0
Total 15 100% 15 100%
34
The table 16 shows a comparative study based on the staff before and after they have adopted
the system of online food delivers (Jumia). data above shows the ability of their restaurant to
pay their liabilities before joining adopting the system, before the system only 20% of total
could easily pay their company’s liabilities , after the initiation of program the company
solvability has increased from 20 to 60%, and again the results shows that before the system
60% of the respondent struggled to pay their liabilities, however after the initialization the
company’s struggle to pay their liabilities has reduced from 71.4% to 8.5%. This implies that
the system has contributed a lot for restaurant in terms of financial performance (working
capital)
Table 14: Advantage of online food delivery
Cumulative
Valid it increases restaurant awareness 4 26.6 26.6
it expands customer reach 3 20.0 46.6
low cost 3 20.0 66.6
it increases sales volume 5 33.3 100.0
Total 15 100.0
Source: research findings; 2019
The table 17, shows the staff respondent’ view on the advantage of online food delivery
system , and based on the research findings , 26.6% revealed that on of the most advantage of
online food delivery is that it increases the restaurant awareness, while 20% of total
respondents they have said that one of the advantage of food delivering is ’’expand customer
reach’’ while 20% have said that it has low operating cost, while 33.3% they have said that
online food delivering system increases sales volume
4.4. Quantitative analysis of impact of food delivery financial performance of selected

restaurant
In this section the research has analyzed the secondary data from financial data from the
selected restaurant (Mr. Chips and Meze fresh restaurant) with an intention to know, the
impact of online food delivery of the financial performance of restaurant in Rwanda.
Table 15: Financial status of Mr. chips restaurant over the past 3 years
Jumia sales Net profit Total sales
35
2016 86,756,400.00 50,329,488.00 286,134,000
2017 159,453,600.00 71,908,544.00 395,712,800
2018 176,601,200.00 89,105,000.00 418,8460, 00
Graph 1. JUMIA sales
The graph 1 shows Jumia sales over the period of study; the results show that in 2016 Jumia
sales was approximately 86,756,400 Rwandan francs, and in 2017 Jumia sales has increased
from 86,756,400 Rwandan francs to 159,453,600 Rwandan francs, whereas in 2018, Jumia
sales has increased from 159,453,600 Rwandan francs, this implies that sales has been
increasing during our study period. On the other side it shows the effectiveness of Jumia apps
to the restaurant.
Graph 2. Net profit at Mr. Chips restaurant from 2016-2018
36
Graph 2, shows profitability of Mr. chips from 2016-2018, the data show that in 2016 the
profit at Mr. chips was approximately 50,329,488 Rwandan francs, in 2017 the profit has
increased from 50,329,488 Rwandan francs from 71,908,488 Rwandan francs, and from 2018
the profitability has increased from 71,908,544 Rwandan francs to 89,105,000 Rwandan
francs, this implies that profitability at Mr. chips was good.
Graph3. graphic presentation of total sales at Mr. Chips restaurant from 2016-2017
Graph3, shows sales turnover at Mr. chips, the result shows the sales turnover of Mr. chips
during the research period, the data shows that in 2016, Mr. chips’ sales was approximately
286,134,000 Rwandan francs, and in 2017 the sales has increased from 286,134,000
Rwandan francs to 395,712,800 Rwandan francs, from 2018 sales turnover has increased
from 395,712,800 Rwandan francs to 418,846,000 Rwandan francs. This implies that sales
have been increasing from 2016 to 2018.
Table 16: Analysis of Jumia sales over total sales at Mr. Chips restaurant
2016 2017 2018
Jumia sales 86,756,400.00 159,453,600.00 176,601,200.00
Total sales 286,134,000.00 395,712,800.00 418,846,000.00
Jumia sales/total sales 30.3% 40.2% 42.1%
Table 19 shows the of Jumia sales on the total sales at the Mr. chips restaurant, the table
above shows that in 2016, 30% of the total sales at Mr chips, was made via online food
delivery, whereas in 2017 the online food sales to total sales increased from 30% to 40% and
37
in 2018 food sales has increased from 40.2% to 42.1%. The result implies that online food
sales contribute to a higher proportional at the Mr Chip’s restaurant.
Table 17: Presentation of financial status at Meze fresh restaurant

Total sales Jumia sales Net profit
2016 240,657,000.00 87,528,500.00 53,387,376.00

2017 253,657,000.00 112,075,670.00 75,329,271.15
2018 262,636,505.00 101,057,582.00 80,192,765.59
Graph 4. Graphic presentation of total sales at Meze fresh restaurant
Graph 4, shows sales turnover at Meze fresh restaurant, the result shows the sales turnover of
Meze fresh during the research period of 3 years, the data shows that in 2016, sales turnover
was 240,657,000 Rwandan francs, and in 2017 the sales has increased from 240,657,000
Rwandan francs to 253,657,000 Rwandan francs, from 2018 sales turnover has increased
from 253,657,000 Rwandan francs to 262,636,505 Rwandan francs. This shows that sales has
been increasing from 2016 up 2018 at the Meze fresh restaurant
Graph5. Graphic presentation of Jumia sales at Meze fresh restaurant
38
The graph 5 shows Jumia sales over the period of study; the results show that in 2016 Jumia
sales was approximately 87,528,500 Rwandan francs, and in 2017 Jumia sales has increased
from 87,528,500 Rwandan francs to 112,075,650 Rwandan francs, whereas in 2018, Jumia
sales at Meze fresh has increased from 112,075,650 Rwandan francs to 121,057,582
Rwandan franc, this implies that sales has been increasing during our study period.
Graph6; shows graphic presentation of profit at Meze fresh restaurant
39
Graph, shows profitability at Meze fresh restaurant from 2016-2018, the data show that in
2016 the profit was approximately 53,387,376 Rwandan francs, in 2017 the profit has
increased from 53,387,376 to 75,329,271 Rwandan francs, and from 2018 the profitability
has increased from 75,329,271 Rwandan francs to 80,192,765 Rwandan francs, this implies
that profitability that the Meze fresh restaurant had a good financial performance.
Table 18: Analysis of Jumia sales over total sales at Meze fresh restaurant
2016 2017 2018
Jumia sales 87528500 112075670 75329271
total sales 240657000 253657000 262636505
Jumia sales/T.sales 36% 44% 29%
Table21 shows online food sales (Jumia) on the total sales at Meze fresh , in 2016 the Jumia
has contributed 36% of the total sales at Meze fresh, while in 2017 Jumia online sales has
contributed 44% sales on the sales, while in 2018 it has contributed 29% sales on the total
sales . This implies that there is a bigger contribution of online food delivery towards the
profitability of restaurant.
4.5. Correlation analysis of Jumia sales over total sales
In this section the results has focused on f test in Anova ; the f ratio is the ration between two
mean value . if the null hypothesis is true, you expect F to have value close to 1.0 most of the
time.
40
A large F ratio means that variation among means is more than you had expected to see by
chance. In our case x variable were Jumia sales as independent variables, whereas y factor
was total as dependant variables.
Table 19: Correlation analysis between Jumia sales and total sales at Meze fresh restaurant
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.224815
R Square 0.050542
Adjusted R
Square -0.89892
Standard
Error 25790553
Observation
s 3
ANOVA
Significanc
df SS MS F eF
Regression 1 3.54 3.54 0.053232 0.855645
Residual 1 6.65 6.65
Total 2 7.01
Coefficient Standard Upper Lower Upper

s Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercept 1.88 4.17 0.450528 0.730523 -5.1 5.48 -5.1 5481772957
-
Total sales -0.38075 1.650248 -0.23072 0.855645 -21.3491 20.58764 21.3491 20.58764413
Source: research findings
The table 22 show correlation analysis between Jumia sale (x) and total sales at Meze fresh
restaurant, the research findings revealed that there is a very positive correlation between the
two variables at 0.855, thus means that Jumia food sales impact the total sales at Meze fresh
restaurant significantly.
Table 20: Correlation analysis between Jumia sales and total sales at Mr.chips restaurant
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.998677
R Square 0.997355
41
Adjusted R
Square 0.99471
Standard
Error 3428866
Observation
s 3
ANOVA
Significance
df SS MS F F
Regression 1 4.43 4.43 377.089 0.032755
Residual 1 1.19 1.18
Total 2 4.45
Coefficient Standard Upper Lower Upper

s Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercept -1 12703227 -8.16566 0.077577 -2.73 57679546 -2.73 57679546
total sales 0.664129 0.0342 19.41878 0.032755 0.229572 1.098686 0.229572 1.0986855
Source; research findings: 2019
The table23. Shows correlation analysis between Jumia sale (x) and total sales at Mr. chips
restaurant, the research findings revealed that there is a very positive correlation between the
Mr. chips sales and Jumia sales at 0.032. Which means that Jumia food sales impact the total
sales at meze fresh restaurant significantly?
CHAPTER FIVE
SUMMARY OF FINDINGS, AND SUGGESTION
This study intended to evaluate the impact of online food delivery on the financial
performance of Rwandan restaurant industry. The specific objectives of the current study
were: To assess pros and cons of online food delivery in Rwanda, to assess the effectiveness
of online food delivery service in Rwanda, to examine the relationship between online food
delivery and the financial performance of the selected restaurant in Rwanda.
To achieve these objectives and based upon the problems statements of study, three research
questions were formulated:
42
1. Is online food delivery apps effective in Rwanda?
2. To what extent does online food delivery financial performance of the selected
restaurant in Rwanda?
In order to answer to these research questions, research hypotheses were formulated as

follows:
1. Online food delivery ,at selected restaurant is effective
2. Online food delivery affected the financial performance of the selected restaurant in
Rwanda.
To achieve stated objectives the study, we have collected Primary data from selected
restaurant and data were summarized and interpreted by IBM spss statistics; the findings
revealed the following:
The table 5 shows the staff reaction towards displayed instruction while the client is in
placing order on Jumia apps, the 26.6 of the total respondents strongly agree that displayed
information are clear, 40% of the total respondent agree that the information displayed are
clear, 13.3% of the total respondent were neutral, while 20% disagree clearness of the
displayed information. This implies that the displayed information via Jumia apps are clear.
The table 7 above shows staff view on the payment process via internet food delivery, 33.3%
of the total respondents strongly agree that the payment process is simple, while 26.6% also
agree that the payment process is simple, 13.3% of the total respondent were neutral about
the payment process, while 20.0% of the total revealed that the payment system is not simple,
while 6.6% of the total respondents revealed that the payment process is so hard. This implies
that the payment process is simple, but on the other side it really needs a serious
improvement.
Table 9 shows staff view on the visibility of the image of products on the website, 40%
strongly agree that the image of products gives a good sense, 53.3% of the total respondent
agreed that displayed image gives a good sense, while 6.6% strongly disagree on the given
sense of products to the customer. This implies that posted the image of the product displayed
on the website give a good sense.
43
Based on the research result from the table above the researcher has confirmed an
alternative hypothesis ’’ Jumia online food delivery is affective at selected Rwandan
restaurant’’
The table 14; shows staff view on the online food delivery sales on the total restaurant sales,
the findings revealed that 20% of total respondent revealed that of online food sales are
below 20% of the restaurant total sales, 53.3% of total respondent revealed that that online
food delivery sales over total sales are approximately 21% to 50%, while 26.6% online sales
over total sales are between 51% and above. This implies that online food delivery contribute
to a higher proportional of sales.
The table 15; shows staff opinion on the evolution in the number of customer due to online
food delivery, and 46% strong agree that online food delivery has increased the number of
customers, while 26.6% agree that online food delivery has increased number of customer,
25.7% didn’t give their opinion, while 13.3% of the total respondent disagree that online
didn’t increase the number of customers.
Table 16, shows the ability of the restaurants to pay their liabilities before joining adopting
the system, before the system only 20% of total could easily pay their company’s liabilities ,
after the initiation of program the company solvability has increased from 20 to 60%, and
again the results shows that before the system 60% of the respondent struggled to pay their
liabilities, however after the initialization the company’s struggle to pay their liabilities has
reduced from 71.4% to 8.5%. This implies that the system has contributed a lot for restaurant
in terms of financial performance (working capital)
Graph 1 shows the of Jumia sales on the total sales at Mr. chips restaurant, the table above
shows that in 2016, 30% of the total sales at Mr chips, was made via online food delivery,
whereas in 2017 the online food sales to total sales increased from 30% to 40% and in 2018
food sales has increased from 40.2% to 42.1%. The result implies that online food sales
contribute to a higher proportional at Mr Chip’s restaurant.
Graph2. shows online food sales (Jumia) on the total sales at Meze fresh , in the 2016 Jumia
has contributed 36% of the total sales at Meze fresh, while in 2017 Jumia online sales has
contributed 44% sales on the sales, while in 2018 it has contributed 29% sales on the total
44
sales . This implies that there is a high contribution of online food delivery towards the
profitability of restaurants.
The table 22 show correlation analysis between Jumia sale(x) and total sales at Meze fresh
restaurant , the research findings revealed that there is a very positive correlation between the
two variables at 0.855, thus means that Jumia food sales impact the total sales at Meze fresh
restaurant significantly.
The table23. shows correlation analysis between Jumia sale(x) and total sales at mr.chips
restaurant , the research findings revealed that there is a very positive correlation between the
mr.chips sales and Jumia sales at 0.032. Which means that Jumia food sales impact the total
sales at the Meze fresh restaurant significantly
Based on the findings the second research hypotheses was confirmed’’ online food
delivery impact the financial performance in Rwanda.
Recommendation
The respondent they have reported various problem associated with the system , but the
mostly rated problem was “ delivering ‘’ so staff and Jumia apps developer are advised to
review on the system and to collect it. Or
Possible Solution: Send Message to the customer when the order is shipped and then when it
is expected to be delivered so that the customer is prepared to receive it.
REFERENCES
Heijden et al(2003) Understanding online purchase intentions: contributions from technology

and trust perspectives
Kim&song(2016) Factors Influencing Online Shopping Behavior: The Mediating Role

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Mukherjee, A., Nath, P.(2007). Role of Electronic Trust in Online Retailing: A Re-
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Nguyen, T. D., Barrett, N. J.(2006). The adoption of the internet by export firms in
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Noor, N. A., Yap, S.-F., Liew, K.-H., Rajah, E.,(2014). Consumer attitudes toward dietary
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Nordin, J. A., Nik Kamariah, M. N.,(2011). To Investigate The Drivers of Online Purchasing
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NPD Group.,(2011). E-commerce and Consumer Electronics: Online Shopping and

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Nunnally, J. C., (1978). Psychometric Theory. Michigan: McGraw-Hill.
Oracle., 2011. European Consumer Views of E-Commerce: A Consumer Research Study of

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Orapin, L.,(2009). Factors influencing Internet Shopping Behavior: A Survey of Consumers

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Pavlou, P. A., Fygenson, M. (2006, March). Understanding and Predicting Electronic

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Rakuten.,(2010) Malaysian shoppers tend to regret their online purchases. Tokyo: Rakuten
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47
APPENDICES
48
49
QUESTIONNAIRE DESIGNED FOR THE STAFF OF Mr. CHIPS AND MEZE
FRESH
Instructions: Tick in your appropriate choice
Section A. Identification
1. Gender of Respondent
a) Male
b) Female
2. Age of Respondent
a) Below 24 years
b) Between 25-35 years
c) Between 36&above
3. Level of Education
a) Masters degree
b) Bachelor’s degree
c) Secondary level
4. For how many years have you been employed in restaurant industry
a) Less than 1 years

b) Between 2-4 years
c) 4 years and above
a
B. Perception of personnel on online delivery service
Key:
1 SA Strongly agree
2 A agree
3 N Neutral
4 D Disagree
5 SD Strongly disagree
Statements SA A N D SD
Online food apps displayed a clean information
The Process of payment during via online food delivery is simple
View of the Jumia product image is very sensitive (visible)
The number of customers increased in MR CHIPS from 2016to 2018
The process of ordering food via Jumia is accurate.
It doesn’t not take time to place an online order
(Tick on your position about the following statements)
Analysis of impact of online food delivery on profitability of the restaurants
Online food delivery is cost effective compared to the traditional approach whereby
customers are served at place.
A. Strongly agree
B. Agree
C. Neutral
D. Disagree
b
E. Strongly disagree
Kindly estimated percentage of online food orders against total sales at your
restaurant?
A. Below 20%
B. Between 21%-50%
C. Between 51%-60%
The number of customers has increased after we joined Jumia food delivery.
A. Strongly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree
What was your financial ability in terms of paying your obligation (liabilities) before
and after you joined the program/ Jumia ~ Tick on both side (before and after)
Before After
Easy Easy
Hard Hard
8. What challenges are you facing when working with online food delivery?
9. Why would recommend other restaurants to join online food delivery platform? Only
1 answer
………………………………………………….
c
d

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IMPACT OF ONLINE FOOD DELIVERY ON THE FINANCIAL PERFORMANCE

OF RWANDAN RESTAURANT INDUSTRY

A CASE STUDY OF JUMIA FOOD RWANDA (2016-2018)

Kigali Independent University ULK

I, Dr. BIGIRIMANA Moïse, Hereby certify that this dissertation titled “impact of online

Supervisor: Dr. BIGIRIMANA Moïse

Table 1: Shows gender distribution of respondents.................................................................28

Figure 1: Elements of a successful marketing strategy (Harris 2017).....................................11

1.1. Background of the study

In Africa, the concept of e-commerce is currently gaining, popularity, especially in the

1.2. Problem statement

As competition intensifies, many businesses continue to look for profitable ways to

1.3.1 General objective

1.3.2 Specific objective

The specific objectives of this study are to be formulated as follows:

1.4. Research questions

1.6. Scope of the study

1.7. Significance of the study

1.7.2. Academic interest

1.7.3 Interest of selected restaurant and other restaurant

1.8. Organization of the study

The study is divided into five chapters, as follows:

2.2.1. Technology Acceptance Model (TAM)

2.2.2. Theory of Planned Behavior (TPB)

2.2.3. Purchase Intention and Consumer Behavior

Figure 1: Elements of a successful marketing strategy (Harris 2017)

2.2.6. Mobile Media theory

Figure 2: Marketing Mix Diagram (Jerome McCarthy 1960.)

2.2.7. Marketing Mix theory

Figure 6 Omni-Channel marketing is a definition of using many channels in a seamless way.

An E-commerce business cannot be a success without a website as the main channel of

2.2.8. Search Engine Optimization (SEO) theory

Figure 4: An example of using Keywords on search engine

2.3.1. Profitability indicators

A profitability ratio is a measure of profitability, which is a way to measure a company's

2.4. Empirical review

Soopramanien and Robertson (2007) conducted a study in UK on acceptance and practice of

Kim H R (2005) examined an empirical study in UK to develop an index of online customer

2.5. Research gap

2.6. Conceptual framework

Dependent variables Independent variables

Online food delivery Financial performance:

1. Market reach 1. Sales volume

3.2. The system approach

According to Riddick (1979:17), a system is an aggregation or an assemblage of objects

3.3. The type of the study

3.5. Source of data

3.5.1. Primary data

According to Daniel and Roger (1991:115), Primary data is a survey, observation or

3.5.2. Secondary data

According to Christensen (1991:10), a population refers to all events, things or individuals

3.7. Sample selection

3.7.1. Purposive sampling

3.7.2. Universal sampling

3.8. Methods and techniques of data collection

According to Grinnell and Williams (1990:228), questionnaires, observations, interviews and

According to Kenneth Bailey (1978:9), a questionnaire is a set of questions handed to the

According to Mbabazi (1998:29), observation method is a technique where the researcher

According to Margaret Stacey (1969:72), an interview in the process of social interaction

3.8.4. Document study

3.9. Data processing

3.10. Data analysis

3.11. Ethical Considerations