MBA233

RESEARCH METHODOLOGY CIA – 3

A Study on Impact of Online Food delivery app on Restaurant Business during the

pandemic

Under the Guidance of

Prof. Padma Mahadevan

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

JANUARY 2022

Done By:
Group 5
JOANNA MARIA VINUKANTH - 2127742
NEIL JACOB ABRAHAM - 2127725
SUBHASH VP JADHAV - 2127732
ADITYA KAILASH AGARWAL - 2127705
SECTION – J

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Introduction:
This study used quantitative research to gather primary data from online food delivery
platforms, restaurants, and customers on their knowledge, attitudes, viewpoints, and
requirements about online meal delivery services using a questionnaire. The retail industry
underwent a paradigm change in the first decade of the twenty-first century. This is due to the
development of internet-based apps, which has aided in the rapid growth of the e-commerce
business. From physical shopping to e-retailing, the whole landscape of retailing has shifted.
The widespread usage of cell phones by ordinary people in the second decade of the twenty-
first century gave rise to M-shopping, a new phenomenon in online buying. It was made
feasible thanks to user-friendly smartphone apps that used 4G/Wi-Fi technology. Researchers
from all around the world have been studying the phenomenon of mobile commerce and the
application of smart technologies. (Gupta, 2018)
The COVID-19 pandemic, the government's blocking of activity, and the restrictions imposed
had a negative impact on restaurant activity, forcing them to adapt to new situations and
spurring creative innovations that resulted in changes in how restaurants deliver food to
consumers via food order and delivery platforms.
In India, the online food delivery market has flourished since 2010. This was made feasible
since the services are extremely popular among millennials because they save time and effort
while purchasing. This has some apparent implications for in-dining restaurants' brick-and-
mortar forms, as more people choose to eat restaurant-style cuisines in the seclusion of their
own homes or offices; nevertheless, the impact isn't as significant as it may appear.
The most essential thing that will always need to touch the quality of improving online food
ordering is the only one that needs to keep the client as a frequent customer, in the sense of
providing high quality and quantity of food, maintaining time, and delivering as soon as
possible. This will provide you with the ideal outcome for your online meal ordering system.
Your guests will appreciate being able to place an order more easily if you provide online
ordering. Customers are more likely to examine all of their menu selections when they are not
under pressure to complete their purchase, and they may even spend more than they would if
they ordered over the phone or in person.With no one in front of them, your visitors won't feel
pressed to make quick decisions, and they'll be more likely to order that additional
item.Swiggy, Zomato, and other similar online meal ordering applications are becoming
increasingly popular. They give excellent service to consumers from various locations,
localities, and clients, as well as delicious food. (RASTOGI, 2019)

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Research Problem: Sales during Covid times

Business Research Problem: An exploratory study to analyse the losses faced by restaurants
during the pandemic in comparison to online food delivery platforms

Explanation of the research problem:

The recent advancement of the internet has aided the expansion of on-line food services by
allowing facultative persons to search for, compare prices, and easily access these services.
Online ordering is becoming (Paliwal, 2021) more and more of a must-have feature in the
restaurant industry. The food industry has been swept up by online ordering. Technology has
had a hidden influence on the business world; it has revolutionized the entire framework of the
restaurant sector, and it will continue to do so. A technologically advanced online meal
ordering system has radically altered the restaurant's culture and provided consumers all over
the world with a new spectacular comfort zone. The primary goal of this study is to determine
the influence of online delivery food platforms on the restaurant industry. (Gupta, 2018)

Objective:
1. To know the impact of online food delivery start-ups like on the restaurant business.
2. To know the strategies to minimize the losses faced by the restaurant owners.

Data Collection/preparation :
This research is totally based on Primary data collection via Questionnaire created. Some
secondary data was also collected in order to analyse the scenario for better accuracy of the
study.

Data Processing:
The data is processed by cleaning it to make sure it was complete, correct and free of errors
and outliers.

Data Analysis:

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Then the data collected is analyzed and the findings and recommendations are noted from the
same. The responses collected were analyzed based on the constructs formed for the following
tests: Descriptive frequency analysis,Non parametric analysis,GLM analysis and
Crosstabulation and multiple regression. Also, principal component analysis was performed to
ensure that the variables are correlated to each other. This ensured that the structural equation
model built is valid and of best fit. The hypotheses were tested for the discussed variables, and
the results were presented accordingly.

METHOD OF RESEARCH
Through hypothesis testing, the current study uses a quantitative exploratory technique to
explore and explain the interactions among and between independent and dependent variables.
The conceptual model was proposed based on the literature study. To collect the consumer's
replies, an online questionnaire was created. The questionnaire was divided into two parts: the
first portion collected demographic information from respondents (with ten questions such as
age, education, gender, and so on), while the second section answered questions based on the
concept (with 11 questions). The consumer's opinions were captured using a 10-point Likert
scale ranging from strongly disagree (1) to strongly agree (5). A Google form was used to
produce an internet link for the questionnaire, which was then emailed/sent to Whatsapp
groups. Because the focus of the study was online meal ordering, the responses were also
collected via an online survey.

Sample Size: 71 individuals of varying age and income groups were considered for this
study.Nominal, Ordinal Interval, and Ratio measurements were used to capture all numerical
data.

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Hypothesis Test:

Correlation Analysis:

Correlation is a statistical measure of how closely two or more variables change in relation to
one another. A positive correlation suggests that the variables are increasing or decreasing in
lockstep; a negative correlation indicates that one variable is increasing while the other is
decreasing.

The degree to which changes in the value of one variable anticipate changes in the value of
another is measured by the correlation coefficient. When the fluctuation of one variable
predicts the fluctuation of another variable with high accuracy, there's a natural temptation to
believe that the change in one causes the change in the other. Correlation, on the other hand,
does not indicate causality.

Correlations
Q8) Number
of times you
purchase food
through
Q3) Which online food
age group do delivery
you belong platforms per
to? month?
Q3) Which age group do Pearson 1 -.958**
you belong to? Correlation
Sig. (2-tailed) .000
N 71 71
Q8) Number of times Pearson -.958** 1
you purchase food Correlation
through online food Sig. (2-tailed) .000
delivery platforms per N 71 71
month?
**. Correlation is significant at the 0.01 level (2-tailed).

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Inference:

The value is 0.01, therefore, the data is positively correlated and are directly proportional top
each other so therefore the age group does affect the number of times individuals order food
through online platforms on a monthly basis.

Descriptive Frequency Analysis:

Frequency analysis is a descriptive statistical method that shows the number of occurrences of
each response chosen by the respondents. When using frequency analysis, SPSS Statistics can
also calculate the mean, median and mode to help users analyze the results and draw
conclusions.

THE DESCRIPTIVE ANALYSIS

Mean income and mean age:

Count of Q9) How often do you go to restaurants

to dine?
50
45
40
35
30
25
20
15
10
5
0
Every 6 months Monthly Once a year Weekly

Statistics

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 Q9) How
Q5) What's many times
your do you go to
estimated restaurants to
monthly dine in a
Income? month?
N Valid 71 71
Missing 0 0
Mean 53647.89 9.14
Median 80000.00 2.00
Mode 18000 2
Std. Deviation 34756.746 7.702
Variance 1208031388. 59.323
330
Minimum 18000 1
Maximum 95000 18

Inference:

As we can see from the above table individuals with an average monthly income of Rs53647.89
prefer to dine at restaurants for an average time of 9 indicating that individuals with a higher
income prefer to go to restaurants more than those who earn a lower income

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Non-Parametric Test:

The NPAR TESTS method duplicates instances based on weight values. Because this can
significantly increase memory usage, lowering the weights would lower the memory
requirement. Of course, you may expand the SPSS workspace size as suggested in the letter.

One-Sample Kolmogorov-Smirnov Test

Q9) How
Q17) How far many times
is your home do you go to
from the restaurants to
nearest food dine in a
outlet?(Km) month?
N 71 71
Normal Parametersa,b Mean 2.52 9.14
Std. 1.511 7.702
Deviation
Most Extreme Absolute .343 .330
Differences Positive .336 .330
Negative -.343 -.306
Test Statistic .343 .330
Asymp. Sig. (2-tailed) .000c .000c
a. Test distribution is Normal.
b. Calculated from data.
c. Lilliefors Significance Correction.

Inference:

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From the above table, we understand that since the significance value is less than 0.05 therefore
the distance from home inversely affects the frequency of restaurant visitsGLM Analysis:
(General Linear Model):

SPSS for Windows allows you to execute general linear modelling. The general linear model
(GLM) is a statistical model with normally distributed dependent variables and categorical or
continuous independent variables.

The general linear model, also known as the general multivariate regression model, is a concise
approach of expressing several multiple linear regression models at the same time. It isn't a
different statistical linear model in that sense.

Univariate Analysis of Variance

Between-Subjects Factors
N
Q24) How many hours 1 18
in a day are you free? 2 18
10 35
Q13) How important are Important 34
price discounts in your Neutral 5
food purchase Not Important 1
decisions? Very Important 30
Very Important, 1
Important

Tests of Between-Subjects Effects

Dependent Variable: Q23) On a ten point scale, How important is choice and variety of
food to you?
Type III Sum
Source of Squares df Mean Square F Sig.

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Corrected Model 99.744a 9 11.083 8.686 .000
Intercept 1056.059 1 1056.059 827.664 .000
Q24Howmanyhoursina 67.343 2 33.672 26.390 .000
dayareyoufree
Q13Howimportantarepr 11.949 4 2.987 2.341 .065
icediscountsinyourfood
purchasedecisions
Q24Howmanyhoursina 16.441 3 5.480 4.295 .008
dayareyoufree *
Q13Howimportantarepr
icediscountsinyourfood
purchasedecisions
Error 77.833 61 1.276
Total 5248.000 71
Corrected Total 177.577 70
a. R Squared = .562 (Adjusted R Squared = .497)

Inference:

From the above table, we can infer that due to the significance value for “the importance of
price discounts in your food purchase decisions” being greater than 0.05 the variables are
positively and inversely correlated.

Cross Tabulation:

A cross-tabulation is a frequency distribution of instances based on two or more category

variables in a single table.

We use a particular sort of table called a cross-tabulation to describe the relationship between
two categorical variables.

Crosstabs

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Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Q23) On a ten point 71 100.0% 0 0.0% 71 100.0%
scale, How important is
choice and variety of
food to you? * Q26) Are
you a foodie who always
likes to eat or try new
foods?

Q23) On a ten point scale, How important is choice and variety of food
to you? * Q26) Are you a foodie who always likes to eat or try new
foods? Crosstabulation
Count
Q26) Are you a foodie who
always likes to eat or try new
foods?
No Yes Total
Q23) On a ten point 1 1 0 1
scale, How important is 4 0 1 1
choice and variety of 6 0 3 3
food to you? 7 3 8 11
8 5 12 17
9 0 16 16
10 0 22 22
Total 9 62 71

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Inference:
Yes, means there is a direct relationship between them being a foodie and the variety and choice
driving their purchase habits via online food delivery platforms

No means they are a foodie but the various choices and varieties of food displayed on online
food delivery platforms do not affect their purchase decision.

Multiple Regression:

Regression
HYPOTHESES TESTING AND DISCUSSION
Hypothesis testing is done by analyzing the significance of path coefficients in the Partial Least
Square analysis. If the p-value of the path Coefficient is < 0.05 (5%), then the null hypothesis
can be rejected. This means that independent variables have a significant effect on the
dependent variable.

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Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Q24) How . Enter
many hours in
a day are you
free?b
a. Dependent Variable: Q3) Which age group do
you belong to?
b. All requested variables entered.

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .971a .944 .943 2.489
a. Predictors: (Constant), Q24) How many hours in a day are
you free?

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 7155.345 1 7155.345 1155.429 .000b
Residual 427.303 69 6.193
Total 7582.648 70
a. Dependent Variable: Q3) Which age group do you belong to?
b. Predictors: (Constant), Q24) How many hours in a day are you free?

Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients t Sig.

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 B Std. Error Beta
1 (Constant) 20.675 .492 41.984 .000
Q24) How many hours 2.354 .069 .971 33.992 .000
in a day are you free?
a. Dependent Variable: Q3) Which age group do you belong to?

Interpretation:

As per the above data, since R square value is below 0.94 they are 94% of free hours can be
explained/related to age.

Linear Regression Equation:

Y Value (How many hours in a day are you free) = Intercept Value (From Table) + [Beta*Value
(Age group)]

Y Value = -5.3537033327

Ho: Age is not related to the number of free hours

H1: Age is related to the number of free hours

Since the beta value is within the .99 range null hypothesis is rejected and age has a direct
relationship with the number of free hours

Limitations/implications of the research: The model's constructs were successful in

explaining the factors that influenced OFD platforms during the COVID-19 pandemic. The
study's knowledge of customer responses is a valuable addition to the literature.

Solutions to the business problem:

Following are key recommendations and suggestions for the restaurant owners in accordance
with the above data collected from this research in order to overcome the tough competition.

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 • The restaurant owners can choose to drop out of online food delivery platforms like
Zomato, Swiggy, etc and try to form their own platform based off the regions in which
they operate.
• Platform fee: Swiggy and Zomato levy huge platform fee on the food bill. This is in the
ranges of 15–30%. That is if you order a biryani of 200/- from a restaurant, then Swiggy
just gives 70% of it which is 140/- to the restaurant. Rest is a commission to these food
delivery companies, the restaurant owners can hold talks in order to bring down the
platform fees which could lead to more restaurant owners joining the food delivery
platform and the same time giving all other restaurant owners more financial gain.

Conclusion:

According to the survey, there will be a large demand for mobile meal delivery apps in the near
future. (Wikipedia, 2022) People utilise smartphone applications to have meals delivered to
them not just to save time, but also because it is convenient. They also have a sense of power
over technology since they can get the meal they want, just where they want it. People also like
the convenience of utilising mobile devices and having information at their fingertips.The
majority of consumers (descriptive analysis reveals 51 percent were under the age of 30) in the
research sample are young, implying that consumer demand would expand in the future with
the perspective of this dynamic and young population. Convenience is a crucial contributing
element that has a substantial impact on consumer happiness and desire to buy food online.
Food aggregators are the catalysts for a shift in consumer behaviour that will reduce the
likelihood of dining out. With the introduction of user-friendly food aggregator applications in
ordering, technology is changing the business. These advances are poised to transform home
delivery by making meals more readily available at home or at the workplace.

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References
Gupta, D. M. (2018). A Study on Impact of Online Food delivery app on Restaurant Business . ijrar, 5.

Paliwal, A. (2021, aprl 7). Restaurant sector stares at massive losses as states reimpose strict Covid-
19 curbs. india today.

RASTOGI, C. P. (2019). UNDERSTANDING CONSUMER BEHAVIOUR TOWARDS UTILIZATION OF

ONLINE FOOD DELIVERY PLATFORMS . jatit, 13.

Wikipedia. (2022). Impact of the COVID-19 pandemic on the restaurant industry in the United States.
Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Impact_of_the_COVID-
19_pandemic_on_the_restaurant_industry_in_the_United_States

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