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Traditional vs. Online ordering system: Its Operational Role in the selected QSR in
Rosales, Pangasinan
Acosta, Charmaine T.
Afan, Jerome Ian S.
Gabriel, Wilford C.
Quinit, Carlos S.
Villanueva, Trisha E.
APPROVAL SHEET
This research entitled “Traditional vs. Online ordering system: Its Operational
Role in the selected QSR in Rosales, Pangasinan” prepared and submitted by
Charmaine Acosta, Jerome Ian Afan, Wilford Gabriel, Carlos Quinit and Trisha Villanueva,
in partial fulfillment of the requirements for the degree Bachelor of Science in Hospitality
Management has been examined and is hereby recommended for approval and acceptance.
__________________________
Panel Chairman
______________________________
Dean, CHTM
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This is a declaration that every source utilized in this research has been properly
recognized and cited with extreme care. To further validate that this research is an original
effort and hasn't been plagiarized from earlier work or submitted for another degree.
Furthermore, this is to certify that the entire manuscript has been submitted to and
passed the standards on plagiarism set by the Center for Research and Development.
Abstract
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Acknowledgement
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This study is a new experience for researchers with hindrance that challenges their
patience, determination, ideas, and confidence. The researchers would like to express their
genuine thanks to the people who helped, contributed, and assisted them in this study to
become possible.
To their Research Adviser, Dr. Villaluna, Jr. for his patience and effort in improving
this study,
To their Dean, Mrs. Mary Rose A. Uy, for the support and help you gave us. Thank
you for your help to allow us to petition this subject. We will never forget the day you were
To their parents for their love, support, and encouragement for them to strive to do
Above all, to our Almighty God, the researchers give their glory and praise to Him.
Table of Contents
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Page
Title . . . . . . . . . . 1
Approval Sheet. . . . . . . . . 2
Abstract . . . . . . . . . 4
Acknowledgement . . . . . . . . 5
Table of Contents . . . . . . . . 6
Chapter 1: Introduction . . . . . . .
Chapter 2: Methodology . . . . .
Treatment of Data . . . . . . .
References . . . . . . . . .
Appendices . . . . . . . . .
List of Figure
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Chapter 1
Introduction
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Many restaurants use traditional restaurant ordering systems to serve customers. In the
traditional restaurant ordering system, the staff write down the food that the customer orders.
The paper will then be passed to the kitchen and the chef will start to cook. This has caused
few inconveniences. The staff might make some errors while writing the order. Sometimes,
when the staff write in hurry will make the handwriting difficult to understand. The staff
might lose the order paper and customers might also receive incorrect bill. This was purely
utilized by many restaurants all over and that includes fast food chains. (Jiuan, 2019) But due
to the global market competitions, self-service technologies (SSTs), such as ATMs, online
banking, mobile scanning, and ticketing machines, have become a trend, a source of
competitive advantage for service providers, and a part of consumers’ everyday lives. Which
services and offering appealing restaurant menus (through the restaurant website or online
food ordering platforms) could be one strategy to re-stimulate restaurant sales and create a
new revenue stream. The majority of large chain restaurants with significant working capital
had already prepared well-functioning online ordering systems with attractive menus on their
websites which has been utilized by many fast-food chains, nowadays like self service kiosk,
and online applications for order placement before the interaction to the counter. (Sebby and
Brewer 2021).
Unlike with the traditional ordering in which customers need to queue and wait for
their turn for close contact with the teller or the cashier. Covid19 pandemic started the
limitation of close contact with any person not only inside buildings but also inside the
restaurants which actually led to the birth of new tech’s for the digitized ordering system
called the online food ordering system. (Sebby 2021) . Assessment of traditional versus
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online ordering systems in the operations of a fast food chain involves considering various
factors to determine their effectiveness. Traditional ordering systems in fast food chains
involve customers physically visiting the restaurant and interacting with staff to place their
orders. This can lead to direct communication and the opportunity to upsell or provide
chances of miscommunication or errors in the order. Customers can clarify their preferences
with the staff. Payment can be made in cash or card at the counter. This provides flexibility
restaurants, as the customer is present at the point of sale. Customers can immediately
address any issues or concerns with their orders, allowing for quick resolution. Online
ordering systems allow customers to place orders from their devices, offering convenience
and the ability to browse menus and customize orders at their own pace. Online systems can
facilitate upselling by suggesting additional items, leading to potentially higher sales. While
orders are placed electronically, there’s a risk of miscommunication due to the absence of
direct human interaction. However, this can be mitigated with clear online menus and order
confirmation.
cards, digital wallets, and online payment platforms, making it convenient for a wide range of
customers. Online systems can collect valuable customer data, including ordering habits and
preferences, which can be used for marketing and improving menu offerings. Online orders
can offer delivery to customers’ homes or the option to pick up orders at the restaurant,
providing flexibility.
The effectiveness of each system in a fast food chain’s operations depends on several
factors, including the target customer base, location, and the chain’s overall strategy.
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crucial. Assess how each system affects order processing time, staff requirements, and overall
operational efficiency. Analyze the costs associated with each system, including staffing,
technology, and maintenance. Evaluate the readiness of the fast food chain to implement and
support an online ordering system, including the necessary software and hardware. Collect
feedback from customers using both systems to identify areas for improvement. Consider
whether offering online ordering provides a competitive advantage in the fast food industry.
Assess how each system can be promoted to attract and retain customers.
increased customization, and reduced waiting time, while service providers benefit from
greater control over service delivery, service standardization, smooth demand fluctuation,
reduced labor costs and expanded opportunities for deliveries . Seeking the self-service
benefits, businesses adopt various forms of SSTs to their service algorithms. The food
ordering services app has brought a whole new way of ordering food in our world. Mobie app
development companies defined clearly two main segments in the market: platform-to-
appear as one of the most diverse technological forms of SSTs. Various industries have
successfully adopted ATMs, parcel lockers, self-checkout stations in grocery stores and
libraries, as well as other types of SSKs. At the same time, the amount of research dedicated
to SSOKs has been growing continually. Despite this trend, no comprehensive framework is
currently available to guide practical applications and to orient customer value research on
SSOKs. As the trend continues to emerge, online ordering system has lowered the barriers of
entry for small enterprises. It creates a golden opportunity for them to be seen as much as a
big famous restaurant in town with a reasonable budget. Online systems cannot still face out
traditional ordering regardless of the presence of self-service kiosk and online applications
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along stalls, people still queue in line to continue doing business. This research is made
possible for an assessment of the effectiveness of online ordering system versus the
This research is made with the aim to provide information, knowledge and
effectiveness in the operations of fastfood chain restaurant. The study's findings may teach
students about the advantages and disadvantages of conventional and online ordering
methods, as well as how well they perform in Rosales, Pangasinan's operations of fast-food
chains. Future researchers will gain from the findings of this study because they will
understand the value of having both traditional and online ordering systems as well as their
respective efficacies.Future researchers might utilize the study as a basis for comparison and
a reference to conduct research based on the ideas and methodology employed in this study,
This study's main objective is to compare the effectiveness of fast food businesses'
traditional ordering systems to those employed online. In Rosales, Pangasinan, this study will
be conducted at the selected fast food restaurants. Customers of the chosen fast food chains
Today, online food ordering is a 95 billion dollar industry expected to grow steadily
(“Online Food Delivery” 2019). Over the past year, the popularity of online food delivery
(OFD) has been on the rise worldwide. Cho et al. (2019) argues that OFD is an innovative
way that allows consumers to purchase a wide range of food selection via platform(s). OFD
platforms collect orders from consumer and pass on the information to restaurants and
delivery personnel (Troise et al., 2021). This opens up new opportunity for restaurants to
reach new market while increasing their revenues and consumers the convenience of having
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food delivered to their home. In the past, researchers have mainly focused on traditional
retail, e-commerce behaviours, characteristics of mobile application (Cho et al., 2019), not
much discussion around OFD consumers (Yeo et al., 2017; Suhartanto et al., 2019) and
even lesser on the use of mobile application to order food from a restaurant (Rodríguez-
(FDAs) are a specific type of O2O platform that capitalizes on consumers' extensive
use of smartphones, mobile internet, and navigational services (Kaur et al., 2020b; Hwang
and Kim, 2019; Talwar et al., 2021b). These represent the platform-to-consumer market
segment, which is estimated to generate a projected market volume of USD 79,608 million in
2021, with the highest revenues being drawn from China (approximately USD 56,936
million), the United States (approximately USD 28,486 million), and India (approximately
USD 11,666 million) (Statista, 2020a). These figures indicate consumers' growing
acceptance of FDAs, which, during the lockdown instituted due to the coronavirus (Covid-
19) pandemic, have been steadily gaining popularity due to the rise of novel features, such as
„contactless delivery‟, which have the potential to reassure consumers of the limited risk of
exposure to the virus while availing themselves of food delivery (Businesswire, 2020;
Statista, 2020b).
In the Philippines, Food delivery service (FDS) is the practice of ordering or calling in
food from a restaurant or fast-food chain, the restaurant will prepare the food, and will then
send a driver or rider to the specified address to bring the food to customers. A modern trend
in food delivery is the use of food ordering apps. Food ordering apps such as GrabFood,
Toktok, Delivery Guy PH, and FoodPanda are examples of the newfound popularity of food
delivery services (FDS). Even different fast-food chains have their food ordering apps such as
McDonald's, Jollibee, Shakey‟s, Greenwich, and some well-known fast- food chains or
restaurants. The food industry is worth trillions of pesos, but delivery reports for only a small
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portion of that total. This opened up a significant opportunity for the future growth of many
countries. Particularly in the Philippines, a new wave is emerging in the food and beverage
industry. FDS has changed customers' lives in a variety of ways, allowing them to enjoy a
Prasetyo et al. (2021) have shown in their study that customer satisfaction in the
online food delivery or OFD during the COVID-19 period has gone through a long process of
innovation. Therefore, customer satisfaction has increased significantly. Sebby (2021) have
conducted timely research on the online restaurant menus and the purchasing intentions of the
consumers during the pandemic of the COVID-19. The restaurant's menu changed during the
COVID-19 period. Expensive food items are in less demand. The consumer's everyday food
items are of higher priority due to physical movements restrictions. Thus, consumers need
more and more physical exercises than regular exercises if they intake junk foods. That is, the
food habit and requirements have changed a lot. Cha and Seo (2020) have conducted their
research based on food delivery apps and consumer satisfaction based on the experiences on
the apps. This research discovered that consumers nowadays do not want to visit restaurants.
As a result, the success story of the restaurant business has been shifted to the apps and online
ordering processes. The research found out that the improvement of apps, attractiveness and
information found in the apps are relevant regarding customer satisfaction with online
ordering systems. The mobility and the trust factors are also crucial in the success story.
restaurant business. Ganapathi and Abu-Shanab's (2020) study has shed some critical light on
this aspect. They have found that customer satisfaction is related to a deficient level regarding
the quality and taste of the food. In contrast, the service provider's quality has a significant
Tech (2020) has found out in a study that young people are the most frequent online
food ordering and delivery system users. However, the higher the prices, the higher the level
of satisfaction. The higher competition also has an impact on customer satisfaction in the
restaurant business. Customers focus more on the taste of the food, which is a critical 5
element for many newcomers to this field. As a result, many new startups target existing
restaurants and open their businesses to overcome such issues and provide satisfactory
Tandon et al. (2018) study has found a correlation between website functionality and
customer satisfaction. The significant finding of their research is that cash on the delivery
system has a positive impact on the online food ordering and delivery processes. Customers
prefer the cash on delivery system. They are more satisfied using this mode of online
restaurant food ordering than any other mode. In addition, many stores are selling at a lower
- business profile
Traditional vs. Online
- level of effectiveness of
ordering system: Its
traditional ordering
Operational Role in the
system
selected QSR in Rosales,
- level of effectiveness of
Pangasinan.
online ordering system
Figure 1
Research Paradigm
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Figure 1 shows the research paradigm of the study. It shows the Independent Variable
and Dependent Variable. Independent Variable consists of the business profile, level of
system. For the Dependent Variable it includes the Traditional vs. Online ordering
This is study aims to evaluate the effectiveness of the Traditional vs. Online
ordering system: Its Operational Role in the selected QSR in Rosales, Pangasinan.
1. What is the business profile of the fastfood chain restaurant in the term of.
1.1 Location,
2.1 Features,
2.2 Pros,
2.4 Contribution?
3.1 Features,
3.2 Pros,
3.4 Contribution?
Hypothesis
The hypotheses of the study entitled:Traditional vs. Online ordering system: Its
Operational Role in the selected QSR in Rosales, Pangasinan ; are the following:
Ho: there is no significant difference between the effectiveness pf traditional of the online
ordering system?
Ha: there is a significant difference between the effectiveness pf traditional of the online
ordering system?
Chapter 2
Methodology
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This chapter presents the research design for how this study would be conducted. It
also presents the subjects of the study, the data-gathering instrument, the collection of data,
and the statistical procedures to analyze and interpret the results of this study.
quantitative research, researchers gather numerical information from people or groups and
typically put this information into statistical studies to see whether there are any links
between them. The researchers believe that the descriptive approach to research would be
method is used to determine the relationship between two variables, whether the relationship
is perfect, very high, high, marked, moderate, slight, or negligible (Cacay, 2019).
The locale of the study and population includes Perception and Satisfaction towards
Online Food Ordering versus Traditional Food Ordering around Rosales, Pangasinan, which
served food online and traditional system. A total of 50 respondents will be included in the
study. Nova Formula was used to conduct this research. Respondents would be sourced from
several Online Food Ordering and Traditional Food Ordering System around Rosales,
Pangasinan.
The respondents are split equally among the various for, divisions that adhere to the
inclusion criteria. The survey questionnaires were floated for two months, and the researchers
were able to conduct 50 surveys among 5 Fast Food Chains Establishments in Rosales,
Pangasinan.
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The method the researcher employed, random sampling, ensures that each sample has
an equal chance of being picked. A randomly selected sample is intended to provide a fair
reflection of the entire population. To get the sample size from the population, the researchers
used Slovin's formula. It is used when a population sample is gathered and a formula is
n = N / (1+Ne2)
Where:
n = sample size
N = population size
e = margin of error
A survey questionnaire is the instrument used to collect the data in this study. The
survey questionnaire is composed of three parts. The first part is composed of the business
profile of the fastfood chain restaurants in terms of location, years of operation, number of
man power, and operational hours. The second part is composed of the level of effectiveness
of traditional ordering system in the operations in terms of features, pros, cons, and
contribution. And lastly the third part is composed of the level of effectiveness of online
ordering system in the operations in terms of features, pros, cons, and contribution.
To examine the consistency and stability of the questionnaires that measure latent
variables, the researchers used the Cronbach's alpha test. Cronbach's alpha has a range of 0 to
1. The highest ratings often denote the reliability of the survey or questionnaire. You must
provide both the number of items utilized on the subscale and the Cronbach's alpha value
A letter of request to conduct the study was prepared. The questionnaire surveys were
created by the researcher, validated by the subject-matter professor, and then circulated. The
researchers used a survey method to carry out their research in Rosales, Pangasinan. The
researchers. In order for the respondents to complete the questionnaire fully aware of their
role as the study's subject, the researchers explain a few terms to them. The respondents were
asked to answer completely truthfully by the researchers. The purpose of this study is to
compare the effectiveness of the fast food chain's traditional and online ordering systems in
Rosales, Pangasinan.
All the gathered data answered by the respondents were tallied, compiled. encoded,
and analyzed using various statistical methods to have a relevant answer to the given
questions. These statistical methods helped the researchers to judge whether there was an
error or if the study was in good condition. The gathered data was subjected to some
statistical treatment for interpretation and computation to interpret the data effectively. Based
on the data the researcher comes up with conclusion and recommendations for this study.
Treatment of Data
The data gathered from the questionnaire was tallied and statistical values were signed
to it by the researchers.
For the sub-problem number 1, which is the business profile of the fastfood chain
restaurant in the term; Location, Years of Operation, Number of man power, and Operational
1.2 Percentage is a fraction or a ratio in which the value of the whole (denominator) is
always 100.
Formula:
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For the sub-problem number 2, which is the the level of effectiveness of traditional
ordering system in the operations interm of; Features, Pros, Cons, and Contribution. The
2.2 Average Weighted Mean a calculation that takes into account the varying degrees of
Formula:
Where,
4 3.50-4.49 Agree A
1 1.00-1.49 Disagree D
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For the sub-problem number 2, which is the the level of effectiveness of online
ordering system in the operations interm of; Features, Pros, Cons, and Contribution. The
3.2 Average Weighted Mean a calculation that takes into account the varying degrees of
Formula:
Where,
4 3.50-4.49 Agree A
1 1.00-1.49 Disagree D
For the Sub-problem number 4, which is to test the ignificant difference between the
effectiveness of traditional of the online ordering system of the Fast food chain restaurant in
Rosales, Pangasinan.
The researchers used Pearson R Correlation. Below are the formula and Quantitative
Linear Interpretation.
Where,
r = Pearson Coefficient