Challenges Faced by Restaurants with Food Delivery Applications – A Critical Review of the Literature

Abstract

The food delivery market in India is rapidly growing with agile lifestyles, especially post-pandemic. With cheaper mobile data and better digital infrastructure, the technology is disrupting a lot of traditional business models. With this, the food delivery aggregators do seem to be a boon to many stand-alone restaurants which got them a digital presence without any initial investments on the websites, APPs and marketing. However, this technological advancement has also introduced a range of challenges for restaurants. This research paper critically reviews the existing literature on the challenges faced by restaurants with food delivery applications. Experts from their papers have reiterated the importance and benefits of food delivery aggregators to restaurants. The paper explores the detrimental impact of delivery applications on restaurant operations, customer relationships, financial aspects, and the overall industry landscape. By analysing and synthesizing the findings from various studies, this paper aims to provide valuable insights for restaurant owners, managers, and policymakers to address and overcome the challenges posed by food delivery applications. Keywords: Restaurant Business, Quick Service Restaurants, Online Food Delivery Applications, Challenges faced by restaurants.