Factors Affecting the Implementation of Online Food Delivery and Its Impact on Restaurant Performance during the COVID-19 Pandemic

Abstract

During the COVID-19 pandemic, many restaurants implemented online food delivery (OFD) platforms to serve customers. However, it remains unclear how restaurant managers decide to implement OFD and whether or not the implementation can improve performance. We view OFD implementation as a form of service innovation. This study investigates and explains the reasons why restaurants implemented an OFD platform during the COVID-19 pandemic, and the impact of that implementation on restaurant performance, based on service innovation theory. An internet survey was conducted to collect data from restaurant owners or managers to test the proposed research model. The results show that the perceived benefit of increasing the firm’s reach is the key driver of OFD implementation, and the implementation has a positive impact on both financial and non-financial performance. A follow-up interview was also conducted to obtain the opinions of industry experts, who explained the phenomena. The research findings can advance our understanding of how restaurant managers decide to innovate by implementing OFD services and help them better understand whether and how the implementation of this service can actually improve performance.