Abstract
This study develops a game theory model to study the effects of the order‐online‐and‐dine‐in‐store (OODS) strategy on a restaurant's optimal decisions, expected profits, and the environment. We analyse and compare the equilibrium solutions under the benchmark and the online‐to‐offline scenario using the OODS strategy. The results show that the restaurant benefits from the OODS strategy when the operating costs of online channel and physical store are relatively low or when the unit carbon tax price of food packaging is relatively high. If the restaurant charges a high price, the OODS strategy will benefit the environment.
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