FACULTY OF MANAGEMENT

IMBA

Project

For

MANAGEMENT RESEARCH PROCESS

A Research proposal

On

“A Study on impact of online food delivery on restaurants”

Year 2018-23

Class: S1

Submitted to:
PROF. SMRUTI VAKILL

Submitted by:
Enrollment No. Name
2018005100105 Pratham bagrecha
201800510010019 Khushi jain
201800510010020 Siddharth jain
201800510010047 Nidhi ravalji
201800510010256 Esha shah

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 INDEX

Sr. No Particulars Page No

1 Abstract 3

2 Introduction 4

3 Objectives 5

4 Research question 6

5 Literature Review 7-10

6 Hypothesis 11-12

7 Research Methodology 12-14

8 Analysis of data 15-29

9 Interpretation and 30
findings
10 Limitations and 31
Recommendations
11 Conclusion 32

12 References 33-35

13 Bibliography 36

14 Annexure 37-39

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 RESEARCH PROPOSAL

On

“A STUDY ON CONSUMER BEHAVIOUR TOWARDS

ZOMATO AND SWIGGY AND RESTAURANTS”

Name: Khushi Jain
E-mail id: Khushi.jain01@yahoo.in
Mobile no: 7778032986

Abstract:
The sight of recent traffic on Zomato and Swiggy through the roads of Chennai is
very common. Day on day this traffic is increasing widely across all the areas of the
city. The influence of this food online order and delivery especially the platform-to-
delivery application is increasing its presences. Hence, the necessity to study the
influence of demography of people adopting to this technology. Understanding the
demography will throw light on the frequency of usage of these applications. This
study is to discern the quality of the FOOD (Food Online Order and Delivery) Apps-
the platform-to-consumer delivery app, from the feedback of customers. The study
also attempts to understand the factors that leads to the intension to use these App.
Key Words: FOOD (Food Online Order and Delivery) App, Platform to consumer
delivery, online food order, food delivery, adoption of technology, convenience.

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 Introduction
 India has a rich tradition in home-made food industry. But the change in the work
life has welcomed the food online delivery app. The popularity of m-commerce
technology, which involves the payment via wireless devices has also enhanced the
purchase intension of people, as it involves less time and effort. The format of home
delivery or the takeaways have gained plenty additional customers in locations like
malls, offices and big-party orders for residential complexes. The demand of online
ordering is real.
 order regularly. The most important that which will always need to contact the quality
of enhancing online food ordering ever is the only one that has to be maintain the
customer as a regular customer, In the sense provides good qualities and quantities of
food, time maintain, delivery asap. This will give you the perfect result for online
food ordering system fulfilled.
 The revenues from platform to consumer delivery amounts to $ 484m, nearly 7
percent of total revenue on online food delivery segment. Here focus is at the market
segment, which provides customers the food from their partner restaurants and the
delivery of food managed by themselves. The revenue is further expected to grow to
25.2% by 2023. The user penetration is nearly 2.1% and is expected to strike 4.8 % by
2023.
 The digitalization has boosted the technology usage of Indians. Food is the biggest
necessity of life and these online food order service lessens the efforts. The online
food delivery seems to grow 30% over the normal food industry. There are many new
entrants joining this segment day by day. The food tech is the burning talk in the town
of start-up. The major food markets are Zomato and Swiggy. This paper is unique in
analyzing the quality of information in the mobile app, the system quality on
navigation through the pages, user friendliness and the service quality on delivery and
time.

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 OBJECTIVES

PRIMARY OBJECTIVES:

 To know the preference of consumers between restaurants and online food

delivery.

 To study the impact of online food delivery apps on restaurants

SECONDARY OBJECTIVES:
 To study the motivational factors which drive people to dine in restaurants
and use food delivery apps in Ahmedabad and all over India.

 To know the change in restaurant sector after the entry of online food
delivery.

 To know the strategies of swiggy and zomato to compete restaurants and

vice versa.

 To study the consumer satisfaction towards online food delivery and

restaurants.

 To study the comfort of customers for restaurants and for using online food
delivery.

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 The Research Question
The two major competitive food delivery apps in india are Zomato and Swiggy.

Zomato was introduced in 2008 with the name of foodiebay and was renamed in novembr 2010.
Zomato was launched in delhi, mumbai, banglore, chennai, pune and kolkta in 2011. Whereas
Swiggy was introduced in August 2014.

Soon the market became competitive and there were a lot of customers operating these food
delivery apps to order food. Now both the restaurants and food delivery apps are in great
competition to increase their customers as well as to retain their old customers.

This study is focused on identifying the difference between restaurants and Zomato and Swiggy
customers and for this data has been collected with the help of structured questionnaire. Data
were collected from Ahmedabad specifically from working professionals.After data collection,
statistical analysis showed that working professionals with a job from 10 to 5 prefer online food
services over restaurants but while it comes to family dinners, consumers prefer restaurants for
some healthy family time. Result of this study may help food industry to design their future
marketing strategies.

In every sphere of business, the service and quality should be matched with the perceived,
expected and delivered. This study will help us to know the customers satisfaction with respect
to the comfort, convenience, tariff and service quality. Also, we can have the input and ideas to
improve the services to meet out the customer expectation in the near future.

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 LITREATURE REVIEW

1) Serhat Murat Alagoz&HalukHekimoglu (2012), e-commerce is rapidly growing

worldwide, the food industry is also showing a specific growth. In this research paper
they have used the Technology Acceptance Model (TAM) as a ground to study the
acceptance of online food ordering system. Their data analysis revealed that the
attitude towards online food ordering vary according to the ease and usefulness of
online food ordering process and also vary according to their innovativeness against
information technology, their trust in e-retailers and various external influences.
2) Varsha Chavan, et al, (2015), the use of smart device based interface for customers
to view, order and navigate has helped the restaurants in managing orders from
customers immediately. The capabilities of wireless communication and smart phone
technology in fulfilling and improving business management and service delivery.
Their analysis states that this system is convenient, effective and easy to use, which is
expected to improve the overall restaurant business in coming times.
3) Hong Lan, et al, (2016), online food delivery market is immature yet; there are some
obvious problems that can be seen from consumers’ negative comments. In order to
solve these problems, we can neither rely merely on the self-discipline of online food
delivery restaurants nor the supervision and management of online food delivery
platforms. Only by taking laws as the criterion, with the joined efforts of the online
food delivery platforms and restaurants, the government departments concerned,
consumers and all parties in the society, can these problems be solved and a good
online take away environment can be created.
4) H.S. Sethu& Bhavya Saini (2016), their aim was to investigate the student’s
perception, behaviour and satisfaction of online food ordering and delivery
services.Their study reveals that online food purchasing services help the students in
managing their time better. It is also found that ease of availability of their desired
food at any time and at the same time easy access to internet are the prime reasons for
using the services.

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5) Dr.N. Sumathi, S. Josphin (2017), in their study enables online food ordering
system is one of the largest services for fast food restaurants. This is made possible to
use of easy electronic payments system, and also useful for making easy payments for
credit card consumer. In this study saying about to reduce the long queues of
consumer at the counter ordering for food and also reduce the workload of
employees.
6) Rekha Priyadarshini (2017), in her study examined about India fast food business is
growing due to changing of consumer preferences and the largest youth population.
The World Wide Journal of Multidisciplinary Research and Development ~ 89 ~
World Wide Journal of Multidisciplinary Research and Development Indian fast food
industry has 40% growth year after year. The most top chains are planning an
aggressive expansion in semi urban areas and also most popular in tier2 & tier3 cities.
The international fast food chains have to change this business model completely, to
adapt to Indian preferences.
7) Professor Karan Kashyap(2016), studied the consumer satisfaction for online food
delivery and restaurants. Research was done by descriptive research method and
many people were surveyed. It was found that people who are using online food
delivery services is gaining rather than going in restaurants. When there are issues
and traffic conjunctions a research firm has claimed that online food delivery has
grown almost 150% in 2016 in comparison to 2015.
8) Carsten Hirschberg et al 2016 ,A research on the changing market for food delivery
indicates that online’s penetration of the total food-delivery market broke 30 percent
in 2016. We believe penetration rates grow further as the market matures, eventually
reaching 65 percent per year.
9) Shiyin Chan, 2015 , According to gloria food the advantage of online ordering and
the reasons for the growth of food delivery app industry are Convenience, Simpler
menu to manage, significant savings, no Hassels etc. Food Panda is an introduction to
the newest food sensation that’s here to stay.
10) Ashoutosh bhargve 2013, said that food delivery apps has been launched in the
Indian market since May 2012. zomato first major move was acquisition of
TastyKhana, which was started in Pune in year 2007.With acquisition of TastyKhana

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 and JUST EAT, it is now available in over 200 cities and delivery partner with over
12,000 restaurants.
11) According to Sheryl E. Kimes 2011, the study found that perceived control and
convenience associated with the online food ordering services were important for
both users and non-users. Nonusers need more personal attention and also had high
uncertainty towards use of early technologies.
12) Dr. Surbhi Jain and Zamarud Ansari studied the consumer satisfaction of online
food delivery and restaurants were surveyed. It was found that online food delivery is
getting success because of steady growth in e-commerce industry. A research studies
that online food delivery faces some challenges of getting food delivered on time as
well as the technical skills of employees.
13) IBEF (Indian brand equality foundation) studies the consumer satisfaction
between online food delivery apps and restaurants which were surveyed. It was found
the online food ordering is a fast-growing business. It is also an after business for
investors and investment in food ordering start-ups has seen an increase of 93% in
2017. On the other hand, restaurants struggle to beat competition to keep their cost
low and increase profit.
14) Rupali Khanna, Ankita Sang 2015, in their research they said that services are the
type of economic activity that is intangible and is consumed at the point of sale.
Zomato is one of the most popular applications that provide services to the user to
discover restaurants. But many a times it happens that they fail to satisfy their users
that leads to losses and reduced user loyalty.
15) Apoorva joshi 2019, online food ordering platform has become the new habit which
makes e-commerce sector, one of the essential part of our daily lives. Basically the
research of her studies about the marketing strategies and operation used by zomato
and swiggy.
16) Bhavna Singh 2015, said that online food delivery apps has been present in the
Indian market since May 2012. Zomato first major move was acquisition of
TastyKhana, which was launched in the city of Pune in 2007. Together with
TastyKhana and JUST EAT, it is now present in over 200 cities and partners with
over 12,000 restaurants.

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17) Katawetawaraks & Wang, (2011) suggested that Customers can be influenced by
the image of the web site when they decide what website they should buy from.
18) S.Baveja and S. Rastogi (2000), have identified that customer loyalty on the Internet
is a key driver of long term profitability. Loyal online customers, just like offline
ones, spend more, refer more people, and are more willing to expand their purchasing
into new categories. As a result, they are more profitable than one-time shoppers.
Online retailers who succeed in building customer loyalty will ultimately be more
profitable than online competitors who focus only on transactional metrics such as
number of visitors, number of shoppers, eyeballs, and so forth.
19) Bhatnagar, Misra, and Rao (2000), in their recent study made an attempt to study
the risk, convenience and Internet food ordering behaviour. They found that marital
status has no effect on purchase behavior and found mixed results based upon gender
(except for specific gender-related products), years on the Internet, and age.
20) De Leon(2011), said that there are distinct aspects that should be included in a good
online food ordering portal or website. It should be simple to navigate, not clustered
and easy to make an order.

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 HYPOTHESIS

1) . Descriptive Hypothesis

Ho: People don’t like to order food online.

H1: People like to order food online.

H0: People don’t like to Pay online.

H1: People like to Pay online.

H0: People don’t like the delivery service.

H1: People like the delivery service.

2) Relational Hypothesis

H0: There is no significant relationship between introduction of Zomato/ Swiggy

and profits of restaurants.

H1: There is significant relationship between introduction of Zomato/Swiggy and

profit of restaurants.

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H0: There is no significant impact of Zomato/Swiggy on consumer relations with
restaurants.

H1: There is significant impact of Zomato/Swiggy on consumer relations with

restaurants.

H0: There is no significant impact of online food delivering on quality of food.

H1: There is significant impact of online food delivering on quality of food.

H0: There is no significant impact of delivery charges on delivering of food.

H1: There is significant impact of delivery charges on delivering of food.

Research Methodology
Research design:
A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem. The design
of a study defines the study type (descriptive, correlation, semi-experimental,
experimental, review, meta-analytic and sub-type (e.g. Descriptive-longitudinal
case study), research problem, Hypotheses is independent and dependent variables,
experimental design, and, if applicable, data collection methods and a statistical
analysis plan. A research design is a framework that has been created to find
answers to research questions. In this research both Primary and Secondary data
are collected for research survey. The questionnaire is framed to know the nature
of product consumer does use, the reason they favor to buy such product and their
level to the product.

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DESCRIPTIVE RESEARCH DESIGN

 In this research Primary data is collected for the research survey. The
questionnaire is framed to know the consumer preference between
swiggy/zomato and restaurants , the reason they favor either of them and the
reasons for the preference.
 This is descriptive research design because scientific method which involves
observing and describing the behavior of a subject without influencing it in
any way.
 To obtain the primary data from customers, will be using the research
instruments like questionnaire and personal interviews with the customers
using Zomato//Swiggy and restaurants service. At the time of interview the
researcher will make clear about the nature and purpose of the study. The
interviews help to elicit further detailed information. Good representation of
Gender, Education, Age groups, Occupation, Demographic factors are to be
considered during the study.

Data collection
 Google docs is to be prepared for all those respondents to whom we are
approaching and because it is also convenient for both the respondent and
the researcher.
 We have also done personal interview in different societies and households.
 The population selected was mostly the young generation and the middle
aged group

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Determining the sample design
Population: We have surveyed 200 people in Ahmedabad and asked them to fill
the questionnaire.

Sampling:After getting the responses from the population selected, we came to a

conclusion of 140 responses which were adequate according to the research.

Sampling Frame:Ahmedabad

Sampling method:Non -probability sampling design

DATA ANAYLSIS AND INTERPRETATION

 This chapter discusses the data analysis from 140 responses collected from
various age group people who are using Zomato/Swiggy and Restaurants
services in Ahmedabad city.
 This chapter solely focuses on presenting the gathered data in a meaningful
way to facilitate the research that is to find out the customer satisfaction
level of Zomato/Swiggy and restaurant.
 This provides the background to the respondents by analyzing their
demographic details. Tables and diagrams have been used to facilitate a
simplistic reader-friendly writing.

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 Analysis of data by charts

 According to the above pie chart out of 140 samples 90% people order food online and the rest
10% do not use online food delivery apps.

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Out of the 140 samples

 45.8% people prefer to order from Swiggy,

 42.0% from Zomato and
 the rest 12.2% from other food delivery apps.

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Out of 140 samples

 25.7% prefer restaurants,

 16.4 prefer online and
 the rest 57.9% prefer both restaurants and online food delivery.

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Out of the 140 samples

 68.3% think that restaurants asks for more money, and

 the rest 32.7% think that online food delivery apps asks for more money.

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Out of the 140 samples

 52.5% people think that the quality of food differs when ordered online
 whereas 47.5% think that the quality of food does not differ.

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Out of the 140 samples

 43.4% people think that the quantity of differs when ordered online
 whereas 56.6% think that the quantity of food does not differ.

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Out of the 140 samples

 52.1% people prefer online food delivery apps more than restaurants to
deliver food
 whereas 47.9% prefer restaurants more.

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Out of the 140 samples

 21.5% people thinks Zomato is more time consuming

 25.2% people thinks Swiggy is more time consuming
 53.3% people thinks restaurants is more time consuming

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Out of the 140 samples

 68.3% people think that online food delivery apps affect the consumer
relations with restaurants.
 whereas 31.7% think that online food delivery apps affect the consumer
relations with restaurants.

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Out of the 140 samples

 67.4% people rate their satisfaction as moderate

 13.8% people rate their satisfaction as low
 18.8% people rate their satisfaction as high

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Out of the 140 samples

 56.8 % people think that all food items are available on online food delivery
apps
 whereas 43.2% people think that all food items are not available on online
food delivery apps.

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 140 SAMPLES
Less than 200 20.7%

Less than 500 51.1%

Less than 1000 4.4%

More than 1000 23.7%

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Out of the 140 samples

 68.1% order food 0-5 times in a month,

 20% order 5-10 times and
 the rest 11.9% order more than 10 times in a month.

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Out of 140 samples

 37.6% think that Zomato has more delivery and packing charges,
 35.3% think Swiggy has more delivery and packing charges and
 the rest 27.1% think that restaurants tale more extra charges.

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Out of 140 samples

 40.4% people find Zomato more convenient in terms of ordering,

 39.7% people find Swiggy more convenient and
 the rest find restaurants more convenient.

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 Findings
 As per the research conducted it has been observed that 90% of the people
from 140 people use online food delivering from Zomato or Swiggy. Only
the rest 10% are the people who don’t prefer ordering food online. So it can
be said that the introduction of the online food delivering applications like
Zomato and Swiggy has a high effect on the restaurants.
 Also the research states that 45.8% of the people out of 140 prefers using
swiggy rather than using zomato or any other source. Also the preference for
zomato is 42%. It states that people prefer swiggy more as compared to
zomato for ordering food online.
 Out of the 140 samples collected it can be stated that only 16.4% people
prefer online food ordering whereas 25.7% people prefer restaurants and
57.9% people prefer using both. So it can be said that comparatively people
prefer restaurants more than online food ordering.
 According to the samples out of 140 people 68.3% people thinks that
restaurants asks for more money as compared to online food ordering
applications like swiggy and zomato. And the rest 31.7% people thinks that
online food ordering applications asks for more money in comparison to
restaurants. So it can be said that most of the population thinks that online
food ordering applications like swiggy/zomato asks for less money in
comparison to restaurants. Thusit can be a threat to the profit of restaurants
as the online food ordering apps gives huge discount to its customers which
the reason why restaurants can face losses.
 52.5% people of the sample says that the quality of food differs when
ordered online rather than ordered in restaurants and 47.5% people states
that the quality of food does not vary when ordered online.

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 Limitations of the study and Future Research

 As any research is not complete and always have a scope of further research, these
researches too have further scope.
 As data was collected only from Ahmedabad and only for working profession, result
represents only small part of population.
 In future further research should be done with more varied sample with more
geographically spread.
 So, there is scope of further research and further research will give more comprehensive
conclusion about restaurants and food delivery apps in India as including only one city
cannot represent the number of users and relevant analysis cannot be found.

Recommendations

 According to the research zomato needs to improve its market strategies.

 The online food delivery services need to improve their services as still the people are
more bend attracted towards the restaurant services.
 Restaurants should look after the budget as the online food deliveries services provide
them the discount offers and other offers

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 CONCLUSION

The restaurants and online food delivery both are focusing on consumer satisfaction and earning
profits. People are interested in getting food as fast as possible and at a low price in this rapidly
running routine. This research would help in getting to know consumer preferences towards
restaurants and online food delivery as per the factors taken into consideration by them such as –
prices, time taken for delivery of food, quality of food, quantity of food and hygiene. In this fast
growing world where people want everything fast food is something which can be provided in
either ways but this study would show that which way is well preferred by the customers. Also
the study will say about the change in restaurants due to online food delivery.

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 References

1) VarshaChavan,PriyaJadhav,SnehalKorade,PriyankaTel

iProf.Mr.R.B.Anpat”Implementing Digital Restaurant and Inter-Restaurant

Navigation Using Smart Phone”,inInternational Journal of Computer
Science and Mobile Computing,Volume 4,Issue 2 February 2015.

2) Apurva Joshi, PrachiOke, NiranjanJadhav, AshutoshBhargave Prof. Mr. S.

R Lahane, “Digital Ordering System for Restaurant using Android”, in

International Journal of Scientific and Research Publications, Volume 3,
Issue 4, April 2013.

3) PriyankaThakare, ReshamShinde, SushimitaSarkar,“ Design and

Implementation of Digital Dining In Restaurants Using
Android”International Journal of Advance Research in Computer Science
and Management Studies Volume 2, Issue 1, January 2014.

4) Wei Wing Chiew, Wen Jiun Yap, Soon Nyean Cheong, “Design and

Development of Multi-Touchable ERestaurant Management System”, in

2010 International Conference on Science and Social Research (CSSR
2010), December 5 - 7, 2010, Kuala Lumpur, Malaysia.

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5) Alagoz, S. M., & Hekimoglu, H. (2012). A study on tam: analysis of

customer attitudes in online food ordering system. Procedia-Social and

Behavioral Sciences, 62, 1138-1143.

6) Adithya, R., Singh, A., Pathan, S., & Kanade, V. (2017). Online Food

Ordering System. International Journal of Computer Applications, 180(6).

7) Saxena, A. An Analysis of Online Food Ordering Applications in India:

Zomato and Swiggy.

8) Chavan, V., Jadhav, P., Korade, S., & Teli, P. (2015). Implementing

Customizable Online Food Ordering System Using Web Based

Application. International Journal of Innovative Science, Engineering &
Technology, 2(4), 722-727.

9) Beliya, A., Kujur, R., Verma, M., Nagwanshi, K. V., Sahu, S., Uikey, N., &

Bhat, A. A. SATISFACTION OF CONSUMERS BY USING ONLINE

FOOD SERVICES.

10) Bagla, R. K., & Khan, J. (2017). Customers' expectations and satisfaction

with online food ordering portals. Prabandhan: Indian Journal of

Management, 10(11), 31-44.

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11) Vignesh, G., & Arun, B. (2019). A study on online food delivery service

market (swiggy). ZENITH International Journal of Multidisciplinary

Research.
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value of online customer loyalty and how you can capture it”,
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Internet shopping behavior”, Communications of the ACM,
43(11), 2000, 3.

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behaviour-online preferences”

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 Bibliography

 http://timesofindia.com/business/india-business
 http://www.slideshare.net/
 https://economictimes.indiatimes.com/smallbiz/startups/newsbuzz/
https://www.crunchbase.com/organization/food panda 12
 https://www.crunchbase.com/organization/swig gy 13
 https://www.similarweb.com/website/swiggy.co m 14
 https://www.similarweb.com/website/zomato.co m 15
 https://www.zomato.com/blog/
 http://www.amity.edu/gwalior/ajm/paper_5.p
 https://www.bloombergquint.com/technology/swiggy-vs-zomato
 https://insidefmcg.com.au/2s
 https://www.upwork.com/hiring/mobile/how-mobile-apps-have-
transformed-restaurant-and-food-deliveryindustry/
 https://www.tvo.org/article/current-affairs/how-meal-delivery-
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analysis.html
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going-to-impact-the-food-industries

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 Questionnaire
Zomato/Swiggy vs. Restaurants

E-mail id:

1. Do you order food online?

 Yes
 No

2. If yes then which company do you prefer?

 Swiggy
 Zomato
 Others

3. Do you prefer food online or through restaurants?

 online
 restaurants
 both

4. Which source do you think asks for more money?

 online
 restaurants

5. Does the quality of food differ when ordered online?

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  Yes
 No

6. Does the quantity of food differ when ordered online?

 Yes
 No

7. Do you prefer online delivery more than restaurants?

 Yes
 No

8. Which source is more time consuming?

 Zomato
 Swiggy
 Restaurants

9. Do online delivery apps affect consumer relations with

restaurants
 Yes
 No

10. Rate your satisfaction level of online food delivery app

 High
 Medium
 Low

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  11. Are all the food items available on online food
deliveryapps?
 Yes
 No

12. How much approximately do you pay for online food

ordering?
 less than 200
 less than 500
 less than 1000
 more than 1000

13. How many times do you order online in a month?

 0-5 times
 5-10 times
 more than 10 times

14. Who has higher delivery and packing charges?

 Zomato
 Swiggy
 Restaurants

15. Which is more convenient in terms of ordering?

Zomato
 Swiggy
 restaurants

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