Online Food Delivery Platforms in Batangas City and their impacts to Sustainability of Restaurant and Food Businesses during the midst of Pandemic (COVID 19) PDF

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Graduate SchoolThe Problem Introduction As part of the national response to the COVID-19 pandemic, the Philippines in an attempt to contain the spread of the virus, the government has imposed strict quarantine measures and other restrictions, starting in Manila and quickly expanding to other areas o...

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Graduate School The Problem Introduction As part of the national response to the COVID-19 pandemic, the Philippines in an attempt to contain the spread of the virus, the government has imposed strict quarantine measures and other restrictions, starting in Manila and quickly expanding to other areas of the country. Lockdowns and curfews caused by the COVID-19 pandemic have significantly affected shopping behavior not just in our country but in the whole world, specifically herein our Province of Batangas. Today, those that can access the web can easily order food online in barely a tap away using their mobile devices, like cell phones, laptops, tablets and computers. Specifically, mobile devices are widely adopted, and their use has sharply increased worldwide. In keeping with a report from the worldwide Association of Mobile Operators, global movable users exceeded 5.1 billion in 2020, among them, over 1.2 billion users are accounted for in China (GSMA,2020) Meanwhile, various mobile services are significantly developed and implemented in several industries. This study will tell glimpse about the history of online food delivery in the Philippines particularly in the City of Batangas. The study also aims to discuss about sustainability. The research will aim to assess the Online Food Delivery Platforms in Batangas City and their impact to Sustainability of Restaurant Businesses during the midst of Pandemic (COVID19).

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Graduate School It was undoubtedly that Online Food Delivery platforms and services serves as the hero of food businesses and establishments here in Batangas City. As of now they are gaining so much popularity in the market due to the strike of COVID 19, the industry continues to rise and shine but how long could they sustain such demand and what are their impacts and how they will be able to sustain and enhance their economic, social and environmental sustainability. Through this study we could define and have a better understanding about Sustainability and how the rising industry of Online Food Delivery affects Sustainability of Food Businesses in Batangas City. The research could help us identify the underlying effects of the emergence of Online Food delivery platforms especially during this pandemic period. With this study we could determine the impacts of Online Food Delivery in terms of their economic, social and environmental aspects. In accomplishing this research and analyzing results of the study we could give suggestions and recommendations to the Online Food Delivery platforms and services to improve their craft while achieving and enhancing their sustainability in the industry.

BACKGROUND OF THE STUDY The emergence of Food Online Delivery is brought by technological advances and innovations nowadays and triggers its usefulness during this time of pandemic. Online food delivery services in the Philippines have changed the

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Graduate School way Filipinos order food specifically in the City of Batangas. It’s convenient to order food online, no need to step out and battle with the heat and traffic. It takes just a few taps on your smart phones to order from your chose restaurant and favorite food shops. Then all that’s left to do is to wait within half an hour or so for your food to arrive. What a great way to save time and money, and to avoid taking risk on going outside the households especially that COVID is making a threat to everyone. During the world 2020 COVID-19 outbreak, the benefits of online food delivery are obvious, because it facilitates consumer access to prepared meals and enables food providers to stay operating. The onset of the COVID-19 pandemic has disrupted most aspects of life, including the way people access goods. Government-mandated lockdowns and curfews have kept consumers reception, preventing normal shopping patterns and plenty of brick-and-mortar businesses has closed down. Some essential businesses, like pharmacies and grocery stores, have remained open but with altered operations and skeletal systems. Many restaurants have closed or relied on takeout to survive within the industry. For several consumers, home delivery has been an answer to a number of the challenges created by COVID-19. E-commerce and house delivery are going to be a convenient solution for workers forced to work remotely similarly as many other groups like parents that has to juggle both work and parenting demands or groups in peril of developing serious COVID19 health-related complications.

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Graduate School Primarily because of new innovations and technological advances, and better accessibility to the internet and due to the underlying threat of COVID 19 in the external environment emergence of Online Food Delivery services, apps and other platforms gain popularity and demand. Studying about the impact of online food delivery and its sustainability is very relevant and timely. Because this industry gains so much popularity especially during this time of pandemic. Through this research we could understand and identify the impact of sustainability in terms of the three pillars and perspective namely; economical, social and environmental. By identifying its impacts we could analyze and give recommendations on how these Online Food Delivery platforms could somehow enhance their sustainability in the industry. According to Basiago 1999, sustainability is an approach targeting to create long-term stakeholder value through the implementation of a business strategy that focuses on the moral, social, environmental, cultural, and economic dimensions of doing business. The strategies created are intended to foster longevity, transparency, and proper employee development within business organizations. The rationale behind taking this study is to gain better understanding about the emergence of online food delivery, and their impacts to sustainability of food businesses in the long run. This study is very timely, due to its exceptional popularity of Online food delivery during this pandemic period.

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Graduate School The researcher also wants to give credits and commendation to these online food delivery heroes/riders about their dedication on taking the job, under the external threat of COVID. This study will focus on assessing the emergence of online food delivery platforms in Batangas City, and their impact to sustainability of restaurants and food establishments who used them. This research will tackle glimpse about the history of Online Food Delivery in the Philippines, particularly its arrival in Batangas City. A key contribution of this research is trying to explain the meaning of sustainability and how it can be achieved.

This research will also try to

understand the behavior and perceptions of online consumers towards Online Food Delivery services and platforms in a pandemic lockdown setting and compare it to the pre-pandemic situation.

STATEMENT OF THE PROBLEM This study aims to assess Online Food Delivery Platforms in Batangas City and their impacts to Sustainability of Restaurant Businesses during the midst of Pandemic (COVID 19). The researcher shall attempt to specifically answer the following questions: 1. What is the profile of the respondents in terms of;

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Graduate School 1.1 Type of Business (Sole Proprietor, Partnership, Corporation, Cooperative) 1.2 Size of Business 1.3 Place of Business in Batangas City 1.4 Years of Operation 2. How may the respondents assess the Online Delivery Platforms in terms of the following features; 2.1 Accessibility 2.2 Discount/Rewards, Cash back and Loyalty Programs 2.3 Real-Time GPS Tracking of Food Delivery 2.4 Easy Payment Options 2.5 Reviews & Ratings 2.6 Easy Order Placement 3. How do the respondents assess the Online Food Delivery Platforms and their impacts to sustainability in terms of the following : 3.1 Economic Impacts 3.2 Social Impacts 3.3 Environmental Impacts 4. Is there a significant difference between online food delivery platforms preference by the respondents when they are group according to profile? 5.

Is there a significant relationship between online food delivery platforms used by the respondents and their sustainability practices?

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Graduate School 6.

Based on findings, about the study of online food delivery platforms what action plans can be propose to enhance their sustainability.

Theoretical Framework Even during pre-pandemic, the emergence of the Internet food delivery services may be attributed to the changing nature of urban consumers. These consumers use food delivery services for a spread of reasons but, unsurprisingly, the foremost common reason seems to be the necessity for quick and convenient meals during or after a busy work day. The theory and model that is anchored with this research is the Three Pillars of Sustainability, which is also synonymous to the Triple Bottom Line Theory explored by John Elkington during the mid 1990s. According to Elkington, the principle of The Three Pillars of Sustainability says that for the entire sustainability problem to be solved all three pillars of sustainability must be sustainable. The three pillars are social, environmental, and economic sustainability aspects. Sustainability is an evolving concept, which makes it difficult to define . In theory, sustainability is nothing over “meeting the needs of the present without compromising the power of future generations to meet their own needs.” In practice, sustainability could be a collective concern for the welfare of our youngsters and therefore the future generations. sustainability is an approach targeting to create long-term stakeholder value through the implementation of a business strategy that focuses on the

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Graduate School moral, social, environmental, cultural, and economic dimensions of doing business. The strategies created are intended to foster longevity, transparency, and proper employee development within business organizations.

Figure 1.0: Pillars of Sustainability

Conceptual Framework

The primary purpose of this study is to assess Online Food Delivery Platforms in Batangas City and their impacts to Sustainability of Restaurant and Food Businesses during the midst of Pandemic (COVID 19). In order to achieve the purpose, the researchers have developed a conceptual model that may serve as a framework of the study. See Figure 2.0.

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Graduate School

Figure 2.0 IPO Model Conceptual Paradigm

For better understanding of the study, the researchers adopt the InputProcess-Output (IPO) Model as the foundation of the conceptual framework. The first part of the frame shows the profile of the respondents in terms of demographics. On the second part are the components on how to assess the respondent’s perception about the basic features of online delivery platforms. While the third component is there to assess the respondent’s perception towards Online food delivery platforms and their sustainability aspects in terms of

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Graduate School economic, social and environmental. The input box is related to the process box in a way that it contains the steps of which the information can be gathered. This information are the data that are needed which assess Online Food Delivery Platforms in Batangas City and their impacts to

Sustainability of

restaurant and food businesses who use the said model and platforms. The given variables in the input box are gathered through the use of the process box. The process box discusses the steps that are going to be used by the researchers in assessing Online Food Delivery Platforms in Batangas City and their impacts to Sustainability of restaurant businesses during

the midst of

Pandemic (COVID 19). The researcher will be using questionnaires to come up with the results to determine and asses Food Delivery Platforms in Batangas City and their impacts to Sustainability. The questionnaires will include questions that will help the readers to analyze the specific actions that needed to be taken in order to complement the results of the assessment. In addition, the answers of the respondents will be analyzed with accordance with the information that will be gathered by the researcher. The analysis of the data will not only focus on the result of the questionnaires but also on the data that will be presented in the whole study.

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Graduate School Hypothesis of the Study The study will test the hypothesis given below: Ho1: there is no significant difference between online food delivery platforms preference by the respondents when they are group according to profile. Ho2: there is no significant relationship between online food delivery platforms used by the respondents and their sustainability practices.

Scope and Limitation of the Study This study will generally focus on Online Food Delivery Platforms in Batangas City and their impacts to Sustainability Of Restaurant Businesses during the midst of COVID19. The study is carried out to assess the impact of Sustainability of the Online Food Delivery Platforms, based on the Three Pillars of Sustainability. Since the study will focus on assessment of Online Delivery Platforms, this research generally is a descriptive and quantitative type. This study will include Businesses who used online delivery Platforms as respondents of the study. Random sampling will be used in selecting the respondents. For the sampling unit, since the data are collected through online and personal interview. Survey questionnaire and interview are the tools that will be used in gathering data. Self-designed questionnaire will be used to the evaluation of the factors determining the impact of sustainability.

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Graduate School The study is limited to the registered businesses that use Online Delivery Platforms operating in Batangas City only.

Significance of the Study This study is deemed beneficial to the following: Restaurant Owners This study could give them additional information about the impact of using online delivery Platforms. Online Consumers This study could give them additional idea on how, online delivery platforms was used by some restaurants and other food establishments. Online Platforms Developers Upon knowing the results of the assessment, findings could help to serve as a basis to improve and enhance sustainability Future Researchers The study can be used as reference of future researchers with the same line of study

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Graduate School Definition of terms: 

Online Consumer- The person who buys products in online shops. (Bauman 2017)



Online Food delivery- the process of ordering food online and to be deliver right through the customer door (Zhang 2018)



Online Merchant- primary goal is to sell merchandise and their products via the internet. Online merchants advertise and market their products, manage their inventory by updating it online, implement marketing activities, filling and shipping orders, and managing their financial records. (Burt 2019)



Online shop- is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browse .



Online shopping-the act of purchasing a service or product over the internet.



Sustainable Development- is the idea that human societies must live and meet their needs without compromising the ability of future generations to meet their own needs.(Brundtland Report in 1987)

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Graduate School Chapter II REVIEW OF LITERATURE This chapter deals with the review of related concepts and studies found in previous literature. It also presents a synthesis of reviewed research literature. Conceptual Literature The following are the topics discussed under the conceptual literature. Online Food Shopping/Delivery Online food delivery services are around on this world for quite some time. Several chain restaurants created websites to order take-out, but these services were limited to within the chain’s own restaurants. Individual restaurants followed suit, creating their own websites for delivery. Even grocery stores began offering online delivery within the early 21st century (Pozzi 2012; Relihan 2017). However, generalized online food delivery services that provide delivery from many alternative restaurants have only become popular within the past decade— and they done so rapidly. By the year of 2018, the online food delivery industry had an estimated $82 billion in income, and accounted for six percent of the restaurant market in 2020 (Frost and Sullivan 2018; Morgan Stanley Research 2020). These firms are backed by revenue growth in way over 14 percent over the past four years, and are on course to double their market share by 2025 (Morgan Stanley Research 2020). The rapid expansion of those firms has even influenced some restaurants

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Graduate School to vary their entire layouts, and migrate to a “delivery only” model (Bond 2019). it's clear that the restaurant market is evolving. The first online food delivery firm, Grubhub, was founded in 2004 with the goal of replacing all paper menus with one website. Since then, Grubhub has transitioned to connecting delivery drivers from those restaurants so as to deliver to customers. Postmates, Doordash, and other firms operate slightly differently from Grubhub. These newer firms—which were founded in 2011 and 2013, respectively—provide menus from restaurants still as contracting out delivery drivers, very similar to Uber or Lyft.3 These firms adopted very similar growth strategies within which they begin in select cities and expand to others with their success.4 Consumers that use online food delivery services even have some empirically quantified characteristics. Delivery is ordered to the consumer’s home and

86 percent of the time, and 74 percent of sales occur on weekends

(Hirschberger et al. 2017). Further, in 2017, 43 percent of people who ordered with online food delivery services say that it replaced an in-person meal at a restaurant. This figure increased from 38 percent just the year before, suggesting that there's incremental cannibalization with the introduction of online channels (Morgan Stanley 2017). Online food delivery services often state that they are providing supplementary sales to restaurants. In fact, a survey of several thousand restaurateurs found that offering online delivery has generated additional sales

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Graduate School for 60 percent of restaurant operators (Technomic Food Trends 2018). While online food delivery services claim, and they really do, provide incremental sales, the profitability of restaurants is declining as online delivery increases. (Dunn 2018; Thompson 2019 This is mostly due to high fees that online food delivery services charge, not only as service and delivery charges to the patron, but also to the restaurant. Most online food delivery services charge the restaurant between 20-30 percent of every purchase of meal. Online delivery often represents an oversized bulk of business for restaurants, so it’s not an choice to cut online sales channels. In the age of a deadly disease, the demand for online food delivery services sales is spiking. In fact, in China, online food delivery service orders surged 20 percent during January alone; firms like Doordash have even started reducing or eliminating their fees in response to the surge that's beginning within the u. s. (Keshner 20...