THE IMPACT OF ONLINE FOOD DELIVERY SERVICES ON FOOD

ESTABLISHMENTS IN BGY. BANCAO-BANCAO, PUERTO,

PRINCESA CITY, PALAWAN

DAISY ROSE G. COLIMBO

MARI DEL DERACO

MARIA BRENDA C. DOMINGO

JUSTINE C. NERVAL

AN UNDERGRADUATE THESIS PROPOSAL SUBMITTED TO THE

RESEARCH COMITTEE OF THE COLLEGE OF BUSINESS AND
MANAGEMENT, WESTERN PHILIPPINES UNIVERSITY,
ABORLAN PALAWAN IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

NOVEMBER 2022
 APPROVAL PAGE

The undergraduate thesis attached hereto, entitled “THE IMPACT OF ONLINE FOOD
DELIVERY SERVICES ON RESTAURANT IN PUERTO PRINCESA CITY” prepared
and submitted by MARI DEL D. DERACO, BRENDA DOMINGO, DAISY ROSE G.
COLIMBO, JASTINE C. NERVAL in partial fulfillment of the requirements for the degree
of Bachelor of Science in hospitality Management is hereby approved.

THESIS ADVISORY COMMITTEE

ROY C. CABARLES

Thesis Adviser

_________

Date signed

CHARMAE A. SANTIAGO MAY AIZA BELLE P. JUNIO

Member, Advisory Committee Member, Advisory committee

_____________ ______________ Date signed

Date signed

JOSEPH C. LLANTO

Chair, Advisory Committee

_____________

Date signed

Approved as partial fulfillment of the requirements for the degree of Bachelor of science in
Hospitality Management.

SOL DE VILLA B. RAMA, DPA

Dean

College of Business and Management

____________

Date signed
 TABLE OF CONTENTS

TITLE PAGE i

APPROVAL SHEET ii

TABLE OF CONTENTS x

LIST OF TABLES xi

LIST OF FIGURES ix

LIST OF APPENDENCIES xi

CHAPTER PAGE

I INTODUCTION 1

Background of the study 1

Statement of the study 3

Objectives of the study 3

Significance of the study 3

Scope and limitation of the study 4

Definition of terms 5

II REVIEW OF RELATED LITERATURE 6

Theoretical Framework 13

Conceptual Framework 14

lll METHODOLOGY 15

Locale of the Study 15

The Research Design 16

Respondents of the Study 16

Sampling Procedure 16

Research Instrumentation 16

Data Collection Procedure 17

Treatment of the Data 17

BIBLIOGRAPHY 29

APPENDICES 31
 LIST OF TABLES

TABLE PAGE

1. Demographic Profile of the Respondents 18

1.2 Profile of the Respondents in terms of Sex 18

1.3 Profile of the Respondents in terms of Weekly 19

Allowance

2.1 Environmental Factor 20

2.2 Social/ Emotional Factor 21

3.1 Time Management Factor 22

3.1 Financial Factor 23

 LIST FIGURES

FIGURE PAGE

1 Conceptual Paradigm 14

2 Map of WPU Main Campus 15

 LIST OF APPENDICES

TABLE PAGE

A Letter of Request 31

B Research Questionnaire 32

C Documentation 35
 CHAPTER I

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

ADD HERE THE EFFECT OF PANDEMIC ON RESTAURANT AND

WHY RESTAURANTS ADOPTED THE ONLINE FOOD DELIVERY SYSTEM

Food delivery service (FDS) is the practice of calling in food from a

restaurant or fast-food chain, the restaurant will prepare the food, and will the
send a driver or rider to the specified address to bring the food to customers. A
modern trends in food delivery is the use of food ordering apps. Food ordering
apps such as Grab Food, Toktok, Delivery Guy PH, and Food Panda are
examples of the newfound popularity of food delivery services (FDS). Even
different fast-food chains have their food ordering apps such as McDonald’s,
Jollibee, Shakey’s, Greenwich, and some well-known fast-food chains or
restaurants. (Citation)

The food industry is worth trillions of pesos, but delivery reports for only
a small portion of that total. This opened up a significant opportunity for the
future growth of many countries. Particularly in the Philippines, a new wave is
emerging in the food and beverage industry. FDS has change customers’ lives
in a variety of ways, allowing them to enjoy a new, generous feast from the
comfort of their own homes

Online food delivery services have been around for quite some time.
Several chain restaurant 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 in the early 21 st century (Pozzi
2021; Relihan 2017).

Add here the Aims/Goals of your study

 STATEMENT OF THE STUDY

This study was connected to determine the impact of online food delivery
services on restaurant in Puerto Princesa city Palawan. Specifically to find
answers to the following question:

1. What is the profile of the respondents,

1.1 Name;
1.2 Age;
1.3 Gender;
1.4 Income; and
1.5 occupation?

2. What are the impacts of online food delivery service on restaurants?

How does it effect day by day?

1.2 Positive impact

1.3 Negative impact

SOP number 3. ?
 OBJECTIVES OF THE STUDY

1. To know the impact of online food delivery services at restaurants as well as

to people.

2. To know the strategies needed for online food delivery services.

3. To provide necessary information about the importance of online food

delivery services at restaurants.
 SIGNIFICANCE OF THE STUDY

The purpose of the study is it to offer significant details on Impact of online

food delivery services at restaurants and the predicted significance to people.

SCOPE AND LIMITATION OF THE STUDY

The scope of the study was delimited to the online food delivery service in
Puerto Princesa City Palawan.
DEFINITION OF TERMS

Impact -The action of one object coming forcibly into contact with another
object.

Online - is connected by a computer to or more other computers or networks

as through a commercial electronic information service.

Food - any nutritious substance that people or animals eat or drink in order to
maintain life growth.

Delivery - transfer of a cash commodity from the seller of a futures contract to

its buyer, in accordance with the rules of a particular futures exchange.

Services - The action of helping or doing work for someone.

Restaurant - Providing food and drinks services to guest in hotels and

restaurants, showing attentiveness, and understanding of their needs and
expectations.
 CHAPTER II

REVIEW OF RELATED LITERATURE

ADD more RRL

This study aims to systematically review the extant literature on online food
delivery. The literature on online food delivery is synthesis-ed in terms of
theories, contexts, method adopted and analytical techniques used. The
literature review suggest that online food delivery research has transitioned
from website-based food delivery to online to offline, mobile application-
based food delivery, and drone-based food delivery. Further, based on the
synthesis, we have developed a conceptual framework that shows the
frequently reported antecedents, mediators, moderators, and consequences in
online food delivery literature. Moreover, by identifying overlooked areas of
online food delivery research, some insightful future research direction have
been proposed to further advance this research domain. This review
contributes to the hospitality literature, specifically to the food delivery
literature.

The literature related specifically to online food delivery services is even more
limited. These types of firms been studied only in very narrow context.
Survey-based descriptive statistics slow what types of consumer use online
food delivery service ( Yeo, Goh, and Rezaei 2017). Traffic and routing of
drivers is studied in order to determine the effects on customer satisfaction
(Pigatto et al. 2017). Website quality-estimated by the number of clicks-is
qualified, as is the correlation between consumer ratings and brand loyalty
(Correa et al. 2019; llham 2018). Not only are these studies limited in scope,
but they have also been constrained to countries outside of the United States,
with the exception of some non-academic survey methodologies. The effects of
online food delivery services are not quantified, especially in terms of
crowding-out of brick-and-mortar sales.

Online food delivery service have been around for quite some time. Several
chain restaurant created websites to under take-out. But these service were
limited to within the chain’s own restaurants. Individual restaurants following
suit, creating their own websites for delivery. Even grocery stores began
offering online delivery in the early 21st century (Pazzi 2012; Relihan 2017).

By 2018 the online food delivery service industry had an estimated $82 billion
in gross “PizzaNet,” Pizza Hut”s is original online ordering destination,
accepted and delivered the first online food delivery in 1994.

Online food delivery services often state that they are providing
supplementary sales to restaurants. In fact, survey of several thousand
restaurateurs found that offering online delivery additional sales for 60
percent of restaurant operators (Technomic food trends 2018).

LOCAL LITERATURE AND STUDY

According to MANILA PHILIPPINES, November 14,2019-GrabFood, the

leading food delivery platform in Southeast Asia and in the Philippines,
celebrates its first anniversary in the Philippines by recognizing the most
successful Filipino on its platform. In October 2019. Grab Food gathered its
partners in Metro Manila for its ever Golden Lunch Box awards, a recognition
given to the consumers, merchant-partners and delivery-partners with the
most outstanding performance and breakthrough growth.

Grab Food was officially launched in November 2018. Today Grab Food has
the widset selection of restaurants and largest operation footprint in the
country-with 35 location and accounting, and dedicated pool of delivery
partners nationwide. It is a major partner of McDonald’s, KFC Hut, Bon Chon,
the Max’s Group, and almost every major quick service restaurant brand in
the country, including being the only accredited end-to-end food delivery
partner of the Jollibee Food Corporation. We are also a trusted partner in the
growth of small and medium enterprise like Jollijeeps.

The impact it has since created in the community of consumer, delivery-

partners and merchant-partners has inspired GrabFood to invest of more
Filipinos beyond the 40,000 micro-entrepreneurs it has already served.
GrabFood effectively improves livelihood by creating more income
opportunities that shape the future of the food industry in the Philippines in
an increasingly digital age, and ensuring that merchant, even smaller players
like Jollijeeps, are able to tap into and grow in this new digital food economy,
Fueled by strong growth in 2019, GrabFood aims to continue its growth
trajectory and in 2020, expand its operational footprint to at 10 more cities in
the Philippines and accelerate the growth of its partners through new services
and innovative F&B solutions in an increasingly digital age.

Grab Food also marks another business milestone as the #1 most often used
foo delivery platform in the Philippines, a position it has held for ten
consecutive months from December 2018 to September 2019. In a market
survey conducted by a global market research firm kantar in the third quarter
of 2019, 76% of Filipino consumers said that Grab Food is thier most often
used food delivery platform.

FOREIGN LITERATURE AND STUDY

H.S Sethu and B Saini (2016). There are several external components of
food delivery services. External components include cultural group. Socio
economic class, past experiences and attitudes. Many reason lead to
dissatisfaction of consumers. This reason are security, graphical interface of
websites or mobile, spam emails, newsletter, etc. Recommendation of services
to others indicates the commitment and brand loyalty to the company. This
happen due to value creation activities such as a good past experience, better
offerings and delivery of order in stipulated time. Study was on specific age
group (youngest) and is limited to local food delivery services. Other
demographics may have different views and different sets pf perception which
may indulge more accurate outcome about understand the behavior of
consumer. Also competitor analysis is also important to provide best offers to
customers. Other aspects like delivery changes and packaging of food are
responsible in creating value and retention of existing customer.

Mustafa Abbas Bhotvawala et.al (2016). As opposed to ‘Delivery as a

service’ companies, aggregator delivery services generate a platform for
consumers to navigate though a many restaurant hosted on their websites,
discovering restaurants and placing orders manually. The study was based on
the comparison of growth operating strategies of four food ordering and
delivery companies in a booming Indian market(Swiggy, Zomato, FoodPanda,
and TinyOwl). The market is expected two grow 40% annually owing to a
larger disposable income from a weather middle class (also with long, erratic
working hours). Growing incomes have encouraged the creation of an
increasingly health-conscious middle class, desiring meals which may
substitute nutritional values of home-cooked meals. Aggressive growth
strategies have not been as rewarding elsewhere in the food-services industry.
However, the future seems brighter for the online food industry, as Indian
catches up with developed markets (Where online food orders take upwards of
30% of markets share).

Helge Wurdemana. (2016). The common approach when developing new

application for handing foods it use previous of technology for similar
foodstuffs. Empirical experience is acceptable for a characterized approach, a
more structured approach is develop. The key development is an explicit way
of classifying products, so that there is no discussion about the allocation to a
certain group. The product description characteristics were chosen according
to the needs of processing the different kind of products. Parameters such as
temperatures were excluded because the temperature cannot be changed and
if the temperature changes, the consistency of the food product will be event
which means the type of food ordering process falls into another category. On
the other hand, a definition needed to be-established that extracts food
ordering processes from other types of food processes. By discussing common
and used automation for ordering processes and by linking these to certain
food categories, gaps can be identified. These gaps represent manual ordering
processes that exist, but have not been automated. The outcome of the
research is hoped to provide a theoretical basis and leading edge
methodologies to underpin all physical structure creation tasks.
Girish DEorel, Pranav Shete (2016).Online food ordering has been
adopted by majority of restaurants offering delivery of food. The customers
using online food ordering has been showing gratitude with the technology
and marked that online ordering has met the expectations. The advantages of
online ordering are improved order certainly, enhanced yield , and improved
customer relationship management. These will probably cancel out of costs
and operational threat for most restaurants. Saving and convenient. Survey
has found that when a consumer prepares a mind to purchase online food he
or she is affected by multiple factors. The main crucial identified factors are
time saving, and convenience. People compare price in online food delivery
websites and apps and then review all feedback and rating about product
before making the final section of the dish. Thus the restaurant have to make
proper strategies to increase the consumer’s level of the trust on them by
getting feedback, encouraging the customers to share reviews about their food
and also to create awareness of their presence in online food food market by
displaying the merchandise of the online food delivery website, app or portal.

NehaParasha and SakinaGhadiyali (2016). Intangible product

comprises of various hospitality services where in their cannot be any transfer
of possession or ownership, and they cannot be sold but come into existences
at the time they are consumed or bough. The research was conducted on
different apps the are available either by aggregators or by restaurants
themselves for various purposes like delivery. Pointing system, in house apps
ordering, etc. Consumer behavior is the study of how individual customers,
groups or organization select, buy, use, and dispose ideas, goods, and services
to satisfy their needs and wants. It refers to the action of the consumers in the
marketplace and the underlying motives for those actions. Researcher
explains that how consumer has shifted the behaviors with the involvement of
technology and how customer archives satisfaction by using various
application.

Alexandra Rodney. Et al (2017). State that women bloggers inspire the

make different type of food items. On many case prominent personalities are
taken to influence cooking at home. This paper presents illuminates food
blogs’ paradoxical combination of idealization and lack of interest in food
preparation. The research is strictly limited for women.
Juan C. Correaa (2017). In urban areas online food delivery services rely
on urban transportation due highly dense traffic in cities. These services
exploit user generated contents to promote collaborative consumption among
its members, Researcher has evaluated the impact of traffic conditions
(through the use of Google Maps API) Which is the key Performance
indicators of online food ordering and delivery services.

Ng SooRyue.,et. al (2017) States that there are several factors that

restaurant owner should be aware off. There might be a problem where
customers face a problem because of technological awareness. Customers may
be reluctant to order food through websites or mobile apps. These factors may
have direct impact on impact on costumer perception.

CanakkaleOnsekiz Mart university (2017) did research in Turkey and

found that fast food habits are limited to nearby areas in town. Some issues
have also came up regarding customer identification while placing an order
through food delivery websites and have led to false order placing.

V Kanteti (2018) The untapped market in food delivery services is home

cooked food. This where the true opportunity lies. Online food delivery firms
have truly transformed the way restaurant are doing the business.
Nevertheless packaging cost will always crucial part for low priced orders
online food serving is an option for daily consumed food.

S Rathore and M Chaudhary. (2018) The consumers perception

regarding online food delivery differs from person to person. The perception is
also build on personal opinion. Mostly young populations is more attracted
towards online food ordering services as compare to elder people This is due
to lack of awareness regarding technology (mobile apps).
Theoretical Framework

Online food ordering is the process of ordering food for delivery or pickup
from a website or other application. The product can be either ready-to-eat
food or food that has not been specially prepared for direct consumption.

According to Jack Collison Stanford University the rapid growth of online food
delivery services has disrupted the traditionally offline restaurant industry.
This study presents empirical evidence on the crowding out effects and market
expansion induced by the staggered entry of online food delivery services.

Online food delivery refers to online channel that consumers use to order food
from restaurant and fast- food retailers (Elvandari et al., 2018). In OFD
system, consumer have a better choice in terms of restaurants and food items
(Pigatto et al., 2017). By adopting OFD, restaurants and fast-food retailers can
increase their reach among consumers in a cost- effective manner while
consumers can order the meal of their choice without spending much time
and efforts (Ray et al., 2019). In the recent past, OFD has witnessed several
technological advancements. For instance, restaurants have transitioned from
offline into online flatforms by developing their own websites and allowing
costumers to order food using restaurants’ own websites (Yeo et al., 2017).
Conceptual Framework

The study is entitle “Impact of online food delivery services on Restaurant in

Puerto princesa city palawan

Conceptual paradigm Dependent variable

Independent Variable Impact of online food delivery services on

restaurants in Puerto Princesa city.
Demographic profile which is age, sex,
income, occupation

Fig l. The conceptual paradigm showing the relationship between the

different variable.
 CHAPTER lll

METHODOLOGY

This Chapter describes the methods and procedure that the research will
employ in the conduct of the study. This section consist of the research study
design, research locale, respondents of the study, research procedure, research
instruments, data gathering procedure, and statistical technique of the data.

Locale of the study

The study was conducted at western Philippines University, main

campus. The school president is Dr. Julie Hope Timotea P. Evina. The school
is located at San Juan, Aborlan, Palawan, 5302 philippines. A map is shown in
figure 2.

It was establishment in 1910. The university began as the aborlan farm

settlement school for the tagbanuas, and in 2004 President Gloria Macapagal-
Arroyo signed the R.A. 9260 converting it to western Philippines University.

The Research Design

 This study involved a qualitative design to enhance the research and
make the study reliable and valid.

Qualitative design is concerned with establishing answers to why’s and

how’s of the phenomenon in question. It is often defined as being subjective
(not objective), and findings are gathered in a written format as opposed to
numerical. It is also design to used researchers studying human behavior,
opinions, themes and motivation. The survey method was used to determine
the impact of online food delivery services at restaurant of our respondents.

Respondents of the Study

The respondents of the study were the owners and employees of the
restaurants in Puerto Princesa City that offers online food delivery services.

They are the ones who are knowledgeable enough to provide answers to the
problems posed in our study.

Sampling Procedure

The source of information used for this study came from a complete count of
the proprietors and staff of a restaurants in Puerto City that provides online
food delivery services. The distribution of respondents are shown in the table
below.

Restaurant owner Employees

Research Instrument
Set of questioner will be used to gather data regarding the demographic
profile and its the impact of online food delivery services on restaurants in
Puerto princesa city.

Part l of the questionnaire solicited information on their demographic profile.

Part ll gathered information about the impact of online food delivery services.

Part lll asking to the owner and employee’s what is the impact of online food
delivery service on them does it always happen and how it affects.

Data collection Procedures

In order to collect necessary data for this study researcher will be performed
the following procedures;a.) Asked permission from the dean of the college of
business management. b.) Asked permission from the owner of restaurant and
employees prior to conduct the study. c.) Provided the respondents with a
copy of survey questionnaire in order to gather data and information through
asking various question refer to the topic. d.) after the respondents done in
answering the questionnaire was retrieved.

Treatment of the Data

The data collected in the survey will be tabulated, analyzed and discuss using
statistical tools like simple frequency counts, percentage and mean.

To measure the impact of online food delivery services on restaurant a 4

points liker scale will be used as shown below.

Numerical Rating Descriptive Rating

4 Strongly Agree

3 Agree

2 Dis Agree

1 Strongly Dis Agree

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Appendix B

QUESTIONNAIRE
Part I. Demographic Profile

Name:

Age:

Sex:

Address:

Occupation:

Part II. Opinion of Owner and Employees

Directions: Please Put check (/) your choice for each statement below.

Impact of Online Food Strongly Agree Strongly Dis Dis Agree

Delivery Services on Agree Agree
Selected Restaurant In
Puerto Princesa City.

OWNER AND
EMPLOYEES

The (OFD) affects to

your restaurant?

How does food delivery

affect your work force?

What are the

effectiveness of food
delivery service to your
customer?

How would you compare

situation with or without
food delivery in
restaurant