The Influence of Online Ordering Systems on Cape Town Restaurants

Abstract

The collaboration of restaurants with third-party digital platforms has undergone a marked surge since the pandemic. While online ordering systems (OOSs) and food delivery services (FDSs) are becoming more common in restaurants to bolster efficiency, empirical research on why restaurants choose to use third-party services is limited. This study explored how restaurants leveraged online ordering systems integrated with food delivery services, and the key factors that influenced their decision to outsource these systems to a third-party service provider. A total of 150 survey questionnaires were distributed to restaurant proprietors and managers within the Cape Peninsula region of South Africa. A non-probability sampling method was employed to select a sample of restaurants that were conveniently accessible. The study analyzed data obtained from 120 restaurants, which represented an 80% response rate. The analysis specifically focused on the suburban restaurants rather than those located in the township due to security concerns and the limited number of restaurants operating in the latter areas. The results found that over 90% of restaurants have integrated online ordering systems and collaborated with the top three third-party local delivery service providers. The key factors that have contributed to the outsourcing of online ordering systems are the ability to expand customer reach and generating increased revenue.