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International Journal of Contemporary Hospitality Management

ISSN : 0959-6119

Article publication date: 26 May 2022

Issue publication date: 26 July 2022

Online food delivery (OFD) has witnessed momentous consumer adoption in the past few years, and COVID-19, if anything, is only accelerating its growth. This paper captures numerous intricate issues arising from the complex relationship among the stakeholders because of the enhanced scale of the OFD business. The purpose of this paper is to highlight publication trends in OFD and identify potential future research themes.

Design/methodology/approach

The authors conducted a tri-method study – systematic literature review, bibliometric and thematic content analysis – of 43 articles on OFD published in 24 journals from 2015 to 2021 (March). The authors used VOSviewer to perform citation analysis.

Systematic literature review of the existing OFD research resulted in six potential research themes. Further, thematic content analysis synthesized and categorized the literature into four knowledge clusters, namely, (i) digital mediation in OFD, (ii) dynamic OFD operations, (iii) OFD adoption by consumers and (iv) risk and trust issues in OFD. The authors also present the emerging trends in terms of the most influential articles, authors and journals.

Practical implications

This paper captures the different facets of interactions among various OFD stakeholders and highlights the intricate issues and challenges that require immediate attention from researchers and practitioners.

Originality/value

This is one of the few studies to synthesize OFD literature that sheds light on unexplored aspects of complex relationships among OFD stakeholders through four clusters and six research themes through a conceptual framework.

  • Online food delivery
  • Sharing economy
  • Systematic literature review
  • Bibliometric analysis
  • Content analysis

Acknowledgements

The authors thank three anonymous reviewers, the guest editor, and the editor-in-chief for their critical and valuable comments in developing the manuscript in stages.

Shroff, A. , Shah, B.J. and Gajjar, H. (2022), "Online food delivery research: a systematic literature review", International Journal of Contemporary Hospitality Management , Vol. 34 No. 8, pp. 2852-2883. https://doi.org/10.1108/IJCHM-10-2021-1273

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Ordering in: The rapid evolution of food delivery

How the world eats is changing dramatically. A little under two decades ago, restaurant-quality meal delivery was still largely limited to foods such as pizza and Chinese. Nowadays, food delivery has become a global market worth more than $150 billion, having more than tripled since 2017. In the United States, the market has more than doubled during the COVID-19 pandemic, following healthy historical growth of 8 percent.

The advent of appealing, user-friendly apps and tech-enabled driver networks, coupled with changing consumer expectations, has unlocked ready-to-eat food delivery as a major category. Lockdowns and physical-distancing requirements early on in the pandemic gave the category an enormous boost, with delivery becoming a lifeline for the hurting restaurant industry. Moving forward, it is poised to remain a permanent fixture in the dining landscape.

Even as the food-delivery ecosystem continues to expand, its economic structure is still evolving. Considerations such as brand, real estate, operating efficiency, breadth of offerings, and changing consumer habits will determine which stakeholders win or lose as the industry develops. Potential regulatory constraints, including possible changes to how drivers are compensated, will figure into the reshuffling. And while the industry has experienced explosive growth during the global pandemic, delivery platforms, with few exceptions, have remained unprofitable. As DoorDash chief operating officer Christopher Payne told the Wall Street Journal recently, “This is a cost-intensive business that is low-margin and scale driven.” 1 Preetika Rana and Heather Haddon, “DoorDash and Uber Eats are hot. They’re still not making money,” Wall Street Journal , May 28, 2021, wsj.com.

Despite such challenges, there are still major investments happening in the space, with recent fundraises, including Wolt (which raised $530 million in January 2021), REEF Technology ($700 million in November 2020), and Rebel Foods ($26.5 million in July 2020), and consolidation, including Uber’s acquisition of Postmates (for $2.65 billion in December 2020) and Just Eat Takeaway’s acquisition of Grubhub (for $7.3 billion in June 2021). Two recent IPOs—DoorDash in December 2020 and Deliveroo in March 2021—demonstrate the excitement and uncertainty still present in the sector. As the landscape shifts further in the wake of the global pandemic, new challenges, opportunities, and decision points are emerging for a complex web of players—including delivery platforms, restaurants, drivers, consumers, and other tech enablers. In parallel, the emergence of rapid delivery/quick-commerce platforms that have themselves raised significant funding, such as Getir ($550 million in June 2021) and JOKR ($170 million in July 2021), adds a new class of competitors to the fight for “share of stomach.”

Sizing the market

The most mature delivery markets worldwide—including Australia, Canada, the United Kingdom, and the United States—grew twofold (in the United States) to as much as fourfold (in Australia) in 2018 and 2019 (Exhibit 1). This exponential growth continued in 2020 and early 2021 to the point where these markets are now four to seven times larger than they were in 2018. 2 Global food delivery trends 2018 vs. 2021 , Edison Trends, September 2021, trends.edison.tech.

Before the pandemic put thousands of establishments out of business, the US restaurant industry was growing 3 to 4 percent per year. Delivery sales were increasing at roughly twice that pace (7 to 8 percent). While population growth was a factor, the bulk of the increase came at the expense of the grocery sector, with millennials and Gen Zers preferring the convenience of prepared meals.

This trend toward convenience has grown more pronounced during the pandemic. Between March and May 2020, when lockdowns in Europe and the United States were the most severe, the food-delivery market spiked. Significantly, it has maintained that trajectory, continuing to grow throughout 2020 and into 2021.

As we move into the last quarter of 2021, with vaccinations spurring many cities to reopen even as the Delta variant becomes more prevalent, the permanent implications of the 2020 market surge should become clearer. This includes the extent to which eating habits that formed during the start of the pandemic will endure.

Emerging delivery battlegrounds

In the not-so-distant past, restaurants directly handled the limited food delivery that existed. These days, an entire ecosystem of players is involved.

The United States is one of the more complex food-delivery markets, with four active players—DoorDash, Grubhub, Postmates, and Uber Eats—at the top, each commanding certain large urban markets. As of May 2021, DoorDash prevailed in San Jose (with 77 percent of the market), Houston (56 percent), Philadelphia (51 percent), and San Antonio (51 percent). Uber’s 2020 acquisition of Postmates leveled the playing field, but only slightly. Combined, Uber Eats and Postmates led the market in Los Angeles (50 percent) and New York City (41 percent) as of May 2021 (Exhibit 2). These figures change monthly as platforms continue to vie for local markets.

As the food-delivery business continues to expand, a few key factors, from market dynamics to legal and regulatory issues, will help determine the levels of success for the various players.

Adding to this competitive environment, specialized delivery apps focusing on a single customer segment or cuisine type—such as Slice, for pizza, and HungryPanda, for Chinese—have also come to market successfully in recent years.

This pressure on traditional restaurants could be tightened further by the proliferation of “dark kitchens” (a restaurant that has no front of house for customers) and other delivery-first and delivery-only restaurant models. Since these lower-overhead businesses can afford to pay the platforms’ higher commissions, they are often featured more prominently in the platforms’ apps. They may also be able to lower the service fees placed on customers. Increasingly, a greater share of delivery volume is likely to go their way at the expense of traditional restaurants, some of which may be forced to consider whether they can afford to continue playing in the delivery space at all. At the same time, dark kitchens also present an opportunity for restaurants, which may choose to supplement their on-premises facilities with remote locations devoted exclusively to delivery.

Increasingly, a greater share of delivery volume is likely to go to dark kitchens, while some traditional restaurants may consider not playing in the delivery space at all.
  • Driver compensation and benefits constitute another persistent hot-button issue . Delivery platforms rely on the gig economy, with its system of on-demand drivers offering much-needed flexibility. This model, however, is still in flux, amid an ongoing national (and international) debate about whether gig workers, particularly drivers, should be considered employees. Shifts in how independent contractors are paid, as well as what benefits they receive, could significantly shake up the economics for all major stakeholders across the marketplace.

Evolving stakeholder economics

As consumer expectations and regulations evolve over the coming years, and as emerging technologies continue to reshape the industry, the long-term economics will likely look different than they currently do. To better understand how the landscape is poised to shift, it’s helpful to delve into the economic and cultural forces affecting restaurants, food-delivery platforms, drivers, and customers.

Restaurants

Historically, restaurants have measured their profits against three basic costs: food (generally 28 to 32 percent of total costs), labor (another 28 to 32 percent), and occupancy- or real-estate-related costs (22 to 29 percent). Looking at a unit economics view of a restaurant, the business should run between 78 to 93 percent—allowing for a profit margin of between 7 to 22 percent (franchise restaurants pay additional franchise fees to corporate).

Delivery orders used to be viewed as an extra table for the restaurant, serviced by a driver instead of a waiter. Drivers were paid minimum wage by the restaurant and earned tips from customers, typically delivering several orders at a time within a set radius. Overall, delivery was intended to improve a restaurant’s revenue by increasing the utilization of its kitchen at a decent margin.

As the COVID-19 pandemic began to pose an existential threat to restaurants, delivery became a saving grace. Many restaurants that delivered through online platforms were able to grow their delivery revenue throughout 2020. Even so, their overall profits generally declined, occasionally resulting in negative margins (Exhibit 3). This trend may have been accelerated by dining restrictions imposed during the pandemic, but the gap between delivery-fueled revenue spikes and profit declines was already an underlying issue.

Realistically, restaurants’ traditional profit margins of 7 to 22 percent make covering the platforms’ delivery commissions, roughly 15 to 30 percent, unsustainable as delivery orders become a larger part of a restaurant’s business. This is less of a problem when in-house diners, who order high-margin items such as wine and other alcoholic drinks, help cover the costs of occupancy and labor. But the business model is seriously threatened when in-house dining dwindles.

With fewer in-house diners, delivery must cover a greater share of restaurants’ fixed operating costs. If the delivery business grows to such an extent that it requires more physical kitchen space to fulfill, the fixed costs could also increase.

Increasing total sales through delivery may look like a smart way to dilute fixed costs, but restaurants that focus too much on increasing deliveries could cannibalize their in-house dining and compromise the quality of the dining experience, which could eventually reduce the base over which their fixed costs are spread.

At the same time, a booming delivery business could mean that everyone has to work harder—from the cooks to the managers to the maintenance staff. Restaurants will likely need to introduce new processes and systems to accommodate high volumes of delivery orders. Ultimately, restaurants should thoughtfully balance delivery against other parts of the business to ensure that the net impact is positive. As Exhibit 4 illustrates, a typical restaurant would have to increase its total sales significantly to stay at the same profit margin it enjoyed without delivery.

The pizza segment sheds light on how the broader restaurant industry may grapple with the delivery conundrum. Most pizza restaurants have chosen either dine-in or delivery as their primary offering and have anchored their business models around it. It would not be surprising to see restaurants in other segments of the market also deciding to specialize in the experiences they offer, with those built around the dine-in experience potentially choosing not to play in the delivery space, because of their inability to compete on margin. This would leave dark kitchens and other delivery-focused businesses to compete for delivery volume.

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Restaurants that choose to continue serving both dine-in and delivery customers will need to adapt their pricing to cover delivery’s additional costs. Those that favor pricing consistency could raise overall menu prices to cover these costs, with dine-in and pick-up customers effectively subsidizing delivery. Alternatively, restaurants could create separate, higher-priced delivery menus, as some have already done. As Chipotle Mexican Grill’s chief financial officer, Jack Hartung, told Yahoo Finance Live in early February, after a 13 percent rise in delivery-app prices was announced: “It’s no surprise that delivery comes with an added cost. Our belief has been that’s a premium experience from a convenience standpoint. We want to make sure that channel covers the cost.” 4 Brian Sozzi, “Why Chipotle just raised prices,” Yahoo Finance, February 3, 2021, yahoo.com.

Delivery platforms

The pressure is on for the platforms. Despite explosive growth, they are struggling to make a profit. And, as the Wall Street Journal has reported, these companies aren’t expected to become profitable for a number of years. 5 “DoorDash and Uber Eats are hot,” May 2021. Nonetheless, there is opportunity for upside, as platforms tap into new revenue sources and curb certain costs.

Platforms’ current economics are driven largely by fees and commissions paid by restaurants and customers, as well as delivery costs (Exhibit 5). Our analysis shows an average contribution margin of around 3 percent, or roughly $1.20 on the average order.

The cost of delivery is unlikely to decline substantially, as the economics of last-mile delivery remain challenging across sectors, particularly with increasing expectations for speed (typically, 30 minutes or less). However, new technologies (such as autonomous delivery robots), improved routing, and the ability to batch or “stack” multiple orders per delivery should help.

Another important consideration is variable marketing costs, such as advertising. With multiple high-profile players competing in the market, and as restaurants and chain brands are fragmented across platforms, the current cost of attracting customers is becoming unsustainable. As platforms are being combined through acquisition, this cost should decline. Consolidation will also give the platforms an outsize influence over which of the thousands of restaurants are seen by the customer—likely resulting in the further consolidation of volume to leading restaurants, whose brands are well positioned to play in the digital marketplace.

Delivery platforms will likely not see any significant margin growth in the restaurant space, given the economic squeeze that restaurants are already facing, as well as the increasing pressure from platform commissions. But when it comes to consumer demand, delivery platforms are still only scratching the surface. As they continue to tap into this vast pool of potential demand, platforms are poised to grow their overall volume and generate profits at scale—if they can unlock the logistics, operational requirements, and challenges of last-mile delivery.

Delivery platforms are poised to generate profits at scale if they can unlock the logistics, operational requirements, and challenges of last-mile delivery.

Already, many platforms are expanding the use cases for their logistics networks. This activity is likely to increase, with platforms improving their overall economic profiles by delivering other, higher-margin products in new categories such as alcohol, pharmaceuticals, grocery, and more. These new categories attract new customer segments, increase average order value, and allow for the stacking of deliveries to help maximize efficiency of each delivery run.

They also position the platforms to become service providers to businesses beyond restaurants. As the Wall Street Journal notes, DoorDash provides delivery services for companies including Petco, Macy’s, and Walmart. 6 “DoorDash and Uber Eats are hot,” May 2021.

Delivery drivers must complete a certain number of deliveries per hour to make the economics favorable for them. In fact, time is one of the most expensive components of single-point delivery, with the physical handoff to the customer typically taking one to five minutes. As food delivery takes off in less densely populated locations, including suburban and rural areas, the service becomes more costly to both restaurant and driver.

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As previously discussed, major changes in how independent contractors are compensated would have significant ripple effects throughout the food-delivery ecosystem. Barring such changes, pay per delivery will likely continue to decline in real terms as platforms become more efficient and facilitate more total deliveries per hour. However, with substantial increases in volume, as well as enhancements in platforms’ logistics technology, it is conceivable that overall pay per hour could rise slightly for drivers over time, as they are able to complete more deliveries per hour.

The customers fueling the surge in food delivery are paying a significant premium over the cost of their average order. If a typical meal from a fast casual restaurant is priced on a delivery platform’s menu at around $25, the customer might end up paying a total of roughly $35, excluding tax (Exhibit 6). Customers’ total costs include delivery fees ($2 to $5 per trip), driver tips (usually around 10 to 20 percent), and platform service fees (which are often offset by discounts but generally come out to around $3). Customers do not directly see the service commissions that restaurants pay platforms. Some restaurants raise their delivery-menu prices to cover this cost, while others opt for pricing consistency, spreading the markup among all customers.

Even as customers are paying a 40 percent premium on the cost of their actual meal, it is worth noting that restaurants themselves receive around only 55 percent of the total customer spend.

For much of the ongoing pandemic, many people have had few other restaurant options than to order delivery and have been willing to pay a significant premium for the service. More than a year and a half into the pandemic, a growing number of consumers (particularly those who are vaccinated) are becoming more accustomed to ongoing restrictions and more open to dining out. As dining options begin to increase, customers will likely expect more from food-delivery services, prioritizing the following features:

  • speed of delivery, with a goal of under 30 minutes being a differentiator among platforms
  • quality of food, with an expectation of restaurant-quality meals even after transit time
  • 100 percent order accuracy and completeness, for regular items as well as special requests
  • variety in cuisines and meal occasions

High population density and big-ticket orders tend to make food delivery more efficient. As the footprint and economic profile of delivery expands to meet more and varied customers, platforms and restaurants will need to figure out how to serve these different population segments—for example, customers who tend to spend less money on meals, as well as those who live in sparsely populated areas, far apart from one another and from the restaurants serving them (Exhibit 7).

Moving forward, consumers will likely see the cost of their restaurant meals increase (through additional listed fees or menu markups) in order to cover restaurants’ commission costs and driver pay. These fees and markups may eventually decrease as restaurants and delivery platforms become more efficient at scale.

In one example of a market shift that could increase customer retention while also benefiting consumers, many delivery platforms have begun offering monthly subscription services, following similar models such as Amazon Prime. With DoorDash’s DashPass, for example, or Uber Eats’ Eats Pass, customers pay a monthly fee for unlimited free deliveries. These offers reduce the cost burden for customers who order frequently and make the cost of attracting customers more worthwhile for platforms, as customers become more loyal.

New opportunities and untapped revenue pools

As the way people eat continues to evolve, new revenue pools are emerging. Tapping into them will require creativity and a willingness to overhaul operating models built for a different time. The following revenue models are among the most promising:

‘Menu engineering’

Using the data generated through delivery platforms, restaurants can build custom menus for each consumer, increasing opportunistic sales, total order value, and conversion rates. End-to-end customization helps ensure that customer preferences, such as food allergies, are taken into account for every meal and that food recommendations are more accurate.

‘Dark kitchens’

Also called ghost kitchens, dark kitchens market and produce delivery orders but have no physical restaurant or storefront attached. They take delivery out of the “front of house,” allowing restaurants to expand and experiment with minimal investment risks. REEF Technology, with its Neighborhood Kitchens concept, is among the companies offering established and upstart restaurants access to dark kitchens (among other infrastructure and services).

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Virtual brands.

These are incremental offerings targeted at new meal occasions or cuisine types, developed to increase a restaurant’s online presence and capture a different market segment. Virtual brands can help attract new customers, improve labor efficiency, and optimize order stacking for delivery platforms. YouTuber Jimmy Donaldson (known as MrBeast) parlayed his popularity into MrBeast Burger, a virtual brand whose menu items are prepared in existing restaurant kitchens across the United States and in the United Kingdom. Man vs Fries, which started as a Bay Area pop-up, has expanded its virtual brand into several cities, including Atlanta, Miami, and Seattle.

Brand spin-offs

In a digital world, restaurants that enjoy a great deal of brand loyalty in their communities have an even greater opportunity to consolidate their position and grow their business by creating spin-offs targeting new demographics or meal occasions. Au Cheval, for example, the diner-style Chicago restaurant and bar revered for its cheeseburgers, has spawned Small Cheval, which offers a simplified menu. The potential to leverage brand equity in this way is greater with digital ordering and delivery, as consumers turn to valued brands regardless of where they are located.

Consolidation points

One of the largest costs of last-mile delivery stems from poor route optimization when making multipoint pickups and drop-offs. Partnerships with nearby restaurants could help develop a “food hall”-like online market to improve the customer experience and offer more variety. Solutions such as Toronto’s Kitchen Hub Food Hall allow customers to place a single order that includes items from multiple restaurants. Families that can’t agree on what to have for dinner can include a variety of cuisines, such as burgers, sushi, and stir-fry, on the same order.

Virtual concierge

Drivers and consumers alike stand to gain from efficiencies achieved when multiple deliveries are consolidated, or “stacked.” Virtual concierge services make this possible—for example, by having a driver pick up a customer’s dry cleaning or groceries in addition to their restaurant order. These services can also stack orders from different customers who live in the same apartment building or neighborhood. Rappi, based in Bogotá, Colombia, is an example of a multivertical delivery app that combines food delivery with other errands (through services such as RappiFavor or RappiCash), while Uber Eats and DoorDash have started exploring order stacking as part of their food offerings.

Tiny restaurants

Restaurants may want to rethink their design approach in light of the growing delivery market. Burger King, for example, recently unveiled plans for a restaurant that is 60 percent smaller than its traditional outposts, accommodating the influx of to-go orders with features such as “pickup lockers” and dedicated curbside-delivery parking spots.

Innovation in customer attraction

The evolving food-delivery ecosystem requires, and will likely reward, creativity. One potential example: combining dining and television with “taste your favorite cooking shows at home” type of offerings, in which meals are delivered so that viewers can dine at home “alongside” their favorite celebrity chefs. Rachael Ray partnered with REEF and Uber Eats in 2019 to launch her latest cookbook, offering fans in certain cities the opportunity to sample her recipes without so much as turning on their ovens. “It’s me, joining people for dinner,” said Ray. 7 Kate Krader, “With Rachael Ray, Uber Eats starts virtual celebrity restaurants,” Bloomberg, October 10, 2019, Bloomberg.com.

Check, please

Though a great number of restaurants have suffered and even closed during the COVID-19 pandemic, the surge in tech-enabled delivery has been a meaningful silver lining for many. And for homebound customers, the arrival of steaming hot curry or burritos or filet mignon—summoned with a few clicks or swipes—has been revelatory.

Going forward, the food-delivery space is poised for further expansion and evolution as the “next normal” takes shape. Restaurants will need to adapt their strategies, think carefully about how to partner with delivery platforms, and experiment with new ways of doing business. Delivery platforms will need to evolve how they leverage customer data to improve the user experience and find innovative ways to reduce the costs associated with delivery. And as investors pour money into delivery platforms, dark kitchens, new brands, and other infrastructure and services, the companies on the receiving end will face substantial pressure to live up to investors’ expectations.

As these changes in the way the world eats take hold, the implications for new and established businesses, as well as for consumers, will continue to take shape. Unlocking the opportunities inherent in these shifts will require a sophisticated understanding of where the market is heading and the powerful forces shaping its trajectory.

Kabir Ahuja is a partner in McKinsey’s London office, Vishwa Chandra is a partner in the San Francisco office, and Victoria Lord and Curtis Peens are associate partners in the Miami office.

The authors wish to thank Olamide Bada, Rob Bland, Brendan Gaffey, Sajal Kohli, and Vik Krishnan for their contributions to this article.

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Home — Essay Samples — Business — Swot Analysis — Food Delivery Service: SWOT Analysis Of Foodpanda Brand

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Food Delivery Service: Swot Analysis of Foodpanda Brand

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Published: Aug 16, 2019

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Swot analysis, opportunities.

  • Fallon, J. (2018). Strategic Management: The Theory and Practice of Strategy in (Business) Organizations. SAGE Publications.
  • Contributor. (2015). SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats. Harvard Business Review Press.
  • Faridi, U. (2017). Foodpanda: A Leading Global Food Delivery Marketplace. International Journal of Research in Humanities and Social Studies, 4(2), 9-15.
  • Rajan, R. (2016). Foodpanda—A Case Study of a Successful Online Food Delivery Service in Malaysia. International Journal of Humanities, Arts, and Social Sciences, 2(4), 29-39.
  • Reuters. (2015). Foodpanda raises $100 million to fight rivals in food delivery. Reuters. https://www.reuters.com/article/us-foodpanda-fundraising-idUSKCN0SF1WE20151022
  • Davison, E. (2013). What's Wrong With Foodpanda? TechCrunch. https://techcrunch.com/2013/03/13/whats-wrong-with-foodpanda/
  • Anon. (2018). The Swot Analysis of Foodpanda. EduRev. https://edurev.in/studytube/The-Swot-Analysis-of-Foodpanda/e2e9c54d-6186-47ab-a22b-7cb94b9b8da3

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Food Delivery Services in Malaysia Essay Sample

Food Delivery Services In Malaysia Essay Sample

The food delivery industry is a booming business in Malaysia. It’s not hard to see why – people are too busy nowadays to cook their meals, and they want the food delivered right to their doorstep. But what does it take for your company to be successful?

What is a food delivery service?

A food delivery service is a company that sends lunch to hungry employees, usually by running the orders through restaurants nearby.

Food delivery services are up-and-coming in the world of business. We  provide an alternative to brown bag lunches or selecting unhealthy fast food nearby for meeting deadlines. It takes about 10 minutes on average from ordering online to having hot and tasty lunch delivered to your doorstep; there’s no need to spend time walking down the street searching for a momentary distraction while you’re ravenous and ready for something satisfying!

For Malaysian companies that depend heavily on people’s ingenuity and ability to work sharp despite long strenuous hours, this alternative does not only save money but also fulfils workers’ hunger during their working hours.

Importance of food delivery service in pandemic

From a Malaysian governmental standpoint, alternative food delivery services are helpful during pandemics because they can provide people with the resources needed to survive. When access to groceries is severely limited, alternative suppliers can assist by providing critical resources.

Alternative supply chains that deliver goods on-demand or on as-needed basis offer benefits for increasing public health and safety during pandemic events. These services have the potential to improve both preparedness for future events and how individuals manage through these difficult times.

##Impact of food delivery services

Online food delivery is currently booming, with its increasing adoption by restaurants and customers. According to research group IBISWorld, revenue for this Malaysian market will increase at an annualized rate of 13% between now and 2020. The potential drivers behind this growth are the convergence of technologies (e.g., car or bike-sharing services) that allow consumers to satisfy their food needs more easily; lifestyles that prioritize convenience; and significant advancements in mobile payment systems.

Since 2011, investment in online food ordering has grown exponentially globally. Analysts predict that it will continue to grow as people order regularly from home or work rather than waiting for their takeaway meal until they arrive home after a long day of work/school play.

##How does food delivery service work?

Now a business in Malaysia can offer online food ordering and delivery, managing customer orders from start to finish. A restaurant administers the menu, deals with customer orders, prints menus and other materials does marketing for the business by offering coupons via third-party search engines, and provides reports on how well he or she is doing at attracting customers all from behind a computer screen.

In addition to the time saved by the Malaysian company’s employees not having to take each order individually over the phone or in person, there are other benefits as well. The company saves money on payroll hours spent fielding phone calls and waiting on customers who walk in person – which isn’t a problem that CafeMom has right now!

##Food delivery business model

The business model of food delivery services depends on the type of food service. For over-the-counter services, different models are possible.

One example is franchising, where a franchiser sets up an individual restaurant company in all major metropolitan areas for exclusive rights to sell its franchised restaurant locations within that franchiser’s territory.

Restaurants may be either self-owned locations or franchised locations depending on the agreement with the franchiser. The majority of restaurants in western countries are franchisee operations, motivated by economic benefits offered by establishing a centralized management system that minimizes commercial risks involved in opening their restaurant location compared to starting an independent establishment).

##Demand for food delivery service

Malaysia is experiencing a huge boom in the demand for food delivery services, with one industry report projecting that 300,000 employees could be employed to meet this demand.

One reason for this surge in demand is the increase in city population due to globalization. The other reason for this trend is that Kuala Lumpur has gone through rapid modernization over the past few years, which has resulted in employment opportunities shrinking even as the cost of living grows higher and higher (for instance, it’s now possible to buy smartphones delivered directly to your home).

Food delivery services in Malaysia grew from a market size of 73.5 million in 2015 to 115 million in 2016, an increase of 41%. In 2016, catering is the most popular category, doubling its share from 8.4% to 16.9%. Spurred by the hyped-about restaurant scene in Kuala Lumpur and KL has been touted as hitting a tipping point with consumers demanding more cuisines with a range of prices and flavours at their fingertips, according to industry experts.

Among the factors driving this growth is that many people have migrated into urban centres with less space for food preparation or storage amenities available on-site including cooking equipment and refrigerators even microwaves.

##Pros and cons of food delivery service

The pros and cons of food delivery service are too many to list.

  • Little to no prep work. All ingredients are automatically included in the package, you just have to open and eat! Some websites even offer to grab lunch for you when they deliver.
  • No need to figure out what your coworkers want.
  • Time saved: because of the convenience and simplicity of food delivery services, the frequency with which dinner is eaten outside has risen dramatically in recent years.
  • Pricey compared to cooking at home, especially for those with less disposable income and smaller budgets. Food delivery service companies may be able to offer low prices because of their volume purchasing power but even then the price is often higher than what you would pay if you shopped around or bought in bulk from an online grocer like BigBasket.
  • Less customer control over ingredients depending on how picky your dietary requirements are could be a pro!
  • Relying on someone else’s schedule can become frustrating when it doesn’t work well with yours (especially true if it’s not pre-negotiated). This isn’t quite as much of an issue if you are ordering lunch or breakfast where typically there is less urgency about when the food needs to be delivered.
  • Food delivery services require a high level of trust on both sides for customers who have no idea how long it will take before their order arrives and whether what they receive is exactly as they ordered, and vice versa with staff at restaurants that may not know anything about them or even see the final details of their order until moments before it’s being prepared/delivered.
  • Today many busy professionals rely on food delivery services to save time and money, with the average Malaysian spending $151 per month on them.

##Food delivery industry analysis

The food delivery industry is in the growth stage. It is predicted that by 2022 it will be worth $200 billion, which is a 41% increase from 2016.

Food delivery companies, specifically startups like UberEats are taking advantage of America’s notorious work-from-home culture and getting people to order their next meal straight from their couch. Why not save money with Taco Bell or get fancy with Yelp/Eat24? You don’t have to leave the house! And you can make someone else do your grocery shopping for you which Google searches for “grocery store” corroborate Americans’ low self-care standards when buying groceries (have kids who hate vegetables?).

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Food Service: A Growing Industry

Food Service: A Growing Industry

The food services industry in the Philippines has improved over the years. It has been a part of the Filipino culture to dine out during work breaks and when celebrating different occasions. The introduction of foods like hamburger, spaghetti, sushi, Thai food and even Korean dishes has contributed to Filipinos’ food preferences.

Another reason is the industrialization and growth among the number of women in the workforce. Women traditionally do the cooking in Filipino households, but because they are preoccupied with work outside their homes, many of them buy cooked food, have them delivered or just dine out. Because of today’s fast-paced lifestyle, ready to cook and ready-to eat meals have become greatly in demand. The food service industry is sought after by a growing number of people who want to have filling meals in the shortest time and at the most reasonable price. Today, different types of food establishments are being set-up all-over the country.

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While these are the big and fancy restaurants, fast food restaurants, delivery services, catering services and canteens and the smaller ones found within our neighborhoods such as the carinderia, pondohan and lugawan, it is also common to find food carts along sidewalks that sell fish balls, squid balls and other dimsum. Some sell barbequed chicken parts locally known as adidas(feet), pal(wings) and helmet(head). Also popular are the fried day-old chicks known as day-0. These are saleable and convenient to people with limited money to spend, and to travel or be out often.

Going into the food service business needs a lot of study on important principles of managing. Food can affect the health of the consumers; therefore it is the responsibility of its owners to maintain the cleanliness of the foods served and the place. This includes quantity cooking, menu planning, food pricing, and sanitation of work area and process, as well as health care of customers. Another important principle in this business is honest service to customers. Therefore, getting into the food business is assuming a great responsibility to the public.

There are different types of food services established to answer the needs of the public. Among these are the restaurants, panciteria, turo-turo and dimsum houses, bakeshops, coffee shops, pizza houses and specialty restaurants. These are generally categorized in two: the commercial food service and the welfare food service.

Commercial Food Service

All eateries that are into business and profit fall under the commercial food service. In this category, the controlling of expenses, setting of the profit and planning the business growth lies within the responsibility of the owner.

It is he who sets the price of the food and services based on the type of food and services, value of the place and the economic level of the target customers.

Welfare Food Service

The welfare food service is set up to cater to a particular group of people like employees, students and patients. Most are found in schools, office canteens and cafeterias in hospitals managed by a concessionaire. Competition is low because only one canteen or cafeterias serves an entire office building or hospitals. A concessionaire is a person given the right/authority by a building owner or institution to manage its canteen or cafeteria.

Main consideration in the agreement between the representative of the institution and the concessionaire is to give their employees and clients clean and inexpensive food. Usually, a concessionaire is chosen through a bidding process and is given a contract which contains the obligation of the concessionaire and building owner, the length of the contract, food pricing, and benefits given to the concessionaire, the proper cleanliness and maintenance of the area, and the events that will cause the renewal or cancellation of contract.

The concessionaire need not increase his price because regular income is assured with a captive clientele of employees or students from a company or school. Aside from this, food subsidy assistance is given by the management of a company, school or hospital to the concessionaire to reduce the price of food. This may be in the form of free electric and water usage and free space or equipment for cooking. It will allow the concessionaire to save on costs on equipment and focus on the preparation of food at a lower cost. Catering and Food Delivery Services

When going into the food business, it is always best to start small in this way, one to have more time to focus on the important aspects of the business, rather that worrying about managerial problem as in big businesses. CATERING Catering is the cooking and serving of special dishes, preparation and decoration of venue for a special occasion, feast, meeting or other gatherings. Servers and waiters are hired and paid per function or occasion. Kinds of Catering Services 1. Full Catering. In this type of service, the caterer serves the food, prepares and manages all details of the occasion.

This includes the provision of equipment, utensils/wares that will be used, decoration of the venue, table setting, and serving and clean up of the equipment used. 2. Partial Catering. This is almost the same as the full catering. The only difference is that a partial catering serves only a part of the entire menu. Other dishes maybe cooked or served by the client himself or by another caterer. The caterer only does the arrangement of the venue and food servicing.

Service Only

The client is the one who prepares the food. The caterer only takes of arranging the venues and is in charge of the food service. This may include the provision of entertainment like song and dance number and games, giveaways or souvenirs for the guest. Utensils, Wares and Equipment Used in Catering Catering does not immediately require a big capital. One may start as a home-based venture for as long as the kitchen space is big and clean enough for cooking varied dishes. However, a complete set of utensils, wares and equipment are needed to start the business. Below are some of the basic utensils needed:

  • Chafing dish, used to keep the dishes clean and hot.
  • Flatware, table utensils such as knives, forks and spoons for ordinary occasions. Silverware, high value and elegant table utensils for grand and special occasions.
  • Drinking glasses, ordinary glasses and goblets used to serve beverages.
  • Plates and serving dishes, separate sets for ordinary and special occasions.
  • Disposable cups, plastic or paper cups used to picnic and children party.
  • Tablecloth and napkin can be tailor-made to fit the style and size of your table.
  • Case, used to keep glasses, plates and other table utensils while in transit.
  • Table decoration like table centerpiece, flower vase and colored lights to makes the venue more attractive. Ashtrays, for smoking visitors and provided only upon request and if there is a designated smoking area in the venue.
  • Tables and chairs that can be rented.

Points to Consider in Making a Catering Service Contract Before entering into a contract, the following should first be settled and understood by both caterer and client:

  • Occasion or gathering
  • Motif of the occasion to complement the decoration
  • Number of guests
  • Menu based on the choice and budget of the client
  • Cost of food to be served
  • Payment scheme
  • Serving system

A 50% down payment may be required upon signing of the contract to guarantee payment of cost of ingredients already bought should the client withdraw from the contract. In this way, losses are avoided. Allowance for Food In the occasion that the number of the guest exceeds what is expected, a caterer must have food ready for them. Thus, a caterer usually makes a 10% allowance from the agreed number of guests to serve. The caterer will only have to charge the additional foods served. Emergency Be prepared for whatever accident or emergency that arise in delivering or serving foods.

Bring extra equipment/materials like tablecloth, tables, drinking glasses and plates or replacement in case these are soiled, broken or damaged. It is also important in the catering business to have a vehicle to be used for delivery and pick-up of food, equipment and utensils. If the budget is not enough to have your own vehicle, you may have to rent first for your marketing and delivery service needs.

FOOD DELIVERY SERVICE

Food delivery service is the easiest to start with compared to other food services businesses. It does not include services like table arrangement, food service by waiters and other catering services.

Instead, a small counter with a telephone line can be set up to accept orders and only about two or three people are employed to deliver them. Capital Food delivery service requires smaller capital than that of the catering services because it only needs to have funds for food preparation and delivery. Aside from the capital for ingredients, food delivery needs funding for the purchase of disposable containers like Styrofoam or plastic lunchboxes and plastic spoons, fork and paper or plastics cups.

There are some who use biodegradable materials like brown paper bag, wax paper, wooden ox and banana leaves Transportation In delivering food, one can use motorcycle for faster delivery of the customer’s orders. If there is no sufficient fund for a motorcycle, delivery can be through public utility vehicles. If delivery is made in bulk, it is best to rent a vehicle for the purpose or just take a taxi. A minimum purchase is the lowest value of order for food delivery business. However, if the place of the customer is just within walking distance from the business, the minimum order policy may not be applied; add a service charge to the bill instead. Lunch Packs and Party Packages

Lunch Packs are prepared meals placed in appropriate containers and delivered to customers who are usually busy and are unable to go out to eat. Party Packages are special meals prepared and delivered to groups of not less than 20. They are usually served in meetings, picnics, seminars, conferences, conventions and other important gatherings. Most customers of food delivery services are from offices, schools and factories. Look for contract persons in these institutions. Send them letters of introduction together with your menu and brochure. You may send a representative to take orders for food.

Make sure to ask the permission of the building owner and guard before doing so. Or you may set a take-out counter within the eatery to take orders of packed lunch. Points to Remember: Utmost care in the preparation of lunch packs and party packages is very important. The key in successful food service business is for the food to reach the customers properly and on time. The following are some important points to remember in this type of business:

  • Prepare a good combination of dishes for party package and lunch packs. For example, if there is fried fish or meat, these should be complemented by a vegetable.Avoid dishes that are not good complements like rice and noodles, and kare-kare and chicken curry. Study the best combination of dishes and choose foods hat do not easily spoil.
  • Make sure that the food packages are clean. Styrofoam is usually used for this purpose because it keeps the food warm longer.
  • Place food in lunch box at the right temperature. Example, pancit bihon should be cooled first before being placed inside the lunch box. There are dishes that easily spoil when exposed under the heat of the sun like ginataan and pancit bihon.
  • Use containers with compartments. In this way, rice and different viands are not mixed inside the lunch pack. Waxed box, Styrofoam, plastic bag and banana leaves are used as containers of packed lunch. Plastic spoon and fork should be provided. It is also better if sauce or seasonings, like soybean sauce with calamansi, are included in the package.
  • Make sure that the cooking and working area is clean. It is important in any type of food business to make sure that the food and its preparation area is clean, this is to avoid the spreading of germs or viruses carried by insects and pests.
  • Make sure that the delivery personnel are dressed in clean and proper outfit.
  • Food should be delivered properly and promptly.

Remember that a prompt service is a good indicator of a prosperous business. Hygiene and Sanitation Hygiene and sanitation are the foremost considerations in setting-up and managing a food service operator to take care of the health of the customers and workers. This can be done through knowledge of proper hygiene and sanitation even before the operation starts. A. Water This is to ensure the cleanliness of the food, equipment at the dining area, and the surroundings.

Make sure that you have clean water containers that are always covered. It should be boiled if you are not sure if it safe from germs and other bacteria. You may use water purifier or buy mineral water if you have enough funds. B. Clean Surroundings Dirty and messy working areas bring about most cases of food contamination or food poisoning. Pests and insects like rats, flies and cockroaches that touch the food bring bacteria that may cause disease. Because of this, cleanliness, orderliness and maintenance of a pest control system in the kitchen and dining area is important.

The dining area should be cleaned regularly. When spraying insecticide, do it during evenings when the eatery is closed to the public. Keep the equipment and utensils safely covered in the kitchen to avoid being sprayed by insecticides. C. Sanitation Head It is advisable to have one staff in charge of maintaining the sanitation of your kitchen and dining area. Working table, sink, stove and other cooking equipment should be cleaned daily. Dining utensils should always be sterilized should be done every week to control insects and other pests. D. Proper Food Handling

In the food service business, proper food handling and storage is important to avoid spoilage and wastage. Remember spoiled food that is served would damage your reputation and business. It may even cause harm to the customers. Avoid buying food or ingredients that are easily spoiled. Determine the shelf life or the length of time food or ingredients will stay edible. For example, fish can be stored in the freezer for 2 to 3 days only. Leafy vegetables should be cooked on the day bought; and meat should not be stored in big cuts because the inner part of the meat will not be frozen. E. Waste Disposal

Having a proper system in waste disposal should not be disregarded. Segregate wet and dry garbage. Put black plastic bag in the trash can for ease in disposing the garbage. The black plastic bag should be closed and tied when already full to avoid being reached by flies and other insects. F. Cleanliness, Orderliness and Health of Workers in the Food Service These are other important considerations in the food service business. Give specific responsibilities to all workers and make it clear to them that it is their responsibility to satisfy and ensure the health and safety of the customers.

Ensure also that the cook and waiters have clean bill of health. Require them to have regular medical check-ups. Only in this manner can anyone be assured as to whether or not they are afflicted with a communicable disease. G. Uniform or Clothes of the Workers The clothes or uniform of the cook and waiters should be given considerations. Clean and neat clothes and uniforms give the food business a good reputation. Wearing an appropriate outfit is one way of showing respect to the customer. Design and Layout of the Dining and Working Area

The design and layout of a food service establishment help in the success of its operation. If the design and layout is right, you can save your time, effort and money. Service and food can be made faster and better. Design refers to the size, style and decoration of the area. On the other hand, layout refers to the details of the arrangement of the dining area, kitchen and working area including the arrangement of the equipment and other facilities.

The design and layout of food established depends on the type of food service. You may use the following as guiding principles in the design of your establishment:

  • Allocate enough floor space and area for the waiter, busboy and customer to pass. The convenience of the customer is the main consideration of this space. If there are no barriers and the space is wide, service is faster because the waiter has more room to move. Aside from this, accidents like tripping and spilling of food in the dining area can be avoided.
  • Arrange the work areas that are related for systematic workflow. For example, the area where you place soiled plates and drinking glasses should be near the kitchen sink. The working table can be placed in the middle of the kitchen for accessibility, surrounded by the refrigerator and freezer, kitchen sink and stove.
  • There should be an access doorway for the delivery of food and supplies. It is better if there will be an extra access doorway at the back or side of the dining area mainly for the delivery of food and supplies to avoid inconveniencing customers.
  • Minimize the distance between the cooking areas to the point of service. This is to make service delivery faster and assure that food serve to customer will still be hot.
  • Cooking utensils and ingredients should be within the reach of the workers. The shelves for the equipment and ingredients that are use often in cooking like salt, pepper, sugar, garlic, ginger and onion should be near the work area.
  • Place a garbage disposal near the working area or kitchen. Separate biodegradable and non-biodegradable wastes.
  • Use a clean and bright colored paint for the ceiling, wall and floor. One of the qualities a customer looks in a restaurant is a clean and brightly painted dining area.
  • There should be enough lighting and ventilation in a kitchen and dining area. A well-lit dining area adds appeal while good lighting helps prevent accidents in the work area. If the dining area and kitchen have no sufficient windows where air could pass freely. Use an exhaust fan to remove unwanted color inside the restaurant.
  • If the kitchen is small, install built-in cup-board in the wall. In this manner you can save on space and movement of workers in the kitchen are not obstructed.
  • Have a clean comfort room. This is important for the convenience of the customers. Also, a clean comfort room will impress your customers.
  • As much as possible, the decoration of your restaurant should complement the food served. If you are serving native dishes, the design of the restaurant should also be native. If you are in fast-food business, you may use attractive colors and lively decorations and simple equipment or utensils.
  • If the dining area is small, this will look spacious if you place mirrors on the wall. At first, you may use folding tables and chairs if the space is small.

Principles of Quantity Cooking

It is important in the food service business to know how to cook for a big number of people. One should study this standard measure very well to be able to estimate contract price, purchase ingredients and avoid possible loss. Suggested Portion Serving for Meat In quantity cooking, one must consider the correct portion of main ingredients for every serving so that one can easily estimate the quantity of ingredients to be purchased and the profit. The following are the suggested serving size for beef, pork, chicken and sea foods. In a fine dining restaurant, all servings are weighed.

These are other things that a food business operator must know in quantity cooking.  The quantity of ingredients cannot just be multiplied from a standard recipe for 5 to 6 persons or a family according to the number of diners. If your recipe is good for about 6 persons and there are 24 persons that are to eat, you cannot increase the ingredients (especially the seasonings) four times. For example, if the recipe for 6 persons needs to 2 teaspoonfuls of salt, it does not necessarily need 8 teaspoon of salt for a recipe good for 24 persons. Study the adjustment of recipe and the balancing of ingredients.

As much as possible, use a weighing scale and measuring utensils in measuring the ingredients. In this way, the measurements of ingredients or serving size are exact. It is cheaper this way than merely estimating the ingredients. Have a proper storage system of ingredients purchased in bulk. Allocate an area to store canned goods and ingredients that are not perishable. Take extra care in cleaning and storing highly perishable ingredients like meat, vegetables, egg and fish.

Allot three to four months trial period. This is to determine which food or meals sell and which don’t. This will also guide you to determine the quantity of ingredients to purchase and the meals that are to be included as regular menu.  Take extra care in storing, handling and delivering cooked foods. Cooked foods need to be stored properly to avoid spoilage. These can be covered with plastic to avoid dirt.

Look for regular and trusted sources of ingredients. It is better to have regular and trusted sources of ingredients because aside from being cheap, you are assured of its freshness and quality.  Study how to make use of leftover or excess foods to make another dish. If there is leftover lechon, it can be re-cooked into lechon-paksiw.

Leftover fried fish can be cooked into sarsiyado or as ingredient for fried lumpia. Meat broth can be used in cooking noodles or soup. Planning a Menu The menu is the most important foundation and attraction od a restaurant. It presents the different dishes served by an eatery, catering or food delivery establishments. The following are some practical guides in planning you menu.

Know what specialty foods you can cook that your customers will like. For example, if you are excellent in cooking kare-kare, make this the specialty of your restaurant. Just be sure that you have other dishes that complement the kare-kare like grilled meat, pancit, viand with broth, fruits and dessert like kalamay.

Plan the menu according to your target customer. For example, students prefer beef, pork and chicken to fish and vegetables. Manual laborers often ask for more rice and any viand with sauce. This is because they want more filling food that is cheaper. On the other hand, children prefer spaghetti, hotdog, hamburger and fried chicken.

You may use as basis, the cost of food and the expected profit in planning the food to be served. Use extenders like potatoes, tofu, veggie-meat and other vegetables to lower the cost of the meal.  Make sure that the ingredients are on-season to be able to served foods that are cheaper but higher in profit.

For example, if bangus is cheap, you may include in you menu different special dishes from bangus like relleno, sinigang na tiyan ng bangus and sarsiyadong bangus. Put a sign or poster outside your restaurant advertising your special menu.  Make sure that you can serve the foods that are in your menu. Also, make sure that you have the needed equipment. For example, you need a grill if you have barbecue or inihaw in your menu.

Use your imagination and creativity in preparing your menu even if these are simple, so as to make the food attractive to the customers. For example, a pancake may be ordinary but it becomes special when you put different flavors and garnishing. An ordinary galunggong will become special if serve in banana leaf with side dishes like atsara or vegetable salad.

Match the menu to the weather, on cold days, it is best to include in the menu foods rich in energy like beef, pork, chicken, pasta and kakanin. Also include delicious food with broth like arroz caldo, nilaga and chicken soup. On hot days, prepare refreshing foods like halo-halo, mais con yelo, sago’t gulaman, ice cream and different salads.

Give importance to the health and nutrition aspects in planning the menu. Avoid serving oily foods. Balance the foods and know the right combination to make sure that the foods served have enough vitamins. For breakfast, prepare simple and easy-to-cook foods like tapsilog (tapa-sinangag-itlog), longsilog (longanisa-sinangag-itlog), and tosilog (tocino-sinangag-itlog). 10. Consider the space of your kitchen and cooking area.

If your kitchen space is small, serve food that can be cooked early so that these can be just heated when ordered. Consider using a microwave oven because this type of oven does not alter the taste, volume and texture of the food being heated. Capital requirement, Food Costing and Pricing and Control of Expenses In starting up a catering and fast food service business, one needs to have sufficient knowledge about the investment and manpower requirement. , other expenses, food costing and pricing and profit.

The type of catering and food service business can be determined by the capital invested on it. A home-based catering service business that offers delivery service has smaller capital requirement.

Much bigger capital is needed in setting up a restaurant when located in an elegant place like a hotel.

WAYS OF PROMOTION

Word-of-mouth. If your business has delicious food, and excellent service, satisfied customers will return to your place, spread the news and recommend your restaurant to friends and acquaintances.

  • Signboard. This is important for customers to know and remember the name of your restaurant and to help them to fin your place.
  • Publicity. Another way to attract customers is through publicity. A good review done by a food critic in a news paper or magazine will help bring customers to the restaurant.
  • Discount and promotional items. Promotion can be done through the provision of discounts and promotional items like key chain, umbrella, food bonus and others at your restaurant.
  • Advertisement. If your budget allows it, you may advertise on newspapers, television and radio so that more prospective customers will know your business.
  • Brochure and calling card. It is important to have brochure and calling card to give to customers to be remembered and called when needed in the future.
  • Entertainment. You can have free entertainment inside your restaurant like a pianist, singer or band to make eating more enjoyable.
  • Public relations.

It is also important to have good and effective relationship with the public by joining civic activities and food festivals. Good relationship between your customers and workers is also important to have a smooth business operation. It is enough that your food service business is popular and has promotion and advertisement to succeed. It also needs to get in touch with different institutions or organizations to improve food preparation and service. We call this networking. It is recommended to food service business owners to join workshops and seminars to know the trends and present preferences of consumers. In this way, they can improve the quality of their service and food.

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A History of Moscow in 13 Dishes

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MOSCOW WIDENS NEW POLICY LINE; Essay, Scored During Rule of Khrushchev, Praised for View of Hard Rural Life

MOSCOW WIDENS NEW POLICY LINE; Essay, Scored During Rule of Khrushchev, Praised for View of Hard Rural Life

MOSCOW, Dec. 26—A growing reversal of the policies of former Premier Nikita S. Khrushchev, especially in agriculture, was‐extended today to the field of literary criticism.

The literary‐union newspaper Literaturnaya Gazeta published a laudatory review of Yefim Dorosh's essay “Half Rain, Half Sunshine,” which gives what is widely regarded as a realistic depiction of the countryside of central European Russia.

The essay, published last summer in the liberal literary monthly Novy Mir, was violently attacked in the Soviet press just before Mr. Khrushchev's overthrow in October as misrepresenting life in rural areas.

One critique, by L. Lebedev, a collective farm chairman from the Galich area northeast of Moscow, appeared in Selskaya Zhizn (Rural Life), the farm newspaper of the Communist party's Central Committee over whose content Mr. Khrushchev had direct control.

Mr. Lebedev charged Mr. Dorosh with conveying a picture of “prerevolutionary dreariness, despondency, stagnation, and complete hopelessness drifting from every page.”

The farm chairman accused the author of concentrating attention “on an old monastery, an ancient lake, an abandoned grave of some count instead of writing, say, about the new widescreen moviehouse.”

Mr. Lebedev said Mr. Dorosh had misrepresented the cultural level of farm youth and the rural intelligentsia by depicting them as “primitive, uneducated people without interest in literature or the arts.”

Mr. Dorosh had written that the residents of his fictitious country town of Raigorod “read little, went, to be sure, to the movies, but had not been in the regional museum, in the picture gallery, in the theater or at the philharmonic concert.”

Today's review in Literaturnaya Gazeta by Vladimir Voronov, a critic, contended that Mr. Dorosh had performed a useful service by drawing attention to problems that continued to bedevil Soviet agriculture and life in the countryside.

The essay, published while Mr. Khrushchev was still in power, questioned the effectiveness of some reforms inspired by the former Premier and criticized the continuing close supervision of farm production and the imposition of output plans from above.

In an evident allusion to Mr. Khrushchev's style of running Soviet agriculture, Mr. Voronov wrote:

“Dorosh regards the struggle for a growth of the rural economy not as a short‐lived, noisy campaign but as a long, complicated haul.”

Mr. Voronov assailed the farm chairman for having judged the essay simply on the basis that his own area was more prosperous than the one pictured in “Half Rain, Half Sunshine.”

The reviewer said it was not literary criticism to say:

“We live better” and to tell “about a milkmaid who had obtained 800 quarts of milk more from a cow than in the previous year.”

The controversial essay is part of a series of “rural diaries” that Mr. Dorosh, a resident of Moscow, has been writing since 1956 on the basis of periodic visits to an unidentified small town and the surrounding countryside in central Russia.

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    MOSCOW WIDENS NEW POLICY LINE; Essay, Scored During Rule of Khrushchev, Praised for View of Hard Rural Life Send any friend a story As a subscriber, you have 10 gift articles to give each month.