THE IMPACT AND CHALLENGES OF USING

ONLINE FOOD DELIVERY SERVICES FOR

SMALL-MEDIUM BUSINESSES IN TARLAC
CITY
SMALL-MEDIUM BUSINESS ON BOARDING WITH
ONLINE FOOD DELIVERY WAS THEIR VERY FIRST
FORAY INTO E-COMMERCE AND HELPED THEM
TO DIGITIZE. AND MANY OF THESE IN TURN
BECAME VERY SUCCESSFUL BUSINESSES THAT
RELY ON BOTH A PHYSICAL STORE PRESENCE AS
WELL AS AN ONLINE PLATFORM TO REACH
MANY CUSTOMERS.
AS STATED BY MCKINSEY (2016), THE BUSINESS OF DELIVERING
READY TO EAT FOODSTUFFS FROM RESTAURANTS TO HOME IS
UNDERGOING A SEA CHANGE AS NEW ONLINE PLATFORMS
ENABLE FOOD PROVIDERS TO CAPTURE MARKETS AND
CUSTOMERS DAY BY DAY.
 RESEARCH QUESTION

1. What are the key reasons for small-medium businesses to adopt online food delivery services?
1.1 What are the advantage and benefits of adopting online food delivery services for small-medium
businesses?
1.2 How does the use of online food delivery services benefit small-medium businesses in terms of increase
customer reach and market expansion?
2. How do small-medium businesses handle peak hours and high demand period through online food delivery
services?
2.1 How do peak hours for small-medium businesses impact the operational strategies and staffing needs for
online food delivery services?
2.2 How do small-medium businesses handle issues related to food quality and freshness during peak hours
when using online food delivery services?
 RESEARCH QUESTION

3. How do small-medium businesses address the challenges related to real-time order tracking and communication with customers
during online food delivery?
3.1 What are the common obstacles that small-medium businesses face in ensuring real-time order tracking and effective
communication with customer during online food delivery?
3.2 What strategies do small-medium businesses employ to ensure real-time order tracking and efficient communication with
customer during online food delivery?
4. How small-medium businesses handle issues with late or incorrect deliveries through online food delivery services?
4.1 How do small-medium businesses perceive the impact of late or incorrect deliveries in their operation ?
4.2 What are the potential implications of late or incorrect deliveries on the relationship between small-medium businesses and
online food delivery services?
5. What are the main challenges faced by small-medium businesses when using online food delivery services?
5.1 What strategies can small-medium businesses employ to overcome the challenges associated with online food delivery
services?
5.2 How do small-medium business impact the expectation and customer preferences of using online food delivery?
 5.What do customers often complain about? (Select all that apply)
S U RV E RY Q U E S T I O N
[ ] The food is Cold?
[ ] Is the food not good?
Name of Business: ___________________________ [ ] Was the staff friendly and welcoming?
Type of Business:_____________________________ [ ] Other complaints, __________________
Location:____________________________________
6. Have small-medium businesses had to make changes to their
1. How frequently do small-medium businesses use online food delivery menus or pricing due to online food delivery services?
services for their customers? o Yes
o Daily If yes,
o Weekly [ ] menu adjustments
o Monthly [ ] pricing adjustments
o Rarely o No
2. Which online food delivery platforms do small-medium businesses
7. What percentage of total sales do small-medium businesses
used? (Select all that apply)
[ ] Grab Food attribute to online food delivery services on average?
[ ] Food Panda o Less than 10%
[ ] Local platforms (please specify) ________ o 10% to 30%
[ ] Others (please specify) _______________ o 31% to 50%
3. Which online food delivery platforms do small-medium businesses in o Over 50%
Tarlac City primarily use? 8. How do small-medium businesses market their online food
o GrabFood
delivery services to attract customers? (Select all that apply)
o FoodPanda
o Local platforms (please specify) ________
[ ] social media advertising
o Others (please specify) _______________ [ ] Promotions and discounts
4.What time is the busiest in their establishment? [ ] Collaborations with influences
o 8am-10am [ ] Word-of-mouth referrals
o 10am-12pm [ ] Other (please specify) _______________
o 12pm-3pm
o 3pm-6pm
 SURVERY QUESTION
12. How do small-medium businesses in Tarlac City address
issues related to real-time order tracking and communication
9. What are the primary reasons for small-medium businesses in with customers during online food delivery? (Select all that
Tarlac City to adapt online food delivery services? (Select all that apply)
apply) [ ] Use of dedicated apps or platforms
[ ] Increase revenue [ ] Regular updates via phone calls
[ ] Expand customer reach [ ] Implementation of GPS tracking for deliveries
[ ] Streamline operations [ ] Other (please specify) ________________
[ ] Enhance competitiveness 13. What strategies do small-medium businesses in Tarlac City
[ ] Other (please specify) ______________ employ to handle late or incorrect deliveries through online
10. How do small-medium businesses in Tarlac City perceive the
food delivery services? (Select all that apply)
impact of online food delivery services on their overall
[ ] Offer refunds or discounts
profitability?
[ ] Improve quality control processes
o Positively
o Negatively [ ] Communicate with customers to resolve issues
o No significant impact [ ] Other (please specify) ________________
o Unsure 14. How have online food delivery services impacted the
11. What challenges do small-medium businesses in Tarlac City customer preferences and expectations of dining
face in terms of managing the demand generated by online food establishments in Tarlac City, especially small-medium
delivery services during peak hours? (Select all that apply) businesses? (Select all that apply)
[ ] Staffing shortages [ ] Raised customer expectations
[ ] longer preparation times [ ] Shifted preferences towards delivery
[ ] Quality control issues [ ] Encouraged customization of menus
[ ] Delivery delays [ ] Other (please specify) _______________
[ ] Other (please specify) _______________
 S U RV E Y Q U E S T I O N
Essay-Type Questions
1. Can you describe any innovative strategies
employed by small-medium businesses to stand
out and succeed in the competitive online food
delivery market in Tarlac City?
2. How do peak hours for small-medium
businesses in Tarlac City impact their operational
strategies and staffing needs when relying on
online food delivery services?
3. What are the main obstacles that small-medium
businesses in Tarlac City face when ensuring real-
time order tracking and effective communication
with customers during online food delivery?
4. How small and medium businesses handle issues
and the potential implications of late or incorrect
deliveries on the relationship between small-
medium businesses and online food delivery service
providers in Tarlac City?
 S U RV E Y Q U E S T I O N

Essay-Type Questions

7. What are the main reasons why do small-

5. How do ratings in online food delivery services medium businesses partner with online food
platform affect the business? delivery platforms?

6. What are the challenges faced and strategies can 8. What is the impact of using or partnering
small-medium businesses in Tarlac City employ to with online food delivery services
overcome the challenges associated with online platforms?
food delivery?
 SMALL-MEDIUM BUSINESSES
NAME OF BUSINESS TYPE OF BUSINESS LOCATION
Arrabo Food Hub Food Service San Vicente Tarlac City
Wings City Food Service Tarlac City
Frydays Food Service O&C Blg Bypass Rd, San Vicente

Mtas Nook Cafe Coffee shop 2nd flor Tarlac Capitol Center Bldg San Roque Tarlac City

Marvins Unli Wings Food Service Tarlac City

Beans and Pearls Milk tea and Coffee Tarlac City
Esting’s Bellychon Food and Retail Service Bypass Road San Vicente, Tarlac City

Boy sizzling Food Service Bypass Road San Vicente, Tarlac City

Dream Cafe Food and Beverages San Vicente Tarlac City

My Girl Food and Beverages Bypass Road San Vicente, Tarlac City

The Borough Pizza Pub Food Service Tarlac City

Cjenikole Enterprises Milk tea Tarlac City
Stack-ol Food Services Romulo blvd San Vicente Tarlac City

Kuya’s Crispy Pata Food Service Santa Rosa Tarlac City

Rappu Food Service 104 Romulo blvd Tarlac City
Chocho’s Korean Corndog and Cupbob Korean Food Bypass Road San Vicente, Tarlac City

The lemon bee Fruity Drink, Chicken Wings Binauganan, Tarlac City

Cafe tea reah Coffe shop Tibag, Tarlac City

Liberteabeth milk tea hub Milktea Shop Northen Hills, Tarlac City

Pe’s Golden Chinese Food Services Bypass Road San Vicente, Tarlac City
 QUESTION 1 QUESTION 2

How frequency do small-medium businesses use Which online food delivery platform do small-
online food delivery services for their customers? medium businesses used?

10%

20
5%

10% 13

1 1 1

75%
Grab Food Food Panda Toktok Tarlaqueno Pabili Maxim

Daily weekly Monthly Rarely

 QUESTION 3 QUESTION 4

Which online food delivery platform do small- What time is the busiest in their establishment?
medium businesses in Tarlac City primarily use?

Grab Food Food Panda Tarlaqueno Pabili Maxim TokTok

10%
5%

20% 15%

45%

30%
75%

8am-10am 10am-12pm 12pm-3pm 3pm-6pm

 QUESTION 5 QUESTION 6

What do customers often complain about? Have small-medium businesses had to make changes
to their menus or pricing due to online food delivery
services?
7

5 5 Yes No Menu Ajustment Pricing Ajustment

No
5%
5%

2 30%

The food is cold Is the food not good 65%

Was the staff friendly and welcoming Missed out items
95%
Long preparation None
 QUESTION 7 QUESTION 8

What percentage of total sales do small-medium businesses How do small-medium businesses market their online food
attributes to online food delivery services on average? services to attract customers?

less than 10% 10% to 30% 31% to 50% over 50% 18

10% 15

40% 8

2
50%

Social media advertising Promotions and discounts

Collaborations with influences Word of mouth
 QUESTION 9 QUESTION 10

What are the primary reasons for small-medium businesses in How do small-medium businesses in Tarlac City perceive the

Tarlac City to adapt online food delivery services? impact of online food delivery services on their overall
profitability?
17

13

Positively
7
Negatively
No significant
impact
1 Unsure

Increase revenue Expand customer reach

Streamline operations Enhance competitiveness
100%
 Q U E S T I O N 11 QUESTION 12

What challenges do small-medium businesses in Tarlac How do small-medium businesses in Tarlac City address issues
City face in terms of managing the demand generated by related to real-time order tracking and communication with
online food delivery services during peak hours? customers during online food delivery?

15
18

9
11

4
2

Use of dedicated apps

Staffing shortage Longer preparation times Regular updates via phone calls
Quality control issue Delivery delays Implementation of GPS tracking for deliveries
 QUESTION 13 QUESTION 14

What strategies of small-medium businesses in Tarlac How have online food delivery services impacted the customer
City employ to handle late or incorrect deliveries preferences and expectations of dining establishments in Tarlac
through online food delivery services? City, especially small-medium businesses?

18
17

14

10

4
5

Offer refunds or discounts

Improve quality control processes
Communication with customer to resolve issues Raised customer expectation Shifted preferences towards delivery
Encourage customization of menus
 CONCLUSION

Partnering with online food delivery services can lead to increased sales and revenue for businesses. The main
reasons for this are convenience, efficiency, cost effectiveness, and low overhead costs.

Implementing online food delivery services can lead to more efficient and streamlined operations for small and
medium businesses, leading to cost savings and improved productivity.

Ensuring the quality of food during delivery and managing customer expectations can be challenging,
impacting the reputation of the business.

Implementing online food delivery services can lead to more efficient and streamlined operations for small and
medium businesses, leading to cost savings and improved productivity.

Small and medium businesses may face challenges in integrating online delivery services into their existing
operations, requiring additional resources and staff training.
 RE COM M E NDAT I ON

To e-commerce, the results in this study will further improve the very purpose of this research study, to have
an efficient and effective trading of services and good to the people especially nowadays that most of the
businesses, small-medium, are relying to delivery services.

To the Small-medium businesses owner, use innovative strategies to stand out in the online food delivery
market, focusing on high-quality food, customer satisfaction, and sustainability. They must also consider
using online marketing, interactive posts, and social media to attract customers and offer exclusive deals and
promotions. They must also provide customer loyalty coupons and word of mouth to build their brand.

To the online food delivery, to improve their online food delivery services, they should focus on
proper handling of orders, double check orders before delivery, and receive customer feedback. By
addressing these challenges, they can improve their services and maintain customer satisfaction.

In terms of consumer, the researchers suggested that the small and medium business owners should always
maintain their integrity when it comes to the quality of their products and their services by ensuring that
their products maintain the standard they have set from the beginning.
 R E C O M M E N D AT I O N

To the hospitality students, as the field of business is aligned in their course, hospitality students must also
see the online food delivery services in a bigger picture to understand the word of e-commerce in order for
them to enhancetheir skills in this field in the future.

To STI College Tarlac, the results in this study somehow showed that the institution must also improve its
services and programs in their college departments involving the field of business in order to help the small-
medium businesses using online food delivery service platform inside the institution and to guide the
students who want to pursue in this kind of field.

As the researchers conclude their study, the research is suggested to be a guide for aspiring small and
medium business owners to let them have a general idea of what to improve on or to use as a tool to aid
their success on using online food delivery service platform.

To the Future Researchers, this research is also recommended as a tool for future researchers to assist them
to have more idea study about impact and challenges of using online food delivery for small and medium
businesses in Tarlac City.
THANK YOU!