Impact Assessment of Food Delivery Platforms on Restaurants

Impact Assessment of Food Delivery Platforms on Restaurants

The objective of this report was to assess the impact of food delivery platforms on restaurants. This is the second of the three part research series on the Food Delivery Platform economy of India. The National Council of Applied Economic Research (NCAER) conducted an in-person survey of 640 restaurants across 28 cities with representation from all city types (Tier 1, 2 and 3) and regions (North, South, East and West). The survey was carried out between April and September 2023 and included both platform (89 per cent) and non-platform (11 per cent) restaurants. A 3-E framework of entry, experience and exit was used to assess the relationship between the food delivery platforms and restaurants. The focus was on the behavioural relationships between platforms and restaurants. The impact of food delivery platforms on restaurants may be both monetary and non-monetary. Monetary gains refer to direct monetary or financial benefits in terms of higher profits and revenue/sales. Non-monetary gains to firms are intangible benefits and, for the purposes of this report, do not have any immediate direct monetary benefits.

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