ONLINE FOOD ORDERING AMONG FOOD OUTLETS IN NAIROBI

Abstract

Internet is the prototype of the global information infrastructure. Firms are using the Internet primarily for sales and service by advertising and providing customers with relevant information about a product or service. This paper describes the emerging implications of Internet technology as an evolving medium that offers restaurants limitless opportunities for e-commerce and for creating lasting relationships with customers. It dampens the bargaining power of channels by providing companies with new and more direct avenues to customers .The Internet provides an efficient means to order products. Online ordering being one of the e-commerce initiatives has emerged as an alternative avenue for food outlets to grow their sales. It offers more opportunities for interactive and personalised marketing as well as ease, speed and precision for the consumer. Food-outlets are able to offer the service through their own websites, multi-restaurant sites, mobile applications, and text ordering. Studies have shown that online food ordering can result in an increase in revenue, average check value, volume of sales, frequency of sales, order accuracy, productivity, improved convenience and customer relationship management. On line food ordering is new in Kenya. Few studies have been done in Kenya to determine the extent and distribution of online ordering by food outlets, and preference for distribution channels. From a population of 408 middle to upscale food outlets in Nairobi, this study sought answers to these questions. The results show that 23.7% of the outlets currently offer online ordering. The offerings were found to be independent of the restaurant type, but dependent on the type of cuisine offered. The characterization provided by this study lays the ground work for future work on the impact adoption has had on business performance.