The Future of the Restaurant Industry in the Face of Growing Third-Party Delivery Services

Chloe DeWees, Jean Blair, Department of Electrical Engineering and Computer Science, United States Military Academy, 606 Thayer Road 10997

Third-party delivery services have experienced drastic growth since the start of the COVID-19 pandemic. As people experienced growing restrictions and fear for going out, the market for the food industry moved from needing to accommodate a large crowd with in-person seating, to needing to accommodate third party delivery services as people increasingly choose to stay in. Third party delivery services thus have disrupted the food industry as this trend grows and restaurants must alter the way they serve and operate to accommodate the growing need to offer delivery, delivery-capable foods, and a unique name for themselves in a changing environment. In this paper, we will evaluate third party delivery as a disruptive innovation in the fast food and restaurant industry through the framework of Christensen’s Disruptive Innovation. Currently, the sustaining technology is dining in or restaurant-owned delivery which is being disrupted as people cannot dine in due to limited seating or restrictions and some restaurants do not have delivery services or a limited delivery radius. Because of this, people have move toward focusing on which restaurants are available through each third-party delivery app instead of which specific restaurant they might want to eat. Thus, in order to be successful, third party delivery services must set themselves apart from one another, improve their cost structure to make themselves the most cost efficient, and change to accommodate customers needs. Restaurants must decide whether they will move toward an entertainment style dining or set themselves apart on delivery apps as having great and portable food. The food industry is changing and in order to survive, businesses must change as well.

Additional Abstract Information

Presenter: Chloe DeWees

Institution: United States Military Academy at West Point

Type: Oral

Subject: Business

Status: Approved

Time and Location

Session: Oral 7
Date/Time: Tue 3:30pm-4:30pm
Session Number: 709
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