Table of Contents
INTRODUCTION....................................................................................................................................... ....................................................................................................................................... 2 STATEMENT OF PROBLEM ...................................................................................................................... ...................................................................................................................... 3 OBJECTIVES OF THE STUDY .......................................................................................... ..................................................................................................................... ........................... 3 SIGNIFICANCE OF STUDY............................................................ ......................................................................................................................... ............................................................. 4 LIMITATIONS ................................................................... ......................................................................................................................................... ........................................................................ .. 4 LITERATURE REVIEW ............................................................................................................................... ............................................................................................................................... 4 RESEARCH METHODOLOGY .................................................................................................................... .................................................................................................................... 6 METHODS OF DATA COLLECTION ........................................................................................................... 7 QUALITATIVE ANALYSIS ............................................................. .......................................................................................................................... ............................................................. 8 QUANTITATIVE ANALYSIS.................................................................................. ...................................................................................................................... ....................................19 ............................................................................................ ......................... 23 HungryNaki, HungryNaki, Foodpanda and Foodmart................................................................... FINDINGS AND RECOMMENDATIONS RECOMMENDATIONS............................................................... ................................................................................................... .................................... 25 REFERENCES.......................................................................................................................................... .......................................................................................................................................... 27 APPENDIX ............................................................. ................................................................................................................................... ................................................................................. ........... 27
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INTRODUCTION
The online food ordering system is one of the latest services, most fast food restaurants are adopting. With this method, food is put online and delivered to the client. This is made possible through the use of electronic payment system or payment to the delivery men. Customers pay with their credit cards, although credit card customers can be served even before they make payment either through cash or check. Thus, the system designed in this project will enable customers go online and place order for their intellectual nourishment. Referable to the large growth in the awareness of internet and the technologies linked with it, several opportunities are getting up on the WWW. So many businesses and companies have now ventured into their business with ease because of the internet. One of such concern that the internet introduced is an online food ordering system. In today’s age of flying food and pack out, many restaurants have picked out to concentrate on quick preparation and quick delivery of clubs rather than proposing a rich dining experience. Until recently, most of this delivery orders were placed over the phone, It is possible for anybody to put any goods via the internet and receive the goods delivered at his/ her doorsteps. In one case an order is stationed on the webpage that will be designed, it is put into the database and then retrieved, in pretty much real-time, by a desktop application on the restaurant send. Within this application, all items in the order are displayed, along with their corresponding options and delivery details, in a concise and easy to understand style. This allows the restaurant employees to quickly go through the orders as they are placed and produce the necessary items with minimal delay and confusion. The greatest advantage of this system is its FLEXIBILITY.
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STATEMENT OF PROBLEM As industries are fast expanding, people are seeking for more ways to purchase products with much ease and still maintain cost effectiveness. The vendors need to purchase the products in order to sell to end users. The manual method of going to their local food sales outlets to purchase food is becoming obsolete and more tasking. Food can be ordered through the internet and payment made without going to the restaurant or the food vendor. So there is need for a wide range of publicity and enabling direct order, processing and delivering of food through online system. For this system, there will be a system administrator who will have the rights to enter the menu with current prevailing prices.
OBJECTIVES OF THE STUDY This study lays out a framework for a system “FOODPANDA”. It is an online system where people can order food to be delivered to their doorstep. Foodpanda has become the easiest and faster way to order food online: customers go to the website and place orders online, then the restaurants will receive an order slip from Foodpanda, so they prepare the orders, and deliver them to the customers’ doorstep. Customers can order food online and pay cash on delivery. The following are the objectives this would bring: 1. FOODPANDA provides an avenue where customers will be able to gather more and reliable information about what the fast food industry really does. 2. The products and services FOODPANDA offered would provide the customers with all the different categories of available Food that the y can choose and select from. 3. This will provide a user friendly environment between the customer and employee thus increasing the efficiency of the food ordering system. 4. There will also be an online purchase form with which valued customers will be using to get in touch with any of their request whenever the need arises. 5. It will also help for easy retrieval of orders made by the customers.
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SIGNIFICANCE OF STUDY In view of the rapid development of computer technology in almost all the fields of operation and its use in relation to information management, it has become important to look into the development of online ordering system for firms to meet up with demands of the customers. Therefore, the food ordering and delivery system will help customers and management to: 1. Advertise available foods in their company. 2. Reduce the workload in the present system 3. Reduce time wasted in data processing. 4. Create a platform for online purchase and delivery of fast food 5. Keep accurate record on purchased order and delivery.
LIMITATIONS Due to time limitation we cannot gather numerous information on this system. Rather than this Foodpanda service is not available in many areas. So many people are ignorant about this system.
LITERATURE REVIEW An ordering system is referred to as a set of detail methods that is being used in handling the ordering process. Food ordering can be computerized or done manually. Those helps the customer to order their food themselves which is known as the customer self-ordering system. The customer self-ordering system can be defined as a computerized system that is being used by customers to place their own orders in the restaurant and allow the orders to be tracked, in order to prepare and deliver the food to the computers. Self-service or self-ordering in restaurant industry refers to the restaurant taking orders from customers through applying various types of technologies such as internet and many others. Self-service or self-ordering is successful when it is applied at restaurants in many other countries. The usage of the self-service or self-ordering technology is proven to benefit most of the investors. 4|Page
Odesser-Torpey (Odesser-Torpey, 2008) reports that most of the Americans hate waiting for an order. Therefore, they prefer self-service technology, which can be in form of text messaging, the internet and kiosk. Usually, the customer prefers self-service because of speed and convenience in making order and transaction while minimize the miscommunication. He also mentioned that self-activated terminals are more likely to serve as ordering innovation in the future. The implementation of alternative ordering can increase check size, free up counter staff that need to serve customers and take money handling out of service equation. Bytes, a restaurant located at Canterbury has been successfully standing apart from the competitors because of applying online self-service ordering and the payment concepts. The system used in Bytes allows the customers make an order through the touch screen, and the order will be directed to bar or kitchen. The system also offers games after a customer placed the orders while internet access will be provided to customers in the future. Touch screen ordering reduces the need of the waiter. The system also provides database for customers’ habits and preferences, generate the management reports, perform analysis as well as allows the menu to be updated instantly. (Brickers, 2006). Based on study, it is possible for applying the online food ordering system to the fast food restaurants in Nigeria. This is because the system can improve work place efficiency, increase sales of the restaurant as well as reduce making incorrect order. As a result, it is worth for investing on the system, whereby it can shorten the return on investment. In addition, the system should be supported by the food origin taste and services to maintain the customers’ loyalty and satisfaction. However, widely implementing the food ordering system may cause the influx of labor due to the elimination of waiters in restaurant industry. Even the system is important to be implemented, yet there is still some risk in other factors such as a direct interaction and restaurant design concept, which need to be considered for ensuring the success of the system. Gan (Gan, 2002) proposed to develop an online fast food restaurant ordering system that allows customers to place orders anytime at any place. The system helps to manage order from customer as well as advertise promotion. It allows kitchen staff to view ordering information, management to manage fastfood raw materials and staff to search customer delivery and profile information. This system helps to reduce queue issues during peak hours, speed up food preparation and increase customer volumes. As a result, market share of fast food restaurant can be boosted up and increases return of investment for the investor. 5|Page
De Leon (De Leon, 2008) mentioned that there are several aspects that should be included in a good online food ordering system. System should be simple to navigate, not clustered and easy to make an order, (Sharma, 2007,) designed with professionals looking with search engine optimize capability and available 24hours. The system should also have a secure payment gateway to protect their customers’ credit cards information, fast and keep track on orders and sales history easily as well as generate a comprehensive sales report, (Sharma, 2007.)
RESEARCH METHODOLOGY Research methodology has many research dimensions and methods. The scope of research methodology is wider than research method. This is mainly adopted by the researcher in undertaking this research. Methodology is the underlying principles and rules that govern a system method; on the other hand it is a systematic procedure for a set of activities. Thus, from these definitions a methodology encompasses the methods used within a study. A waterfall model under the software development life cycle (SDLC) is the methodology used to produce the online food ordering system and the customer self-ordering system. It is used by system developers to produce or alter information systems or software. It divides the development process into several stages or processes. After the completion of one stage, it will logically move to another stage. Sometimes moving back to the previous stage is necessary due to failure that occurs in current stage. System design methods are a discipline within the software development industry which seeks to provide a framework for activity and the capture, storage, transformation and dissemination of information so as to enable the economic development of computer systems that are fit for purpose.
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METHODS OF DATA COLLECTION Firstly, there are numerous ways of collecting data from the customer whom are using the system of online food ordering like questionnaire paper, online questionnaire or personal interview, we chosed online questionnaire for the prompt response. Although there are various methods of data collection like surveymonkey or smarta, we chose Google FORM to create an online questionnaire to perform the data collection to carrying out our study. Research shows that response rates on private networks are higher with online questionnaires than with mailed questionnaires or interviews – during the first few days. Subsequently, response rates fall to match the same low rate as mailed questionnaires. Because email addresses are unique identifiers, online questionnaires can guarantee neither anonymity nor confidentiality. If one or the other is required, you must develop a strategy. This system of data collection can be defined as a systematic way of collecting data or information from a respondent through asking questions directly from the respondent and also collecting information with the aim of facilitating understanding. By this process we asked a various ranges of questions to find out the multidimensional perspective of online food ordering system and service provided by the Foodpanda. We built a competitive background with the other companies running in the market like foodmart and hungrynaki. To eliminate time of both the interviewer and interviewee online questionnaire is the best way because it provides services of automated charts and graphs which are accurate in every aspect.
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QUALITATIVE ANALYSIS
Qualitative research is considered to be particularly suitable for gaining an in-depth understanding of underlying reasons and motivations. It provides insights into the setting of a problem. At the same time, it frequently generates ideas and hypotheses for later quantitative research. Data collection in qualitative research is not seldom based on unstructured or semi-structured, but methodologically flexible techniques, e.g. individual depth interviews or group discussions that are suited to elicit great detail and a comprehensive view. Quantitative research uses highly structured, rigid techniques such as online questionnaires, on-street or telephone interviews. Unlike qualitative research, which allows unlimited expression from respondents, quantitative research relies on responses to pre-formulated questions. Here we are going to illicit qualitative analysis of food ordering system in context of Bangladesh. The qualitative analysis is based on a questionnaire which we have constructed to gather information from a group of users of food ordering system, the purpose of which is to gain insight of the system and establish a primary setting for quantitative analysis. The questionnaire which we have formulated to gather information from a group of 20 users are based on 21 questions which comes with preferred options. The questions that have been asked are presented below: 1. 2. 3. 4. 5. 6.
DO YOU ORDER FOOD ONLINE? IF YES, FROM WHICH COMPANY DO YOU PREFER? HOW OFTEN YOU ORDER FOOD ONLINE? WHICH MEAL YOU TYPICALLY ORDER FOOD ONLINE? IN GENERAL, HOW DO YOU PREFER TO ORDER FOOD? WHAT IS THE APPROXIMATE MONEY YOU SPEND ON ORDERING FOOD PER TIME? 7. WHY DO YOU PREFER ONLINE FOOD DELIVERY? 8. WHICH COMPANY SERVICES ARE GOOD? 9. WHICH COMPANY IS GOOD IN PACKING? 10. RATE THE COMPANY UNDER THE FOLLOWING CRITERIA: 11. IN QUALITY OF SERVICE 12. ON TIME DELIVERY 13. WHICH WEBSITE OR APP HAS EASY ACCESSIBILITY TO ORDER FOOD? 14. BILLING PROCESS AND PAYMENT OPTION OF YOUR SELECTED COMPANY 15. PLEASE RATE DELIVERY SERVICE OF YOUR SELECTED COMPANY 16. ORDERING PROCESS OF YOUR SELECTED COMPANY 17. MENU SELECTION SERVICE OF YOUR SELECTED COMPANY 18. DOES FOOD QUALITY REMAIN SAME WHILE DELIVERY?
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19. ACCORDING TO YOU WHICH COMPANY PROVIDES MORE OFFERS AND PROMOTIONS? 20. WHICH COMPANIES CUSTOMER SERVICE IS GOOD? 21. WOULD YOU SUGGEST OTHERS TO BUY FOOD ONLINE, IF YES WHICH COMPANY? 22. ACCORDING TO YOU WHICH COMPANY BELOW HAS MORE TIE UPS WITH MOST RESTAURANTS? The responses of the questions are given below:
Out of 20 responses, 5 respondents said Yes and 15 respondents said No to this question.
Out of 20 Responses, 5 preferred Hungrynaki, 1 preferred Foodmart, and 14 preferred Foodpanda 9|Page
15 people said they order food monthly, 3 said weekly and 2 said fortnightly.
8 people said they typically order dinner online, 7 typically order snacks, and 5 typically order lunch
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14 people preferred to order food over the mobile app, 4 preferred web browser and 2 preferred other platforms.
11 people said they spend less than 500 taka when order food online, 5 spend more than 500 taka and 4 spend less than 250 taka.
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7 people said they prefer online food delivery because all of the above reasons, 5 use because it is convenient and 8 use because it is time saving.
People were asked ' WHICH COMPANY SERVICES ARE GOOD' and they were given 3 options- Foodpanda, Foodpanda and Hungrynaki and asked to judge them against some specific criteria: In packing, 6 preferred Hungrynaki, 12 preferred Foodpanda, 2 preferred Foodmart
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in quality of service, 6 choose Hungrynaki, 11 choose Foodpanda, 3 choose Foodmart
5 said Hungrynaki delivered on time, 13 chhose Foodpanda, 2 chhose Foodmart
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We got 19 responses and out of 19, 11 people said Foodpanda has easy accessibilit y to order food, 11 said Hungrynaki and 2 said Foodmart
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People were asked to give rating of their selected company ranging from 1 to 5; 1 being the poor and 5 being excellent.
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Out of 19 people, 5 people choose hungrynaki, 2 choose others, 12 people c hoose Foodpanda
11 said Foodpanda, 1 said Foodmart, 7 said Hungrynaki, 1 said others
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13 people said they would suggest other to take Foodpanda while ordering food online, 5 would recommend Hungrynaki, 1 foodmart, 1 will suggest other services.
15 people said Foodpanda has more tie ups with most restaurants, 3 said Hungrynaki, 1 said Foodmart, 1 said other services.
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QUANTITATIVE ANALYSIS Quantitative Research is considered to have as its main purpose the quantification of data. This allows generalizations of results from a sample to an entire population of interest and the measurement of the incidence of various views and opinions in a given sample. Yet, quantitative research is not infrequently followed by qualitative research which then aims to explore select findings further. From the responses to the specified questions asked in the questionnaire we are able to come to some conclusions regarding the preferences of the users, their requirements and the performances of the online food ordering companies. The users rated their preferred companies from a scale of 1 to 5 basing on the following criteria:
1. Bill processing and payment option of preferred company:
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2. Delivery Service of preferred company:
:
3. Order Processing of preferred company:
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4. Menu selection service of preferred company:
5. Food quality after delivering:
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6. Presentation of food while being delivered:
From the questionnaire we are also able to see which company the users prefer more while ordering online, how often they order and what types of meal do they order:
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From the information collected from the questionnaire we can see that most of the users prefer ordering food from food panda. The main reason of which is that foodpanda has larger chain, logistic system than any other company and it also serves and delivers quality food at faster rate than others, it also has better bill processing and ordering system. Other than all of these foodpanda ran huge marketing campaigns which created huge buzz among the food loving people. The other companies like hugrynaki and foodmart are also doing relatively good business by focusing and segmenting their marketplaces and serving their customers accordingly. Online food ordering system is going through hard times globally in recent years. Startups in this space are downsizing, shrinking operation or even shutting down entire operation in many parts of the world. This has created quite an interesting conversation around the space of food tech. In Dhaka though we don’t have any Online food ordering system startup in its true sense; but we do have quite a few startups in Online food ordering system along with logistics space. Startups that are using technology to market and deliver food and startups that are creating communities around food. These are not essentially Online food ordering system startups rather food marketing or logistics startups.
HungryNaki, Foodpanda and Foodmart
To be precise, HungryNaki and Foodpanda are probably the “food-marketing-logistics” startups. Hungry Naki offers online food delivery service for fresh and on time food. The platform also gives you option to choose your favorite menu from a long array of cafés, restaurants, and eateries that deliver right to your doorstep. Foodpanda, the Rocket Internet’s food delivery startup, also operates in the same space. It has been facing intense competition from HungryNaki. Started back in 2012, the startup now operates in more than 40 countries across five continents and often makes headline for eating up its competitors. Foodmart is another venture into this space, which shows how competitive the food delivery startups are becoming and the increase in the number of competitors would create a cutthroat competition in this space. Most of these venture has a corresponding mobile app on Android and Apple phones which creates the venture technological aspects covered at all ends which helps reach a bigger customer base due to the convenient nature of the apps. Business model for both of these startups is commission on sales. They make 10% commission on every order. It means, if someone buys a BDT 500, they get BDT 50 out of that single deal. If you consider the cost, it is pretty high. Costs like customer acquisition, customer support, operations, and discount for repeat buy make the unit economics pretty bad. But this does not mean this is a bad business and it is not possible to build a profitable business here. It is possible and there are companies doing it now. The central question to ask is that: what problem you are solving and how good you are at solving it? The other one, Dhaka Foodies, is largely a community of foodies, something like Yelp for food and restaurant. The startup aims to create a Foodies’ guide for Dhaka and other cities, based on users experience and contribution. Users can write reviews, post pictures and suggestions of food and restaurants. Dhaka Foodies also organizes food festival and different events.
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However, there is a solid demand for online food ordering system startups, startups like Blue Apron or a Dhaka version of it. The simplest one of these may be: a homemade food delivery startup to workplaces. Here are few areas of online food ordering system you can think about: 1) Daily meal problem: Daily meals for offices, for houses, if there is one. You serve the need of people who want to order daily meals for office or home. There is a solid need for this in Dhaka. A growing number of startups want to have this service. You will just have to consider these three points:
Low price point – they want budget meals
Menu – they don’t want to eat same food repetitively
Hygienic- it has to be healthy and hygienic
People don’t want and need expensive well designed packaging. You just have to maintain timely delivery, low cost food and a variety of menu for different day. Here you don’t deliver on-demand, this is done largely pre-order which is easier to deal with logistically. 2) On-demand: Where you deliver on-demand food for meetings and for any special events according to the needs of your customers: menu, time, taste and more. You have to maintain excellent experience in terms of packaging, delivery, service and more and you can charge premium. This will require you to scale to optimize the business. Food is a huge industry in Bangladesh that is expanding ever so rapidly. With population increasing at a rapid pace in cities, people are becoming increasingly busy which means the demand for convenient food is on the rise. On the other hand, online food ordering system space is largely unexplored in Bangladesh and the time is never going to be any better than now to build a Online foof ordering system startup in Dhaka.
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FINDINGS AND RECOMMENDATIONS
After conducting thorough analysis we found out t he following concerns regarding the food ordering systems/services in Bangladesh
Many people order food online nowadays and the number will increase in the future People use Foodpanda more as an online ordering service over Hungrynaki and Foodmart
People order food monthly rather than weekly or fortnightly
People are more likely to order dinner online than lunch, snacks or breakfast
People prefer to use mobile app over web browsers or other platforms while ordering food online People are likely to spend less than BDT 500 for ordering food online People use online food ordering system because of faster delivery, time saving, and convenience.
In packing, Foodpanda is best
In quality of service, Foodpanda is best
In on time delivery, Foodpanda is best
Foodpanda app or website has easy accessibility to order food online
Out of 20, 14 people picked Foodpanda while judging the billing and payment process system and they gave an average of 3 out of 5 rating for it People pick Foodpanda as best while judging their order process system and they gave an average of 3 out of 5 rating for it People pick Foodpanda as best while judging the menu selection and they give an average of 3 out of 5 rating for it Out of 20, 14 people picked Foodpanda over Foodmart and other online services and gave an average rating of 3 while judging the quality of food being delivered.
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People on average put a rating of 4 out of 5 for judging the delivery service
While judging the presentation of food, on average people gave 3 out of 5
People agree that Foodpanda provides more offers and promotions
People agree that the customer service of Foodpanda is best
People will more likely to recommend Foodpanda to others as online food ordering service People agree that Foodpanda has more tie ups with other restaurants
Recommendation:
The system shall enable the manager to view, cr eate, edit and delete food categoryand descriptions
The system shall allow confirmation of pending orders.
The system shall allow generation of sales report for the orders made.
The system shall allow the manager to update additional information (description, photo, ingredients etc.) for a given food item The system shall allow the manager to update price for a given food item. The system shall enable the customer to view the products menu, create an account, login to the system and place an order. The customer shall specify whether the order is to be picked up or delivered. The system shall display the food items ordered, the individual food item prices and the payment amount calculated.
The system shall prompt customer to confirm the meal order.
The system shall provide visual confirmation of the order placement
The should be sufficient network bandwidth
Backup- provision for data backup
Maintainability- easy to maintain
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Performance/ response time- fast response
Usability by target user community- easy to use
Expandability- needs to be future proof or upgradable
Safety- should be safe to use
REFERENCES 1. Bhatnagar, P. (2006, march 28). Dinning Trends: self service=Quick-service. 2. Brickers, J. (2006, July 24). Is Fast Casual Self-Service at the Tripping Point? 3. De Leon, E. (2008, August 23 ). Best Online Food Ordering System. Restaurant Checklist
APPENDIX
The questionnaire used in the data collection is attached under this section. Please turn over this page to see the questionnaire.
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