The Impact of Platform-Based Delivery Services on the Cost Savings of Restaurant Businesses
Year: 2025
Type: article
Abstract: Advancements in information and communication technology(ICT) have revloutionized traditional industries, with platform-based services playing a crucial role in enhancing operational efficiency and reshaping cost structures. In the restaurant sector, food delivery platforms that adopt Own Delivery(OD) services leverage automated order processing systems and optimized delivery route algorithms, enabling restaurants to reduce fixed costs and boost efficiency. This study examines the economic impacts of platform adoption by emprically comparing the costs of hiring delivery riders directly with those of utilizing food delivery platforms. To address uncertainties in platform costs and delivery demand, we employ Monte Carlo simulations and Bayesian hierarchical modeling across diverse scenarios. The results indicate that at current market delivery agency fees (2,900-3,200 KRW per delivery), restaurants can achieve monthly cost savings of 2.97-3.12 million KRW compared to directly hiring riders. Additionally, even when restaurants fully absorb consumer delivery fees (6,000 KRW), they still realize cost savings of approximately 1.42 million KRW. These findings highlight that platforms not only reduce costs but also enhance managerial flexibility, enabling restaurants to adapt to fluctuating demand and mitigate revenue losses caused by unprocessed orders. In conclusion, food delivery platforms provide substantial economic benefits to restaurant businesses, offering more than just cost reductions by improving operational adaptability. These findings underscore the value of platform adoption and provide practical insights for restaurant managers and policymakers seeking to optimize sustainable growth within the platform economy.
Source: 한국물류학회지
Authors: Hee-Chan Lee, Seung-Hye Han, Chul-Sung Lee, Ji-Won Sim
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409452888