Study on the Selection of Takeaway Operating Modes from a Restaurant Perspective

Abstract

There are three operational modes for restaurant takeaway services: a takeaway platform combined with restaurant delivery (mode A), a takeaway platform paired with platform delivery (mode B), and a self-established platform with delivery (mode C). In the face of intense market competition, determining how restaurants can select appropriate operational delivery modes to maintain competitiveness and profitability has emerged as a pressing issue. In this paper, we develop game models that encompass a restaurant and food delivery platform to investigate the optimal operational mode for restaurants. Our analysis indicates that when the market size is small, mode B results in the lowest ordering costs, the highest sales volume, and the maximum profit. Conversely, in the context of a large market size, if the commission rate is low, mode A minimizes the ordering costs and maximizes sales volume; if the commission rate is high, mode C minimizes the ordering costs while also achieving the highest sales volume. Notably, we find that as long as the market size is sufficiently large, mode C consistently yields the highest restaurant profits. The outcomes of this study contribute to the theoretical framework surrounding the operation and management of food delivery platforms and offer theoretical guidance and decision-making support for selecting restaurant food delivery operational modes.