The restaurant industry has shown very substantial changes in channels of distribution. It used to be that that customers would go to the yellow pages find the restaurants number and order. However now consumers pretty much don’t use the yellow pages, nor do they call. They go to their phones open an app and send their order in online via the mobile app and internet.
This change has occurred for a number of reasons. Firstly there has been a significant change in technology. With faster and faster mobile internet connections and also more sophisticated smart phones it has become easier and easier to store and browse menus on ones phone. In addition to this with advancing technology it has become cheaper and cheaper to have mobile data …show more content…
This can in turn be a result of cheap internet data plans and sophisticated smartphone technology. Due to this shift in consumer behavior, using their phones to socialize with others via social media networks like instagram it has made it easier for small restaurants and homemade establishments to get access to the masses in their local market. Such attention used to costs at least hundreds of thousands of dollars can now be had with a few thousand dollars and some creative ideas which work well on social media. This opportunity has led to an influx of competition into the marketplace as well who can now afford to take part in such a business endeavor. What used to cost hundreds of thousands of dollars for a prime location can be had for much less with a focus of delivering food from a location which is hardly known. As a result apps providing delivery services conglomerating all the restaurants with their menus in one place have risen. This has further exasperated the phenomena of online ordering and using mobile internet as a primary channel for distribution. As mentioned by Winer, rapid changes in technology increases the set of channels managers can choose from (Winer, 2011). This has been evident in the restaurant ordering scene with the advent of mobile smartphones, social media and online ordering systems. Not only has it become easy for restaurants to get attention, it has made things convenient for the consumers to order food. No longer needed is the wait on the phone, explaining the order, with a click of a few buttons on the mobile one can order their food and then track it on it’s way to their home using gps technology. So that hungry customer can now feel comfortable his food is on the
This change has occurred for a number of reasons. Firstly there has been a significant change in technology. With faster and faster mobile internet connections and also more sophisticated smart phones it has become easier and easier to store and browse menus on ones phone. In addition to this with advancing technology it has become cheaper and cheaper to have mobile data …show more content…
This can in turn be a result of cheap internet data plans and sophisticated smartphone technology. Due to this shift in consumer behavior, using their phones to socialize with others via social media networks like instagram it has made it easier for small restaurants and homemade establishments to get access to the masses in their local market. Such attention used to costs at least hundreds of thousands of dollars can now be had with a few thousand dollars and some creative ideas which work well on social media. This opportunity has led to an influx of competition into the marketplace as well who can now afford to take part in such a business endeavor. What used to cost hundreds of thousands of dollars for a prime location can be had for much less with a focus of delivering food from a location which is hardly known. As a result apps providing delivery services conglomerating all the restaurants with their menus in one place have risen. This has further exasperated the phenomena of online ordering and using mobile internet as a primary channel for distribution. As mentioned by Winer, rapid changes in technology increases the set of channels managers can choose from (Winer, 2011). This has been evident in the restaurant ordering scene with the advent of mobile smartphones, social media and online ordering systems. Not only has it become easy for restaurants to get attention, it has made things convenient for the consumers to order food. No longer needed is the wait on the phone, explaining the order, with a click of a few buttons on the mobile one can order their food and then track it on it’s way to their home using gps technology. So that hungry customer can now feel comfortable his food is on the