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
HungryNaki, Foodpanda and Foodmart............................................................................................ 23
FINDINGS AND 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 todays 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 they 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.

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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 fast-
food 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.

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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. DO YOU ORDER FOOD ONLINE?

2. IF YES, FROM WHICH COMPANY DO YOU PREFER?
3. HOW OFTEN YOU ORDER FOOD ONLINE?
4. WHICH MEAL YOU TYPICALLY ORDER FOOD ONLINE?
5. IN GENERAL, HOW DO YOU PREFER TO ORDER FOOD?
6. 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

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 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 accessibility 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 choose 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 dont 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 cafs, restaurants, and eateries that
deliver right to your doorstep. Foodpanda, the Rocket Internets 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 dont want to eat same food repetitively
Hygienic- it has to be healthy and hygienic

People dont 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 dont 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 the 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, create, 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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