"Restaurants Using Delivery Platforms Earned an Average of 70.67 Million Won More"

Operating Profit in 2022 Also 6.55 Million Won Higher

[Image source=Yonhap News]

The Korea Internet Corporations Association Digital Economy Research Institute revealed research results on the 20th showing that small business owners can increase sales and operating profits by utilizing platforms.

The Digital Economy Research Institute announced the results of a study titled "Comparative Analysis of Business Performance Between Restaurants Using and Not Using Delivery Platforms," conducted by a research team led by Professor Heechan Lee from the Department of Hotel, Tourism, and Food Service Management at Sejong University. This study empirically analyzed how much higher the sales and operating profits of restaurants using platforms are compared to those not using platforms, and whether the platform has a practical impact on these differences.

As of 2022, restaurants using delivery platforms had an average sales amount 70.67 million KRW higher and operating profits 6.55 million KRW higher than those not using platforms. The difference became more pronounced during the pandemic. Operating profit per unit area was also analyzed to be higher in restaurants using platforms.

By industry, operating profits of platform-using restaurants in pizza, hamburger, sandwich, and similar food establishments were 119.9% higher than those not using platforms. In the case of chicken specialty stores, operating profits increased by 76.2% when using platforms. In these industries, more than 80% of businesses use platforms, making platform utilization more common than in other sectors.

[Image source=Research team of Professor Lee Hee-chan, Department of Hotel, Tourism and Food Service Management, Sejong University]

The research team also analyzed the causal relationship between delivery platform usage and restaurant sales and operating profits, controlling for factors that could affect restaurant profitability such as operation type, business area, industry, and region.

As a result, it was confirmed that using delivery platforms has a statistically significant impact on restaurant sales and operating profits. Specifically, of the 70.67 million KRW higher sales in restaurants using delivery platforms, 68.5%, or 48.4 million KRW, was attributed to the increase effect of the platform. Of the 6.55 million KRW increase in operating profits, 84.0%, or 5.5 million KRW, was found to be the effect of the platform.

Professor Heechan Lee explained, "This research result proves that platforms have an effect of improving overall sales and operating profits even for small business owners. Especially, since greater effects appear in industries where platform use is relatively common, how familiar and systematized small business owners are with platform utilization seems to be important in gaining greater benefits."