Why Do Small Restaurant Operators Intend to Terminate Their Relationship with Food Delivery Apps During Covid-19 Pandemic?

Abstract

This study investigates the factors influencing restaurant operators’ intention to terminate their relationship with food delivery apps. This research develops a model with key variables based on the loyalty theory and adds variables reflecting the specific context of the food delivery app market. The face-to-face survey of 128 restaurant managers was conducted in South Korea from Oct 1st to Oct 30th, 2020, and the data obtained were analyzed by SEM. The results showed that distrust is a direct antecedent of their intention to terminate. However, there is no significant relationship between dissatisfaction and that intention. Revenue increase is negatively associated with dissatisfaction, whereas exposure opportunities are positively associated with dissatisfaction. The fee paid for food delivery apps, lack of control of delivery service, goal incongruity, and transparency are shown to be the important determinants of distrust. Our findings will enhance the understanding of the food delivery app market in South Korea and the relationship between the food delivery app and the small restaurant. Based on the results, recommendations for prospect research and theoretical and practical implications are presented.