Status And Direction of Online Food Businesses During Covid-19 Pandemic

AUTHOR(S)

MARY LANE C. STA. MARIA-SIMBRE

ABSTRACT

——This study described the status and direction of online food businesses during COVID19 pandemic with the objective of boosting the sales and decreasing the cost of sales of online food businesses despite the presence of COVID-19 pandemic. Through google survey form, relevant information was gathered from seventy one (71) respondents in Congressional District I, Tarlac Province which were analyzed using frequency and percentage statistical tool, multiple response with ranking statistical tool, t-test paired sample means statistical tool and Pearson Product Moment Correlation statistical tools through “IBM SPSS Statistics Data Editor” instrument. Respondents of the study are from 71 online food businesses in Congressional district I covering a total of 10 municipalities. Study revealed that Covid-19 pandemic resulted to significant decrease of online food businesses’ amount of average sales, amount of average cost of sales and amount of average gross profit by 53%, 45% and 55% respectively. However, it is to be noted that for the same period, average online food businesses’ cost of sales was increased by 4.04%, in contrast to percentage to sales of gross profit which was decreased by 4.04%. This research also disclosed that the top four (4) challenges met by online food businesses in conducting their operations are “cash on delivery requires bigger amount of capital”, “customer loyalty is tough to maintain”, “unexpected price increase of supplier” and “stock-outs and inventory overload”. Acquisition of business loan and finding investors to work with who could contribute additional capital to the business can be a good source of money for the company. The researcher strongly recommends setting aside contingent fund for emergency which would help the entity to ensure the normal operation of the company and be ready for any business uncertainties. Consistent innovation of products, packaging or processes help in attaining the loyalty of customers. Also, appreciation notes and other forms of communication addressed to the name of the customers make them feel more important. Lastly, preparation for seasonal demands can help in avoiding stock-outs and inventory overload. Keywords — Challenges, Covid-19 Pandemic, Online Food Business, Pandemic, Sales Channel, Status