This study underscores the importance of fostering a compatible and cooperative relationship between franchise businesses and delivery platforms to maximize mutual benefits and ensure long-term sustainability in the food service industry. While both f...
This study underscores the importance of fostering a compatible and cooperative relationship between franchise businesses and delivery platforms to maximize mutual benefits and ensure long-term sustainability in the food service industry. While both franchise systems and delivery platforms play pivotal roles for consumers and operators, their differing business models and interests often lead to tensions and conflicts. This research examines the multifaceted impacts of delivery platforms—both positive and negative—through the perspectives of key stakeholders, including franchisers, franchisees, independent operators, consumers, and delivery agent.
Franchise businesses are recognized for building consumer trust through systematic operations, strong brand equity, and consistent quality, offering independent operators a stable and reliable business model. On the other hand, delivery platforms contribute to consumer convenience and provide small businesses with additional revenue streams. However, challenges such as high commission fees, elevated delivery costs, and increased competition among franchisees strain financial and operational stability. These issues also affect consumer satisfaction and pricing due to rising advertising expenses and platform fees.
To navigate these challenges, this study advocates a balanced approach that combines regulatory oversight with self-regulation. While South Korea's self-regulation policies for delivery platforms provide flexibility in responding to market dynamics, persistent issues—including high commission rates, reduced competitiveness among platform operators, declining consumer trust, and deteriorating working conditions for delivery agentl—highlight the limitations of self-regulation. Consequently, this research emphasizes the necessity of more robust policy frameworks, including legislative revisions, to establish a fair, transparent, and mutually beneficial ecosystem for delivery platforms and franchise businesses.