The Korean Journal of Economic Studies
The Impact of Online Food Delivery Spending on the Opening and Closure Rates of Restaurants
SeoJong Kang (Hanyang University), Hanbyul Ryu (Hanyang University ERICA CAMPUS) and Ji-hwan Kim (Hanyang University ERICA CAMPUS)Year 2024Vol. 72No. 4
Abstract
This study examines the impacts of delivery platform following the pandemic on restaurant opening and closure rates. Using credit card data, along with restaurant opening and closure rate data, we employed a difference-in-differences method with delivery app consumption as the treatment variable. Results show that while delivery app usage does not significantly affect opening rates, a 1% increase in delivery app consumption leads to a 0.0012 percentage point decrease in closure rates. Furthermore, the impact of delivery app consumption was significant only in areas where delivery app usage was relatively low prior to the pandemic.