The Korean Journal of Economic Studies
Online Food Delivery Platform and Restaurant Sales: Evidence from a Local COVID-19 Outbreak
Sangwon Lee (Sogang University) and Hyunbae Chun (Sogang University)Year 2022Vol. 70No. 4
We examine the impact of COVID-19 on restaurant sales depending on the use of online food delivery service (OFDS) platforms. Using data on credit card transactions of restaurants in Daegu, we find that OFDS restaurants could cover more than half of the lost sales driven by COVID-19. The sales loss covered by OFDS was larger in restaurants than in fast food and coffee shops. Our findings on the role of OFDS platforms in reducing the damage to restaurants provide policy implications for future pandemic response.