Jewoo Kim

Amid Covid-19, restaurant customers have substantially turned to delivery services. Given that table service and ambience are absent in the delivery service mode, cue utilization for restaurant delivery could be different from that in dine-in consumption. Furthermore, increased hygiene and health concerns may lead to changes in cue utilization patterns after the pandemic. Therefore, we explored how restaurant type and its interactions with brand and review rating affected delivery sales and whether their sales effects changed according to the severity of infection risk. Fixed-effects estimation and marginal analysis were employed to investigate 579,858 observations from 193,286 restaurants in China between 2019 and the second quarter of 2020. The findings revealed that full-service and/or branded restaurants had higher delivery sales than other groups. Interaction effects between restaurant type and brand as well as restaurant type and review rating were also found. Theoretical and practical implications for effective cue utilization are discussed.