[Initial Moment] How Long Will It Be 'Because It Hurts, Boss'?

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On the 5th, an interesting paper was presented at the Korean Economic Association International Conference held in Yeosu-si, Jeollanam-do. Titled "Who Benefits from Food Delivery Platforms: The Heterogeneous Impact of Platforms on Dining Sales," the paper reveals that restaurants using delivery platforms experience an increase in monthly sales of 1,931,556 KRW. The study was jointly conducted by Professor Kim Kyung-bae of Sejong University and Dr. Lee Gong of the Korea Development Institute (KDI), analyzing changes in restaurant sales based on one year of 2020 credit card payment data from approximately 800,000 dining establishments.

The study attracted industry attention for quantifying, based on actual data, how using delivery apps during the COVID-19 pandemic affected dining sales. Considering that visits to restaurants sharply declined due to social distancing measures, it is no exaggeration to say that delivery apps helped restaurants survive. Even without the pandemic, delivery apps benefit restaurants. The research estimated that, assuming no COVID-19 situation, monthly restaurant sales would increase by more than 1.4 million KRW after excluding all delivery-related costs. Up to this point, the delivery platform’s positive functions are clear.

However, reality is not all rosy. The sales increase effect gained by joining delivery platforms comes at a considerable cost. Even setting aside the fact that delivery fees must be shared with consumers, the constant public exposure of evaluations on food and service is a significant burden. The so-called "star rating terrorism" is a prime example. Since many people refer to star ratings and reviews when ordering food, it is impossible not to be affected. Among self-employed delivery app users, 74.3% responded that "reviews and star ratings affect sales." Many suffer from malicious reviews. Some customers insist on refunds claiming they found bugs in the food or make excessive service demands. These disputes often escalate into conflicts. The caf? named "Apeunikka Sajangida" (Because It Hurts, I’m the Boss), which gathers self-employed and small business owners, is flooded with stories of hardships caused by such issues. This is why many restaurants hesitate to join delivery platforms even though their monthly sales are expected to rise. Numerous places have started delivery only to suffer damage and give up.

Delivery platform companies are also struggling to create solutions. Since last year, they have established new review operation policies reflecting international standards and introduced private self-regulation. Some have defined and codified all actions throughout the entire review service process, from writing, exposure, management, to dispute resolution. However, the problems persist. A recent survey conducted by the Korea Federation of SMEs revealed that restaurant owners complain about difficulties caused by malicious and fake consumer reviews. There were many claims that reviews were maliciously manipulated. As a solution, they suggested the need for authority to delete about 3-5% of malicious reviews. Opinions were also raised about sharing information on "black consumers" and introducing a real-name system for reviews to prevent such issues.

This problem is a microcosm of the hardships faced by small business owners in Korea. While relying on platforms is the only way to keep their businesses afloat, they risk being shaken by negative issues that are far removed from legitimate consumer evaluations. They cannot remain "Apeunikka Sajang" (Because It Hurts, I’m the Boss) forever. For the delivery platform ecosystem to develop, a healthy review culture must be established. The responsibility lies not only with platform companies but also with consumers.

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