Perceived Benefits and Cost-Benefit Perspectives on Service Digitalization: A Preliminary Study among Fine Dining Restaurants in Bukit Jalil and Bukit Bintang, Kuala Lumpur

Digitalization continues to shape various industries, including the food and beverage sector, it is crucial for fine-dining establishments to understand and leverage its potential benefits. The process of transforming customer service into a digital experience that creates a paperless environment is known as service digitalization. Previous studies on service digitalization in Malaysia have concentrated on quick-service restaurants and online food delivery systems, with limited attention given to the unique context of fine dining restaurants. Moreover, the prior studies have mainly concentrated on customers’ perspectives, giving limited attention to the standpoint of restauranteurs. Hence, this study aims to fill the significant gap in the literature by specifically investigating the perceived benefits and perceived costs of service digitalization among fine dining restaurants, as well as identifying types of service digitalization that should be prioritized among fine dining restaurants. This study has adopted a qualitative research approach in exploring the above-mentioned research objectives and a one-to-one interview was held with eight restaurant owners or managers from fine dining restaurants located in Bukit Jalil and Bukit Bintang, Kuala Lumpur. The qualitative result was analyzed based on the thematic analysis to identify the meaningful patterns in themes. The result indicated that usefulness, ease of use, operational efficiency, and enjoyment as the perceived benefits of service digitalization among fine dining restaurants in Bukit Jalil and Bukit Bintang, Kuala Lumpur. Furthermore, the perceived costs highlighted in the study were price, dependence, technical risk, social disconnection, and adaptability. In conclusion, this study contributes to the body of knowledge by providing a comprehensive understanding of the cost-benefit perceptions of restauranteurs toward service digitalization in fine dining restaurants. The cost-benefit analyses contribute knowledge in assessing the benefits and drawbacks in a data-driven manner, allowing the restauranteurs and food service sector to make better-informed decisions and able to allocate resources effectively. Additionally, this study provides valuable insights into the financial implications of adopting digital technologies in the food service sector.