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If a food business depends only on social media orders, what business risk exists?

Answer and explanation

Correct answer: Platform dependence and demand uncertainty

The direct answer is option A: dependence on one social-media platform and uncertain demand create business risk. If orders come only through one platform, a change in its rules, algorithm, fees, technical service or customer reach can reduce sales suddenly. Demand may also vary, so the business may receive too few orders on some days and too many to handle on others. Option A is correct because it identifies both concentration risk and demand uncertainty. Option B is wrong because food still has a limited shelf life and may spoil. Option C is wrong because ingredients, labour, packaging, delivery, equipment and platform charges create costs. Option D is wrong because social media cannot automatically guarantee hygiene; hygiene depends on training, cleaning, safe storage and proper handling. A stronger business can use more than one suitable channel, such as direct repeat customers, phone orders, local partnerships or an appropriate delivery service, while tracking costs and demand. Memory cue: one sales channel means one point of failure.

Related tags

Indian-CuisineSocial-Media-OrdersChannel-RiskFood-Business

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