Restaurants register for an online food ordering system and method to have their menus presented on the online system. Registration is accomplished by payment of a fixed registration fee. A merchant account is created for each restaurant. The merchant account is associated with a unique account key that includes a local delivery indicator and direct payment receivable account information facilitating direct payment to the restaurant's account. A first server is appointed for receiving orders from customers. The first server includes a data storage device having menu items and information from each of the restaurants and each of the unique account keys associated with each restaurant. In communication with the first server are second and third servers for processing payments and transmitting orders to the restaurant for processing and fulfillment. An order confirmation means is further provided for notifying the customer upon submission of the order to the restaurant along with estimated pick-up or delivery times.