Restaurant trends

 

Mobile App Users Enticed with Discounted Pizza from Papa Johns

Posted: 28 Dec 2011

Mobile Marketing Mobile App Users Enticed with Discounted Pizza from Papa JohnsThe number of mobile phone and tablet owners who use their devices to order pizza is growing by the day. As a result, Papa Johns is doing everything in its power to become the mobile king of domestic pizza chains.

Papa John’s seasonal mobile promotion gives those who place an order through the Papa Johns mobile app 25% off the final purchase price of their order. The offer, however, excludes the “Special Offers” tab and applies strictly to orders from the Full Menu.

For Papa John’s, the mobile promotion comes at a great time, given the recent Harris Poll survey which indicated that 61% of Americans said they plan to spend less on eating out in the next six months.

As budgets tighten amidst the post-holidays financial blues, restaurants and retailers have to pull out the stops to continue driving repeat business. Consequently, Papa John’s is doing even more than just providing discounts on pizzas ordered via mobile. The venerable pizza king is also giving away one of the hottest mobile devices currently on the market.

“The holidays are here,” the pizza maker announced on Facebook, “and Papa John’s is giving away more than just delicious food. We’re also giving away a Samsung Galaxy Nexus Android phone every day through December 31, 2011. After all, how else are you going to phone in your holiday pizza orders?”

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Mobile Ordering Makes Fast Food Faster

APRIL 7, 2011

Casual restaurants can boost ordering efficiency for on-the-go customers

 

Whether through an aggregator like SeamlessWeb or directly from the restaurant, consumers are rapidly adopting online food ordering. Many patrons find ordering ahead of time easier and more accurate than dealing with a harried cashier or a garbled drive-thru speaker, and some establishments that provide mobile ordering offer incentives like discounts or skipping the line to entice customers to try using this emerging channel.

As of November 2010, nearly two in five US internet users had ordered food online from a restaurant, an increase of 90% over the previous year, according to a Technomic survey.

US Internet Users Who Have Ordered Food Online, Nov 2009 & Nov 2010 (% of respondents)

A December 2010 Cornell Center for Hospitality Research assessment of 326 of the largest US restaurant chains found that fast-casual restaurants, like Panera Bread, and quick-service restaurants, such as SUBWAY, were the segments most likely to offer online ordering for customers, accounting for over 70% of the total.

Availability of Online Ordering at US Chain Restaurants, by Segment, Dec 2010 (% of restaurants in each group)

Not a single fine dining establishment provided the capability. The higher-end the restaurant—where atmosphere and experience are valued over convenience and efficiency—the less sense it makes for the streamlining that online ordering affords.

The same two lower-priced segments also dominated in offering mobile apps. Fast casuals were ahead in this respect; 58.3% of chains with an app allowed ordering.

US Chain Restaurants that Offer Mobile Apps, by Segment, Dec 2010 (% of restaurants in each group)

Consumers do have an interest in dining-related mobile activities. An August 2010 Nielsen Company survey found that among all mobile app downloaders, 25% used a dining or restaurant app.

Chipotle Mexican Grill, Pizza Hut and SUBWAY are just a few of the popular brands that offer mobile ordering capabilities, either through proprietary mobile apps or texting services

Customers may enjoy the convenience, but there are clear advantages for restaurant operators, as well. Online ordering can increase sales and ordering frequency as customers not paying with cash tend to spend more, and past orders and credit card information can be stored, encouraging repeat business. Restaurants can also benefit from automated upselling, and use ordering history as a customer relationship marketing tool to target future promotions.

Noah Glass, CEO of OLO Online Ordering, a software provider that has created mobile apps for Five Guys Burgers and Fries and SONIC Drive-In, told Mobile Commerce Daily, for example, that the company’s clients had a 32% increase in average order size, and 83% of customers ordered more often, with mobile apps vs. phone calls.