Orders placed via smartphone will make up more than 10% of all quick-service restaurant sales by 2020, Business Insider Intelligence projects. Does this one statistic apply to and prove the global market? No, while it is indicative of a general trend, region to region the data and the businesses using mobile ordering vary, the size of the market changes and the major technology players differ.
To explore the market in full we recommend you download our latest white paper, an analysis of the global restaurant market. Within this we dive deep into the UK and Europe, North America, Asia and Australasia, pulling out key points of difference and making clear the market opportunity in each.
Before you read it, below are four food businesses riding high in their markets and doing so because of their implementation of mobile and online ordering technologies.
Domino’s has the number one rated quick-service restaurant app according to a number of market experts. When the restaurant launched its original mobile ordering service in June 2014 is had already seen 86 consecutive quarters of international same-store sales growth – that number is now 95.
Since then, the rate of growth has increased. Domino’s generated 60% of its U.S. sales from mobile devices in 2016 and in the past year it’s opened nearly 1,200 stores.
As Reuters reports, the world’s largest pizza delivery chain “has managed to stay ahead of competition by effectively using technologies such as digital wallets and apps for smartphones and smartwatches that help customers place and pay for orders quickly.”
Since its March 2017 launch, Vital Ingredient has seen the number of digital orders processed on the platform increase week on week (in July nearly 1,700 orders were taken across 19 stores). It has also enjoyed significant growth in users when compared to the original online platform. Queues are noticeably shorter than before, which has opened up space for new in-store customers that might previously have been turned off by queue sizes.
Data collected from the platform also reveals that Vital Ingredient’s average online basket size is larger than in-store. Analysis shows this is due to a propensity for customers to order extra items, drinks or snacks, when ordering online.
Yum! Brands, the owner of KFC, Taco Bell, and others reports that mobile ordering makes up 46% of total U.S. delivery and carryout sales and that this figure is increasing at a rate of about 3% per year.
The Yum Brands take the digital experience of customers to the maximum, not only promoting the ease of ordering and paying online, but also rewarding customers for larger orders and digital engagement.
Taking Taco Bell as a specific example, it encourages customers to see it as a digital brand by encouraging social media shares. In 2016 it launched its own Cinco de Mayo Snapchat lens. This was viewed 224 million times in one day, breaking the then Snapchat record. As a result of its digital efforts, Taco Bell has seen a 25 percent growth in dollar value on mobile orders.
In 2014, Indian restaurant, Red Naga chose to shun Just Eat and break the mould by launching its own online ordering platform. Since then, the popularity of of the restaurant has grown to the point that it has had to minimise the amount of marketing it pushes out in order to balance the volume of incoming orders.
Customers impressed with its food and the customer experience have proved loyal to the venue and 57% that have ordered online have returned frequently (guests have placed an average of 6 digital orders each) As such, it often reaches its maximum output capacity.
To delve deeper into the impact of digital ordering, the businesses using mobile ordering, and to gain a view of regional restaurant industry trends, download our latest whitepaper, now.
Alternatively, to discuss how online and mobile ordering can benefit your business, get in contact on email@example.com.