Article
Experts weigh in on adoption of mobile ordering for QSRs
Providers explain the benefits and convenience of the technology while one consumer questions the added value.
July 16, 2009
With Pizza Hut's debut of its mobile ordering application this week, it could be a good sign that restaurants will be adopting the technology. While at least two quick-service brands are testing such apps, the question remains about how soon the industry will offer this type of ordering.
For pizza chains, it makes sense to offer a mobile ordering app since they've been offering online ordering for several years. But what about for QSRs?
In a story posted earlier this week, QSRweb.com reported how GoMobo is working with Burger King and Subway to test mobile ordering. After the story posted, we received varying comments about the likelihood of QSRs adopting this technology. *Read also,Mobile ordering coming to a QSR near you.
Internet technology not quite there
Ola Ayeni, DVM, president and CEO of Mobile Dialog, a provider of mobile marketing, advertising and loyalty solutions, offered the following:
"Ordering over the phone can be applied to any QSR product provided the ordering is delivered to the QSR locations in real time, which is already done right now (by) several brands, including Burger King, McDonald's (in South Korea), Pizza Hut and Subway...
"There are over 283 million cell phones in the United States according to Mobile Marketing Association (MMA). With over 95 percent of these cell phones capable of sending and receiving text messages. According to Juniper Research, today there are over 63 million mobile web users in the United States with a projection of 60 percent over the next two years."
Ayeni said three types of services are available to allow consumers to order ahead via their cell phone, including:
- By registering first online at the brand's Web site and providing payment information, consumers can then order from their cell phone by sending a text message to the provided short code
- By sending a text message to a provided short code. Payment is made either with credit card or added to a customer's cell phone bill.
- Via a downloadable application on the phone
"Consumer adoption has been seen to be increasing greatly every year with mobile ordering," Ayeni said.
For example, Papa John's celebrated, in November of last year, their mobile ordering program when the company reached 1 million mobile web orders.
"Other companies are also moving in the same directions," Ayeni said."(However), mobile ordering is going to take off only when many consumers have real-time broadband Internet access on their phone."
Mobile ordering not a fad
Laurent Sanchez, director of alliances for mobile software solutions provider ACCESS Systems America, said she sees mobile ordering fitting into consumers' busy lifestyles. The adoption will only grow as mobile Internet access outpaces desktop access.
"Mobile ordering is not a fad. Around the world, consumers are already using mobile devices that have the capability to make payments, purchases and more. As of May this year, diners in the U.S. can use their mobile phone to place orders at quick-service restaurant chains like Burger King," he said.
"Mobile ordering is a perfect example of how mobile widget technology can make life easier for consumers. Widgets are appealing to consumers because they can be accessed without having to open the handset's browser, automatically acquiring and displaying the latest information from the Web. That means faster, customized access to the information you want.
"In the case of mobile ordering, for example, once a consumer selects their restaurant or venue of choice, a widget could allow them to select friends from their address book and invite those who are nearby to join them. A map widget would immediately bring that application to the screen, letting them know the fastest way to get to the restaurant."
Mobile widgets, he said, also are a great way for restaurants to profile users and track consumer spending patterns to send targeted coupon or discount offers as well as inform them about new services or special promotions.
Just because it's available ...
Matt Rozen, co-founder of candygurus.com and a tech marketer, questions whether consumers will actually adopt mobile ordering. He posted this message on the ReadWriteWeb blog about therelease of the Pizza Hut mobile ordering app.
"Just because the technology exists to do something doesn't mean it should be done. First and foremost, new apps for whatever platform should be solving a problem; making more eye candy is fun for devs to learn how to code something and great for marketers to trumpet, but unless it does something different then what I could do before, it will be short-lived."
In a follow up e-mail, Rozen said:
"Technology is great, and I'm all for the latest new gadgets and apps. But I'm not convinced that for us customers to have a new way to electronically connect with coffee places, restaurants, etc., will mean more money for (operators).
"Talking my order is just so much faster than clicking through menus on a small device. For marketers, the apps are great. They provide new ways to get the brand out, a new set of metrics, new ways to experiment with messages even.
"But as a Starbucks goer — will I use an iPhone Starbucks app to get coffee? Not sure. Perhaps if it offers a value add I didn't have before. Like, you can't call in a coffee order, but there's a line for texted-in coffee orders, and I can run in and get in that line. Or if there are payments associated with it and I get a virtual receipt; order and pay for the coffee via the app, walk in to the store, flash the iPhone receipt, and pick up my brew. These are value adds that I think will make specialized apps more than just a fad."
Do you have an opinion about the likelihood of adoption of mobile ordering technology by QSRs? Twitter users can take our poll: twtpoll.com/617lgg |
What about the order pickup experience?
The staff at QSRweb.com also wondered whether consumers would truly adopt this technology for quick-service.
As a mobile phone user, sure it sounds convenient to order ahead. But when I get there, does that mean I'll have to get out of my car? I can't see myself using convenience technology only to have to take the time to park, get out of my car and walk inside a store with a drive-thru. Sure, I've bypassed the line and have already paid, but I still had to get out of my car.
One staff member suggested that mobile ordering is more likely to be a boon for brands such as Subway, if the company would combine mobile ordering with curbside service at their stores. Consumers could bypass the line of customers waiting for their sandwiches to be custom-made and suddenly get a service that in essence offers the drive-thru convenience that chain now lacks.
With the app still in testing at QSRs, we'll have to wait to see whether we even need to ask these questions.
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