Article

Why one regional QSR chose a branded mobile payment app

Now, offering an app that replicates website content won't surprise and delight your customers, nor will accepting the same payment app as the cafe down the street.

July 23, 2013

By Mike Conley, director of Marketing, Sebastians

There are a lot of restaurants out there evaluating which mobile payment option is best for them. For most restaurants, the choice boils down to either accepting an existing mobile payment app, like LevelUp, Google Wallet, or Square, or building a custom-branded mobile payment app. At Sebastians, we've done it both ways. As one of the few restaurants that has experienced both options, I think it's important to share why Sebastians decided to take the leap and build a branded payment app, and why it might make sense for your restaurant, too.

But first, I should explain why Sebastians started out by using an existing mobile payment app. To be honest, we actually didn't want to, but two years ago there was no way to build a branded payment app without spending an exorbitant amount of time and money. So, we decided to start accepting LevelUp, because we loved the idea of a mobile payment app with a loyalty program baked right in. We were immediately happy with our decision -- in just one week, the money LevelUp brought in to one of Sebastians' five locations paid for the entire program. And the results only got better from there. But as soon as LevelUp launched a totally brandable White-Label option, we didn't hesitate to make the leap. Here's why, when it comes to mobile payments, we think branded is better.

1. A totally new way to reach consumers

Like most restaurants, Sebastians is always trying to find new ways to connect consumers with our brand. As a multi-location regional QSR, we have great brand recognition and our loyal visitors often refer friends. While the LevelUp app itself was great at driving loyalty (our average customer on LevelUp returned to Sebastians more than nine times), we knew that the customers walking through our doors would be more likely to download and use a payment app branded specifically for Sebastians. Now, customers can check their status in our loyalty program (are they Fresh, Fresher, or Fresh-a-licious?), view nearby Sebastians' locations, or browse our menu. With our new app, we're able to deliver a branded Sebastians experience to our customers wherever they are.

2. A competitive necessity

Today most consumers expect restaurants to have a mobile presence. So, in order to rise above the competition, restaurants need to go beyond what customers expect. At this point, offering an app that replicates website content won't surprise and delight your customers, nor will accepting the same payment app as the cafe down the street. But a branded app that saves time and money? That's the kind of mobile experience that will spread a grin across your customer's face. (Believe me, I've seen it for myself!) For Sebastians, our app has helped us stand apart from our competition. In time, of course, our competitors will launch their own payment apps, but that doesn't mean they'll have caught up. In the years to come, Sebastians will continue to innovate within with our app to remain competitive.

3. A goldmine of data

When Sebastians first started accepting LevelUp, we quickly became a data-obsessed company. For the first time we could find out things like how much our customers were spending and how often they were coming back, then use this information to make better informed decisions. Our payment app takes this to an entirely new level, because we can collect data on nearly any feature we decide to build into the app. For example, we can build in a tool to collect customers' dietary preferences or service feedback. Never again will we say "I wish I could find out," or "I wish I had data for this." Instead, we'll just build a way to collect it in our app.

It's important to point out that while our decision to build a branded payment app was well thought out, it also included an element of risk. After all, we were happy with LevelUp, and LevelUp's White-Label option, while affordable, was still a relatively large investment. But staying ahead of the curve requires taking risks. In Sebastians' case, we can look back and say we're glad we did. Right after we launched our white-labeled payment app, we saw a 20 percent lift in mobile payment sales, which is continuing to grow every day. So, if all of the reasons I listed above resonate with you, your restaurant may be a fit for a branded payment app. Of course, the only way you'll find out for certain is by taking the leap yourself.

Sebastians is a Boston-based cafe concept with five locations.