AUGUST 2017 MOBILEORDER-AHEAD Tracker™
Why Shake Shack went slow and steady with its mobile order-ahead rollout 5Page 5 (Feature Story)
63 percent of American smartphone users place takeout or delivery orders using their smartphones Shake Shack 10Page 10 (News and Trends) Shakes Up Ordering,
The latest mobile order- ahead provider rankings One Step At A Time 14Page 14 (Scorecard) MOBILEORDER-AHEAD Tracker™ Table of Contents
What's Inside 03 The latest headlines covering the debut of mobile ordering services for retailers and restaurants.
Feature Story Abbey Reider, director of digital marketing and guest experience for Shake Shack, on the 05 company’s slow mobile rollout.
News and Trends 10 The latest notable headlines from around the mobile order-ahead world.
Scoring Methodology 13 PYMNTS’ criteria for evaluating and scoring the top apps in the mobile order-ahead space.
Scorecard 14 The results are in. See this month’s top scorers and a provider directory featuring 57 major players in the mobile order-ahead space.
About 40 Information on PYMNTS.com.
© 2017 PYMNTS.com all rights reserved 2 WHAT'SINSIDE
onsumers across the United States have embraced A new partnership between brick-and-mortar shopping service smartphones and mobile commerce, and they aren’t Curbside and Yelp, for instance, will enable users of both apps Cletting go. With nearly 80 percent of adult Americans to place advanced orders at brick-and-mortar retail stores. owning and using a smartphone, that mobile mania is fueling a Partnership service users can pick orders up same-day via swell of smartphone-based commerce. Restaurants that have curbside pickup. So far, retailers utilizing the partnership already embraced mobile order-ahead services are reaping the include cosmetics company Sephora and quick-service rewards, seeing a solid 63 percent of American smartphone restaurant (QSR) Pizza Hut. owners now using them to place food orders, according to recent research. Meanwhile, mobile order-ahead technology is also gearing up to revolutionize the hospitality industry, according to POS As mobile services become increasingly popular among provider Wi-Q. The company’s recent research projects mobile consumers, restaurants that have been slow to embrace the services will become increasingly common in hospitality with trend are hopping on the bandwagon. In fact, several food hotels embracing cloud-based apps in the near future. \ service companies recently debuted new or expanded mobile order-ahead services. Shaking up mobile ordering one step at a time Shake Shack certainly seems to be taking its mobile rollout Here’s a quick snapshot of notable mobile order-ahead slow. It wasn’t until 2016 that the fast-casual chain finally news items from the last month: began to embrace the concept of mobile ordering, building a At long last, Canada-headquartered, Tim Hortons finally mobile order-ahead interface for the company’s biggest burger unveiled its mobile ordering platform. After a more than four- fans. month delay, customers in select locations can now download the app from the Apple or Google marketplaces, build a profile But, as Abbey Reider, Shake Shack’s director of digital and order and pay for coffee and food in advance. The app will marketing and guest experience, recently recounted to be rolled out to all locations over the next year. PMYNTS in an interview, the company found greater value in perfecting mobile ordering experience than rushing for a wide- Meanwhile, Domino’s, a company that has practically redefined scale rollout of the service. itself around digital ordering and mobile tech efforts, is once again expanding its offerings. The company recently PYMNTS recently caught up with Reider to find out more announced the U.K. launch of a voice-activated ordering about how — and why — the company decided to take its time service linked with Amazon’s Echo device, along with an offering mobile order-ahead services. She also expanded on upcoming GPS-based tracking feature. some lessons the company has learned in gradually rolling out its mobile ordering service.. But it isn’t just restaurants joining the mobile order-ahead movement these days. Now, perhaps inspired by that mobile August Tracker updates food ordering market — reportedly on pace to become a This edition of the Mobile Order-Ahead Tracker features nearly $40 billion segment by 2020 — merchants from other a directory of 57 ranked players from around the space, industries are also looking to offer mobile services to their including six new additions: California Pizza Kitchen, Modern consumers. Market, Moe’s Southwest Grill, QDOBA Mexican Eats, Snap Kitchen and Texas Roadhouse.
© 2017 PYMNTS.com all rights reserved 3 What's Inside
18% 271,000 growth in food orders made via online food orders are placed text messages, mobile apps every day in the U.S. and U.K. and online in the last year
94% 50% $38 billion of millennials use their of purchases at Taco Bell, projected value of digital smartphones at restaurants, KFC and Pizza Hut are now ordering industry by 2020 bars and coffee shops digital orders
Five Fast Facts
© 2017 PYMNTS.com all rights reserved 4 Shake Shack Shakes Up Ordering, One Step At A Time
© 2017 PYMNTS.com all rights reserved 5 FEATURESTORY
We recognized, particularly for the biggest demographics we wanted to reach, we had a very technologically- savvy group of customers,
ABBEY REIDER director of digital marketing and guest experience at Shake Shack
We all know the moral of the classic tortoise and the hare PYMNTS recently caught up with Reider to find out more story – slow and steady wins the race. But does that lesson about how — and why — the company decided to take its time apply to introducing mobile order-ahead services? offering mobile order-ahead services. She also expanded on some lessons the company has learned in gradually rolling out Shake Shack certainly seems to think so. It wasn’t until its mobile ordering service. 2016 that the fast-casual chain finally began to embrace the concept of mobile ordering, building a mobile order-ahead Smoothening experience for customers interface for the company’s biggest burger fans. Shake Shack first began offering its mobile ordering service in 2016, beginning with its restaurants in the Manhattan area But, as Abbey Reider, Shake Shack’s director of digital and eventually expanding the offering to more than a dozen marketing and guest experience, recently recounted to other locations — including Miami, Chicago, Los Angeles and PMYNTS in an interview, there’s greater value in perfecting Washington, D.C., to name a few — by the end of the year. mobile ordering experience than rushing for a wide-scale rollout of the service. But the inspiration for a mobile movement may not have come from an effort to boost sagging sales numbers. In For Shake Shack, this meant starting small with a select fact, according to earnings reports, the company’s sales few locations and a basic iOS app. The New York City-based rose by roughly 44 percent in the fourth quarter of 2016 company finally debuted its Android app in July 2017. and approximately 42 percent over the course of the whole year. Rather, Shake Shack was looking for a way to keep
© 2017 PYMNTS.com all rights reserved 6 Feature Story
its expanding customer base happy while giving non- customers more reasons to become Shake Shack super fans. The company saw mobile order-ahead services as an Under the hood opportunity to further build on its growth. ABBEY REIDER OF SHAKE SHACK ON THE COMPANY’S DECISION TO SLOWLY ROLL OUT MOBILE ORDERING “We recognized, particularly for the biggest demographics CAPABILITIES we wanted to reach, we had a very technologically-savvy group of customers,” Reider said. “So, for us, the app was With the popularity of mobile order-ahead services really a no-brainer. We surveyed and listened to our guests among consumers, restaurants are racing to to find out their core needs and started building out our app from there.” capitalize on the growing trend and debut their digital ordering capabilities as quickly as possible. But Collecting and applying customer feedback, Reider said, in a recent interview with PYMNTS, Abbey Reider, was crucial to building out a refined mobile ordering Shake Shack’s director of digital marketing and guest system. The company solicited feedback from customers experience, detailed why the company decided to both before and during the initial rollout through a take a slower approach to its mobile order-ahead partnership with Applause, a mobile product testing rollout. agency, and put the app in the hands of consumers to gauge what they did and didn’t like about it. Shake Shack “We started with iOS and recently expanded to Android also partnered with mobile ordering platform Olo to build in an effort to make sure we have 100 percent coverage the final app, which was eventually rolled out to all 136 of of the mobile ordering market. We started market-by- the company’s locations. market, very slowly rather than going for a much broader promotion, because we felt it was really important that we Smoothening for cooks, too nailed this experience rather than just rushing to get it out For Shake Shack, there was more than one reason to take to market prematurely. a slow and steady approach to rolling out mobile order- ahead. So, that’s where we focused first, and we went market- by-market to do that, and then slowly expanded to going Other than gauging what customers wanted most from region-by-region as we found out what guests wanted and their mobile order-ahead experience, it was imperative what they didn’t want from this kind of solution…We did to make sure the service wouldn’t slow down production user-sourced testing through a company called Applause, which was a great learning experience and allowed us in the kitchens, which would ultimately affect in-store to get the app in front of our guests and get very direct customers the most. feedback. That feedback not only helped us fix bugs, but It came down to limiting how many stores could accept also improve the overall experience so that the app was as ready as it could be for a wider rollout.” mobile orders and how many mobile orders a participating location could accept at a time, Reider said. This allowed the restaurant chain to slowly adapt to the increased volume of orders and helped better streamline their operations.
© 2017 PYMNTS.com all rights reserved 7 Feature Story
While learning from tests and early rollouts was crucial for the And so, Reider said, the company is keeping its philosophy development of the Shake Shack app, what eventually helped in place and working slowly on adding new features and nail the process was building an interface which mimicked capabilities to its app, including personalization options and the company’s in-house ordering system, allowing kitchens to the ability to build and edit a customer account profile. continue operating in much the same way they already were, Reider explained. Meanwhile, Shake Shack is also slowly embracing new ordering methods. The company recently enabled consumers “It’s the exact same process as when someone comes into a to place orders get information about nearby locations and Shack and places an order,” Reider said. “It’s integrated into find answers to frequently asked questions via its chatbot on our POS system, so when a guest first places an order and Facebook Messenger and Twitter. chooses the time they’d like to pick it up, the order is then directly filed into the POS. That way, the kitchen can begin With mobile order-ahead capabilities, fast food options like cooking it at the appropriate time, and it is ready when that Shake Shack are only getting faster. But if quick-service person comes into the store.” restaurants (QSRs) want to offer an effective and efficient solution, the answer may, after all, lie in being more like the Further shake ups incoming tortoise than the hare. So far, the slow rollout has turned out to be a successful strategy for Shake Shack. When announcing the debut of the Android app, the company said its iOS predecessor had already been downloaded more than 200,000 times despite only being available nationwide for roughly four months.
© 2017 PYMNTS.com all rights reserved 8 MOBILEORDER-AHEAD ECOSYSTEM