JULY 2017 MOBILEORDER-AHEAD Tracker™
How dine-in restaurants are embracing mobile order-ahead 5Page 5 (Feature Story)
Retailers and restaurants expand mobile ordering programs How TGI Fridays Is Page 10 (News and Trends) 10 Feeding Growth With The latest mobile order-ahead provider rankings Mobile Order-Ahead 16Page 16 (Scorecard) MOBILEORDER-AHEAD Tracker™ Table of Contents
What's Inside The latest headlines on both restaurants and retailers looking to satisfy a growing hunger for mobile 03 ordering programs by expanding existing offerings, and news from players around the space.
Feature Story Gail Seanor, senior director of marketing for TGI Fridays, on how the company has used mobile 05 order-ahead offerings to attract new customers to the restaurant.
News and Trends 10 The latest notable headlines from around the mobile order-ahead world.
Scoring Methodology 15 PYMNTS’ criteria for evaluating and scoring the top apps in the mobile order-ahead space.
Scorecard The results are in. 16 See this month’s top scorers and a provider directory featuring 51 major players in the space.
About 39 Information on PYMNTS.com.
© 2017 PYMNTS.com all rights reserved 2 WHAT'SINSIDE
FULL SPEED AHEAD FOR MOBILE ORDER-AHEAD
According to recent research, restaurants that have introduced Meanwhile, the mobile app for Shake Shack is no longer advanced ordering apps are seeing an increase in customers — exclusive to Apple users. The company recently announced it and nearly three-quarters of surveyed consumers have adopted had teamed up with digital ordering provider Olo and mobile mobile order-ahead apps. What’s more, those customers are product agency Fuzz to roll out an Android app in the wake of spending more per order, on average, than customers making its iOS app’s success. Shake Shack reported the iOS app was orders in a physical location. downloaded more than 200,000 times in the four months it’s been live. In addition to increased customer spend, there are added benefits to offering mobile ordering for restaurants. Mobile But Amazon may have a plan that could make individual ordering technology has proven to help increase efficiency in mobile ordering apps obsolete. The company recently restaurants, and the labor costs associated with mobile orders introduced its new Pay Places offering — partnering with average approximately 30 percent less than in-store orders. restaurant chain TGI Fridays, which already offers its own mobile ordering app — to allow customers to place an order With so many benefits surrounding the technology, it should at any restaurant offering mobile or online ordering via Pay come as no surprise that the providers who introduced it are Places. Currently, orders can only be made for the TGI Fridays now looking to widen its use. Over the past month, several menu, but Pay Places is just getting started, and more restaurants with existing mobile order-ahead capabilities merchants will likely be added soon. expanded and added to their offerings. TGI Fridays finds new customers with mobile order- Here’s a quick snapshot of some notable mobile order- ahead ahead news items from the last month: Even dine-in restaurants are looking to expand their use of Walt Disney World is now offering more mobile ordering mobile order-ahead technology. Last year, TGI Fridays rolled options. The company recently added the capability to its out a mobile order-app, and saw takeout sales climb by 30 D-Luxe Burger location in Disney Springs. The theme park percent in less than 12 months. Now, the company is looking expanded its mobile meal service options after initially rolling to widen its mobile services by becoming the debut partner of out ordering apps at multiple dining locations inside the Amazon’s Pay Places mobile ordering service. Animal Kingdom in May. In an interview, Gail Seanor, the company’s senior director of marketing technology, told PYMNTS that the company’s mobile order-ahead efforts have all been about one thing: creating new customers.
July Tracker updates This edition of the Tracker features a directory of 51 ranked players from around the mobile order-ahead space, including six new additions: Argo Tea, Costa Vida, El Pollo Loco, McAlister’s Deli, TGI Fridays and Which Wich.
© 2017 PYMNTS.com all rights reserved 3 What's Inside
1.9 Billion $38 Billion food orders were denotes the projected placed via a mobile value of the mobile device in 2016. order-ahead space by 2020.
41% 50% 71% of consumers reported buying marks the average increase of consumers have more fast food as a result of in consumer interaction with adopted mobile mobile order-ahead technology. restaurant technology since 2015. order-ahead apps.
Five Fast Facts
© 2017 PYMNTS.com all rights reserved 4 How TGI Fridays Is Feeding Growth With Mobile Order-Ahead
© 2017 PYMNTS.com all rights reserved 5 FEATURESTORY
We saw really significant growth from it, so we wanted to expand that experience and give them more ways to connect with Fridays.
GAIL SEANOR senior director of marketing technology at TGI Fridays TAPS. CAN YOU HEAR THEM?
They’re the almost-silent beat of the mobile embracing mobile order-ahead services with an eye on finding ordering revolution. new customers via digital opportunities. The company first introduced mobile ordering capabilities in 2016 through its Loaded potato skins — tap. Pan-seared pot stickers — tap. own branded app, an offering that was originally part of an Place order — tap. effort to increase what the company refers to as “off-premise sales” — or, as average people are more likely to call it, “take- Mobile order-ahead technology has changed the game for out.” restaurants, even for those that aren’t focused on speed. But could declining consumer appetite for downloading lots of According to Gail Seanor, senior director of marketing individual apps (the mobile variety) add a new ingredient to the technology at TGI Fridays, the results have been largely revolution? positive. The company has seen a 30 percent increase in off-premise sales since enabling online mobile ordering While mobile order-ahead services are increasingly popular capabilities less than 12 months ago, Seanor said — all at various types of restaurant concepts, they’re most without change to in-store revenue. commonly associated with quick-service restaurants (QSRs) — restaurants which strive to get customers in and out as But with recent research indicating 50 percent of smartphone quickly as possible. users do not download any new apps in a given month, Seanor said TGI Fridays wanted to do more around online But, as mobile technology becomes more popular in the dining ordering, outside of its own app, to reach people who had not industry, casual eat-in restaurants like TGI Fridays are also
© 2017 PYMNTS.com all rights reserved 6 Feature Story
previously been TGI Fridays customers. To that end, the company recently became the first restaurant partner in Amazon’s Pay Places service. Currently available in select Under the hood U.S. markets, the Pay Places offering is designed to allow GAIL SEANOR OF TGI FRIDAYS ON COMBINING consumers to directly access third-party services — like THE IN-STORE AND TO-GO EXPERIENCES mobile order-ahead features from a variety of restaurants — via Amazon’s app.
With the introduction and popularity of mobile-order In a recent interview with PYMNTS, Seanor discussed TGI apps and services, casual dine-in restaurants like Fridays’ experience with mobile order-ahead services, and TGI Fridays are embracing digital to-go services. In the company’s digital roadmap. a recent interview with PYMNTS, Gail Seanor, senior “One of the things that has been most critical for Fridays director of marketing technology for TGI Fridays, [is] to help promote off-premise sales via mobile ordering,” explains how the company is working to meld its in- Seanor said. “We’re really looking for ways to expand that and out-of-restaurant experiences. and make things easier for our guests, and we partnered “When it comes to mobile ordering and take out, with Amazon primarily to help expand those capabilities.” we find that no matter how they order, these are predominantly new customers, people who say, ‘I didn’t know Fridays could do that.’
And what we’ve seen, in general, is that once those ...when we add a new take-out method, its typically customers do find out about online or mobile ordering — bringing in new customers to the restaurant, not or another take-out service — they tend to order different [items] than existing customers. They tend to have a customers who already come here to dine-in. 7.5 percent higher average check, and part of that is the different approaches we can take to upsell and offer messages — find other ways to increase ticket size. But what we really want to do is recreate the in-restaurant Appetite for app-based dining experience for those off-premise customers. TGI Fridays first rolled out a branded smartphone app in One of the next things we want to do with mobile 2014, focused on helping guests find nearby restaurants ordering, that we’re really excited about, is the opportunity and promotional offers. But, to satisfy customer demand to bring the social occasion out of the restaurant. So, if for modern payment options, the company revamped the you’re having an occasion where maybe you would go app and released an update in 2016. out to celebrate and you can’t come in for one reason or another — say someone is injured or needs a babysitter — The redesigned app debuted with only one new capability: we want to create a similar atmosphere in a take-out and enabling dine-in customers to pay for meals at their at-home experience.” tables via mobile device, allowing them to skip having to wait and pay checks from their servers. With the update, the company saw adoption spike. Seanor said the app
© 2017 PYMNTS.com all rights reserved 7 Feature Story
experienced a 65 percent usage and adoption increase in “We’ll send someone who has ordered ribs emails and the first few months, prompting further mobile application messages about rib offerings as opposed to chicken,” Seanor development. explained. “It’s also time-based. So, if you have placed an order at six o’clock, at five o’clock we’re going to send you a “Once we decided to offer the mobile payment capability, we message asking you to repeat your order… often we’ve found found that guests were really interested in using it,” she said. that those messages result in orders because [it] makes it “We saw really significant growth from it, so we wanted to really easy and painless for customers to reorder at a time expand that experience and give them more ways to connect [when] they are probably figuring out what they’re eating [for with Fridays.” dinner].”
The company released another update in the fall of 2016, Mobile order-ahead’s app-nostic future? giving guests the option to order meals to-go from their phone, Seanor also noted that personalizing the experience for tablet or computer. individual customers means giving them new options to access TGI Fridays’ service.
Because the company knew there were many consumers ...we’re committed to using mobile who would not be willing to download individual apps for TGI Fridays — or other retailers and restaurants, for that matter — technology to [create] an easier Seanor said the brand chose to partner with Amazon to reach new customers who aren’t connecting with the brand via its and more personalized experience. own mobile offering.
“We’ve found that no matter how they are ordering, when we add a new take-out method, its typically bringing in new Timing personalization customers to the restaurant, not customers who already come In the months since rolling out mobile and online ordering here to dine-in,” Seanor said. “So, we’re looking for strategic services, Seanor said TGI Fridays has learned many lessons partnerships to help us expand those options.” about what its customers want from a mobile offering — and, what they don’t want. Amazon’s Pay Places offering and the debut partnership with TGI Fridays are in the early stages, and Seanor said the Chief among those has been the importance of personalizing company is eager to offer services to new customers using digital experiences for individual customers. For TGI Fridays, Amazon’s app, along with possible future integrations. that now arrives in the form of personalized recommendations and calls to action based on a customer’s order history and “We’re definitely exploring all options, and we’re really habits. interested in how we can expand our use of technology and bring it further into our restaurant and experience,” said Seanor said these recommendations often result in repeat Seanor. “We’re going to continue our partnership with Amazon orders. Thirty-five percent of customers who receive and others, and we’re committed to using mobile technology messaging placing an order, even without coupons or other to [create] an easier and more personalized experience.” promotional discounts.
© 2017 PYMNTS.com all rights reserved 8 MOBILEORDER-AHEAD ECOSYSTEM