How Domino's Stays on Top of Customer Demand

How Domino’s Stays On Top Of Customer Demand

FEATURE STORY (p . 7)

JANUARY 2020

News and Trends The unexpected popular 11 food orders from 2019

Deep Dive Why coupon fraud is particularly challenging 15 for QSRs

Scorecard The latest mobile order- 22 ahead provider rankings MOBILEORDER-AHEAD Tracker

TABLE OF CONTENTS

What's Inside 3 A look at recent mobile order-ahead developments, including the slow but steady implementation of digital food services and the fraud fears impacting consumers and restaurants

Feature Story 7 An interview with Christopher Thomas-Moore, Domino’s vice president of global eCommerce and digital marketing, on how customer feedback drives the chain’s feature developments

News and Trends 11 The latest headlines from around the space, including a new restaurant devoted to airplane food and the orders topping Grubhub's Year in Food 2019 list

Deep Dive An in-depth examination of how QSRs can fight coupon fraud, including why digital 15 discounts may not be enough to stop the problem

Scoring Methodology 19 Who’s on top and how they got there

Top 10 Providers and Scorecard 21 The results are in. See the top scorers and a provider directory featuring 77 players in the space.

About 52 Information on PYMNTS.com and Kount

ACKNOWLEDGMENT The Mobile Order-Ahead Tracker® is powered by Kount, and PYMNTS is grateful for the company’s support and insight. PYMNTS.com retains full editorial control over the following findings, methodology and data analysis. © 2020 PYMNTS.com All Rights Reserved 2 WHAT'S INSIDE

Mobile devices are used for more restaurant func- Consumers may be reluctant to take advantage tions than ever, but most American consumers are of these capabilities for any number of reasons, still not fully leveraging them. Only 42 percent use but fraud threats are most pressing. A recent their devices to look for coupons and deals, 38 per- study found that more than 62 percent of restau- cent to peruse menu items and 37 percent to search rant patrons worry about fraud when using mobile for nearby locations, according to recent research. order-ahead apps, approximately 49 percent fear Placing and paying for orders only accounted for that their credit card data will be stolen and 41 32 percent and 28 percent of smartphone-related percent are concerned about account takeovers restaurant interactions, respectively, but approx- (ATOs). This data should trouble restaurants as imately one-third of respondents said they use many consumers would abandon establishments mobile ordering more often now than they did two with fraud-prone apps. years ago.

This consideration rests atop the myriad fraud These evolving food preferences are leading some risks that quick-service restaurants (QSRs) face ev- unexpected players to dip their toes into digital or- ery day. One of the most irritating issues is coupon dering. Once such entrant is commercial airline fraud, which costs United States-based business- AirAsia, which recently launched a restaurant and es between $300 million and $600 million each cafe at the Mid Valley Megamall in Kuala Lumpur, year and sees bad actors photocopying coupons or Malaysia. The eatery serves up the airline’s signa- manually altering bar codes. Mobile order-ahead’s ture dishes, including Pak Nasser’s Nasi Lemak and growing popularity means QSRs should shift to saf- Uncle Chin’s Chicken Rice, with mobile ordering er digital technologies, but this will not make them support. AirAsia plans to develop an in-house deliv- immune to attack. ery app in the near future.

New tools may curb some customer-facing fraud Fraud continues to threaten QSRs and mobile or- types, but they might also alienate customers. Such dering developers, and many are teaming up to inconveniences could be enough to slow down mo- protect themselves and their customers. One such bile order-ahead’s growth. partnership comes from food delivery company Easi and payments platform Adyen, with the former Digital fraud developments around the world planning to integrate the latter’s RevenueProtect Mobile ordering preferences are changing as cer- platform into its operations. The platform leverages tain offerings become more popular. One of the machine learning (ML) capabilities to identify card most surprising trends of 2019 came to light in testing and card-not-present (CNP) fraud efforts, as Grubhub’s annual Year in Food report, which re- well as algorithmic matching, behavioral analytics vealed that cauliflower crust pizza experienced a and device fingerprinting to prevent false positives. boom among consumers, rising a staggering 650 For more on these stories and other mobile percent in popularity since 2018. Other vegetarian order-ahead developments, read the Tracker’s and health-conscious foods accounted for seven of News and Trends section (p. 11). the 10 orders on the Top Orders Of The Year list, with spicy Brussels sprouts and portobello empanadas taking second and third place, respectively.

How Domino’s customers drove the chain’s Executive mobile innovations New mobile order-ahead apps owe much of their INSIGHT

inspiration to those that came before, and chains How can analyzing customer spending habits such as Domino’s, Dunkin’ and Starbucks led the help find irregularities that could be indicative of fraud? way in developing services like order trackers, store locators and voice assistants. Such innovations did “Customer spending habits can reveal important business or product information. Fraud prevention solutions not come out of thin air, and instead reflect cus- that provide features such as user defined fields are po- tomer demand and competitors’ moves. For this sitioned to help businesses [analyze] the information month’s Feature Story (p. 7), PYMNTS spoke with they feel [is] important. Kount’s [user defined fields] provide businesses with customizable, flexible fields to Christopher Thomas-Moore, Domino’s vice pres- capture information that is specific to their products, ident of global eCommerce and digital marketing, customers or goals. … Examples include loyalty infor- about the origins of the chain’s digital ordering sys- mation, coupon codes, [purchase dates and times], tem and how both customers and competitors store IDs, and more. [User defined fields effectively reduce] manual reviews, [deliver] purchase and customer inspired its innovations. information and can reduce chargebacks.

Deep Dive: QSRs struggle with coupon fraud Businesses can use this level of control to determine important growth factors and then collect the data they Phishing, data breaches and ATOs may dominate need in order to make informed accept [or] decline deci- mobile ordering fraud headlines, but schemes that sions. [They can also] use the data to run analytics [and make] better business decisions. This data can be used have been around for decades also plague QSRs. to analyze transactions in order to reduce chargebacks One such variety is coupon fraud, which sees and automate decisions for known, good customers. fraudsters illicitly modifying, altering or duplicat- For example, one of Kount’s high-volume custom- ing coupons to score free or discounted food. This ers uses [user defined fields] to capture detailed, month’s Deep Dive (p. 15) explores the threat cou- product-related information [and] analyze the fraud pon fraud poses to QSRs and why a shift to digital rates for new products versus established products. This helps them to monitor new products as they are discounts may only provide temporary relief. introduced and catch any fraudulent activity quickly.

The result? Businesses gain data essential for un- derstanding how they can capitalize on successful products and continue to market to their good customers.”

RICH STUPPY chief customer experience officer at Kount

Five Fast Facts

18% 34% Share of Americans who Portion of restaurant prefer ordering takeout or apps that offered mobile delivery to eating on premises order-ahead as of April 2019

79% 49% 650% Share of consumers who Year-over -year increase in Increase in the popularity of fear that using mobile food and beverage industry cauliflower crust pizza orders ordering apps will lead to fraud attacks reported in 2018 on Grubhub from 2018 to 2019 payments fraud

Mobile order-ahead has become ubiquitous to can now order Domino’s via Amazon’s Alexa, Goo- QSRs and nearly every chain now has an app pres- gle Home, smartwatches and a host of other ence, making it is easy to forget that the technology products and services. Even social networks like was rare just 10 years ago. Domino’s was one of Twitter now feature Domino’s ordering capabilities, the first chains to innovate in the space with the de- allowing hungry users to simply tweet a pizza emo- velopment of an online tracker that reported order ji to reorder food and pay with saved transaction statuses to customers in real time and an artificial information. intelligence (AI)-driven voice ordering platform. For- “That’s the one I actually hear most about when mer CEO Patrick Doyle even famously claimed that I’m traveling and talking to people about what I do,” Domino's was a technology company that hap- Thomas-Moore noted. pened to sell pizzas. Domino’s was also one of the first players in This emphasis on mobile order-ahead did not come voice-activated mobile ordering. Its AI-enabled out of nowhere, according to Domino’s vice pres- chatbot, Dom, launched as voice-activated app in ident of global eCommerce and digital marketing, 2014, enabling customers to place orders just like Christopher Thomas-Moore. The focus instead they would with a live operator. The bot has since sprouted from a dedicated effort to find out what driven more than half a million orders, according customers want and address their needs. In a re- to Thomas-Moore, and its popularity continues to cent interview with PYMNTS, Thomas-Moore increase. explained how anticipating and responding to customers' demands has driven Domino’s mobile “The adoption rates [of] voice search and other ordering initiatives since the company’s onset, as voice components have grown at a trajectory that well as how the chain continues to learn from both have surpassed the adoption rates of mobile and customers and competitors as it forges ahead in tablet,” he explained. “Having that kind of integrat- the digital ordering space. ed natural language conversation made people that were less comfortable with having a digital relation- Leading the mobile ordering charge ship a little bit more comfortable because they have

Domino’s took its first digital ordering steps with that ability to talk.” the 2007 introduction of a delivery feature on its Customer feedback is key in determining Domino’s website. The chain quickly expanded to Android areas for expansion. Each new ordering feature is and iPhone mobile platforms and has continued subject to a rigorous customer testing phase to eval- extending its services to other devices. Customers uate its efficacy in the chain’s ordering ecosystem.

“It’s critical to our development plan, how the restaurant category, but within retail, within travel customers are actually responding,” said Thomas- and within a lot of other different categories.” Moore. “We test everything here — from the smallest Other chains have learned from Domino’s, as it was change in a background color to new developments the first to introduce a real-time order tracker, ac- and new features — to understand the true lift and cording to Thomas-Moore, and such systems are impact on the business that those features have. now commonplace among QSRs. Pizza Hut and That lift comes by the vote of our customers and Papa John’s followed in Domino’s footsteps when the reactions that they have when they’re in our developing their mobile ordering apps, and the tech- eCommerce environment.” nology has since reached other restaurant types. Digital ordering now accounts for approximately The future of mobile ordering two-thirds of Domino’s revenue, showcasing how quickly mobile order-ahead has come to dominate Domino’s plans to leverage digital opportunities the industry. The company’s per-store revenue has with largely the same mindset that has worked grown from $600,000 per year in 2007 to approxi- since 2007. Mobile ordering shows no signs of mately $1.2 million in 2019. slowing, but technological innovations will likely change the field. How Domino’s and its competitors learn from each other “One of the areas that I’m really intrigued about is the adoption of 5G,” Thomas-Moore said. “When Entering the market early meant there were precious you have access to so much data at such a faster few examples to emulate when Domino’s started of- pace than we have now, what’s the new benchmark fering digital ordering. Mobile order-ahead’s current that the customer’s going to set? What else can we popularity means there are now plenty of competi- do as a brand — that we have not done in the past tors and customers from which to learn, though the — because of this added bandwidth?” line separating the two is often blurred. Domino’s and other QSRs have the opportunity to “There’s definitely a trickle-down behavior that hap- shape the way new technologies are incorporated pens where our customer’s expectations are set into the mobile order-ahead space. They will need by brands that they interact with on a day-to-day to keep careful tabs on customer reactions as they basis,” Thomas-Moore explained. “Then that expec- ultimately determine the digital ordering industry’s tation is set for every other relationship that they direction. have with every other company — not just within the

RESTAURANT (RE)DESIGNS its other locations and will feature self-serve kiosks to reduce ordering times. The design shift allows the Shake Shack to open new takeout- and delivery-only location in New York branch to attend more to digital orders, and Shake Shack hopes the dual entrances will prevent long Mobile order-ahead is now so popular that QSRs are waits. adapting their physical designs to boost takeout and delivery order efficiency, devoting more square foot- Chipotle tailors restaurant to mobile orders age to order-ahead functions. Burger QSR Shake Burrito QSR giant Chipotle also plans to roll out Shack plans to follow this trend at a New York City several restaurant concepts optimized for mobile location, creating separate entrances for dine-in order-ahead pickup. The chain will test walk-up win- customers and those preferring takeout or delivery. dows and pickup portals, hoping to reduce crowd The dining room will be much smaller than those at density inside its stores and evolve its practice of

placing all pickup orders on a single shelf. Chipotle enables iOS and Android users to order ahead for plans to evaluate the new pickup system in stand- reduced wait times and better experiences. Krispies alone sites with its Chipotlane drive-thrus, urban also plans to use the data it gathers to improve con- storefronts and endcap units with Chipotlanes in sumers’ interactions with the brand. Chicago, Cincinnati and Phoenix as well as Newport Digital-only restaurants reduce costs by skip- Beach and San Diego, California. ping dining rooms and are growing more popular around the world. Several companies have formed Starbucks to open mobile-only location in Toronto to provide these “phantom” or “ghost” kitchens. Uber co-founder Travis Kalanick founded CloudKitchens Shake Shack and Chipotle might be reducing in-store in 2016, for example, and the company recently re- dining at new locations, but Starbucks is eschewing ceived $400 million in funding from Saudi Arabia’s it entirely. The coffee chain opened its first mobile sovereign wealth fund. ordering-only location in New York City’s Penn Plaza

in November 2019, offering its full menu without ta- AirAsia opens airline food restaurant with bles or seating to serve similar customer quantities mobile ordering in spaces with much smaller footprints. Starbucks Many hackneyed jokes poke fun at airline food, but plans to open a second such location in Toronto this AirAsia is bringing its culinary offerings to the ground. February, marking the first restaurant of its type in The airline recently opened a restaurant and cafe at Canada. This trend will likely gain popularity in urban the Mid Valley Megamall in Kuala Lumpur, Malaysia, centers as rents continue to increase and the fight serving up in-flight specialties like Pak Nasser’s Nasi for positive profit margins toughens. Lemak and Uncle Chin’s Chicken Rice and offering mobile order-ahead for takeout. It plans to launch UK gets its first digital-only fish and chips shop five such restaurants by the end of 2020 and more Fish and chips, a British takeout classic, is set to than 100 in the next five years, moving beyond its become even more convenient with the United King- Southeast Asian base to international locations like dom's first digital-only “chippie.” Exmouth-based London and New York. AirAsia also plans to develop QSR Krispies recently opened a second location its own delivery app and partner with third-party ser- specifically for digital customers, fulfilling orders vices like Grab and Foodpanda. from its website and app, which it developed in partnership with payments provider Preoday. The app

MOBILE ORDERING TRENDS These figures are troubling to QSR chains as 37 percent of respondents would stop patronizing a QSR if Americans still prefer dining in to delivery or takeout, study finds using its app resulted in fraud.

Mobile order-ahead continues to surge in popularity, Just 18 percent of the association's member restau- but it has not yet overtaken in-house dining, ac- rants currently offer mobile order-ahead apps, cording to a recent study from facility management according to another survey, but this figure is quickly company Vixxo. It found that 62 percent of Ameri- changing. Seventy-eight percent of restaurants are cans prefer to eat at restaurants rather than order prioritizing off-premises dining opportunities and 91 takeout or delivery, which was favored by only 34 percent of surveyed customers reported placing or- percent of respondents. The results were largely the ders through such apps or sites in the last year. same across all demographics. Takeout is growing Cauliflower crust pizza comes in first on more popular, though, with 83 percent of respon- Grubhub's Top Orders list dents making such orders more or as frequently in Consumers who use mobile order-ahead options 2019 as they did in the previous year. The presence have some surprising favorites, according to Grub- of a mobile ordering option did not appear to factor hub’s recently released annual Year in Food report. into where consumers opted to eat, however. Afford- The newest edition revealed that cauliflower crust ability and pleasant dining experiences were their pizza increased in popularity among consumers, top two considerations, each cited by 25 percent of climbing 650 percent to claim the top spot. respondents, and 58 percent stated that loyalty and rewards were also important. The runners-up were also nontraditional, with spicy Brussels sprouts and portobello empanadas taking Americans fear payments fraud when using second and third place, respectively. These rankings mobile order-ahead apps highlight the variety of cuisines digital food ordering Fraud risks may be behind many consumers’ can provide — a major shift from the Chinese food dine-in preferences, according to a recent survey and pizza that dominated legacy deliveries — and re- from the National Restaurant Association. It found flects customers’ increased emphasis on vegan and that 49 percent of Americans fear payments fraud vegetarian options. Such foods accounted for sev- will come from using mobile order-ahead apps, 41 en of the 10 orders on Grubhub's Top Orders Of The percent worry about ATOs and 12 percent are con- Year list. cerned that their rewards points will be affected.

PARTNERSHIPS AND and payments platform Adyen. The pair began INVESTMENTS collaborating in December to integrate Adyen’s platform into McDonald’s UK's ordering system, allowing McDonald’s, Adyen partner to integrate payments platform the QSR to incorporate loyalty programs, onboard franchises and consolidate views of customer data. Providing delivery and takeout services to hungry McDonald’s plans to expand the partnership to oth- customers is only half of the mobile order-ahead er international markets in the coming months, equation — paying is the other. Many QSR chains according to its senior vice president of global dig- have been partnering with third-party payment ital product engineering and data, Leandro Balbinot. providers to ease the latter process, and the most recent example involves fast food giant McDonald’s

Easi, Adyen partner to guard against fraud investors, including Afterpay, Facebook Australia,

McDonald’s is not Adyen’s only recent collabora- Google Australia, LinkedIn APAC and Uber Australia. tor. The company also partnered with food delivery Me&u focuses on reducing ordering or payment wait company Easi to optimize and secure the latter’s times at bars, cafes and restaurants. It is currently payments processes. Easi plans to integrate Adyen’s used by several Australian restaurants and hospitali- RevenueProtect platform into its operations and ty businesses and is improving average order spend leverage ML capabilities to identify card testing and by up to 30 percent while increasing uptake by as CNP fraud efforts. The platform also prevents false much as 50 percent at its partner restaurants, ac- positives with algorithmic matching, behavioral ana- cording to founder Stevan Premutico. lytics and device fingerprinting. Olo to go public in 2020, seeking $1B valuation Mobile order-ahead is popular with fraudsters, ac- Mobile ordering solution provider Olo is also mak- cording to Evan Li, Easi’s chief information officer. ing waves in the financial world, and a new report A 2019 report found the food and beverage industry says it is preparing for an initial public offering (IPO) experienced a 79 percent year-over-year increase in later this year. The company reportedly interviewed fraud attacks in 2018. Li noted that Adyen’s products potential IPO advisers over the past several months balance anti-fraud efforts with frictionless payment and is seeking a valuation of more than $1 billion experiences and that the company’s customizable and planning to raise upwards of $300 million. Olo risk rule engine has reduced chargebacks — another was founded in 2005 and has received two prior common mobile ordering struggle. infusions of $40 million in 2016 and $18 million in Australia-based me&u raises $8M AUD in 2018. Series B round Olo is the latest food delivery-related service to make Third-party mobile ordering apps have been lucra- news with a public investment rumor. Postmates tive for nearly a decade, and new entrants regularly made an announcement in February 2019 that it had pop up. One such newcomer is Australian ordering confidentially filed for an IPO, and DoorDash report- and payments app me&u, which recently secured edly considered sidestepping its own with a direct $8 million AUD ($5.5 million USD) in a Series B fund- listing. Uber Eats has meanwhile been attributed as ing round led by investors Merivale and Tyro. The a key driver for Uber’s May $8.1 billion listing. pair joins a list of prominent technology company

Coupon Fraud Chows Down On QSR Profits

Coupons are time-tested ways for QSRs and oth- Coupons and discounts can be risky, however, be- er eateries to attract new customers. A study from cause a subset of customers aim to exploit them. Publishers Clearing House found that they were by Coupon fraud is particularly dangerous for the far the most effective incentive in getting people to restaurant industry, where margins are razor-thin try restaurants: 50 percent of women and 44 per- and any profit decline could spell disaster. cent of men cited coupons as the primary drivers for What is coupon fraud? eating somewhere new. Fraudsters exact coupon fraud in various ways. One The desire for discounts extends to the digital sphere, of the most common, decoding, is also the sim- with the same study finding coupons and savings plest — fraudsters intentionally apply coupons to the to be the most-wanted QSR app feature among 50 wrong menu items and pressure cashiers into ac- percent of women and 45 percent of men. Loyalty cepting them, typically to get larger sizes of similar rewards was the second most-wanted feature, cit- products, rather than entirely different items. ed by 29 percent of women and 30 percent of men.

Other methods involve illegally altering coupons, The Coupon Information Corporation, a watchdog as some fraudsters adjust terms, expiration dates monitoring the coupon industry, maintains a running or even barcodes. Still others photocopy coupons, list of fraudulent coupons for QSRs, retailers and oth- enabling bad actors to use them multiple times at er businesses. Employees should cross-reference different locations. suspicious customer coupons with databases like these, which list coupons that other stores have Coupon fraud costs U.S. businesses anywhere be- flagged as fake. tween $300 million and $600 million per year. A recent study found that coupon fraud rose by 12 per- QSRs should also take steps to prevent employ- cent year over year in 2019, indicating it is still very ees from colluding, either willingly or unwillingly, much a problem despite shifts to digital discounts. with those perpetuating coupon fraud. Restaurant managers can require that coupons be stapled to re- There is a distinct difference between extreme cou- ceipts or personally bring checks to customers using poning and coupon fraud, though. The former uses coupons to prevent reuse. Tracking coupon-related only the legal terms and conditions to achieve max- purchases also helps reduce fraud. Managers imum savings, while the latter falsifies coupon could thus see if certain staffers have higher ac- information or obtains coupons illicitly. Extreme ceptance rates than others and help them flag such couponing can be mitigated by carefully defining transactions. coupons’ limitations, but halting coupon fraud re- quires a more forceful hand. Using technology to prevent fraud

Employees should keep an eye out The second — and more permanent — solution to coupon fraud is replacing paper coupon usage Ways to halt coupon fraud fit largely into two cat- with digital discounts. Such coupons are practical- egories. The first involves educating employees to ly immune to several types of fraud, according to identify fraudulent coupons and avoid becoming un- John Ross, innovation adviser and industry partner witting accomplices. Many coupons that appear too for data analytics and commerce services provider good to be true — offering a 50 percent flat discount Inmar. or a buy-one-get-one deal on anything on the menu, for example — are actually fraudulent. Another red “The fact that these coupons never manifest as flag can be no visible link to a QSR’s website, which paper, along with the requirement that shoppers ac- all legitimate coupons have. quire these coupons by attaching them to registered,

uniquely identified accounts, eliminates the possibil- Digital coupons are not perfect, however. Hackers ity of physical duplication and/or sharing of these occasionally steal individuals’ coupons and attach types of offers,” Ross said. “In addition, systematic … them to their own accounts by intercepting re- limitations prevent unintended multiple redemptions quests from victims’ devices and providers’ servers, by a single individual while guarding against general enabling them to return items purchased with cou- over-redemption.” pons for their full prices. These methods are much rarer than paper coupon fraud, though, making digi- One proprietary digital coupon solution comes tal coupons much safer overall. from platform developer Sparkfly, which launched a mobile coupon code redemption system in 2016 Rising mobile order-ahead adoption has a good that allows QSRs to generate original date and chance of making paper coupons obsolete. Coupon time-stamped coupon codes that are deleted once fraud will hopefully follow close behind. they expire or are used at the point of sale (POS). This eliminates several coupon fraud types, making it impossible to copy coupon codes or present ex- pired coupons.

The PYMNTS Mobile Order-Ahead Tracker® gives an overview of the trends and activities across the mobile order-ahead space, as well as the companies that offer relevant solutions and services. Each month, the Track- er’s News and Trends section provides a comprehensive update of the latest goings-on of the major industry players, technologies and solutions fueling the consumer-driven ecosystem. This visual representation of the mobile order-ahead ecosystemMobile explains Orderhow we organize Ahead our News Ecosystem and Trends. ConsumerConsumer

Consumer Ordering Interfaces

MOBILE VOICE MESSENGER SMART CONNECTED APP ASSISTANT TV CAR

Consumer Acquirers

QSR BRANDED QSR AGGREGATORS

Integrators

QSR Acquirers

ORDER DIRECT ORDER AGGREGATORS

POSPOS

MOBILE ORDER-AHEAD SCORING METHODOLOGY

Companies included in the Tracker Scorecard are the top restaurants providing mobile order-ahead as an integrated offering within their operations. Providers have been scored and ranked based on three primary mobile order-ahead criteria:

Ordering loyalty App channels integrations usage

How orders can be placed How customers can How many people interact via the app, including access their loyalty with the app, including usage whether they can be made or rewards program penetration rates, the number through a branded app, accounts via a business’ of active monthly users and third-party aggregator, mobile app the average session duration messenger app or in seconds voice-activated app

Third-Party Aggregator Apps:

SDKs Enabling Branded Order-Ahead Apps:

Middleware Examples (Connecting Ordering Channels to POS):

Demand Side: QSR Branded Order-Ahead Apps

This month’s provider directory assesses 77 leading players in the space and scores them based on their mobile ordering apps' features and adoption levels.

Scoring factors in loyalty and rewards program integrations, the number of active users each month and the average time users spend on the app. Ordering channel options, including whether customers can order by voice and whether orders are placed through a branded app or a third-party aggregator, are also important.

score score 1 95.5 5 89

score score 2 94 7 88.5

score score 4 90 9 87

score score 5 89 10 86

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 0 27.5 52.5

APPLEBEE'S Launch of mobile order service date: April 2016

The Applebee’s app allows customers to order and pay ahead. They can also create accounts to save favorite orders and earn loyalty points.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 8 40

ARGO TEA Launch of mobile order service date: November 2014

Argo Tea’s app enables customers to preorder and prepay for purchases. It allows customers to scan mobile devices to pay at the counter when picking up their orders, and offers rewards and loyalty features including perks for every 10 vis- its and credit for downloading the app.

Loyalty Total Integrations Score Ordering App Usage Channels 25 Score 73 7 41

BJ’S RESTAURANT & BREWHOUSE Launch of mobile order service date: June 2014

The BJ’s mobile app allows customers to order ahead for takeout or dine-in, and offers split-the-bill features for group orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 36.5 68.5

March 2016 BLAZE PIZZA Launch of mobile order service date:

The Blaze Pizza app enables guests to order and pay from smartphones and earn rewards including free meals. The app also provides online order histories, reordering capabilities and a nutrition calculator.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 44 94

BURGER KING Launch of mobile order service date: May 2016

The Burger King app is piloting an order-ahead tool via Facebook’s Messenger chatbot. The service would allow customers to place meal orders, select pickup locations and pay for purchases.

Loyalty Total Integrations Score Ordering App Usage Channels 25 Score 49 7 17

CALIFORNIA PIZZA KITCHEN Launch of mobile order service date: February 2017

The CPK Rewards app allows guests to order and pay from their phones, and earn rewards they can spend at participating locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 11 43

CAPRIOTTI’S Launch of mobile order service date: June 2015

Capriotti’s app enables customers to place and pay for orders. It is integrated with the company’s CAPAddicts Rewards Program and features a store locator.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 32 64

CAVA GRILL Launch of mobile order service date: November 2013

The CAVA app enables customers to view the restaurant’s full menu, customize dishes, pay in-app and order in advance.

Loyalty Total Integrations Score Ordering App Usage Channels Score 15 25 50 90

CHICK-FIL-A Launch of mobile order service date: June 2016

The Chick-fil-A app allows guests to customize their orders, pay in advance and skip lines when picking up their meal. It also offers a new rewards program and allows customers to save and reorder favorite items.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 40 72

CHILI'S Launch of mobile order service date: September 2011

The Chili’s app enables customers to find the nearest restaurant, put their names on seating wait lists and order meals to-go. It also saves previous orders and integrates with the My Chili’s Rewards program.

Loyalty Total Integrations Score Ordering App Usage Channels Score 17 25 42 84

CHIPOTLE MEXICAN GRILL Launch of mobile order service date: January 2009

The Chipotle app allows iOS and Android users to place orders and pay for them. It also enables users to find nearby restaurants, see menu and nutrition information and access recent orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 10 35

CHOP'T Launch of mobile order service date: November 2016

The Chop't app allows customers to place orders in advance to be picked up in-store, earning rewards. It shows the nearest restaurant and displays nutritional and allergen information about menu items.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 22.5 47.5

COSTA VIDA Launch of mobile order service date: November 2015

The Costa Vida app features order-ahead and rewards capabilities, displays special offers and encourages users to purchase gift cards for friends.

Loyalty Total Integrations Score Ordering App Usage Channels Score 15 0 24 39

DENNY’S Launch of mobile order service date: May 2017

The Denny’s app allows customers to place orders for takeout or delivery, and they can be tracked and are saved togeth- er with payment information. The solution also displays nutritional information.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 44 94

DOMINO’S PIZZA Launch of mobile order service date: February 2012

The Domino’s Pizza app enables customers to order and pay in English and Spanish, and earn rewards for purchasing. It connects with Ford Sync to track orders, and customers can place them on the go with Apple Watch or Pebble smart- watch. iPhone users can also access a voice-ordering assistant.

Loyalty Total Integrations Score Ordering App Usage Channels 25 Score 56.5 7 24.5

DONATOS PIZZA Launch of mobile order service date: January 2017

The Donatos Pizza app allows customers to place orders and retrieve past order information.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 39 89

DUNKIN’ Launch of mobile order service date: August 2012

The Dunkin’ app enables order-ahead, gives users free beverages on special occasions and integrates with the DD Card, the Dunkin' prepaid card.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 22 54

EL POLLO LOCO Launch of mobile order service date: December 2016

The El Pollo Loco app allows customers to place and customize orders, choose whether to pick up or receive orders via delivery and pay in advance. Customers can also earn reward points and save their order histories.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 31.5 63.5

FIREHOUSE SUBS Launch of mobile order service date: August 2015

The Firehouse Subs App allows customers to order online, find locations and earn rewards. Firehouse Rewards, the restaurant’s digital loyalty program, is available at nearly all U.S. locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 0 30 37

August 2011 FIVE GUYS Launch of mobile order service date:

The Five Guys Burgers & Fries app was developed by food ordering platform Olo, and it allows mobile ordering and order history capabilities, among other features.

Loyalty Total Integrations Score Ordering App Usage Channels Score 15 25 16 56

FREEBIRDS Launch of mobile order service date: June 2016

The Freebirds Restaurant app enables customers to place orders and pay via digital gift cards. They can also scan receipts to earn rewards.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 0 29.5 36.5

HUNGRY HOWIE’S PIZZA Launch of mobile order service date: January 2015

The Hungry Howie’s Pizza app allows customers to place and pay for orders and save payment methods for future use. Users can also create profiles, save orders and reorder past purchases.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 33.5 65.5

JAMBA JUICE Launch of mobile order service date: August 2015

The Jamba Juice app helps guests skip lines by enabling them to order and pay in advance. Users can save their pre- ferred stores, earn reward points on their purchases and reorder from stored recent orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 38.5 70.5

JERSEY MIKE'S Launch of mobile order service date: April 2014

The Jersey Mike’s app, created in partnership with Splick.it and available via both Android and iOS, allows customers to locate Jersey Mike’s restaurants, choose orders from the full menu, pay ahead and store favorite items for easy return ordering.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 0 45 45

JIMMY JOHN’S Launch of mobile order service date: December 2014

The Jimmy John’s Sandwiches app allows patrons to order food and pick it up from the closest Jimmy John's location. Customers who sign in with the app can save their order information for future purchases.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 17.5 49.5

LA MADELEINE Launch of mobile order service date: February 2016

The la Madeleine app allows customers to make orders, pay for them and earn rewards. It also enables customers to find the closest restaurant location and view the restaurant’s menu.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 6.5 31.5

LE PAIN QUOTIDIEN Launch of mobile order service date: June 2015

The LPQ app allows diners to order and pay for food from their phones. It also enables them to pay their bills by scanning bar codes, as well as earn rewards points for purchases and discounts for referring friends.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 17 49

MCALISTER'S DELI Launch of mobile order service date: May 2017

The McAlister’s Deli app allows customers to place customized orders, shows nearby locations and displays special offers.

Loyalty Total Integrations Score Ordering App Usage Channels Score 15 25 48.5 88.5

MCDONALD'S Launch of mobile order service date: August 2015

The McDonald’s app allows customers to place and pay for mobile food orders. Users can save purchases for reordering, access exclusive discounts and find locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 31.5 63.5

MOE'S SOUTHWEST GRILL Launch of mobile order service date: April 2012

The Moe’s Rockin' Rewards app allows customers to place and pay for orders as well as earn rewards points. It also enables customers to find the nearest restaurant location.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 12 44

MOOYAH Launch of mobile order service date: May 2014

The MOOYAH Rewards app allows customers to place and pay for orders in advance. It also integrates with the MOOYAH Rewards program, a loyalty offering based on points obtained by scanning receipts.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 37 87

PANERA BREAD Launch of mobile order service date: April 2014

The Panera Bread app is designed to reduce wait times and speed service. It encompasses digital ordering, payments, operations and a revamped guest experience, whether customers are eating in or ordering to go. It also allows for customized menus and use of the MyPanera loyalty program.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 31 81

PAPA JOHN’S PIZZA Launch of mobile order service date: December 2010

The Papa John’s Pizza app allows customers to choose between delivery and carryout and features special offers. Us- ers can also create accounts to save orders and earn reward points, and the app also provides information on nearby locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 27.5 59.5

PEI WEI Launch of mobile order service date: September 2016

The Pei Wei Rewards app lets customers order and pay for meals in advance, saves order history, allows access to Pei Wei's rewards program and displays special offers.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 39 89

August 2009 PIZZA HUT Launch of mobile order service date:

The Pizza Hut app allows orders from a full and customizable menu, helping customers find local deals and the closest stores. It also allows them to pay directly from the app and accepts voice orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 8 25 19 52

PIZZAREV Launch of mobile order service date: November 2016

The PizzaRev app enables customers to place orders online while earning points for both spending and referring friends. Patrons can also use it to find the closest PizzaRev location and redeem rewards.

Loyalty Total Integrations Score Ordering App Usage Channels Score 18 0 10 28

August 2016 PORTILLO'S Launch of mobile order service date:

The Portillo's app enables patrons to place their drive-through or in-store pickup orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 20 52

POTBELLY SANDWICH SHOP Launch of mobile order service date: March 2017

The Potbelly Sandwich Shop app lets patrons place orders for pickup or delivery. It also includes Potbelly Perks loyalty program, through which customers earn “smiles” that are later exchanged for meals.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 26.5 58.5

QDOBA MEXICAN EATS Launch of mobile order service date: December 2016

The QDOBA Rewards app allows users to order and pay in advance, accumulate points in their reward accounts and find the nearest restaurant locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 30 55

QUIKTRIP Launch of mobile order service date: October 2015

The QT app allows ordering for immediate or scheduled pickups.. It also provides exclusive deals and offers and in-app payments and customers can log in to save orders and preferences. The app also locates nearby branches for customers.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 15 47

QUIZNOS Launch of mobile order service date: June 2017

The Quiznos app enables customers to place and pay for orders, as well as earn loyalty points for each purchase. It also includes a customer feedback feature and promotional offers.

Loyalty Total Integrations Score Ordering App Usage Channels Score 15 25 34 74

SHAKE SHACK Launch of mobile order service date: October 2016

The Shake Shack app enables customers to place orders in advance, create custom profiles and find restaurants based on their GPS locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 18 25 36.5 79.5

SHEETZ Launch of mobile order service date: August 2017

The Sheetz app allows customers to order, earn loyalty points, pay with saved gift cards and view nutritional information.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 20 52

SNAP KITCHEN Launch of mobile order service date: December 2016

Snap Kitchen’s app enables users to earn order-ahead prepared meals for pickup. Customers also can schedule meal deliveries for up to a week in advance.

Loyalty Total Integrations Score Ordering App Usage Channels Score 17 25 40.5 82.5

May 2014 SONIC Launch of mobile order service date:

The Sonic Drive-In app allows users to place and pay for orders in advance, earn rewards and send and receive digital gift cards.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 8 33

SPECIALTY’S CAFÉ & BAKERY Launch of mobile order service date: January 2016

The Specialty’s Café & Bakery mobile app enables patrons to make orders and save payment methods and preferences. It also helps customers find the closest locations and look up nutritional information for menu items.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 45.5 95.5

Top Mobile Order-Ahead Provider

STARBUCKS Launch of mobile order service date: September 2015

The Starbucks app allows users to order drinks and food in advance and pay for them via the app. Customers can also find nearby locations, customize orders and view an estimated time frame for order pickup.

Loyalty Total Integrations Score Ordering App Usage Channels Score 15 25 36.5 76.5

SUBWAY Launch of mobile order service date: July 2015

The Subway app enables customers to place orders 15 minutes in advance. Users can save their purchase histories and earn rewards at participating locations.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 34 66

SWEETGREEN Launch of mobile order service date: February 2013

The sweetgreen app allows users to order from a full menu and access a rewards program.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 36 86

TACO BELL Launch of mobile order service date: October 2014

The Taco Bell app allows users to order and pay via the app, set pickup times and use gift cards. They can also opt to receive real-time order status updates.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 41 66

TEXAS ROADHOUSE Launch of mobile order service date: November 2016

The Texas Roadhouse app enables customers to reserve spots in the table queue before arriving. Users can also pay from the table and earn rewards.

Loyalty Total Integrations Score Ordering App Usage Channels Score 18 25 30 73

TGI FRIDAYS Launch of mobile order service date: July 2016

The Fridays app allows patrons to order food and beverages for pickup, pay directly from the table, find nearby locations, view the menu and add, check and claim points through the chain's rewards program.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 62 7 30

March 2016 TROPICAL SMOOTHIE CAFE Launch of mobile order service date:

The Tropical Smoothie Cafe app enables customers to order food and link credit or debit cardsto make on-the-go payments when ordering ahead. It also offers an automatic reward credit earning feature.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 25 22 47

VEGGIE GRILL Launch of mobile order service date: December 2013

The Veggie Grill Rewards app allows users to order and pay for meals, and saves payment methods for easy future purchasing. It helps patrons locate the nearest restaurants and tracks both purchases and rewards, including a $9 reward for every $99 spent.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 41.5 73.5

February 2017 WAWA Launch of mobile order service date:

The Wawa app allows Wawa Rewards members to place and pay for orders via their smartphones. It also enables customers to pay in-store with git cards, check their balances, earn rewards and find nutritional information.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 18 50

WHICH WICH Launch of mobile order service date: June 2015

The Which Wich app enables customers to order and pay through the platform, and is also connected to Vibe Club Re- wards, the restaurant’s loyalty program.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 0 15 15

WHITE CASTLE Launch of mobile order service date: May 2012

The White Castle app allows customers to order and pay for meals on the go, and to save their favorites for repeat purchasing.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 38.5 88.5

WINGSTOP Launch of mobile order service date: August 2011

The Wingstop app allows customers to order up to a week in advance, customize their orders and find their nearest stores. They also can place them with the Wingbot virtual ordering assistant through text messages, Facebook Messen- ger, Twitter direct messages or Alexa voice orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 16.5 48.5

ZOËS KITCHEN Launch of mobile order service date: September 2017

The Zoës Kitchen app enables customers to place orders via their mobile devices. Other features include user profiles, order histories, rewards and a store locator.

Loyalty Total Integrations Score Ordering App Usage Channels Score

Launch of mobile order service date:

About The Tracker

The PYMNTS.com Mobile Order-Ahead Tracker is designed to give an overview of the trends and activities across the mobile order-ahead space and the companies that offer solutions and services.

Questions? Comments? Brilliant ideas?

We hope you like the Tracker and we welcome your feedback. Drop us a line at [email protected].

PYMNTS.com is where the best minds and the best content meet on the web to learn about “What’s Next” in payments and commerce. Our interactive platform is reinventing the way in which companies in payments share relevant information about the initiatives that shape the future of this dynamic sector and make news. Our data and analytics team includes economists, data scientists and industry an- alysts who work with companies to measure and quantify the innovation that is at the cutting edge of this new world.

Kount provides an all-in-one SaaS platform to help online businesses, merchants, acquiring banks and payment service providers detect fraud and avoid turning away legitimate customers. As part of this effort, the company leverages machine learning and artificial intelligence techniques to analyze risk in transactions. Kount serves a variety of client industries. It helps its food and beverage merchant clients secure payments, avoid fraudulent orders and facilitate the checkout process in mobile channels and traditional eCommerce models.

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