How Blaze Pizza Fires up Friendly Fraud Defenses

SEPTEMBER 2020

FEATURE STORY (p . 7)

How Blaze Pizza Fires Up News and Trends Deep Dive Scorecard Friendly Fraud Papa John’s reports How the surge of The latest mobile 11strong Q2 mobile order- 17mobile app use for 21order-ahead provider ahead growth, 70 percent food deliveries has rankings Defenses of orders received via heightened the risk of digital channels friendly fraud TABLE OF CONTENTS

What's Inside 3 A look at how consumers’ dependence on mobile apps for takeout or delivery has increased the risk of chargeback fraud and how the industry can fight back

Feature Story An interview with Mandy Shaw, CEO of Blaze Pizza, on how the fast casual 7 pizza chain proactively works to curb friendly fraud and how it has pivoted to provide a consistent customer experience across digital channels during the COVID-19 pandemic

News and Trends The latest worldwide mobile order-ahead headlines, including how Papa John’s 11 received 70 percent of its orders via digital channels and Starbucks’ recent 5 percent decline in active rewards members

Deep Dive An in-depth look at the tools QSRs can use to help identify and mitigate mobile 17 app-enabled friendly fraud

Scoring Methodology 20 Who’s on top and how they got there

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

About 52 Information on PYMNTS.com and Kount ACKNOWLEDGMENT The Mobile Order-Ahead Tracker® is done in collaboration with 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.

Ordering meals via mobile app for pickup or de- The ranks of restaurants and quick-service restau- livery has become increasingly commonplace for rants (QSRs) investing in mobile order-ahead millions of consumers in the United States, and technology are expanding significantly year over they are preferring to dine in the comfort and safe- year, according to fraud protection provider Kount, ty of their homes during the COVID-19 pandemic. A especially as consumer demand for food deliv- recent study predicts that the number of food de- ery apps has surged due to the pandemic. Along livery app users could climb 25.2 percent to 45.6 with the rise in mobile order-ahead use, however, million in 2020 as consumers continue to heavily has come an unfortunate increase in chargebacks rely on these services. This total could dip to 44.1 — which can be abused in acts of friendly fraud, million in 2021 as indoor restaurant dining spac- caused by customers, not cyberthieves. es reopen and consumers venture out to eat again. QSRs can employ existing credit card compa- The upward trend is not going away, however, and ny tools such as Card Verification Value 2 (CVV2) the number of U.S. app users is predicted to bounce codes to prevent problems, as this information is back by 2023 to as many as 53.9 million.

safely kept off restaurant premises, out of the reach lanes, one a dedicated pickup lane for guests who of any fraudster. Artificial intelligence (AI) and ma- use an app to order. chine learning (ML) are two additional powerful Some restaurant chains, meanwhile, are actual- tools that eateries have been utilizing to safeguard ly getting a boost from consumers’ preference mobile channels against digital threats. to dine at home during the COVID-19 pandemic. Papa John’s has experienced recent sales growth Mobile order-ahead developments around the world through its digital channels, with mobile ordering being its fastest-growing platform, according Consumers are seeking quick, easy and touchless to CEO Rob Lynch. The pizza chain reported a re- ways to order meals online. Through an integra- cord 28 percent increase in same-store sales tion with Google, fast casual chain Panera Bread is in Q2, with 70 percent of orders placed digitally. broadening its off-site capabilities to improve the Pandemic-related concerns and restrictions are customer ordering experience using such tools as fueling the upward consumer demand for deliv- Google Search, Google Maps and Google Assistant, ery and pickup through branded mobile and online according to a recent announcement. Panera chief channels as well as third-party delivery services. digital officer George Hanson said that the compa- The company expects these sales to continue to ny is dedicated to expanding its digital landscape grow in the coming months, as the global crisis and off-site ordering channels. shows little sign of slowing. Drive-thru operations are serving as life support For more on these stories and other headlines from systems for QSRs during the pandemic, and many around the mobile order-ahead space, read the QSRs are investing in technology that streamlines Tracker's News and Trends section (p. 11). these operations to improve the customer experi-

ence. Taco Bell has released a new Taco Bell Go Blaze Pizza on preventing abuse of Mobile restaurant concept featuring an entirely chargebacks on mobile orders new experience focused on modernizing guest ac- Consumers are regularly using mobile apps to or- cess points, according to president and global chief der meals, and many are hesitant to return to operations officer Mike Grams. Restaurants that public dining. An increase in fraudulent activity is adopt the new concept will include two drive-thru

Executive unfortunately occurring alongside such behav- ioral shifts. Preventing incidents of friendly fraud INSIGHT surrounding online promotions requires continual- QSRs have made advances in supporting mobile ly evaluating existing controls and innovating new order-ahead, yet the pandemic has also created new security gaps for fraudsters to exploit. What types of solutions, according to Mandy Shaw, CEO of fast fraud have you observed recently, and how can QSRs casual pizza chain Blaze Pizza. For this month’s safeguard their platforms from them?

Feature Story (p. 7), Shaw explained how preventing “Mobile order-ahead is just one example of how digital bad actors from taking advantage of higher digital innovation is accelerating in the quick-service restaurant world. In order to effectively safeguard these activity volumes requires a proactive approach. platforms, start [by] considering the entire customer journey involved in placing an order. Deep Dive: Rise in chargeback risk mirrors The customer downloads the app, creates an account, surge in mobile app ordering logs in, navigates the menu, makes some customiza- The recent rise in digital food ordering is prompt- tions, selects the location and time they’re ready for their order, perhaps enters loyalty information or re- ing a corresponding increase in digital fraud, and deems points and makes a purchase — maybe with a friendly fraud is no exception. Mobile ordering is saved credit card. making reimbursement requests easier than ever, Each of those areas — accounts, payments, loyalty pro- but restaurants can use several tools to take aim grams, et cetera — are all opportunities for fraudsters to potentially exploit. Kount works with many of the at unwarranted chargebacks and deter would-be top QSRs, and we’ve seen and stopped these fraud at- friendly fraudsters from filing false claims. This tempts at every step. month’s Deep Dive (p. 17) explores how the surge With more consumers making more digital purchas- in mobile ordering has led to a rise in credit card es than ever before, fraudsters hope to slip through the cracks in the midst of other priorities. And in the chargebacks. Fraud detection tools, however, can restaurant business, there is little to no time to do any help QSRs identify and mitigate friendly fraud by manual review; consumers expect their food sooner rather than later. adding just the right amount of friction into the customer experience. eCommerce businesses, including QSRs, can partner with advanced, AI-driven fraud prevention platforms that protect the entire customer journey. Solutions BRAD WISKIRCHEN like Kount are sophisticated enough to understand the CEO of Kount types of frequent, small dollar amount purchases at QSRs while being able to stop both emerging and existing attacks.”

RICH STUPPY chief customer experience officer at Kount

Five Fast Facts

5% $3.5B Decline in year-over-year 90-day Reported record high digital active Starbucks Rewards sales for Taco Bell in Q2 members

59% 47% 45.6M Portion of restaurants that Share of U.S. consumers who say moving operations Expected number of U.S. mobile plan to eat out as soon as it is food delivery app users in 2020 online was the greatest deemed safe COVID-19 challenge

Consumers are using mobile apps’ order-ahead between legitimate customers and fraudsters tak- features and loyalty perks more often during the ing advantage of the higher volumes of digital COVID-19 pandemic, yet chargeback fraud — also activity. known as friendly fraud — is unfortunately also ris- A proactive approach to friendly fraud ing. One report found that 1 percent of all restaurant purchases are targeted by fraudsters — a seeming- Friendly fraud often develops around online promo- ly small yet deeply damaging rate for eateries that tions at restaurants. Some consumers will attempt may already be struggling. to use digital offers in person when they are not valid for in-store use or try to use a promotion more Much of the recent increase in chargebacks can times than permitted, for example. be attributed to the substantial rise in mobile order-ahead, as customers abusing the system “We work with our providers to create limits on have little in-person interaction with restaurant multiple-use opportunities that are specialized staff. Chargebacks were originally instituted as based on the type of offer we’re making,” Shaw said a last resort for customers, but they have gained in a recent interview with PYMNTS. “You have to popularity alongside digital commerce. also strike a balance … so that real users aren’t pre- vented from redeeming.” “You have to continually evaluate whether the pro- tections or controls that are in place are being The company also works to approach fraud pre- abused, and then you have to innovate new solu- vention proactively by scenario planning, or tions. Combating fraud is not a one-and-done strategically imagining how redemptions can be process, as people will find new ways to circum- misused and partnering with providers to avert vent the best efforts,” said Mandy Shaw, CEO of negative outcomes.

Pasadena, California-based artisanal pizza chain “We scenario-plan and try to imagine all the ways Blaze Pizza. redemptions could be abused and then devel- Mobile ordering is at the center of business oper- op controls to prevent egregious redemption,” she ations for Blaze Pizza and many fast casual dining said. “As to friendly fraud, the entire industry bat- chains today. Companies are therefore investing in tles this, and we have external providers that help solutions and strategizing how to better distinguish us manage chargeback fraud.”

Blaze works with a loyalty and engagement plat- “Our initiatives have been about 360-degree avail- form solution provider to help prevent friendly ability across all platforms and consistency of fraud and also utilizes customer survey platform experience,” Shaw said. “We want to be available Tattle to smooth out any negative customer ex- [so] the consumer [can] decide how they would like periences. This platform offers a guest feedback to use our experience.” form with questions regarding the visit as well as Blaze Pizza received 80 percent of its business analytics tools to evaluate performance. Social me- from dine-in customers before the COVID-19 pan- dia feedback is also collected and reported to track demic, but like much of the U.S. restaurant industry, consumer sentiment. it speedily pivoted its operations when the health crisis struck. Its digital business has since grown Pandemic-driven pivots more than 180 percent from the prior year. The shift to digital interactions has forced restaurant brands to quickly provide consistent customer “We launched curbside pickup in a matter of three experiences across all channels, often by offering weeks because we knew that people wanted con- curbside pickup or partnering with new third-party tactless [options] and they wanted not to have to delivery services. get out of their vehicles and come into a restaurant,

especially when dining rooms were closed,” Shaw using the Blaze Pizza branded mobile app. Many said. consumers have also shifted to larger family-style orders as they stay at home and work remotely. This involved optimizing the customer journey in digital channels and on its mobile ordering plat- Gaining insights form, she explained. The chain also piloted its first Blaze found value in managing customer identities drive lane and curbside pickup two months ago in across multiple channels because consumers use Fort Myers, Florida. numerous digital devices in their daily lives. “The idea is you can order on your mobile device “The more we know about our individual guests, and use the drive lane to pull up to a window to re- the better we are at serving them, and data and ceive your order,” Shaw explained. Blaze plans to analytics are key,” Shaw said. “Third-party delivery roll out drive lanes at additional locations across does continue to be a bit of a barrier for restaurant the country within the next year. The company even owners, since you lose some customer insight.” offered free delivery early in the pandemic for add- ed incentive and convenience. The long-term impact of the pandemic is uncertain for Blaze and other fast casual chains. The industry “We had promotions with either third-party deliv- is continuing to serve higher volumes of customers ery companies or through our own website or app via mobile and digital channels, yet the importance where we offered free delivery, and we still had of prioritizing the customer will not change, Shaw about 35 percent of people who chose to come said. pick up their pizza,” Shaw recalled. “There’s a control factor that folks have that they still don’t want “Our mantra is ‘guest at the center.’ It’s the quality to wait because if you order through one of the of the experience, the hospitality, even though it’s third-party companies, it may take an hour, where- digital,” she explained.

as if you pick it up, you generally get it within 15 to Brands can most smoothly navigate the unpre- 20 minutes, right? We found it fascinating that even dictable landscape by managing these customer when delivery costs you nothing, [some customers] relationships and maintaining trust through friendly still choose to pick it up.” fraud prevention. Blaze’s delivery landscape has shifted to about equal shares of pickup and delivery for customers

BIOMETRICS AND ORDERING PopEntry is so far being offered at in-store kiosks, TECHNOLOGY DEVELOPMENTS counters and drive-thrus at 25 restaurant and retail shop locations in Pasadena. PopID recently report- PopID rolls out facial recognition payment network for eateries and stores ed selling roughly 1,000 of the units and expects to install several thousand more at locations across Restaurants are continuing to seek contactless pay- the U.S. by the end of the year. ment solutions that can help customers feel safer dining out during the COVID-19 pandemic, and Digital technology investments prove crucial to some are turning to biometrics. California-based restaurants aiming to survive the pandemic

identity verification solutions provider PopID re- Some restaurants are using digital tools to dramat- cently announced that it will roll out a facial ically alter their operations as fewer consumers opt recognition-based payments system at restaurants to dine out. New York City-based French restau- and shops in Pasadena, for example. The solution, rant Daniel, for example, began offering delivery and called PopEntry, will enable consumers to make takeout service based on menus that change week- payments via debit or credit cards linked to PopID ly and items that are meant to be eaten alfresco. accounts and receive text messages to confirm Other eateries are focusing on integrating AI into payments. The accounts can also be attached to digital menu boards, while some have turned to loyalty initiatives.

cloud-based platforms to streamline various facets for example. Another recent survey found that 39 of the order management experience. percent of consumers utilized curbside pickup after the pandemic began, an increase from the 28 per- Investments in these and other technologies could cent who did so beforehand. prove to be crucial for restaurants continuing to navigate the pandemic, and recent research suggests Panera taps Google integration to boost digital that eateries focused on using technologies to en- commerce and off-site offerings able contactless ordering and delivery are poised to Some QSRs are further streamlining their online or- see robust growth. Pizza chain Domino’s stated that dering options to boost speed and convenience its takeout and delivery sales had increased 14 per- for consumers. Fast casual chain Panera Bread cent during an eight-week period ending in mid-May,

recently announced an integration with technolo- cameras with thermal sensors to conduct its tem- gy giant Google aimed at broadening the former’s perature screenings. off-site capabilities, enabling ordering via Google Assistant, Google Maps and Google Search. George MOBILE APP INNOVATIONS Hanson, Panera’s chief digital officer, stated that the Taco Bell releases new mobile store concept company was focused on expanding its digital offer- A multitude of QSRs are relying on drive-thru op- ings and off-site ordering channels. He also noted erations and contactless pickup offerings to stay that Panera would continue to use a set of brand afloat during the pandemic, leading many to invest guidelines — as well as local, state and federal rec- in technology that streamlines the ordering experi- ommendations — to reopen its brick-and-mortar ence. Taco Bell recently unveiled a new Taco Bell Go locations. Mobile restaurant concept that merges a physical CyberLink rolls out solution to verify identities footprint with a digitally focused customer expe- of consumers wearing face masks rience offering multiple guest access points, said Many governments worldwide have mandated that Mike Grams, Taco Bell president and global chief op- consumers don facial coverings during physical in- erations officer.

teractions or when visiting businesses, and this shift The Go Mobile restaurants are roughly half the size is prompting restaurants and other retailers to ex- of traditional store locations and offer two drive-thru amine verification solutions that can accurately lanes each, including one dedicated to customers identify consumers who are wearing face masks. who placed their orders via app. Consumers can Taiwan-based AI and digital-imaging technolo- also opt for contactless curbside pickup. Taco Bell’s gies developer CyberLink Corp. recently released parent company, Yum! Brands Inc., reported that its FaceMe Health, a health software system designed Q2 digital sales were $3.5 billion, up more than $1 to quickly and efficiently verify consumers’ identities billion from the same period in 2019. with up to 95 percent accuracy. The solution can also determine when consumers are not wearing Starbucks Rewards experiences 5 percent dip masks and perform temperature checks, alerting in 90-day active members staff in the event that an individual is unmasked Coffee giant Starbucks recently announced in its or running a fever. It utilizes USB webcams and IP Q3 earnings report that the number of 90-day active

Starbucks Rewards members declined by 5 per- Dunkin’ Brands CEO Dave Hoffman said he also at- cent year over year to 16.3 million, attributing the tributed the decline in sales to consumers’ altered shift largely to short-term store closures and oth- routines, in which fewer individuals commute to the er pandemic-related issues. The company said the office and order their regular morning cup of coffee. decline was somewhat mitigated by an increase in Papa John’s sees 70 percent of orders via the number of customers who downloaded its app digital channels, improved mobile and third- and signed up for the Rewards program, which rose party ordering growth 17 percent in Q3 to reach 3 million. Kevin Johnson, Restaurant chains that have quickly redirected their president and CEO of Starbucks, said digital offer- energy and investments in digital channels and mo- ings are providing the security and convenience that bile ordering technology are meanwhile faring better customers seek during the health crisis. He said during the pandemic. Pizza chain Papa John’s post- that only 44 percent of the coffee chain’s stores ed a 28 percent increase for same-store sales in Q2 were open at the beginning of Q3, but digital solu- and expects the upward trend to continue into Q3, tions helped boost that share to 96 percent by the CEO Rob Lynch said on a company earnings call last end of the quarter. month. Papa John’s received 70 percent of its or- Dunkin’ Brands expects to close 800 locations ders via digital channels and saw increased order after lackluster Q2 earnings growth through its mobile app.

The famous New England coffee chain’s holding The pizza chain’s loyalty initiative and marketing company, Dunkin’ Brands, has recently taken an an- campaigns also helped boost its sales. Delivery or- ticipated hit from the ongoing global health crisis, ders through third-party services were up more than showing decreased revenues in Q2 earnings. Sales 100 percent in Q2 compared to Q1, Lynch said. He tumbled nearly 21 percent from the long-term and predicted continued consumer demand for delivery short-term store closures it was forced to endure. and pickup through both in-house and third-party As a result, the company announced that some 800 channels. of its Dunkin’ locations in the U.S., including its 450 smaller locations inside of Speedway Gas Stations, may need to be closed for good. Though that number may seem massive, it represents only about 8 percent of Dunkin’s U.S. locations.

THE IMPORTANCE OF BUILDING LOYALTY

Why QSRs should reexamine brand messaging to build trust in industry recovery

Rebuilding brands and revenues after lockdowns will come down to fostering trust with consumers, as the COVID-19 pandemic has forced eateries to reexamine their approaches. QSR marketers will need to find ways to elicit trust and engage customers with brand messaging in a world now ruled by social distancing. Creative director Tyler Brooks at advertising agency Turner Duckworth, which has helped create global restaurant chain logos and recently rereleased McDonald’s new Happy Meal design, said that transparency is critical with guests, who deserve to know that the brand is do- ing its best to serve them on a human level. This means reassuring customers that their safety is top priority throughout everything from food order placement to safe kitchen prep to pickup, delivery or on-premises dining. Brooks believes this can start with clear signage, revamped packaging and a strong visual identity. A personalized touch should also be injected into third-party delivery as mobile orders continue to grow, especially because the restaurant operator cannot directly manage how the meal is dropped off.

Only 50 percent of brands can find customers initiatives is one way to address this issue and iden- across all devices, study finds tify customers throughout multiple channels. These Customers use an ever-growing number of devic- programs offer eateries insight into guests’ ordering es daily, leading restaurants to seek ways to build behaviors, which can help optimize online promo- a unified customer profile to optimize engagement tions and drive greater revenues. Many marketers and marketing efforts. A recent study revealed that are choosing to partner with other firms to main- only 50 percent of brands were able to find cus- tain a customer data platform (CDP), too, which can tomers across all devices in order to assemble a also help create a comprehensive view of the guest unified customer profile. Launching loyalty program across all channels and devices.

How QSRs Can Fight The Rise Of App-Enabled Friendly Fraud

Many consumers are still hesitant to dine out not make legitimate purchases and seek reimburse- during the COVID-19 pandemic, but a growing num- ment for them. ber are warming to delivery and carryout options. The following Deep Dive examines how the in- One recent study estimated that roughly 44 million creased use of mobile apps has led to a rise in Americans would tap food delivery apps by the end friendly fraud as well as how fraud detection tools of this year, up from 38 million in 2019, and anoth- can help identify and mitigate these problems. It er survey predicts that the number of smartphone also analyzes how focusing on the customer expe- delivery app users will climb 25.2 percent to 45.6 rience can help prevent such fraud in the first place. million this year. That total is predicted to decline to 44.1 million in 2021 as dining spaces reopen but How friendly fraud develops

is eventually expected to rebound to 53.9 million in Friendly fraud begins when consumers request 2023. chargebacks from their financial institutions (FIs), QSRs that offer mobile order-ahead options as claiming that certain transactions were fraudulent well as convenient online ordering methods are or that their orders never arrived. Banks typically expanding their sales significantly through these then reverse these transactions, reimbursing cus- digital channels during the pandemic. The growth in tomers without ever requiring them to contact the digital transactions is also spurring a boost in friend- restaurant — even though eateries are usually left ly fraud, which occurs when legitimate customers footing the bill. either knowingly or unwittingly claim that they did

Some dishonest customers request refunds even robust fraud prevention measures that can tackle though they have received and consumed their the issue of chargebacks without putting off legiti- meals or realized that family members have pur- mate customers. Security tools can include existing posefully or accidentally used their cards to make information such as card verification values, for ex- food purchases. Neither banks nor restaurants ample, which cannot be housed on restaurants’ are obligated to offer refunds in these instances, systems and are therefore unlikely to land in fraud- which can lead unscrupulous consumers to place sters’ hands. Address verification systems can also false chargeback claims with their banks. Most FIs add a layer of protection by matching consumers’ cannot readily verify these claims and ultimately au- credit card billing addresses with those on file at thorize the requests to maintain smooth customer banks. relations, leaving restaurants on the hook. Advanced technologies such as AI and machine Friendly fraud has also been on the rise because learning (ML) are powerful tools that can help many customers now need only to tap their mobile restaurants quickly sort through large volumes of apps to dispute charges, and fighting chargebacks payment data for signs of fraud that human analysts by proving payments are valid can be cumbersome might miss. Such processes can also add protection and costly for restaurant operators. One recent by analyzing real-time data about transactions and study reported that chargebacks rose 179 percent reaching out to customers to verify their payment in the past two years, and 31 percent of merchants details, simultaneously confirming accuracy and de- claimed that targeting friendly fraud is their greatest termining that select transactions are authorized. challenge. Such chargebacks are predicted to to- Such actions could provide just enough friction to tal approximately $40 billion before 2025. Another keep customers from filing false chargebacks. report noted that 1 percent of customer payments The mobile order-ahead space is unlikely to rid it- were lost to chargebacks, which could be a massive self of friendly fraud anytime soon, especially as problem for eateries operating on slim margins. more consumers flock to mobile ordering channels during the pandemic. Restaurants can mitigate the How QSRs can fight back against friendly fraud issue, however, by leveraging the right tools when Approximately 40 percent of consumers state that analyzing transactions and by providing just the complicated login methods requiring many steps right amount of friction. when placing food orders are the top cause of frus- tration they face when ordering online or through mobile apps. Restaurants thus need to invest in

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 Tracker’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 Order how we Ahead organize our Ecosystem News 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

This month’s provider directory assesses 77 leading players in the space and scores them based on their mobile ordering apps' features and adop- tion 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 6 89

score score 2 94 7 88.5

score score 3 94 8 88.5

score score 4 90.5 8 88.5

score score 4 90 10 87.5

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 0 29 54

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 5 37

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 0 54 Channels 25 Score 67.5 25 29 7 35.5

APPLEBEE'S April 2016 BJ’S RESTAURANT & BREWHOUSE Launch of mobile order service date: June 2014

The Applebee’s app allows customers to order and pay ahead. They can also create accounts to save favorite orders The BJ’s mobile app allows customers to order ahead for takeout or dine-in, and offers split-the-bill features for group and earn loyalty points. orders.

Loyalty Total Integrations Score Ordering App Usage 25 37 Channels Score 7 5 7 25 32.5 64.5

ARGO TEA November 2014 BLAZE PIZZA Launch of mobile order service date: March 2016

Argo Tea’s app enables customers to preorder and prepay for purchases. It allows customers to scan mobile devices to The Blaze Pizza app enables guests to order and pay from smartphones and earn rewards including free meals. The pay at the counter when picking up their orders, and offers rewards and loyalty features including perks for every 10 vis- app also provides online order histories, reordering capabilities and a nutrition calculator. its and credit for downloading the app.

Loyalty Total Integrations Score Ordering App Usage Channels Score 25 25 40.5 90.5

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 52 7 20

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 11.5 43.5

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 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 46.588.5

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 16.5 41.5

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 19.5 44.5

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 27.5 42.5

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 25 Score 95.5 0 25 19.5 44.5 25 45.5

Top Mobile Order-Ahead Provider

COSTA VIDA November 2015 DOMINO’S PIZZA Launch of mobile order service date: February 2012

The Costa Vida app features order-ahead and rewards capabilities, displays special offers and encourages users to pur- The Domino’s Pizza app enables customers to order and pay in English and Spanish, and earn rewards for purchasing. chase gift cards for friends. 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 0 42.5 Channels 25 Score 57.5 15 27.5 7 25.5

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

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

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

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 25 94 Channels Score 25 44 7 25 31.5 63.5

DUNKIN’ August 2012 FIREHOUSE SUBS Launch of mobile order service date: August 2015

The Dunkin’ app enables order-ahead, gives users free beverages on special occasions and integrates with the DD Card, The Firehouse Subs App allows customers to order online, find locations and earn rewards. Firehouse Rewards, the the Dunkin' prepaid card. restaurant’s digital loyalty program, is available at nearly all U.S. locations.

Loyalty Total Integrations Score Ordering App Usage 25 54 Channels Score 7 22 15 0 36.5 51.5

EL POLLO LOCO December 2016 FIVE GUYS Launch of mobile order service date: August 2011

The El Pollo Loco app allows customers to place and customize orders, choose whether to pick up or receive orders via The Five Guys Burgers & Fries app was developed by food ordering platform Olo, and it allows mobile ordering and or- delivery and pay in advance. Customers can also earn reward points and save their order histories. der 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 23.5 30.5

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 32 64

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 39.5 71.5

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 43 43

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 20.5 52.5

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 5 30

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 34.5 66.5

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 47 87

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 29.5 61.5

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 8.5 40.5

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 38.5 88.5

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 33 83

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. Users 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 23 55

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 37.5 87.5

PIZZA HUT Launch of mobile order service date: August 2009

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 12.5 45.5

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 13.5 31.5

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

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 30 62

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 27 52

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 18 50

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 38 78

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 34.5 77.5

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 19 51

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 45 87

SONIC Launch of mobile order service date: May 2014

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 5 30

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 44 94

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 39.5 79.5

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 32 64

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 39 89

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 43 68

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 23 66

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 25 Score 60.5 7 28.5

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

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 17 42

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

WAWA Launch of mobile order service date: February 2017

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 24 56

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 Rewards, the restaurant’s loyalty program.

Loyalty Total Integrations Score Ordering App Usage Channels Score 0 0 26.5 26.5

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 Messenger, Twitter direct messages or Alexa voice orders.

Loyalty Total Integrations Score Ordering App Usage Channels Score 7 25 11.5 43.5

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:

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