Portillo's on Offering a Fast and Secure End-To-End Customer

AUGUST 2020

FEATURE STORY (p . 7) Portillo’s On Offering A Fast And Secure

End-To-End News and Trends Deep Dive Scorecard Customer U.S. cities cap third- Rising demand for The latest mobile 11party delivery fees to 17digital food ordering 22order-ahead provider help boost struggling sees parallel increased rankings Experience restaurant industry risk for fraud TABLE OF CONTENTS

What's Inside A look at how third-party delivery apps are driving business back to restaurants 3 during the global health crisis and the security risks they pose as consumers rely more heavily on them

Feature Story An interview with Eric Bevins, director of operations services for Chicago-based 7 fast casual restaurant chain Portillo’s, on the launch of its ghost kitchen, self- delivery program and how it secures its in-house ordering system

News and Trends Recent headlines from around the mobile order-ahead ecosystem, including City Barbecue and Radius Networks’ new partnership to boost the former’s curbside 11 pickup business and the recent release of Deliveroo’s Table Service app feature for safer in-restaurant ordering and payments

Deep Dive An in-depth look at how the surge in use of third-party delivery apps has 17 heightened the risk of fraud and the tools that can be deployed to keep consumers safe

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 22 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.

Third-party delivery apps have served as life respondents worried that their digital interactions support for many restaurants trying to keep busi- with QSRs could result in a form of fraud, such ness flowing during the COVID-19 pandemic. as an account takeover (ATO), stolen payment in- Many consumers are still reluctant to venture out formation or fake reviews, with nearly half having to restaurants as they begin to reopen, fearing concerns about credit card data theft and 41 per- risk of exposure, and are instead turning to deliv- cent being wary of a potential ATO. This hasn’t ery and takeout for their familiar favorites. With deterred consumers from installing these apps on the increased demand for food deliveries from their mobile devices, though, with recent research third-party delivery providers such as DoorDash, showing a 51 percent surge in restaurant delivery Grubhub and Uber Eats has come increased risk of app downloads from the Apple App Store during fraud, however, including theft of sensitive personal the pandemic's onset in late March and into April. information that can be used to steal funds. McDonald’s was the most downloaded food delivery app worldwide for June, with an estimated 6.7 A survey of 1,000 quick-service restaurant (QSR) customers found that more than half of

million downloads, while Uber Eats was the next curbside pickup offering. Curbside sales climbed to most downloaded at 6.4 million. 35 percent from 14 percent within days after releas- ing FlyBuy Pickup, Radius Networks’ proprietary This indicates that customers today want conve- location technology aimed at optimizing curbside nience above all else. The challenge for eateries is and in-store pickup by reducing guest wait time. providing the convenience of mobile order-ahead and speedy payments while keeping their custom- Fees for app-based delivery services can take a ers safe. bite out of restaurant profits. Online food ordering and delivery provider Uber Eats skimmed about Mobile order-ahead developments around 33 percent of earnings for restaurant orders in the world Seattle while food delivery services DoorDash and Consolidation is underway in the competitive Postmates each took about 25 percent until the city app-based food delivery market, according to a legislated a 15 percent cap on those commission mid-COVID-19 performance report. Indian food ag- fees in the early stages of the COVID-19 pandem- gregator Zomato and India’s largest online food ic. The effort was somewhat helpful, but restaurant ordering and delivery system, Swiggy, are emerg- owners such as Uttam Mukherjee of Indian street ing as the main two contenders in the space since food restaurant Spice Waala have had to raise on- Zomato acquired Uber Eats’ food delivery business line food prices just to help compensate. in India, a stock deal reportedly worth $300 million. For more on these stories, and other headlines Zomato CEO and co-founder Deepinder Goyal said from around the mobile order-ahead space, read that, despite fallout from the pandemic, the compa- the Tracker's News and Trends section (p. 11). ny was able to continue heading toward profitability.

Investing in technology to achieve operational ef- Portillo’s on its ghost kitchen, self-delivery ficiency is helping some restaurants boost sales, launches including Columbus, Ohio-based City Barbecue. Food deliveries through third-party and in-house The fast-casual barbecue chain recently teamed up restaurant apps are rising to record levels, prompt- with location-based technology company Radius ing QSRs to look for ways to relieve pressure in Networks to release FlyBuy Pickup, an upgraded their kitchens. Some restaurants are opening

Executive ghost kitchens and launching self-delivery to boost brand awareness and employing local drivers. For INSIGHT this month’s Feature Story (p. 7), PYMNTS spoke From onboarding customers to enabling with Eric Bevins, director of operations services seamless ordering, what kinds of tools and technologies can help QSRs secure the entire at Chicago-based fast casual chain Portillo’s, to customer journey against any potential security discuss the restaurant’s efforts in providing a threats? seamless customer journey through its recent “A seamless customer experience isn’t just a innovations. good idea — it’s a requirement of doing business. Difficult to log in or pay? Loyalty points missing? Notice of an account breach? Any friction can DEEP DIVE: Third-party delivery apps help drive an inconvenienced consumer out of one app sustain restaurant business, but usher in spike and on to the next, and to easier dining options. in fraud Securing the entire customer journey doesn’t Restaurants are benefiting from using digital have to mean complex software or a cumber- channels such as third-party mobile apps to keep some customer experience. Instead, establishing business flowing during the COVID-19 pandemic, identity trust at every interaction — from account creation to login to payment — can help a good but with this usage has come an increasing risk of customer through [his or her] journey in real time fraud. Consumers are aware of this trend, however, while also blocking fraud.

and are concerned that engaging with a QSR app Because QSR transactions are unique, determin- could lead to an account breach. App providers can ing identity trust requires a robust data network adopt digital tools to help deliver safe and secure of signals from billions of annual interactions. For instance, ordering a coffee three times a day user experiences. This month’s Deep Dive (p. 17) — or seven at once — may not be unusual, and examines how employing artificial intelligence (AI)- a simple solution may not make an accurate de- and machine learning (ML)-supported technology cision in real time. Adaptive AI coupled with the can offer a proactive approach toward protecting right data can make highly accurate and scalable decisions while preventing both emerging and ex- customers. isting fraud.

Further, with the right trust data and access to BRAD WISKIRCHEN analytics, QSRs can proactively identify their best CEO of Kount customers, which opens the door to marketing opportunities and special offers to enhance the customer experience.”

RICH STUPPY chief customer experience officer at Kount

Five Fast Facts

$300M 96.4% Increase in takeout sales for 300 Value of stock deal for Indian chain restaurants in May food aggregator Zomato to acquire Uber’s Indian delivery business

77% 57% 15% Portion of Generation Y that Portion of Generation Z that Limit on fees third-party food prefers to order and pay for prefers to order and pay for food food using an app delivery companies can charge using an app qualifying restaurants in Fremont, California

With social distancing and lockdown mandates Illinois-based chain, which has 62 locations in seven continuing to keep patrons from frequenting states. Those sales came through a variety of or- brick-and-mortar QSR locations, consumers are dering channels, including the company’s website, turning to a variety of channels to place their orders its in-house mobile ordering app and third-party de- quickly and conveniently. This has led to orders livery platforms. placed via digital channels soaring to record levels Ghost kitchen launch relieves delivery — a trend that is expected to continue for the fore- pressure seeable future. Meal delivery orders placed through the end of June more than doubled year over year, Portillo’s and other QSRs are looking to team up for example. Third-party meal delivery providers with strategic ghost kitchen partners to meet the such as DoorDash, Uber Eats and Grubhub saw increase in digital and mobile ordering. Portillo’s their order volumes skyrocket, with sales increas- announced plans in June to partner with ghost ing by 45 percent, 24 percent and 22 percent, kitchen firm Kitchen United tolaunch a ghost kitch- respectively. en, which went live on Aug. 3, Bevins said.

These are trends that QSR chains across the “We are very excited about it and its potential, U.S. are observing firsthand. American fast ca- and the early tests have gone very well,” he said. sual restaurant chain Portillo’s — known for its “We have a very steady delivery business, current- Chicago-style hot dogs, chargrilled burgers and ly driven by third-party delivery out of our Chicago famous chocolate cake — is one such player. The locations, so this will help ease some of that deliv- QSR has seen positive results from its delivery ery pressure for the restaurants as well as allow us business, which has more than doubled since the to have a facility and team dedicated exclusively to pandemic's onset. off-premises business throughout the day.”

“While the entire restaurant industry saw a dip as Portillo’s entered the delivery business in a partner- COVID-19 came on, we have seen a rebound, with ship with DoorDash about four years ago and was sales steadily recovering,” said Eric Bevins, di- initially uncertain about investing in the service, rector of operations services for the Oakbrook, Bevins said.

“It was a no-nonsense way for us to get into the de- orders placed via third-party delivery apps, Bevins livery business,” Bevins added. said.

But with the growth in demand for online delivery Offering an end-to-end experience over the past six months, the company made the QSRs’ ability to remain competitive depends more decision to roll out its own delivery program last than ever on keeping up with customers’ pre- month and will soon use its own drivers to bring its ferred ways of interacting with restaurants. That Chicago-style menu selections ordered through its means enabling a seamless ordering experience website or app to customers’ doorsteps. not just on mobile but also across other custom- All the chain’s locations, along with the new ghost er touchpoints, such as the company’s website or kitchen website, will also continue to accept mobile third-party apps. Portillo’s has aimed to deliver on

that by offering app features that allow guests to them susceptible to fraud. A recent report found find their nearest locations, learn more about the that the total number of mobile device attacks brand and, importantly, peruse the menu and direct- had risen by 117 percent in the past year. Finding ly order meals for pickup or delivery. The company ways to offer the speed and convenience mobile also plans to roll out another update to its app and apps offer while protecting them from fraud is an website that would improve on its guests’ experi- ongoing challenge for restaurants. This has meant ences in larger catering orders. Catering is currently that QSRs such as Portillo’s must constantly up- integrated with the rest of the ordering features, but date their security systems to guard against new Portillo’s website and app update will create an even threats. more user-friendly menu that will help guide guests Portillo’s also utilizes a cloud-delivered endpoint on the types of catering options for their groups, protection platform to safeguard both its em- Bevins explained. ployees and its guests against nefarious actors, Portillo’s has sought to offer a uniformly convenient according to Portillo's senior vice president of IT, experience across the board while also seeking to Rick Cook. Others in the industry are employing differentiate its ordering process on its own chan- AI- and ML-driven technology for fraud prevention. nels by unlocking unique offerings for its customers. Such technology can operate in the background The company’s app and website, for example, are without disturbing a customer’s transactions, thus the only places where customers can see and or- allowing QSRs to take a proactive approach to fight- der limited-time offers such as its current lemon ing fraud. cake, lemon cake shake and strawberry lemon cake Ensuring the security of all pickup and delivery op- shake. They also provide guests the lowest prices tions is critical for QSRs, especially during the and birthday rewards, among other offerings. ongoing health crisis, to maintain customer confi- dence and trust. Restaurants that are able to ensure Providing a safe and seamless customer experience a seamless customer journey while keeping their guests safe and secure will remain on the leading Consumers’ growing affinity for ordering through edge. websites and mobile apps, however, also makes

THIRD-PARTY DELIVERY With many consumers relying on third-party mo- DEVELOPMENTS bile apps and online platforms for food delivery as they stay at home, restaurants are depending more California city sets 15 percent cap on third-party food delivery fees in support of heavily on takeout and delivery orders for earnings. restaurant industry Third-party fees can vary from 10 percent to 30 percent of the total cost of the food order, which can California eateries are struggling to survive the eco- shrink restaurants’ earnings at a time when they nomic hit from additional restrictions implemented need them most. July 13 on indoor operations at restaurants through-

out the state to slow the spread of COVID-19. The Restaurant owners, local officials laud New state decided to reel back its reopening efforts as Jersey bill to limit third-party delivery fees numbers of infections across California began to Restaurants in New Jersey that have also been climb again. To help support the restaurant industry, struggling to stay afloat during the COVID-19 pan- the city of Fremont issued an emergency executive demic have made efforts to develop their own food order that sets a temporary 15 percent limit on fees ordering systems or partner with third-party apps that third-party food delivery services can charge that charge the lowest fees. Now a new state law will restaurants. prohibit these third-party delivery services from col- lecting more than a 20 percent fee from restaurants

on order sale values or 10 percent if the restau- to make up the difference, but it has since stopped rant delivers the order with its own drivers. These charging that fee in light of the new law. third-party apps can often take as high as a 30 per- Two-player market emerges in India’s food cent cut. delivery space Restaurant owners and local officials alike support Consolidation is underway in the competitive the bill, which was signed by Gov. Phil Murphy (D-NJ) app-based food delivery space, according to a in late June. Hoboken Councilman Mike DeFusco mid-COVID-19 performance report published by said he was pleased that state lawmakers listened Indian food delivery aggregator Zomato. India’s larg- to local concerns and took them to the state legis- est online food ordering and delivery platforms, lature. Jersey City mandated a 10 percent limit in Swiggy and Zomato, are the two dominant con- the city in March, leading online ordering and deliv- tenders in the space since the latter acquired Uber ery provider Uber Eats to add a $3 guest surcharge

Eats in India earlier this year, a stock deal reported- INNOVATIVE APPS AND ly worth $300 million. Zomato CEO and co-founder APPROACHES Deepinder Goyal believes the company is on track Deliveroo releases table service app feature toward profitability despite restaurant industry fallout from the pandemic. Goyal even predicted that United Kingdom-based food delivery service Zomato would be able to completely recover loss- Deliveroo recently released a Table Service mobile es within three to six months while keeping a lid on app feature designed to boost industry recovery costs. The firm was also able to see a significant by helping restaurants safely reopen, according to increase in its profits by gradually decreasing cus- the company. The feature allows guests to order tomer discounts. and pay for food from their tables in-restaurant via the existing Deliveroo app to accommodate social Seattle Indian restaurant on small business distancing between customers and staff, thus mini- struggles with delivery app fees mizing the risk of contagion. The company also said High fees from app-based delivery services eat it will not charge restaurants a commission for us- into restaurants’ profit margins, making it especial- ing the app. ly difficult for small businesses to get by. Uttam A number of technology companies have developed Mukherjee, owner of Seattle-based Indian street contactless solutions for in-restaurant ordering in re- food restaurant Spice Waala, said that prior to cent weeks, including restaurant reservation system COVID-19, online food ordering and delivery pro- Sevenrooms, contactless dining technology provid- vider Uber Eats skimmed about 33 percent off his er Presto and online ordering platform Zuppler. earnings, while food delivery services DoorDash and Postmates each took about 25 percent. That was Radius Networks teams with City Barbeque for until the city imposed a 15 percent limit on those upgraded curbside pickup experience fees in the spring, during the pandemic's onset. Investing in technology to achieve operational effi- Mukherjee said he has still had to raise food prices ciency is helping some restaurants increase sales, online by 10 percent to help compensate and “bal- such as Columbus, Ohio-based City Barbecue, ance the books,” but he is hopeful that higher online which recently teamed up with location-based tech- ordering prices could encourage customers to visit nology provider Radius Networks. The restaurant the brick-and-mortar location again. recently launched FlyBuy Pickup, Radius Networks’

proprietary technology designed to optimize cus- Uber Eats releases map feature amid uptick in tomer curbside and in-store pickup by reducing pickup orders guest wait time. The fast casual barbecue chain’s Pickup orders have also continued to experience curbside sales climbed to 35 percent from 14 per- growth during the pandemic, with recent data cent within days of rolling out FlyBuy Pickup, which showing that takeout sales were up 66.8 percent in works by alerting restaurant staff when the guest April and 96.4 percent in May. Online ordering and has arrived within the area and parked in the pick- delivery platform Uber Eats has experienced an up zone. The curbside pickup feature is integrated uptick in such orders, for example, prompting it to with City Barbecue’s online and mobile ordering unveil a map feature on its app that enables users platform, providing the information needed to keep to determine which local eateries are open and tak- food fresher and know exactly when customers are ing pickup orders. The company said the feature is ready to collect. The chain has 51 locations across intended to cater to customers who are becoming seven states. more comfortable leaving their homes in search of restaurants that provide to-go options, and it is also Quick shift to third-party delivery raises offering zero percent service fees for orders placed Amici’s East Coast Pizzeria’s profits at restaurants in the U.S. and Canada. The moves Numerous QSRs are relying on third-party services come as other third-party delivery providers roll out to boost their sales during the COVID-19 pandemic. services to capture sales in the expanding market, California-based Amici’s East Coast Pizzeria re- with Postmates recently unveiling a curbside pickup cently transitioned its 10 locations to takeout- and feature and DoorDash launching a tracking option delivery-only, which helped it increase its third-party for pickup orders. delivery orders by 25 percent. Amici’s has spent the past two years streamlining its online ordering sys- FRAUD FOLLOWS THE DIGITAL tem through an integration with Your Fare, which SHIFT allows workers to manage all third-party delivery services via one tablet interface. The software in- How AI is helping in the fight against payment fraud tegrates with Amici’s point-of-sale (POS) system to help the eatery further smooth out its ordering pro- Consumers who are seeking delivery and take- cess, which could be especially critical as dine-in out options during the pandemic are shifting more areas remain closed. and more toward digital payment solutions. These

provide added convenience for online and mobile transactions, but they have also prompted fraudsters to find more ways to interfere with higher payments volumes, Gary Sevounts, chief marketing officer at fraud detection platform Kount, recently told PYMNTS. He pointed to a rise in “card-testing fraud,” in which cybercriminals initiate small transactions to test the validity of stolen card details. Fraudsters who successfully conduct such transactions typically make bigger purchases over time, which can go unnoticed by legitimate cardholders and ulti- mately result in merchants losing products and cash while also facing chargeback fees. Retailers can use automated tools to protect their funds, however. Sevounts explained that AI-based technologies can help them more seamlessly analyze and safeguard all parts of a transaction from login to fi- nalization, for example.

COVID-19 pandemic causes spike in cybercrime for eateries

Cybercriminals continue to create new schemes as carryout food service remains popular during the pandemic. Many restaurants are navigating new ter- ritory as they rely much more heavily on takeout and delivery orders during the health crisis, forcing them to more quickly decide whether to accept or decline orders. Scams — such as posting phony restaurant promos on social media that enable fraudsters to steal payment methods from consumers and use

© 2020 PYMNTS.com All Rights Reserved 15 them to purchase pizza for them, leaving them none a separate app, thus giving the delivery platform the wiser — have risen alongside contactless curb- access to the roughly 67 million Indian consumers side pickup and delivery. These shifts mean it is who use the digital wallet. critical for restaurants to adopt fraud solutions that Bot scam is creating an unfair advantage for can rapidly manage large numbers of orders as well some Instacart shoppers as look for unusual patterns, such as excessive- ly large orders from new customers or orders from A new scam is plaguing Instacart contractors who faraway ZIP codes. shop for and deliver groceries to customers. Paid shoppers typically open the Instacart app and Hackers crack Google-funded delivery app choose which of the delivery orders they will fulfill, Dunzo’s database but some are leveraging bots that operate through Food delivery apps’ growing popularity has also third-party apps to capture the most lucrative or- heightened cyber fraud risks. Dunzo, a Bangalore, ders. These apps cost between $250 and $600, India-based third-party food and grocery deliv- according to one firm, and they give users an un- ery service, recently suffered a data breach that fair advantage because their click responses are far may have resulted from the servers of one of its faster than those of humans. third-party ordering platform customers being com- The issue comes as grocery store delivery has promised. The Google-backed company said users’ climbed 500 percent during the pandemic. An contact information and email addresses were ac- Instacart spokesperson said the company is work- cessed but that their credit card details remained ing to solve the problem by banning those caught secured. It added that it has reinforced its securi- using the apps and ratcheting up pressure against ty system and put additional protections in place. It their developers. has not yet revealed the number of users who were affected.

Dunzo has enabled Google users in India to order groceries since May, allowing the technology titan to enter the nation’s delivery market and compete with Amazon and Zomato. Google users turning to Dunzo can utilize Google Pay without downloading

Third-Party Apps Keep Business Flowing Amid COVID-19 Pandemic, Increased Risk Of Fraud

Dine-in restaurants have taken a beating during the Implementing seamless and secure defenses is COVID-19 pandemic, but those that have shifted thus critical as data breaches can negatively affect to digital channels and relied on third-party mobile customers’ experiences and irreparably damage apps have kept business flowing. Eateries are stay- their opinions of brands. A recent survey of 1,000 ing afloat by turning to third-party providers such as QSR customers found that 62 percent were worried DoorDash, Grubhub and Uber Eats to deliver meals that their interactions with QSRs could lead to fraud, to customers wary of physical interactions. Third 49 percent were concerned about credit card theft party-enabled restaurant sales more than doubled and 41 percent were wary of ATOs. This month’s year over year in April, for example, and online food Deep Dive examines the fraud risks QSRs face when delivery sales are expected to grow 7.5 percent an- working with third-party delivery services as well as nually through 2024. how they can guard against these issues to keep consumers safe. Consumers have expressed concerns about using third-party apps despite such growth, however. The fraud risks surrounding third-party apps Sixty-two percent of QSR guests recently stated that Restaurants often host a plethora of data that fraud- they were wary of fraud when engaging with QSR sters are eager to obtain. Cybercriminals who target apps, and 64 percent of American adults have been QSRs seek employee details, customer financial in- victims of data theft. Some apps require passwords formation and restaurant bank account details to or leverage QR codes to secure their platforms, but sell them or leverage them for fraudulent activities. 40 percent of customers report frustrations stem- Fraudsters have even more opportunities to access ming from the numerous steps these security sensitive details as growing numbers of consumers measures require.

rely on third-party apps. Customers looking for Restaurants must consider numerous factors to faster service can use their phones to connect to provide the seamless and safe delivery options various third-party delivery services and have food customers seek. Almost 40 percent of consumers delivered wherever and whenever, with recent re- report that dealing with complex account login pro- search revealing that 23 percent of all smartphone cedures that require multiple steps before allowing users will tap food delivery apps by 2023. them to place orders is the top source of friction they confront when ordering online or through mo- Recent high-profile fraud incidents have illustrated bile apps. Convenience thus appears to be a key some of the problems third-party delivery services consideration, with recent reports showing that face. Google-backed Dunzo began allowing users in approximately 33 percent of current restaurant ex- India to order groceries earlier this year, for example, periences involve technologies that offer numerous but it recently suffered a data breach that may have preordering capabilities. resulted from one of its customers’ platforms being compromised. The delivery service noted that no fi- AI- and ML-supplemented tools can also bolster nancial details were accessed in the incident and restaurants’ fraud prevention efforts. Such solutions that it has reinforced its security system and added can operate in the background without disturbing protections, but it has not revealed how many cus- customers’ transactions, offering smoother securi- tomers may have been affected. ty measures without sacrificing convenience. Such technologies can also enable QSRs to take proac- Delivering safe and secure customer tive approaches to fighting fraud rather than forcing experiences them to react defensively after incidents occur. The rise in digital orders is also creating more More consumers are turning to third-party delivery risks and new fraud avenues for QSRs, Michael apps during the ongoing pandemic, and restau- Mohammed, CEO of fast-casual Mexican chain rants are working to ensure that the services they Chronic Tacos, recently told PYMNTS. He explained offer are smooth as well as secure. QSRs could find that restaurants must pay commission fees to that using automated technologies and other digital third-party delivery companies as well, which can tools makes all the difference. make it tough for them to turn profits. QSRs are nev- ertheless working to confront these challenges and provide convenient mobile app services that offer customers secure and enjoyable experiences.

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 90

score score 2 94 7 89.5

score score 3 92 8 88.5

score score 4 90.5 8 88.5

score score 4 90.5 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 69.5 25 29 7 37.5

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 39.5 71.5

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 16 41

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 16 41 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 59.5 15 27.5 7 27.5

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 90.5 25 40.5

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 23.5 55.5

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 90.5 Channels Score 25 40.5 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 55.5 Channels Score 7 23.5 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 17.5 57.5

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 30 62

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 41.5 73.5

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 22.5 54.5

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 42 92

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. 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 22.5 54.5

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 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 14 47

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 33 76

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 20.5 52.5

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 46.5 88.5

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 38 78

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 39.5 89.5

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 62.5 7 30.5

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 40 72

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 24.5 24.5

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 37 87

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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