Mobile phones are playing a bigger part in changing fast food in the US
The industry is stepping up mobile ordering and reward programs as convenience becomes an increasingly important factor
Whether in Starbucks or Pizza Hut, mobile ordering is taking over the fast-food industry.
Orders placed via smartphone will make up more than 10 per cent of all quick-service restaurant sales by 2020, Business Insider Intelligence projects. At that point, mobile ordering is expected to be a US$38 billion industry.
While mobile-ordering program at restaurants are still in their early days, fast-food chains are investing big in the future.
Brands that rely heavily on delivery, such as pizza chains, are especially attuned to the importance of mobile. At least half of sales at Domino's and Papa John's are through digital channels, while Pizza Hut clocks in at 46 per cent. The pizza industry is constantly pushing to grow that percentage, as spending on the average pizza order is 18 per cent greater online than on the phone.
Convenience is one of the most important factors for customers deciding where to order their pizza, so much so that Pizza Hut recently adopted the motto "easy beats better." Digital makes ordering easier, removing steps from the process and giving customers the chance to track exactly where their pizza is in the process of preparation to delivery.
Mobile is the next step in pizza convenience, something chains are attempting to profit from with innovations like the Domino's "no click" platform, which allows customers to order simply by opening the app. App companies have become some of pizza chains' biggest inspirations; Pizza Hut's chief digital officer, Baron Concors, says the industry is undergoing an "Uber-ization," while Domino's executives have said they consider the business to be a "tech company."
While pizza chains highlight the power of mobile convenience for delivery-centric chains, Starbucks demonstrates how apps can boost customer loyalty.