The results are paying off as restaurants continue to add digital-ordering capabilities to their menu.
Digital ordering has helped cut wait times significantly, made ordering much more convenient and led to an increase in sales. Specifically, Panera Bread Co PNRA's Panera 2.0 led to the fast-casual restaurant cutting its wait to order food from eight minutes to one, and now over 25 percent of sales are through the digital platform according to the Wall Street Journal.
Industry Leaders In Digital Ordering
Domino’s
Domino’s Pizza, Inc. DPZ has been one of the major leaders in this transition, with over 51 percent of Domino's delivery sales coming through its digital-ordering platform.
“In 2010 the brand took a step back and said, ‘We need to reinvent who we are.’ A big part of that equation was creating really great digital ordering experiences,” Dennis Maloney, Domino’s chief digital officer, said in an interview with Uproxx.
Specifically for Domino’s, Maloney noted how “Pizza is effectively infinitely customizable. Which means all of our platforms, and all of our experiences, need to be able to deal with that level of customization.” The digital allowed the company to create a platform that allowed customers to really visualize their pizza and receive constant updates on their order status.
Domino’s is trading up nearly 75 percent year to date.
Starbucks
Starbucks Corporation SBUX has continued to roll out new features to its digital-ordering platform. These features range from offering order-ahead capabilities from its app to generating personalized offers for loyalty members.
Over the last quarter, loyalty member spending is up nearly 8 percent, and digital ordering has been a large factor to this spike.
While Domino’s focuses mainly on customization, Starbucks spokeswoman Maggie Jantzen told the Associated Press, "We (Starbucks) think that the steps we've taken regarding personalization are a driver of that."
“We’re going to redesign new stores and existing remodels to reflect the fact that Mobile Order & Pay, although in its nascent stage, is obviously going to be a significant part of the morning business,” Starbucks CEO Howard Schultz highlighted in a conference call with analysts.
Starbucks is up over 50 percent since it introduced its digital platform in 2014.
McDonald’s
McDonald’s Corporation MCD has been the leader in online ordering in the fast-food industry as these businesses have been much slower to adapt to digital ordering.
The McDonald’s management teams believe their mobile ordering platform should lower transaction times, reduce errors and free up their workers to provide a better customer service experience.
Jim Sappington, McDonald's executive vice president of operations, digital and technology, told Reuters, “If its famous French fries are served cold or if mobile customers have to wait for orders, "you get a question of why did I use the app? Our focus is to make the overall experience clearly better."
McDonald’s is trading up nearly 15 percent since it began testing its digital-ordering platform on March 15.
Denny’s Is Joining The Party
