Mobile ordering is more popular than ever. The volume of food and beverage orders placed via mobile apps grew by 130 percent between 2016 and 2018, while 60 percent of U.S. consumers currently order delivery or takeout once a week. Due to this explosive growth, industry experts have predicted that the mobile order-ahead market will reach $38 billion by next year.
Restaurants are exploring how to expand their mobile ordering sales by providing customers with loyalty rewards programs, third-party payment integrations and surprise-and-delight offers. While large chains are developing their own in-house apps to capture revenue, regional chains and independent restaurants can partner with third-party platforms, as they often do not have the resources to support their own systems.
In the June Mobile Order-Ahead Tracker™, PYMNTS explores the latest developments in the world of mobile order-ahead and third-party apps, and how account takeovers (ATOs) and card-not-present fraud continue to plague the mobile ordering industry.
Developments from around the Mobile Order-Ahead World
Coffee giant Starbucks recently rolled out its mobile order-ahead program, Starbucks Now, to 300 stores in Beijing and Shanghai, China. Starbucks plans to further expand the offering throughout the country in the coming months. This move follows the 2018 launch of the Starbucks Delivers program in the region.
Los Angeles International Airport (LAX) recently joined the mobile order-ahead scene with a new program, allowing travelers to order from restaurants to be ready by the time they make their way through security. The program is powered by mobile ordering platform Grab. The LAX launch consists of seven food vendors, with more expected to be added in the coming months.
Ground-based vehicles are also getting in on the fun, with auto manufacturer Chevrolet recently announcing that drivers will soon be able to order Domino’s from their vehicles. The pizza chain joins Starbucks, IHOP and Dunkin’ in the GM Marketplace, a program integrated in General Motors vehicles’ infotainment dashboards.
For more on these and other mobile order-ahead news items, download this month’s Tracker.
Mobile order-ahead apps are ubiquitous among quick-service restaurant (QSR) chains, complete with generous loyalty and rewards programs and extensive data analytics. However, independent restaurants, lacking the larger chains’ resources, often can’t compete on their own — and, thus, turn to unified apps and rewards programs like Ritual.
In this month’s feature story, Ritual CEO and Co-founder Ray Reddy explained how the platform helps small restaurants compete with large QSR chains by providing them with loyalty programs and data that can give them an edge in the market. Find the rest of the feature story in the Tracker.
Deep Dive: QSRs Face-Off against Fraudsters and Schemers
Digital fraud increased by 13 percent in the past year, but the food and beverage industry saw the greatest increase of all at 60 percent — nearly four times above average. Card-not-present (CNP) fraud is a particular nemesis, as digital ordering leaves few means for physical verification.
This month’s Deep Dive explores how fraudsters swindle both restaurants and their customers, ranging from ATOs to old-fashioned confidence schemes.
About the Tracker
The Mobile Order-Ahead Tracker™, done in collaboration with Kount, serves as a monthly framework for the space, providing coverage of the most recent news and trends, along with a provider directory highlighting the key players across the segments that comprise the mobile order-ahead ecosystem.