Mobile ordering is more popular than ever. In 2018, the volume of orders placed through mobile apps went up by 130 percent from 2016. To meet the increased demand, quick-service restaurants (QSRs) are turning to new technologies, such as artificial intelligence (AI), to improve their mobile offerings, and are integrating mobile wallets, such as Apple Pay and Google Pay, as they look to speed up the ordering experience.
It’s not all rosy in the industry, however. Fraudsters continue to steal from QSR customers, with one account claiming that the total number of mobile device attacks increased by 117 percent over the past year. QSRs are fighting back against bad actors by partnering with third-party payment processors, as well as incorporating security technologies to authenticate customers.
In the May Mobile Order-Ahead Tracker™, PYMNTS explores the latest developments surrounding the mobile strategies of QSRs (including new and revamped rewards programs, and AI-based mobile ordering solutions), and how fraud continues to plague the industry.
Developments from Around the Mobile Order-Ahead World
Restaurants that have implemented mobile ordering systems have also reported overwhelmingly positive results. In fact, 86 percent of mobile app operators said their offerings boosted revenues, while 93 percent said apps improved guests’ experiences and encouraged repeat purchases. Eateries that do not offer such services are aware that they are being left behind, too, with 59 percent saying they faced disruption from competitors that embraced the technology.
QSRs are not the only ones implementing mobile order-ahead solutions. St. Louis-based grocery store chain Schnucks, for example, recently added a feature to its app, allowing customers to place deli orders at 18 of its 119 locations. The move is part of a larger app overhaul that includes a shopping list feature and a wellness guide with nutritional information.
Security concerns, however, continue to mount for both QSRs and grocery stores. A Canadian fraudster, known as the Quebec Hamburglar, recently stole thousands of dollars from McDonald’s mobile app users, including more than $2,000 from one victim. Those hit by the scam hailed from all over the nation, but all fraudulent transactions were conducted in Montreal.
For more on these and other mobile order-ahead news items, download this month’s Tracker.
&pizza, a D.C.-based QSR, is well-known for its quirks, ranging from the unusual elliptical shape of its pies to its eager embrace of internet memes. Yet, when its third-party app wasn’t delivering the same unique experience, the company decided to revamp it from the ground up.
In an interview with PYMNTS, Kevin Blesy, head of strategy for &pizza, spoke about how the company designed the new app to provide customers with the same eccentricities, without compromising data security. Find the rest of the feature story in the May Mobile Order-Ahead Tracker™.
Deep Dive: AI Makes Mobile Order-Ahead Smarter
As more customers place orders through mobile and digital channels, QSRs are looking to new technologies to provide them with more ordering options. Many restaurants are turning to AI, which can be integrated into mobile ordering solutions in a multitude of ways.
This month’s Deep Dive explores how AI is being utilized in the world of QSRs to aid in both security and ease of ordering.
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 that highlights the key players across the segments that comprise the mobile order-ahead ecosystem.