Mobile Commerce

Digital Ordering Boosting Papa John’s Sales

Papa John's sees a big boost in mobile orders.

Papa John’s is going all in on its “strong digital platform,” according to Business Insider.

In the first quarter of this year, Papa John’s said that 55 percent of its total orders came in through digital platforms, and that number increased to about 60 percent in the second quarter of this year, according to Papa John’s.

“We are pleased with our strong second quarter results, with good comp sales leading to another quarter of excellent earnings growth,” Papa John’s founder, chairman and CEO John Schnatter said in a statement announcing the company’s earnings. “Our strong digital platform, unwavering commitment to quality, and consistent, disciplined approach to growing our global footprint have us well-positioned to maintain our momentum throughout 2016 and well into the future.”

Papa John’s second quarter revenue was $423 million, a 6 percent increase from the second quarter of the previous year at $399 million.

Although mobile orders are still a relatively new thing in the U.S., it is forecasted to be a $38 billion industry by 2020 and account for 10.7 percent of all quick-service restaurant sales, as more and more consumers are expected to embrace the technology.

According to Business Insider, Taco Bell is already seeing 30 percent higher average order value on mobile compared to in-store purchases, while Starbucks’ similar offering is already about 10 percent of all sales at “high-volume” stores, which in turn is raising Starbucks’ overall sales.

So it will be interesting to see how Papa John’s rides this wave in the future.

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