Report: Helping QSRs Fight Food Fraud

Competing in the quick-service restaurant (QSR) space gets more difficult each year, as restaurants fight to retain the attention of consumers hunting for convenient meals.

The ongoing pandemic has only heightened the competition as more eateries flock to the digital space and fight for a spot on consumers’ smartphones.

QSRs have increased their investments in the mobile arena in recent years, specifically mobile order-ahead capabilities. The pandemic has led to a marked increase in the number of consumers who want to use mobile order-ahead to make their dining choices, and restaurants that are looking to expand their digital footprint must also properly ward against fraudsters that are sure to come knocking.

In the September Mobile Order-Ahead Tracker®, PYMNTS examines how the continued surge in mobile ordering volume is drawing increased friendly fraud, and what QSRs can do to stay on top of it.

Mobile Order-Ahead Developments Around the World

The drive to mobile is prompting many eateries to make changes or upgrades to their digital ordering experiences. Panera Bread has partnered with Google to add more ease and seamlessness to its digital channels by integrating its online ordering platform with Google tools, including its Maps tool, search feature and Google Virtual Assistant. This integration means that would-be Panera diners can more easily find the nearby locations or online offerings via the Google platform, along with the ability to place orders through the search engine without the addition of unnecessary friction points.

Mexican fast food chain Taco Bell has announced plans for a new “Go Mobile” restaurant concept, aimed at pairing consumers’ increasing familiarity and trust of mobile with the positives of in-person fast casual dining. This includes an overhaul on how customers can come pick up their food. The concept will include two pick-up lanes at brick-and-mortar Go Mobile locations, with one exclusively dedicated to customers who have made their orders through their mobile apps.

QSRs are also attempting to use their mobile apps and online platforms to create more tailored offerings for their customers, mainly by tapping the data collected from customers’ order history to develop personalized offers or rewards. This is easier said than done for many restaurants, however, as it can be difficult to get a holistic look at consumers’ data and preferences when most consumers order and pay using a variety of channels and devices. One recent study found that only 50 percent of restaurant brands were able to access consumer data across all of these channels, for example. Entities with complete insight have a distinct advantage over their competitors when it comes to building out robust consumer profiles and using them to engineer loyalty. Finding ways to reach consumers across devices is therefore of paramount importance for QSRs that wish to continue to operate in the current climate.

For more on these and other stories, visit the Tracker’s News & Trends.

How Blaze Pizza Fires Up Its Mobile App Friendly Fraud Defenses

Restaurants have been fighting against chargeback fraud, also known as friendly fraud, for years. One 2018 report stated that approximately one out of every 100 consumer transactions are targets of this type of fraud, for example. This may seem like a small segment, but it can really push up costs for restaurants, especially for smaller businesses.

The pandemic has also increased the likelihood of this type of fraud for QSRs even or especially as they make the move to mobile. That is why restaurant must continuously evaluate their fraud protection solutions, according to Mandy Shaw, CEO of California-based artisanal pizza chain Blaze Pizza who spoke with PYMNTS in an interview.

To learn more about how Blaze Pizza is upgrading its fraud strategies, visit the Tracker’s Feature Story.

Deep Dive: Rise in Chargeback Risk Mirrors Surge in Mobile App Ordering

The jump in mobile ordering represents a positive opportunity for QSRs and restaurants that need every advantage they can to keep customers engaged and ordering as the ongoing pandemic continues to impact the restaurant industry. This jump also comes attached with an increase in fraud, however, especially since many mobile apps come equipped with features or tools that only make it easier for friendly fraudsters to request illegitimate chargebacks or make other false claims. This type of fraud can be equally as costly for QSRs to manage as malicious cybercriminals make it imperative for these entities to keep their mobile platforms secure against such unnecessary chargebacks.

To learn more about what emerging tools QSRs could employ to better detect and mitigate friendly fraud, visit the Tracker’s Deep Dive.

About the Tracker

The monthly Mobile Order-Ahead Tracker®, a Kount collaboration, offers coverage of the most recent news and trends from the space and a provider directory highlighting key players across the mobile order-ahead ecosystem.