Starbucks Mobile Payments at 30%

Holy moly!

I was surprised by this one, but then, not.

They do this all so well.  Fully integrated top to bottom and left to right their digital relationships with their customers are second to none.  Full stop.

Here is a snippet from the story:

http://bankinnovation.net/2017/07/nearly-one-third-of-all-starbucks-payments-are-mobile/

Here is the full story:

What makes the Starbucks mobile wallet such a popular option when it comes to paying for that morning coffee?

Mobile payment at the coffee company’s U.S. stores increased to 30% of all stores, according to the earnings Starbucks reported yesterday, meaning just under a third of customers are now paying via mobile.

Meanwhile, Starbucks Mobile Order & Pay transactions increased as well to 9% of all transactions in U.S stores.

Happy Reading,

J.W. Gant

Dunkin Brands App Update

I'm not sure how big this news really is.  You be the judge based on the following snippet:

Dunkin’ Donuts caffeinated its mobile strategy with an updated application featuring enticing imagery and a touch-friendly interface, a loyalty promotion giving away 125 points and an app pilot for Baskin-Robbins, heating up competition with Starbucks.

Huh? The app has a "tough-friendly interface"?!!?

Anyway, news in the QSR space is worth looking at if you follow what is happening in digital and technology news.  I'm a believer in what both Starbucks and Dunkin Brands are doing.  Get the updated app.  Play around.  Figure out for yourself if it is newsworthy.

Here is the full article:

http://www.mobilecommercedaily.com/dunkin-donuts-elevates-qsr-competition-with-updated-app-loyalty-promotion

Happy Reading,

J.W. Gant

Making Fast Food Even Faster and Easier

... as if we needed it.

This week saw a slew of announcements by quick service restaurants revealing ways they are helping lazy people be even lazier while ordering their food.

Check out the headline:

Taco Bell, Domino's, and Sonic are making it easier for lazy people to order food

Read on:

http://www.businessinsider.com/fast-food-customers-reach-peak-lazy-2016-4

Here is a snippet from the piece:

Is clicking a few buttons or picking up your phone to order food too much work? No worries — fast-food companies are working to make getting a meal even easier.

From "zero-click" ordering, to messaging a bot to order tacos, to emoji-based purchases, new technology is making it easier than ever to purchase fast food.

In unrelated news the world is getting fatter and we don't know what we can do about it:

http://www.bloomberg.com/graphics/2016-global-obesity/

Happy Reading,

J.W. Gant

Quick Service Restaurant Mobile Ordering Continuing to Grow

Another QSR is doing major work in mobile ordering.

White Castle.

This phenomenon should continue as table stakes at this point.  If your company is a quick service restaurant and you aren't doing this you are not relevant to your customer.

Read more here:

http://www.mobilecommercedaily.com/white-castle-ramps-up-mobile-ordering-efficiency-with-app-redesign

Here is a snippet from the piece:

Fast food chain White Castle is aiming to be a strong competitor in mobile ordering with a revamped application that pairs Apple Pay, order history, favorites and streamlined offer viewing to keep up with contenders.

As mobile apps have become a necessity for retailers, White Castle is hoping to stay competitive by updating its mobile app with a more efficient ordering system.

Happy Reading,

J.W. Gant

Wendy's Mobile App

If you are interested in the intersection of mobile and physical (bricks & mobile) the folks at Wendy's are worth keeping an eye on.

Here is a piece on their mobile app strategy for 2016:

http://www.mobilecommercedaily.com/wendys-pivots-forthcoming-sales-around-new-mobile-app-self-order-kiosks

Here is a snippet from the piece:

The Wendy’s Company is starting off 2016 with a competitive edge by testing in-restaurant beacon technology, a new mobile application and self-service kiosks, pointing to how quick-service chains must evolve to stay with the times.

The fast-food chain has been testing a number of new mobile-first initiatives at its labs in Columbus, OH, as well as in select restaurants. Wendy’s fans can expect to see the new 2.0 app roll out sometime later this year, while store employees can anticipate a region-by-region introduction of beacon technology to augment the brand’s mobile ordering tests.

Happy Reading,

J.W. Gant

Mobile Apps that Work

McDonald's has been in the news quite a bit recently.  This one focuses on the success of their mobile app and the use of appropriate incentives to drive customer engagement and participation.

http://www.mobilecommercedaily.com/mcdonalds-7m-app-downloads-highlights-effectiveness-of-welcome-incentives

Here is a snippet from the piece:

During this week’s earnings call, McDonald’s revealed it has seen more than seven million downloads of its mobile application since the fall 2015 launch, proving that welcome offers are directly correlated to high registration rates.

The food and beverage marketer introduced the app to United States markets approximately three months ago, after experiencing a lackluster year in sales. The seven million-strong downloads, however, have been able to fuel consumer purchasing behavior by prompting users to activate their welcome offers in-store.

Happy Reading,

J.W. Gant

Domino's Pizza Success With Mobile

I haven't ordered a pizza from Domino's in at least 10 years, and I can't say I have a strong desire to do so with all of the excellent options in the Greater Boston Area.  That makes little difference to the ubiquitous pizza chain and they are doing some very cool things in mobile.

You can order a pizza merely by sending a tweet.  Talk about reducing the friction of the order and the payments component!

Here is a piece about their latest efforts in mobile:

http://www.mobilecommercedaily.com/dominos-strong-mobile-sales-prove-millennials-dependency-on-digital-ordering

Here is a snippet from the piece:

NEW YORK – A Domino’s Pizza executive at the Mobile Marketing Association’s SM2 Innovation Summit 2015 discussed the brand’s strong digital sales, which stem from enabling mobile-savvy consumers to place pizza orders via an application, social media, a virtual voice assistant and an online site to ensure maximum convenience and reach.

During the “Mobile’s Transformative Role at Domino’s Pizza” session, the executive revealed Domino’s dedication to reinvention, a technology-focused strategy that has resonated positively with customers in the millennial demographic. The ability to order pizzas via a slew of mobile-enabled channels has significantly contributed to the company seeing more than 50 percent of sales coming from digital avenues.

Happy Reading,

J.W. Gant

BRotD - Entry 0232 McDonald's Franchisees

Best Reading of the Day

The folks over at Bloomberg have a great read on the challenges confronting McDonald's and their franchisees.  I especially like the context provided by proving the interview with a longtime franchisee (just short of 50 years).

Great read:

http://www.bloomberg.com/features/2015-mcdonalds-franchises/

Here is a snippet from the piece:

Al Jarvis was 16 when he started working at a McDonald’s in Saginaw, a city in Michigan, in 1965. His first customer ordered an All-American: a burger, fries, and shake for 52¢. Soon Jarvis was working 50 hours a week and catching up on sleep at school. He skipped college to manage restaurants. By 1977 he was advising McDonald’s franchisees and helping with store openings across the state. One day in 1980, as he was unpacking his garment bag, his young son asked, “Daddy, where do you live?” So the next year he bought a McDonald’s in Hastings, southeast of Grand Rapids. Over the years he hired hundreds of employees, saw dozens of menu items come and go, and spent four or five hours a day, five or six days a week, watching over the counter and grills from his vantage at the fry station.

Happy Reading,

J.W. Gant

Dunkin Donuts Mobile - Is it Awesome?

Yes it is.

Read the full story here:

http://www.mobilecommercedaily.com/dunkin-donuts-overflows-competition-with-mobile-gift-and-coupon-blitz

Here is a snippet from the piece:

Dunkin’ Donuts is dispersing mobile gift cards to winners of its latest social media sweepstakes and is offering a coupon to application users ahead of back-to-school season, proving it has the wherewithal to dethrone Starbucks as a food and beverage leader in mobile.

The fast feeder sought to ramp up sales of its new Tailgater Breakfast Sandwich by rolling out a social media sweepstakes encapsulating fans’ enjoyment of eating breakfast at any time of day.

...

Those guys are all in for mobile and it shows and it is paying off in a big way for them.  Awesome!

Happy Reading,

J.W. Gant

Wendy's Nationalized Personal Offers Through Mobile

Wendy's has been making some news recently as you can see in the pages of this blog and that continues today.

Here is a snippet from the story:

Wendy’s sees an opportunity to add personalized offers and national coupons to its mobile ordering and payments experience, underscoring the growing convergence between leveraging mobile to build customer loyalty and drive added convenience.

During a conference call with analysts to discuss the company’s second quarter financial results, executives discussed its ongoing test of mobile ordering and mobile payments as well as plans to take a new innovation lab to the next level later this year.

Here is the full story once again by the folks over at Mobile Commerce Daily:

http://www.mobilecommercedaily.com/wendys-sees-opportunity-for-personalized-national-offers-with-mobile-ordering

Looks like interesting, fun, and cool things happening at Wendy's. What I can't quite see yet, however, is how traditional QSR that typically caters to lower socio-economic demographics is going to see a huge uptick in adoption for mobile apps, etc.  I'd expect that of the fast-casual crowd such as Chipotle but am more skeptical here. As a vehicle for differentiation this makes perfect sense to me and appears to be excellent work by the team at Wendy's. We'll see how it does.

Happy Reading,

J.W. Gant

Wendy's Tests Mobile Ordering

Quick service restaurants are in a mad rush to differentiate by speeding order and deliver and thereby adding convenience for customers.  Wendy's is reported to be testing a mobile ordering app with bluetooth.

Here is the quick story from the excellent blog MorningNewsBeat:

http://morningnewsbeat.com/News/Detail/47510/2015-07-30/

Here is his take on the story:

KC's View: This sounds suspiciously like the Starbucks mobile app, and I say that as a compliment. I've said here before that I think the Starbucks app, especially as it becomes more robust and allows for remote ordering, is a terrific piece of behavior-altering engineering ... and more companies should be thinking about how to offer something similar.
I wonder what else is cooking out there?

Happy Reading,

J.W. Gant

Chipotle Says Mobile Payments More Important than Loyalty

This is a pretty strong approach.  Very strong.  Chipotle says a loyalty program won't get the job done for them.  The payment is the key.  They intend to use that action to capture data on the customers and forgo a traditional loyalty approach.

If they get it right they will be blazing a new trail.  If they get it wrong everyone will know and they'll be left behind by all the other fast casuals out there.

Here is the article:

http://www.mobilecommercedaily.com/chipotle-says-mobile-payments-not-loyalty-will-drive-customer-insights

Here is a snippet from that piece:

While a number of food and beverage chains have embraced mobile loyalty, a Chipotle executive said this week that the company will buck the trend and lean on mobile payments – not loyalty – as a way to gather meaningful insights about its customers.

During a conference call with analysts on Tuesday to discuss Chipotle’s second quarter results, the executive responded to a question about the chain’s plans in mobile loyalty by saying that internal research has shown loyalty does not drive frequency. However, not wanting to miss out on an opportunity to learn more about its customers, Chipotle is taking a closer look at how to leverage mobile payments.

Talk about sticking your neck out.  The careers of these executives is on the line.  Will it be goat or hero?

Happy Reading,

J.W. Gant

Pizza Hut Goes Digital

Retailer after retailer is making the move to customer engagement through digital and mobile.

Pizza Hut is the next to move.

http://www.zdnet.com/article/pizza-hut-eyes-digital-data-transformation-in-pizza-wars/

Here is a snippet from the piece:

In the pizza wars, the food and taste comparison serves merely as table stakes. The real war will be won via technology.

At least that's what Yum! Brands' Pizza Hut is hoping. As Domino's Pizza positions itself as a food delivery company armed with technology, digital engagement tools and mobile ordering, Pizza Hut is in the middle of a digital transformation that---from an information technology perspective---offers a little bit of everything.

• An emphasis on customer data and engagement to replicate Yum's success with marketing to Taco Bell customers.

One of the executives charged with helping Yum Brands get to this level spoke with me about doing their mobile app a year and a half ago.  While that opportunity never came to fruition I've been curious what Pizza Hut is up to ever since. I wish them luck, though I prefer the local pizza joints so commonly found in the Greater Boston Area.

I think the large national chains are going to have to do everything to head off the rise of fast casual now coming in to the pizza realm along with examples such as Chipotle and Five Guys Burgers.  Here is one great story on that:

http://www.businessinsider.com/pieology-pizza-business-story-and-expansion-2015-6

Here is a snippet from the piece:

The fast-casual pizza restaurant is the fastest-growing chain in America, according to data compiled by Technomic.

Pieology has 60 units in 11 states. The company expects to nearly double that number by the end of the year. 24 new locations are anticipated to open by the end of the summer.

Pieology's founder, Carl Chang, told Business Insider the company started when he identified a problem in the pizza industry.

"Pizza for us was somewhat broken," Chang, who is the brother and former coach of professional tennis player Michael Chang, said.

Happy Reading,

J.W. Gant

BRotD - Entry 0221 Discussion with CMO of Dunkin' on Mobile Loyalty

Best Reading of the Day

Great discussion over on AdAge.com with the Chief Marketing Officer at Dunkin' brands, right around the corner from me in Canton, MA, on their risky decision to go to a mobile loyalty model.  If you haven't been following that decision has paid off in a big way for them.

http://adage.com/article/datadriven-marketing/dunkin-s-john-costello-knew-time-mobile/298997/

Here is a snippet from the piece:

It's not often that a company with locations on street corners throughout much of the U.S. takes a big risk by changing the status quo when the status quo ain't broke. But that's exactly what Dunkin' Donuts did when it shelved its web- and paper-based loyalty program like so many day-old crullers.

"We decided to go all-in on a mobile-based loyalty program," said the company's Chief Global Customer and Marketing Officer John Costello.

The result was a re-launched version of the DD Perks Rewards program...

..."Mobile is devouring the world," said Mr. Costello...

Happy Reading,

J.W. Gant

Mad Scramble in QSR Continues with Wendy's

The mobile world opens up new opportunities for quick service restaurants that are always looking for ways to gain an advantage over the competition by speeding up service delivery or adding conveniences.

Wendy's is making more news with a new innovation lab:

http://www.mobilecommercedaily.com/wendys-foreshadows-mobile-ordering-features-with-innovation-lab-rollout

Here is a snippet from that piece:

The Wendy’s Company is opening a series of innovation labs in Columbus, OH, as it looks to mobile and digital to help shore up its recent sales successes and pull further ahead of the competition by continuing to innovate how younger consumers interact with the fast-food burger chain.

The labs will provide a collaborate environment for its employees to explore digital enhancements, and will also be a testing ground for the brand’s continuation of mobile innovation such as ordering and payment functionalities, suggesting that these features will become requisite for all fast-food chains in the near future. Wendy’s is opening up the facility near The Ohio State University’s campus, and will provide accommodations for 25 information technology and operations employees, who will put effort towards enhancing digital experiences.

Happy Reading,

J.W. Gant

KFC Bluetooth Keyboard Placemats

Do you have that nagging feeling you are missing something on your smartphone as you down a bucket of fried chicken at KFC?

Thought so, and so did KFC.  Therefore they've crafted a solution. They've transformed their place-mats in to bluetooth keyboards.  Problem solved!

http://www.theverge.com/2015/5/19/8624295/kfc-tray-typer-wireless-bluetooth-keyboard

Here is a snippet from that piece:

It's a first world solution to a first world problem: a super-thin, rechargeable Bluetooth keyboard that arrives with your tray of fast food, connects to your smartphone, and lets you text with sticky fingers without messing up your screen. The KFC Tray Typer — part of an advertising campaign for the fast food chain in Germany — is a high-tech replacement for the usual grease-absorbing paper slip that's served up on fast food trays. Presumably, it's durable enough to get wiped down and re-used — although the advert's creator, Serviceplan, claims the smart paper trays were so popular when handed out during the opening week of new restaurants that "every single one ... was taken home."

The Tray Typer may sound far-fetched, but technologically it's cutting edge — not science fiction.

Happy Fried Chicken,

J.W. Gant

Mobile Order and Pay with Starbucks

QSR is working feverishly to increase throughput via technology.  The concept of order ahead via mobile is one path that is poised to explode and Starbucks is out in front again.

Here is a story on their progress so far:

http://www.mobilecommercedaily.com/starbucks-mobile-order-and-pay-sees-hot-start-aided-by-integration

Here is a snippet from that piece:

In a conference call to discuss the coffee giant’s fiscal second-quarter financial results, Starbucks, based in Seattle, WA, said it is on track to roll out mobile order and pay nationwide this calendar year after the service drove an increase in transactions in Starbucks stores and markets where it was launched. The feature, which will be expanded to more than 600 stores in the Pacific Northwest following its introduction to 150 Portland, OR stores in December, shows how mobile has created the need for a service that that makes checkout quicker and smoother, as the mobile mind shift increases customers’ impatience with lines and long wait times.

“This supports the trend of mobile growth, and specifically importance of in-app inventory (as opposed to mobile web),” said Chris Hansen, president of Netmining.

Happy Reading,

J.W. Gant

BRotD - Entry 0209 Taco Bell Loyalty

Best Reading of the Day

QSR is undergoing some major new innovations led by a few and taking advantage of the differentiation opportunities granted by mobile.  Taco Bell is one of the leaders, probably out of necessity, and appears to be seeing gains as a result.

Mobile Commerce Daily has a good piece on their most recent efforts:

http://www.mobilecommercedaily.com/taco-bells-in-app-loyalty-program-adds-filling-to-mobile-strategy

Here is a snippet from that piece:

Taco Bell is gearing up to overtake its competitors in mobile strategy by announcing plans to roll out a customer loyalty program as part of its mobile application later this year, placing it a step above other fast food chains such as McDonald’s and Burger King that do not offer rewards platforms.

While the brand has not revealed specifics of the in-app loyalty program, it plans to make the experience of logging Taco Bell orders more game-like, rather than a traditional punch card. Taco Bell has been placing a greater emphasis on mobile in recent months, which began with its introduction of mobile ordering in 2014.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0201 Technology for QSR and McDonald's

Great little article over on Fast Code Design about how McDonald's is approaching technology, the future, and its impact on quick service restaurants:

http://www.fastcodesign.com/3043717/sxsw/apps-video-games-and-wearables-a-vision-for-the-future-of-mcdonalds

Here is a snippet from that piece:

Soon, you could walk into a McDonald’s, sit down, maybe play a video game for a few minutes, then have your food brought to you.

At least that's the vision of Atif Rafiq, the first chief digital officer at McDonald’s, for how the company’s stores could evolve by 2020. We caught up with Rafiq at South by Southwest—which McDonald’s has attended for the first time amid a two-year streak of disappointing sales—and he described how the company plans to leverage kiosks, smartphones, and wearable to change the way people order and eat at McDonald’s restaurants around the world. In the U.S., all experiences would work through an app in development that knows your identity and tracks your order history.

"We see the experience being made so much better through technology," Rafiq says. "It’s an environment where it’s really built around you as opposed to operations of a restaurant.

Happy Reading,

J.W. Gant

Restaurants Surpass Supermarkets

Wow, this is really pretty amazing news in many ways.  For the first time since records have been kept, starting in 1992, the U.S. is spending more at restaurants than at supermarkets.

Wow.

Here is a good story on the subject:

https://www.yahoo.com/food/in-first-americans-spent-more-in-restaurants-than-112803758886.html

Here is a snippet on that piece:

More than two decades ago, Americans spent $162 in groceries for every $100 they spent in restaurants. But this past January, they spent nearly equal amounts of money in both places: $50.475 billion in restaurants and bars, and $50.466 billion in grocery stores.

I'm wondering what the folks at Target and Walmart are thinking.  As they continue to move aggressively towards the traditional supermarket shopper, that shopper is increasingly moving towards restaurants.  Will we see full-blown restaurants inside of Walmart and Target in the coming years?

Happy Reading,

J.W. Gant