“Mobile phones have become fixtures for all generations and ages,” he says. “Right now only 25 percent of these phones are Web-enabled and, of those, only 25 percent of the owners are using that function. But texting is a technology that’s being used by everyone from young people to working moms in the 30-to-45 age group who learned to do it so they could keep in communication with their kids.”
The Cellular Telecommunications Industry Association (ctia) reports that by the end of 2007, roughly 84 percent of Americans (255 million) had mobile phones. In the month of December phone owners sent 48 billion messages (1.6 billion per day), an increase of 157 percent from the same month the year before.
While about a third (32 percent) of consumers surveyed by Technomic last year said they send at least one text message every day, only 5 percent said they had texted an order to a restaurant in the past. But more are open to the idea. About 30 percent said that they would be “extremely” to “somewhat” likely to use this method of ordering in the future.
Integrating with POS
An increasing number of operators have already taken or are planning to take remote ordering technology to the next level by having it interface directly with their POS systems.
Using proprietary software for online orders and partner providers for texts, Papa John’s Pizza has “seamlessly integrated” alternative ordering options into its stores’ POS systems, Ensign says. With the POS interface, orders are processed immediately for optimal speed and efficiency. And, since no one has to key in the items, accuracy is significantly increased.
Papa John’s has received more than 1 billion online orders since offering the option to customers in 2001. In 2006 alone online sales accounted for more than $200 million in sales for the chain and have increased by 50 percent each year.
Papa Gino’s Pizzeria and D’Angelo Grilled Sandwiches has scheduled the launch of its POS-integrated online ordering offering, developed by Onosys, in about 370 primarily New England stores for third quarter this year. Michael McManama, senior vice president of brand development for Papa Gino’s and D’Angelo, explains that “whether 24 or 36 months from now, online ordering will be a cost of entry” into the quick-service business.
Of consumers surveyed by Technomic for the February 2007 American Express Market Brief, nearly eight out of 10 (79 percent) said they have visited a restaurant’s Web site, and more than two out of five (44 percent) visited once a month or more. Almost all (91 percent) said they would be likely to do it again.
A LiveOnTheGo.com customer told company president Darren Testa that using the skip-the-line benefit of the Web-based ordering system was like “having a Fast Pass at Disneyland.”
Self-Serve Kiosks
Papa John’s is one of the many quick-service operators considering adding kiosks to its ordering mix. Ensign says that the company is conducting tests in lobbies of some of the chain’s stores that see significant foot traffic.
In the NRA’s 2007 Consumer Study, 16 percent of adult respondents said they had placed their own order using a self-serve terminal at a quick-service restaurant. However, of those adults who had not used a kiosk, 57 percent said they would be likely to if it was offered by a quick-service restaurant.
NCR also found that minorities are particularly inclined to use self-service, with 55 percent of the African-American respondents and 57 percent of Hispanics saying that they have chosen one company over another because it offered the option of self service.
“For Hispanics and other non-native English speakers, self-service eliminates the language barrier,” says Lee Holman, lead retail analyst for IHL Group, a global research and advisory firm specializing in technologies for the retail and hospitality industries. “For every customer, it eliminates the element of miscommunication between them and the order taker.”
Jack In The Box, which began testing kiosks in the San Diego area in 1996, has 30 talking, bilingual units in operation chainwide. Although the company declined to discuss details, the outlook for the future of the company’s kiosks is optimistic.
GoMobo’s Glass expects remote transactions to make up at least 25 percent of all pizza ordering in the next three or four years, with other industries following over time.
Part of the reason is the fact that consumers can take their time browsing through the restaurant’s menu and food photos.



