As QSR sales continue to decline, mobile ordering represents a bright spot. Digital ordering and delivery has grown 300 percent faster than dine-in traffic since 2014. Restaurants with an online ordering system can grow takeout profits by 30 percent, in part because customers tend to spend 20 percent more when ordering via technology. But the mobile opportunity also represents a significant risk. Many QSRs aren’t investing enough in their mobile app experience, which could ultimately push more customers away and tarnish brand reputation.
Consumers increasingly prefer to order food online thanks to the convenience, and 71 percent say they prefer to use a restaurant’s app over a third-party app. Higher prices and poor experiences have led many to mistrust third-party apps, while restaurant-owned apps often include exclusive offers and the ability to earn and use loyalty points. However, the pandemic created an expectation that online ordering will be available and convenient–and consumer feedback shows that’s not always the case.
A recent study found that while reviews mentioning mobile orders account for less than 1 percent of online QSR reviews, they grew 50 percent year-over-year and were overwhelmingly negative. Restaurants like Starbucks, where mobile ordering makes up about a third of sales, are already feeling the impact. Many online reviews of Starbucks cite inventory issues, long waits, and rude staff in relation to mobile orders. During peak times, restaurant staff often struggle to manage online and in-person orders, leaving customers on both sides angry. Research confirms that an online order not being ready for pickup when promised is the top frustration for customers.
While mobile orders pose operational challenges, they can be overcome. Take Chipotle, for example. Chipotle also sees roughly one-third of its revenue from online orders, but the chain has mitigated operational issues by creating separate prep lines dedicated to digital orders. Now, Chipotle is even testing a robot to make its digitally ordered burrito bowls even faster.
If mobile orders are causing chaos, here are a few things restaurant leaders can do to right the experience.
Collect customer feedback. Before doing anything impulsive, restaurants must get a handle on exactly what the problem is. They can collect customer feedback by analyzing reviews, conducting surveys and looking at retention data. They might find that the problem isn’t with their app at all, but with the in-store operations established to handle online orders. Perhaps the pickup times estimated need to be adjusted to accommodate the realities of food prep, or maybe there are tweaks that can be made to staffing around peak mobile ordering times. Deep listening allows restaurants to truly understand what customers love and hate about a mobile ordering system.
Make sure apps add value beyond ordering. While consumers love ordering on a mobile app, extra features like the ability to add and use loyalty points and app-specific offers will keep them coming back for more. Restaurants can also use these types of promotions to drive customer behavior, such as by encouraging them to purchase items that are best enjoyed as takeout (e.g., to-go drinks) or attracting them to the store with offers during slower periods.
Operationalize customer feedback in stores. Once a chain has collected feedback and pinpointed operational issues that need fixing, they need to get a plan in place to make those changes systematically. Sharing feedback with restaurant managers and associates is simply not enough – if a problem is showing up at many locations, the company needs to shift operations at the same scale. For example, Starbucks can’t simply tell baristas to work faster to deliver mobile orders on time. Instead, it needs to establish a clear policy for prioritization of mobile and in-store orders, improve its inventory system to ensure the mobile app inventory is accurate, estimate pickup times more accurately, and enhance staffing during times of peak mobile orders. These shifts will require policy overhauls and company-wide training to achieve.
Mobile orders represent a fantastic opportunity for QSRs to adapt to shifting consumer behaviors and deliver incredible customer experiences. But if restaurants don’t commit to investing enough in the experience, they’ll become just another headache.
Jared Norris is the Chief Customer Officer at Chatmeter, a brand intelligence company reimagining customer connections and multi-location reputation management through AI-powered deep listening. Chatmeter makes it easy for multi-location brands to drive real-time impact through relevant insights in critical moments that matter.
