Millennials + Smartphone Apps
While mobile ordering may seem like a new trend, it’s been fermenting for some time. What once started as order-by-fax is now done almost exclusively by smartphone apps. Most people enjoy the convenience of being able to order at any time, skipping the lines upon arrival, and millennials, especially, have grown up with the internet and apps being as ubiquitous as the fax machine once was.
To get an idea of where the industry is headed, here are some recent statistics about the growing demand of mobile ordering:
94% of millennials already use their smartphone in restaurants, bars, and coffee shops
Millennials are the most connected generation and you would be hard pressed to find one who isn’t connected in some way.So why not put all of that energy to good use at your restaurant? According to a report by Oracle Hospitality, a mere 6% said they would not use their smartphones in a food related establishment.
56% of millennials want to be able to order from their smartphone
According to the same report, 56% of millennials want to be able to order from their phone and 38% have already ordered takeout/deliver.
This is a trend that continues to climb as technology makes mobile ordering that much more convenient and when available, they will use it.
Millennials eat out 23% more per week than non-millennials
While millennials do eat out way more than baby boomers and Gen-Xers, they are also a healthy bunch who prefer local and fresh restaurants over fast food joints.
And while this demographic visits fast food restaurants more than any other, they won’t recommend it to a friend. Instead, they prefer fast casual much more.
Mobile Ordering is Expected to Become a $38 Billion Industry by 2020
Mobile payments are not only gaining popularity in the retail sector, restaurants (QSR specifically) are also building mobile ordering platforms as a way to increase sales and build stronger relationships with their customers.
While this technology is still relatively new, it is growing and is predicted to become a $38 billion industry by 2020, accounting for 10.7% of total QSR industry sales.
30% Increase in Order Value When via Mobile Ordering
Some of the bigger chains are seeing enormous ROI when implementing a mobile ordering platform.
For example, Taco Bell sees 30% higher average order values on mobile compared to in-store. In addition, Starbucks is seeing 10% of all purchases increasing company sales.