In the quick service restaurant space, the name of the game has always been speed and convenience. In the past few years, a handful of brands have amplified those attributes by introducing order-ahead mobile apps, and for the most part, they have been very good for business.
Starbucks introduced its order-and-pay app in 2015, and it now accounts for 11% of the company's U.S. transactions. About a year after its 2014 launch, Taco Bell’s average orders were 20% higher on the mobile app than in-store.
These trends offer plenty of reason for QSRs to be enthusiastic about their technology investments, and there is no shortage of optimism coming from Sonic Corporation. During its latest earnings report this week, Sonic Drive-In CEO Clifford Hudson outlined the company’s “progressive” order-ahead app rollout, expected to be in place systemwide by the end of the fiscal year.
Early feedback from both customers and franchisees has been positive, and in Sonic’s test markets, orders placed via the mobile app were delivered to customers in less than two minutes and “more often than not” in less than 90 seconds, Hudson said, adding that the app gives Sonic the opportunity to “really change the definition of convenience in the industry.”
Although that may be a bit on the hyperbolic side, because of Sonic’s unique format, its app should at least strongly appeal to its fan base and even drive occasion, as Hudson predicts. Orders that are placed off premises show up in the kitchen when guests check into the stall they choose, whenever they choose. In other words, the differentiator for Sonic’s app is the removal of the dedicated in-store or drive-thru pickup piece that facilitates other order-ahead experiences.
This provides an advantage not only for customers, but also for the business. Upon its app launch, Starbucks experienced bottleneck lines in-store, as the company simply wasn’t prepared operationally for the swift uptick in mobile orders. Sonic won’t have to iron out those types of kinks.
“Our differentiated format is really optimally suited for mobile order ahead because it allows our customers to select the level of their digital engagement without us having to change our operational model at all. The consumer will be able to decide when and where they want to order. They’ll be able to use the app for complete customization of the order, pay utilizing the app, select which drive-in they choose to go to in order to pick up their food and choose the time that is most convenient to them,” Hudson said during the call.
Sonic's order-head process allows customers’ experiences to be more personalized and also gives them the ability to “be first in line every time.” In the intensely competitive QSR landscape, that is a big deal.
Sonic’s challenge – especially for franchisees who have heavily invested in the technology infrastructure – will be exerting patience. Any new technology introduction requires a window of awareness and adoption before its effectiveness is realized. Once that happens, expect Sonic’s customers to go all in.
