PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Chipotle Dishes Up Mobile Ordering To Spur Sales

Raymond Pucci by Raymond Pucci
November 10, 2017
in Analysts Coverage
0
My Imaginary Payment Network Is 1,000 Times Faster Than Visa’s

My Imaginary Payment Network Is 1,000 Times Faster Than Visa’s

3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Mobile order and pay is revolutionizing the way consumers order food. Customers no longer have to wait in line for food or drinks; they can now order from their mobile device from almost any restaurant imaginable. Customers are able to customize their orders with ease and enjoy faster service with fewer mistakes.

Want extra guac and side items with that? You can do that with the Chipotle’s mobile order and pay app as well as skipping the line at the Mexican grill restaurant. As the following article describes, the digital order channel has been a bright spot in otherwise disappointing sales for the chain.

Chipotle (NYSE: CMG) disappointed investors with its report and can’t seem to get its footing on the road to recovery. However, there’s one bright spot in the midst of these challenges: the company’s focus on its digital efforts. Digital ordering is fast becoming a “must have” for restaurants. Mobile “order ahead” for quick service restaurants could grow to $38 billion by 2020, according to Business Insider.

It’s been a year since Chipotle first announced a push to upgrade its digital capabilities. Since then, digital orders have taken off. And as the company beefs up its technology roadmap, it’s also speeding up the in-store improvements to make it all happen.

In the third quarter earnings call, Chipotle announced a plan to increase the number of orders it was receiving online and via the mobile app. At the time, this channel represented only 6% of revenue.

Since rolling out “smarter pickup times” in February, the company has seen a 51% increase in digital orders. Sales fulfilled through the second make line — a smaller work area behind the main customer counter that specifically processes online and catering orders — peaked at 8.5% in the second quarter before falling slightly to 8% in the third. That said, the highest volume stores are seeing up to 15% of revenue from digital orders. This success has encouraged the company to invest even more into these opportunities.

Mobile order and pay is definitely a growing sales channel, especially for quick service restaurants (QSRs). It may not be enough to rescue Chipotle from its sluggish sales in recent times. Digital ordering is now table stakes in the QSR category and the more successful mobile apps have an array of integrated features such as loyalty, target marketing, and partner offers. That would be one way for Chipotle to hasten their return to favor among diners and investors alike.

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

Read the full story here

Tags: Mobile OrderMobile Pay
3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix