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Panera 2.0 Cuts Wait Times In Half As Digital-Ordering Gains Traction

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Panera 2.0 Cuts Wait Times In Half As Digital-Ordering Gains Traction
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The results are paying off as restaurants continue to add digital-ordering capabilities to their menu.

Digital ordering has helped cut wait times significantly, made ordering much more convenient and led to an increase in sales. Specifically, Panera Bread Co (NASDAQ: PNRA)'s Panera 2.0 led to the fast-casual restaurant cutting its wait to order food from eight minutes to one, and now over 25 percent of sales are through the digital platform according to the Wall Street Journal.

Industry Leaders In Digital Ordering

Domino’s

Domino’s Pizza, Inc. (NYSE: DPZ) has been one of the major leaders in this transition, with over 51 percent of Domino's delivery sales coming through its digital-ordering platform.

“In 2010 the brand took a step back and said, ‘We need to reinvent who we are.’ A big part of that equation was creating really great digital ordering experiences,” Dennis Maloney, Domino’s chief digital officer, said in an interview with Uproxx.

Specifically for Domino’s, Maloney noted how “Pizza is effectively infinitely customizable. Which means all of our platforms, and all of our experiences, need to be able to deal with that level of customization.” The digital allowed the company to create a platform that allowed customers to really visualize their pizza and receive constant updates on their order status.

Domino’s is trading up nearly 75 percent year to date.

Starbucks

Starbucks Corporation (NASDAQ: SBUX) has continued to roll out new features to its digital-ordering platform. These features range from offering order-ahead capabilities from its app to generating personalized offers for loyalty members.

Over the last quarter, loyalty member spending is up nearly 8 percent, and digital ordering has been a large factor to this spike.

While Domino’s focuses mainly on customization, Starbucks spokeswoman Maggie Jantzen told the Associated Press, "We (Starbucks) think that the steps we've taken regarding personalization are a driver of that."

“We’re going to redesign new stores and existing remodels to reflect the fact that Mobile Order & Pay, although in its nascent stage, is obviously going to be a significant part of the morning business,” Starbucks CEO Howard Schultz highlighted in a conference call with analysts.

Starbucks is up over 50 percent since it introduced its digital platform in 2014.

McDonald’s

McDonald’s Corporation (NYSE: MCD) has been the leader in online ordering in the fast-food industry as these businesses have been much slower to adapt to digital ordering.

The McDonald’s management teams believe their mobile ordering platform should lower transaction times, reduce errors and free up their workers to provide a better customer service experience.

Jim Sappington, McDonald's executive vice president of operations, digital and technology, told Reuters, “If its famous French fries are served cold or if mobile customers have to wait for orders, "you get a question of why did I use the app? Our focus is to make the overall experience clearly better."

McDonald’s is trading up nearly 15 percent since it began testing its digital-ordering platform on March 15.

Denny’s Is Joining The Party

On May 30, Denny’s Corporation (NASDAQ: DENN) announced the launch of its online-order platform, “Denny’s on Demand.”

In a press release, the family-restaurant chain said, “With ‘Denny’s on Demand,’ we’ve taken that same ‘always open’ philosophy that is synonymous with our brand and expanded it to easy-to-use technology, bringing access to our craveable diner fare straight to our guests’ fingertips. With the menu variety we naturally provide, America no longer has to compromise when it comes to getting the food they want, exactly when and where they want it.”

The announcement helped send Denny’s stock up over 5 percent over the past week.

Overall, it is evident digital-ordering platforms are a major game-changer for restaurants as more continue to adopt to this industry trend. Others who are emerging in this industry trend include Chipotle Mexican Grill, Inc. (NYSE: CMG) and Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL).

Related Links:

The Ultimate Game Changer: Domino's® Adds Full Ordering on Messenger

Digital Ordering Presents A $70 Billion Growth Opportunity For Restaurants

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Image Credit: By Photo by User:Kmf164, taken on March 12, 2006., CC BY 2.5, via Wikimedia Commons

Posted-In: APWall Street Journal Restaurants Top Stories Tech Media Trading Ideas General Best of Benzinga

 

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