Cornell University School of Hotel Administration Cornell University School of Hotel Administration The Scholarly Commons The Scholarly Commons Center for Hospitality Research Publications The Center for Hospitality Research (CHR) 3-2-2011 Online, Mobile, and Text Food Ordering in the U.S. Restaurant Online, Mobile, and Text Food Ordering in the U.S. Restaurant Industry Industry Sheryl E. Kimes Ph.D. Cornell University, [email protected]Philipp Laque Follow this and additional works at: https://scholarship.sha.cornell.edu/chrpubs Part of the Food and Beverage Management Commons Recommended Citation Recommended Citation Kimes, S. E., & Laque, P. (2011). Online, mobile, and text food ordering in the U.S. restaurant industry [Electronic article]. Cornell Hospitality Report, 11(7), 6-15. This Article is brought to you for free and open access by the The Center for Hospitality Research (CHR) at The Scholarly Commons. It has been accepted for inclusion in Center for Hospitality Research Publications by an authorized administrator of The Scholarly Commons. For more information, please contact [email protected]. If you have a disability and are having trouble accessing information on this website or need materials in an alternate format, contact [email protected]for assistance.
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Cornell University School of Hotel Administration Cornell University School of Hotel Administration
The Scholarly Commons The Scholarly Commons
Center for Hospitality Research Publications The Center for Hospitality Research (CHR)
3-2-2011
Online Mobile and Text Food Ordering in the US Restaurant Online Mobile and Text Food Ordering in the US Restaurant
Industry Industry
Sheryl E Kimes PhD Cornell University sek6cornelledu
Philipp Laque
Follow this and additional works at httpsscholarshipshacornelleduchrpubs
Part of the Food and Beverage Management Commons
Recommended Citation Recommended Citation Kimes S E amp Laque P (2011) Online mobile and text food ordering in the US restaurant industry [Electronic article] Cornell Hospitality Report 11(7) 6-15
This Article is brought to you for free and open access by the The Center for Hospitality Research (CHR) at The Scholarly Commons It has been accepted for inclusion in Center for Hospitality Research Publications by an authorized administrator of The Scholarly Commons For more information please contact hotellibrarycornelledu
If you have a disability and are having trouble accessing information on this website or need materials in an alternate format contact web-accessibilitycornelledu for assistance
Online Mobile and Text Food Ordering in the US Restaurant Industry Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract Abstract A survey of the top 326 US restaurant chains in all categories finds the industry gradually adopting electronic ordering in the form of online mobile and text orders Quick-service chains most notably those selling pizza and fast-casual chains are far ahead of other segments in adopting electronic ordering particularly using online approaches Mobile apps are less common although their use is growing Although order-placing functionality is limited for mobile apps the fast-casual chains are leading the way in allowing customers to place orders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed ordering through that channel The advantages of electronic ordering include increased sales particularly through automatic upselling and by storing order information so that customers are encouraged to repeat their previous orders with a single click Other than the cost of installation and operation the chief disadvantage of electronic ordering is the potential for amplifying rush time volume with the potential of overwhelming the kitchen Creating a separate line for electronic orders and pickups is one way to address that problem
Disciplines Disciplines Business | Food and Beverage Management | Hospitality Administration and Management
Comments Comments Required Publisher Statement Required Publisher Statement copy Cornell University This report may not be reproduced or distributed without the express permission of the publisher
This article is available at The Scholarly Commons httpsscholarshipshacornelleduchrpubs71
wwwchrcornelledu
Cornell Hospitality ReportVol 11 No 7 March 2011
Online Mobile and Text Food Ordering in the US Restaurant Industry
by Sheryl E Kimes PhD and Philipp F Laqueacute
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 7 (March 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Industry Leader Hospitality amp Leisure Practice PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno President Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Vice President of Global Business Development
Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Southern Wine and Spirits of AmericaThayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract
Keywords
Disciplines
Comments
tmp1421417165pdfZdWbs
Online Mobile and Text Food Ordering in the US Restaurant Industry Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract Abstract A survey of the top 326 US restaurant chains in all categories finds the industry gradually adopting electronic ordering in the form of online mobile and text orders Quick-service chains most notably those selling pizza and fast-casual chains are far ahead of other segments in adopting electronic ordering particularly using online approaches Mobile apps are less common although their use is growing Although order-placing functionality is limited for mobile apps the fast-casual chains are leading the way in allowing customers to place orders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed ordering through that channel The advantages of electronic ordering include increased sales particularly through automatic upselling and by storing order information so that customers are encouraged to repeat their previous orders with a single click Other than the cost of installation and operation the chief disadvantage of electronic ordering is the potential for amplifying rush time volume with the potential of overwhelming the kitchen Creating a separate line for electronic orders and pickups is one way to address that problem
Disciplines Disciplines Business | Food and Beverage Management | Hospitality Administration and Management
Comments Comments Required Publisher Statement Required Publisher Statement copy Cornell University This report may not be reproduced or distributed without the express permission of the publisher
This article is available at The Scholarly Commons httpsscholarshipshacornelleduchrpubs71
wwwchrcornelledu
Cornell Hospitality ReportVol 11 No 7 March 2011
Online Mobile and Text Food Ordering in the US Restaurant Industry
by Sheryl E Kimes PhD and Philipp F Laqueacute
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 7 (March 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Industry Leader Hospitality amp Leisure Practice PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno President Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Vice President of Global Business Development
Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Southern Wine and Spirits of AmericaThayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract
Keywords
Disciplines
Comments
tmp1421417165pdfZdWbs
wwwchrcornelledu
Cornell Hospitality ReportVol 11 No 7 March 2011
Online Mobile and Text Food Ordering in the US Restaurant Industry
by Sheryl E Kimes PhD and Philipp F Laqueacute
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 7 (March 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Industry Leader Hospitality amp Leisure Practice PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno President Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Vice President of Global Business Development
Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Southern Wine and Spirits of AmericaThayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract
Keywords
Disciplines
Comments
tmp1421417165pdfZdWbs
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 7 (March 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Industry Leader Hospitality amp Leisure Practice PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno President Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Vice President of Global Business Development
Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Southern Wine and Spirits of AmericaThayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract
Keywords
Disciplines
Comments
tmp1421417165pdfZdWbs
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Southern Wine and Spirits of AmericaThayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry
Abstract
Keywords
Disciplines
Comments
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wwwchrcornell edu
Online Mobile and Text Food Ordering in the US Restaurant Industry
Recommended Citation
Online Mobile and Text Food Ordering in the US Restaurant Industry