Mobile Order Ahead Orders Up An 11-Figure Business

September 18, 2017         By: Steven Anderson

It’s one of the greatest inventions for a fast-food nation eager for a quick bite; mobile order ahead systems let us place and in many cases pay for an order of food before we even see the restaurant itself, allowing us either rapid seating and departure or the ability to spend only seconds in a restaurant before leaving with a sack of goodies. It’s so beloved, in fact, that a new report from Business Insider Intelligence suggests that by 2020, this is a market that will be worth $38 billion.

That kind of market is nothing to sneeze at, and as such, plenty of restaurants are looking to add this service to their roster. A TD Bank survey found just shy of half of restaurants responding—48 percent—were looking to add mobile to their operations coming up. Those who already have these systems in place are seeing benefits, as the Business Insider study found 18 percent gains in customer spending on online and mobile orders as compared to phone orders.

What’s more, there are real efficiency gains for the business. Not only is at least one step, maybe two or more, removed from the process, but there are also gains in security, as there are no more bank runs. There are no more lost orders at the drive-thru; people waiting too long will drive off, but those who have already placed and paid for an order won’t. They may just never come back, but that order is guaranteed.

There’s also the issue of less staff being needed to fill orders, which is a double-edged sword. There are cost improvements, since there’s less overhead, but there are also wide-ranging consequences in terms of former restaurant employees who have no jobs. It can also lower prices at restaurants; lower costs means a decreased need for revenue to balance costs, so businesses can look to volume to maintain profitability instead of deriving profit from fewer customers.

The incredible convenience of mobile order ahead options is fantastic; I’ve used such systems a time or two myself and it’s always welcome to speed up the process like that. That’s time not spent waiting in line or the like. Though there’s a risk to the broader economy with such programs, individually it’s a welcome development.