When you think of online payments and new modes of payment processing, you likely think of retailers first – how they sell their products online, and how their branded mobile applications often work in tandem with in-store offerings. However, a number of businesses in the quick-serve food industry have recently taken advantage of the possibilities offered by those who accept mobile payments. If their results are any indication, mobile payments will be as much a factor in the food service industry as they have been in retail – if not more.
For example, Business Insider recently reported that Starbucks had raked in more than $1 billion during 2013 exclusively from transactions made by consumers accessing mobile debit card and credit card payment processing pages. The news outlet went on to note that this represented 4 percent of all mobile payments made by U.S consumers during the timeframe – illustrating how businesses that embrace alternate modes of making payments can obtain extremely large market shares as a result.
Many chain-style pizza restaurants have recently made that realization as well, according to a recent report from The Wall Street Journal. The news outlet reported that Domino’s Pizza and Papa John’s, among other pizza chains, currently derive more than 40 percent of their sales from purchases made at mobile and online credit card payment processing terminals. Patrick Doyle, chief executive of Domino’s, spoke about how this is able to afford his chain a distinct advantage over its peers.
“Most of the small and regional chains who still continue to sell the majority of the pizza in the U.S. simply aren’t able to play on these technology platforms with the level of sophistication that we have,” Doyle said, according to the news outlet.
David Rizzo, owner of multiple pizza-focused restaurant locations in New York, went on to tell The Journal that his decision to accept orders placed through online sources has helped his business to survive the competition he’s faced with by chain restaurants. This illustrates how a business can keep pace with much larger competitors by innovating in the way that it accepts payments.
“If I didn’t do delivery and online ordering, we’d be in serious trouble, and I don’t think the other two stores would have gotten off the ground,” Rizzo told The Wall Street Journal.Back To Blog