Macca's and Hungry Jack's set for phone-off

First it was pizzas, now it’s burger chains looking to boost business through mobile. Hungry Jack’s is mulling the launch of click-and-collect style mobile ordering services as McDonald’s prepares to expand its small-scale mobile ordering app trial.

McDonald’s launched its trial of a mobile ordering app at two stores in Wollongong last year. It is planning to roll it out to 70 further stores in the coming weeks and support the move with marketing activity. The chain couldn’t provide details on usage or sales through the app.

Hungry Jack’s proposition would allow customers to pre-order from its menu through smartphones and pick up in stores. It could include queue-jumping technology that would speed up the in-store experience.

Moving into the mobile space with new digital services such as this would also give Hungry Jack’s access to a wealth of customer data, including time and location, order choices, preferences, and payment details. The chain could use this information to create a host of targeted marketing communication that could eventually be delivered direct to individual users’ smartphones in the form of personalised offers or messaging.

Mobile ordering is a fast-growing channel in the food delivery market and Hungry Jack’s says the mobile plans are a part of the chain’s efforts to step up its CRM activity. It’s not known when click and collect will be introduced.

Paul Tredinnick, Hungry Jack’s national marketing manager, said there was an inherent challenge with its “impulse” model that other delivery businesses such as Domino’s, which has been playing in this space for a while, don’t face – in the pizza delivery segment, the progression from telephone ordering to online and mobile app orders was an obvious step.

Andrew McCallum, Hungry Jack’s strategic planning director, added: “It’s difficult for us because it’s food made on the premises, for you to consume on the premises. The pizza industry has been doing it for years because the point of access was always the telephone. We’re ‘walk up, order and buy’, so we’re now having to try to find ways that people want to connect with us on a one-to-one basis. Walk-up retail is only just starting to find it.”

In the UK, KFC trialled mobile click-and-collect services this year and predicts the channel could eventually make up 10% of total sales

This article first appeared in the 6 September 2013 edition of AdNews, in print and on iPad. Click here to subscribe for more news, features and opinion.

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