Hotel Study Finds Rising Electronic Orders For Chain Fast Food, Especially Pizza

April 11, 2011
By Alyson Warhit

A Cornell study led by Prof. Sheryl Kimes, hotel management, and Philipp Laqué ’11, a student in the Master of Management in Hospitality Program, has revealed that ordering food online, by mobile phone, or via text is a growing trend in the restaurant industry.  

In a survey of the top 326 U.S. restaurant chains, Kimes and Laqué found that electronic ordering is taking on increasing importance in the industry. The study also notes that “quick-service” and “fast-casual” chains have been faster to adopt electronic ordering, using online approaches in particular. Among the quick-service chains, those serving pizza are using online ordering more frequently.

“What I do is look at revenue management and see how hotels and restaurants could be more profitable,” Kimes said. “My students started pointing out different applications for the iPod that you could use to order from restaurants. I liked that and decided to look at it more systematically.”

The study notes that, while nearly all restaurant chains have a presence on Facebook, only three percent allow ordering through this channel, a statistic Kimes said she expects to rise in the near future. 

“I think [ordering on Facebook] will become a lot more prevalent,” Kimes said. “If you were on Facebook and you could simply click on something and order it, it would be really easy.”

The study also discusses the costs and benefits of electronic ordering for restaurants, listing the potential for a surge of volume orders at rush time as the chief disadvantage.

“The restaurants want the extra business, and it could all come at the wrong time,” Kimes said. 

Kimes added that restaurants can resolve this conflict by forecasting the rush of orders, limiting the number of online orders or creating a separate line for electronic orders and pickup. 

Kimes said she anticipates a large increase in smartphone ordering, especially if mobile apps become widely available. While she said she is unsure as to whether text ordering will catch on with consumers, she said that popular websites like Campusfood.com would grow in popularity if they designed mobile apps to target a new market segment. 

Jamie Landsman ’14, a frequent user of online food ordering, said that college students in particular could benefit from this trend of electronic ordering in the restaurant industry. 

“College students tend to be incredibly busy and are constantly attached to technology, especially their smartphones,” Landsman said. “I know that online ordering is a growing trend, but if mobile apps became available, I think restaurants and students could both benefit.”

Alicia Granstein ’14, an iPhone owner and user of mobile apps, said she is unaware of any applications pertaining to electronic ordering.

“I have never heard of those applications,” Granstein said. “But if they were made available, they would make my life a lot easier. I am practically always on my phone, so to have an application like that at my fingertips, it would definitely get my attention.”