SalesTech Star

Mobile-Order-And-Pay Apps Drive Sales For U.S. QSRs During COVID-19 Restrictions

The year of COVID-19 has crushed the restaurant and retailing verticals, resulting in thousands of store closings and the loss of millions of jobs. But digital ordering, especially mobile-order-and-pay apps whose orders are typically fulfilled via take-out or delivery, and do not rely on inside dining, have shown initial resilience and subsequent growth. U.S. consumers are pivoting to mobile devices from landline PCs for online shopping, and Mercator data reveal that mobile order app activity has doubled from 2018 to 2020.

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Restaurants and retailers can significantly benefit from this increased consumer adoption of mobile ordering. A new research report from Mercator Advisory Group, How Mobile Order and Pay Provides a Lifeline for Restaurants and Retailers during Covid-19, sizes up and assesses a major segment of the U.S. mobile- order-and-pay market.

“Mobile-order-and-pay apps have found a sweet spot in the U.S. Quick Service Restaurant (QSR) segment. But other restaurants and retailers can emulate the benefits and success of this buying method that’s become increasingly popular with consumers looking for convenience and immediacy. These mobile apps are well aligned with the restrictions and challenges of COVID-19, and can provide retailers across all verticals a sales channel opportunity during the pandemic and beyond,” commented Raymond Pucci, Director, Merchant Services Practice at Mercator Advisory Group, the author of this report.

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Highlights of this research report include:

  • Consumer behavior patterns for mobile shopping
  • Ways for restaurants and retailers to gain sales during COVID-19
  • Sizing of the U.S. mobile-order-and-pay market for QSRs
  • Common features of successful mobile apps
  • Flywheel effect created by digital ordering

This report is 12 pages long and has 6 exhibits.

Companies and other organizations mentioned in this report: Ahold Delhaize, Albertsons, Best Buy, Burger King, CardFree, Chick-fil-A, Chipotle, Costco, Domino’s, Dunkin’, FutureProof Retail, Home Depot, Kroger, Lowe’s, McDonald’s, Panera Bread, Restaurant Brands International, Sam’s Club, Square, Starbucks, Subway, Taco Bell, Target, Tim Hortons, and Walmart.

Members of Mercator Advisory Group’s Merchant Services continuous advisory practice have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

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