Restaurants Investing in Mobile Technology

Restaurants plan to spend $55 billion annually on mobile marketing by 2015, nearly double the $28 billion that they are expected to spend this year.

September 12, 2013

LOUISVILLE, KY – To appeal to Millennials who are adopting smartphones at an increasingly high rate, restaurants are stepping up their mobile investments, Mobile Payments Today reports.

According to data compiled by Juniper Research, restaurants plan to spend $55 billion annually on mobile marketing by 2015, nearly double the $28 billion that they are expected to spend this year. And according to a recent MillennialMedia report, mobile promotions among the restaurant industry are nearly five times that of other industries.

The money is being spent on payments, promotions, loyalty and locators, with the main goal (81%), according to MillennialMedia, of increasing foot traffic.

Brands are also increasing the use of mobile promotions, even leveraging mobile users’ geolocations to offer them a spontaneous offer if they are nearby.

"There are a lot of expected benefits to leveraging mobile as a customer channel, many of which may or may not actually come to fruition," said James Wester, research director at Payments at IDC. "But one benefit that is available right now is in getting rid of lines so customers don't have to stand around and wait. With mobile applications, customers can place orders or reserve tables without having to be in a merchant location. It's similar to calling ahead but it doesn't require that a restaurant or retailer dedicate a person to answering the phone. Those applications are already being deployed successfully."

Mobile payments platforms are also gaining popularity among restaurants, with many being incorporated into new apps. A recent eMarketer report said the payment component represents a major opportunity for restaurants and retailers.

"Mobile payments offer unique opportunities for retailers to connect with and capture information from consumers throughout the purchase funnel, (including) leveraging geo-targeting around a restaurant location, offering mobile coupons that can be saved to a mobile wallet, and capturing POS data,” the report concluded.

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