Domino's focused on mobile growth

Quick serve restaurants are on the leading edge of mobile commerce, and for good reason. These chains catered to a mobile consumer even before there were mobile phones. And now this is the sector innovating and adopting mobile ordering and payment acceptance at a very, well, mobile rate.

Domino's (NYSE: DPZ) reports mobile ordering is on the rise, in the U.S. and internationally. Digital sales were roughly 40 percent of all sales during Domino's 2013 fiscal year. "We are doing just about equal amounts of sales digitally, versus over the phone," said J. Patrick Doyle, president and CEO, during a conference call with analysts. "We're continuing to see nice robust growth out of that channel. And we think that's going to continue."

"We ended the year with a run rate of about $3 billion in digital sales around the world," he said. "It took our company 38 years to hit $3 billion in global retail sales, but just over five years to hit this number in global digital sales, which demonstrates the rapid growth of this platform."

Growth in digital ordering, both online and mobile, is faster in markets outside the U.S. for reasons having to do with more rapid adoption of smartphones in some international markets. Nearly one-third of Domino's digital pizza orders in the U.K. come from smartphones according to Bloomberg.

All these digital orders add up to big data that Domino's is using to create user profiles that include order history and make payments (through Google Wallet). Domino's is approaching mobile with the mindset of a tech startup, according to Doyle.

In January, Domino's unveiled its app for the Ford Sync that allows customers to place saved orders via voice activation in the car company's AppLink in-car connectivity system.

"This is, no question, one of the coolest in a long list of recent technology innovations for Domino's," said Doyle. "We will continue to come up with every way possible to conveniently order from Domino's, and use technology to offer the best customer experience possible," added Doyle. "This is just the latest step, and we are very excited to roll this out later this year."

For more:
-See this Mobile Commerce Daily story
-See this Bloomberg Business Week story

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