Taco Bell's mobile sales 20% higher than in-store orders

Taco Bell is reporting that sales made via mobile are 20 percent higher than those made in-store, as mobile proves to be more successful for add-on sales than someone at the register asking "do you want fries with that?"

The company, owned by Yum Brands, paired social media marketing with the launch of the app, which allows users to order and pay by smartphone and then pick up their food at a physical location.

The higher purchase order on the mobile app is due in part to the customization, reported PYMNTS. The app allows customers to pick preferences such as sour cream and nacho cheese, with an extra cost for each add-on.

In addition, the app shows the entire menu, including often forgotten side dishes or lesser known toppings such as onions, cheese and sauces. The app also provides suggestions as consumers create meals.

"Mobile ordering provides a few benefits," Thad Peterson, a senior analyst at Aite Group, told PYMNTS. "First, there is a lot of room to display variations and alternatives and the app is well designed to present them. Second, the app can remember preferences so ordering a favorite is easy and fast. Lastly, the app gives the customer something that they don't generally have when in the store: time."

Seventy percent of the app's users customize their orders. Once an order is complete, customers can pay within the app with a credit, debit or gift card and can select the pick-up location to be drive-thru or in-store.

Last summer, Taco Bell unveiled a new concept called U.S. Taco Co. and Urban Tap Room in a move to take a bite out of the $34 billion fast-casual industry. Yum Brands appears eager to introduce new concepts. In 2013, the company opened a fast-casual spin on KFC called KFC Eleven in Louisville, Kentucky, and has plans to open a new fast-food operation in Texas called Super Chix, which will focus on premium fried chicken sandwiches and french fries.

*An earlier version of this story originally ran in FierceMobileRetail's sister publication, FierceRetail.

For more:
-See this PYMNTS article

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