dolution

Nekter Juice Bar was an early adopter of mobile ordering, and close to a third of its business came from its digital channels going into the pandemic. These days, it’s more than half, helping the company to largely recover from the shutdown and its severe restrictions on dine-in service. Nekter’s sales have improved, even as the chain’s operators have been able to cut down on labor costs. “It’s been huge,” said Steve Schulze, CEO of the 174-unit chain. “Average ticket is higher. Labor is lower because we’ve been open for takeout only. A lot of restaurants are comping positive while running 20% lower labor.”

The pandemic has been huge for mobile ordering, driving more consumers to download restaurant apps and sign up for restaurant loyalty programs. Numerous chains reported skyrocketing mobile app usage in recent months. The result has provided the industry with an opportunity to drive more business, and certainly one most operator did not expect just a few months ago. The pandemic has sped consumers’ shift online, leading more companies to unleash mobile ordering functions or boost their existing apps in a bid to keep these consumers and drive more sales.

“Investments in technology that were going to take three to five years to accomplish have really accelerated,” said Emil Davityan, CEO of geofencing company Bluedot, said in an interview. To be sure, mobile ordering has been around and growing for years. Chains such as Starbucks and Domino’s have proven the business case, having both demonstrated that a strong mobile app can bolster sales inside their restaurants and give customers more reason to keep coming back.

Yet several companies have seen substantial increases in their digital sales, including mobile app use, during the pandemic. Digital sales now account for three quarters of Domino’s sales, for instance. At Wendy’s, digital sales doubled to 5% of sales in the second quarter. At Restaurant Brands International, owner of Popeyes, Burger King and Tim Hortons, digital now represents 8% of total sales.

Source:https://www.restaurantbusinessonline.com/technology/mobile-ordering-takes-thanks-covid

Based on above case study answer the following:

(a) Elaborate the FIVE (5) factors influencing customer’s adoption on Mobile apps for online food ordering.

(b) In your opinion, what are the categories of Mobile app adopters. Justify their characteristics.

(c) Discuss TWO (2) types of appropriate marketing strategies for the selected category of Mobile apps adopters.