The Wendy’s Co (NASDAQ:WEN) is a restaurant company operating in the hamburger-sandwich segment. They engage in operating and franchising a network of distinctive quick-service restaurants. Wendy’s CEO, Emil Brolick, talked in an interview on CNBC regarding the new mobile app release and benefits of using this app to customers and also the company.
The mobile app launched by The Wendy’s Co (NASDAQ:WEN) is designed to do a lot of new things, but the major difference is in the mobile payment option that it provides. Starbucks Corporation (NASDAQ:SBUX) did benefit a lot from this mobile payment options. Howard Schultz, CEO and Chairman of Starbucks also claimed that the mobile payment option makes turnover faster and increases average ticket price.
Brolick also feels that the mobile payment option will help them positively. He said that this is implemented in 85% (around 4600) of the restaurants. He feels that key to increase the usage of app is to introduce the mobile ordering option, which is currently undergoing beta testing in five The Wendy’s Co (NASDAQ:WEN)’s restaurants and he thinks that it will be the next big thing in the future. He said that these new options will be an advantage to the company and also to the consumers. He feels that all these new technology will transform service economy to self-service economy and that is what consumers want as well.
Brolick said that the mobile payment option provided by The Wendy’s Co (NASDAQ:WEN) is different from Starbucks mobile payment option. Starbucks options requires consumer to scan. He said that the consumer actually do not like to hand their phone to a drive through for scanning purpose. So the Wendy’s option just requires the consumer to swipe the phone, upon which a code shows up. As 65% of restaurant sales are happening in a drive through he thinks that this move is very critical in getting to meet the consumer needs. But he thinks that the ultimate solution is when the consumer does not need any code or handing off, etc. He also revealed that The Wendy’s Co (NASDAQ:WEN) is planning to have test on that later this year.
McDonald’s Corporation (NYSE:MCD) has the mobile ordering option which allows consumer to order remotely. Brolick says that the mobile ordering app in Wendy’s is very convenient which allows consumer to place the order and pay remotely or even go to a drive through and order from there. He also mentioned that The Wendy’s Co (NASDAQ:WEN) app can actually identify the consumer as soon as they come into the drive through and deliver them their order without any delay.
He also talked about reduction in labor cost due to this new technology.
“We think it definitely will, and it is going to allow us to focus on the production and the handing off of the food. Take away some of the complexities in terms of the ordering process. So, we think, there is tremendous economic benefit to us but there is also an upside to the consumer, because this is the way they want to live and order products,” hhe said.
Disclosure: None
