Pizza Hut Comes to the iPhone: Will Other Restaurants Follow?
A couple of months ago, Papa John's marketing manager Jim McDonnell was quoted as saying that their "iPhone application" simply wasn't delivering as well as their mobile display advertising was. The implication behind his statement was that iPhone apps weren't all they were cracked up to be when it came to bringing in new sources of revenue for businesses. Of course, we took a bit of offense to that seeing as how Papa John's didn't even have an iPhone app to speak of - they had a mobile web site. And as of today, they have a little more competition.
Pizza Hut, a company that apparently understands the difference between an app and a web page, has just released a brand-new iPhone application that puts Papa John's lackluster attempt to shame. We wonder: will this be the start of a new trend in company-branded applications?
We thought it was humorous (and a little sad) to hear McDonnell discuss the company's disappointment with their iPhone application. In fact, McDonnell said the numbers were so low that Papa John's had decided not to branch out to other mobile platforms. But a quick search through the iTunes App Store quickly revealed that McDonnell, and clearly Papa John's as a whole, thought that a mobile web site was the equivalent to an actual application. There was no Papa John's iPhone app in the iTunes Store; it simply didn't exist.
The Pizza Hut App
Today, however, a user searching for the keyword "pizza" in iTunes will come across a number of restaurant locator apps and one new one that will jump out at them: Pizza Hut (iTunes URL). That's right, Pizza Hut has released a new application designed specifically for the iPhone. The app will complement their already robust lineup of alternative ordering methods that currently include ordering by text message, web site ordering, mobile web site ordering, and even a Facebook ordering system.
The Pizza Hut iPhone app offers a simple interface that includes a menu and a checkout function, as expected. However, the company has also smartly included a "virtual fridge" where you'll find coupons to add to your order and a free game called "Hut Racer" which you can play while you kill time waiting for your pizza to arrive. Altogether, the app seems to be well-thought out, well-designed, and simple enough for anyone to use.
Will Pizza Hut Encourage Other Restaurants (and Companies) to Follow?
However, the most revolutionary thing about the app may be the fact that it exists at all. No other pizza delivery company has launched an iPhone application yet. For that matter, no restaurants have done so either, not even Apple partner Starbucks. (Correct us if we're wrong about that, we searched for numerous popular chains and found none...but we're sure you'll let us know if there are some out there. At any rate, there are very few if any.)
We once wondered why so few companies, not just restaurants, but also retail stores, travel sites, and other big businesses had eschewed the App Store entirely, opting instead for mobile web sites (or, sometimes no mobile sites at all). Why shouldn't companies build iPhone applications to complement their other online offerings? The cost of development isn't prohibitively high and the iPhone represents a huge chunk of mobile web traffic both here in the U.S. and on the worldwide stage.
Some commenters on that original post argued that an iTunes store filled with branded apps from companies would clutter things up, but as the App Store now offers some 65,000 applications (give or take), is clutter really that much of an issue anymore? Others worried instead about cluttering up their phones' screens and becoming overwhelmed by the number of applications. That issue, too, has now been somewhat addressed thanks to OS 3.0's extended springboard and Spotlight search feature. You can now fill your phones with apps and find them exceedingly fast via search.
Of course, we don't think that users would download and install every single application for every single business they've ever patronized - just those they use on a regular basis, probably only a handful at most. Because really, how many businesses, restaurants or otherwise, do you visit or use multiple times per month that would make a dedicated app worth your while?
Finally, multiple commenters noted that designing a mobile web site made the most sense since it could be used on any platform. Of course we agree that companies should have a mobile site - that should be par for the course these days just as having a web presence is - but why ignore the 59% web traffic marketshare delivered by the iPhone here in the U.S. or the 43% of web traffic worldwide? Why not build for this dominating platform?
It will be important to watch Pizza Hut's success in this space, as they're leading where so few others have so far failed to go. If they see increased revenue driven by their mobile application, other restaurants - especially those that offer delivery and carry-out options - may end up doing the same. We hope this will bring about a new trend of company-branded applications, but it's far too soon to tell. We'll just have to wait and see...I guess we'll play a little "Hut Racer" in the meantime.
Image credit: Adage
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I'm interested to see how this app compares to our GrubHub iPhone app. Chains like Pizza Hut and Domino's have been very good at getting their own online ordering systems up and running and pumping money into advertising promoting them. I wonder if Pizza Hut will soon say "order from the iPhone" in their new ads.
I could see a future where so many of these individual restaurants have their own apps that it's tough for the consumer to decide which ones to download. An app for every one of your favorite restaurants seems like it could make your phone cluttered, and companies like Pizza Hut don't typically partner with services like ours that would provide online orders for them as well as their local competition.
Is Chipotle's app still not available?
"...We once wondered why so few companies, not just restaurants, but also retail stores, travel sites, and other big businesses had eschewed the App Store entirely, opting instead for mobile web sites (or, sometimes no mobile sites at all). Why shouldn't companies build iPhone applications to complement their other online offerings?"
Because they can't sell your email address to spammers and junk ( postal ) mailers. Look at the ToS of any big retailer "...we reserve the right to re-distribute your personal data to third parties...You may opt out with a written request through US postal delivery which may take up to 120 days..."
iPhone SDK doesn't allow them to extract you phone number, or any other data set that they can sell.
Great post. I've been following the 'digital progress' of the major pizza chains for some time how. They tend to leapfrog each other with new consumer focused digital initiatives, like mobile text and online ordering. But I'm as surprised as you are that only one has launched an iPhone app. And more surprised by the lack of knowledge by Papa John's. Goes to show that we can't assume large brands are keeping up with the fast evolving digital landscape.
Actually, some restaurants have used iPhone apps. I recently reported on Dunkin' Donuts Dunkin' Run app, which facilitates group ordering and is also available online.
http://www.qsrweb.com/article.php?id=14911
In a more recent story, I described how GoMobo is developing mobile apps — first for the iPhone and then for other smartphones — such as restaurant locators (there's one for Burger King) and remote ordering. Burger King and Subway are testing the mobile ordering apps in limited locations now. Read http://www.qsrweb.com/article.php?id=15165&f=1&s=3
I'm not buying Pizza Hut pizza because they have an iPhone app. I'm not buying Pizza Hut pizza because I can find them on the mobile Web. Actually, I'm not buying it at all cuz it ain't that good.
But assuming I did want the P Hut 'za - why wouldn't I do a quick web search for the local Hut and simply call? I don't want to one-finger scroll through all the different options. I'd way rather take the 12 secs to talk to a real person at the store and say "Large Pep and Hally please. Thin crust."
IMHO - Just because the technology exists to do something doesn't mean it should be done. First and foremost, new apps for whatever platform should be solving a problem; making more eye candy is fun for devs to learn how to code something, and great for marketers to trumpet, but unless it does something different then what I could do before, it will be short-lived.
Wow... this is one app i couldn't turn down since my addicition to pizza hut is too overwhelming! Nice one Apple :)
Good to see companies taking an active role in reaching out to their customers. Interactive advertising is always an win-win.
They all will come.
Soon our phone will be stuffed with ads.
I'm sort of surprised noone has mentioned the Dunkin' Donuts iPhone App. You invite friends telling them you're going on a run, then you take their order using the simple app, then it sends the order to Dunkin' Donuts near you and you're good to go.
Do I have a philosophical aversion to Apps like these: No way! If I'm a customer and it makes it easy, why not? Plus, it drives business. Win/Win as far as I can tell!
This is very good story. Hopefully this will help us.
Saratoga springs
@Christa: Thanks, I completely forgot about the Dunkin' Donuts app (off to install it now....)
For any new product, whether targeting the iPhone, Web, Client-Server, or otherwise, it must deliver in "utility", "usability", "reliability", "availability" and "servicability". I am told that the download is approximately 10MB to get the application loaded on the iPhone desktop. Such is no small feat. I have had several customer comments regarding the time/effort downloading the application. If you can't get it on your desktop in reasonable manner, then all of the measures above are academic. And if each upgrade requires an additional 10MB download, users will find the "utility" diminished as cost/time to install/upgrade the app exceed the benefit.
For any new product, whether targeting the iPhone, Web, Client-Server, or otherwise, it must deliver in "utility", "usability", "reliability", "availability" and "servicability". I am told that the download is approximately 10MB to get the application loaded on the iPhone desktop. Such is no small feat. I have had several customer comments regarding the time/effort downloading the application. If you can't get it on your desktop in reasonable manner, then all of the measures above are academic. And if each upgrade requires an additional 10MB download, users will find the "utility" diminished as cost/time to install/upgrade the app exceed the benefit.
@Matt
I agree...its too much of a hassle vs google search and making a phone call. A local GPS Papa John Finder app that makes a phone call directly to the closest store would be much more valuable tool.
WAIT WAIT...forget I ever said that!
*secretly plots IPhone Pizza App domination*