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Pizza industry takes more than a slice from online

Sarah Stowe

More Australians are shifting their purchasing habits online and this consumer acceptance of technology means the pizza industry will continue to embrace and enhance technology. The expansion of digital communication includes e-marketing through social media, and online and mobile phone infrastructure. Technology also presents simple but effective point of sale and back-of-house structures to improve efficiency and franchisee productivity.

Technology trends

Pizza Hut believes a major trend in the industry has been the move to online and smartphone ordering. Graeme Houston, general manager Pizza Hut SOPAC says, “This has arisen from a larger proportion of internet users and reliance on engaging and interactive internet based ordering platforms.”

Recent exciting technological advances at Pizza Hut have been new point of sale (POS) and back-of-house (BOH) systems that are web-based, enhanced online presence, an upgraded website and new version iPhone interactivity.

Online ordering decreases the order time and improves customersÕ ability to understand deals, offers, new products and menu options, therefore presenting more channels for customer convenience. “An efficient POS and BOH system means a faster ordering process, real-time key performance indicators and financial reporting, and deeper insights into customer behaviour and operational performance,” Houston explains.

He states that the prevalence of new media interaction with not only customers, but also potential franchise partners, is certainly one of the top technological industry trends. “Our franchising website is one of many platforms we use to interact with potential new franchisees and it receives over 200 hits per day. This allows potential investors access to information about the array of new store opportunities Pizza Hut is currently offering,” says Houston.

New purchasing channels

Eagle Boys Pizza believes the key trend for the trade is closing the divide between the customer and the pizza store by using technology to create new purchasing channels.

Christine Hooper, of Eagle Boys group executive marketing, explains “Technology is unlikely to replace the need for local pizza stores to have a phone line and a serving counter. Instead, it provides more channels for customers to choose from when they want to interact with us.” Recent technology applications include online ordering, which can account for up to a fifth of a storeÕs orders, and mobile phone ordering.

Eagle Boys is currently implementing a $3 million technology initiative to ensure it has the right consumer technology channels in place, as well as the supporting back of house infrastructure to manage this.

Late last year, Eagle Boys Pizza unveiled AustraliaÕs first pizza ordering Windows Phone7 Application. “The Eagle Boys Pizza App enables users to access the entire Eagle Boys menu and find the nearest store using their current location or the suburb and postcode lookup capability,” says Hooper. It also provides users with exclusive offers and coupons.

Mobile ordering

Domino’s Pizza recently launched a mobile ordering site for all internet-enabled mobile devices. DominoÕs CEO and MD, Don Meij says the launch of a dedicated mobile ordering site will help drive the companyÕs digital sales to never-before-seen heights in the Australian online industry.

He explains Domino’s aim was to drive portability and ensure customers could order a pizza anywhere and anytime. “We know traditional methods of ordering pizza — such as walking into a store or using your home phone to dial in an order — no longer resonate with our customers.

“Over the next three years we know that more than 50 percent of sales will be from this side of our business,” says Meij.

“What’s even more exciting is our goal to have more than half of our digital sales coming from a portable device such as a mobile or tablet. This will mean more than 25 percent of our total sales are from customers who are using new hand-held technologies to order their favourite things.

“We strongly believe in investing significant time and money into this platform and are already looking at ways to grow our digital footprint even more in the future,” adds Meij.

The mobile ordering site initiative follows the hugely successful Domino’s iPhone application launched in November 2009, which was an Australian first. Within three months of the launch more than $2 million in sales were achieved through the iPhone app and to date it has been downloaded more than 600,000 times by tech-savvy consumers.

Social media

“We took our first steps online in 2002 with our brochure based website, and even then we already had a sense that the online frontier would be the making of us,” says Michael Logos, Crust Gourmet Pizza Bar CEO and co-founder.

Crust has made social media activity a priority over the last two years because it is an ideal way to connect directly with customers and gain valuable feedback in real time. “Social media is one part of our online focus, including our website, online ordering, VIP program and iPhone ordering application,” Logos adds.

Through Facebook and Twitter portals Crust can provide direct feedback to concerns, answer queries and let the community know about new stores opening and what’s on the latest menu.

“It’s a two-way conversation that allows us to interact with people who might be talking about us and for them to provide us with feedback”, says Logos. “With over 8000 fans on Facebook and 7700 followers on Twitter there is a constant stream of inquiry and conversation and it’s well worth the investment,” he says.

“We really value being able to respond directly and instantaneously to customers about their experiences in our stores, and hear what’s working and what’s not working as well from their point of view.”

Social media also means positive word-of-mouth can be harnessed, because satisfied customers tell their friends. “Via social media channels we can also ensure our customers experiences of our brand are consistent, regardless of how or where they heard of us,” Logos explains.

Crust is increasingly encouraging their franchisees to get involved in social media. “For them”, says Logos, “it’s a great way to connect with the local community and talk about what’s going on in their own business, including fundraising days, sponsorships, promotions and discounts or involvement in local events.”

Reporting capabilities

In relation to store technology, Pizza Capers believes a good POS system is imperative. Tyson Cobb, national marketing co-ordinator explains, “Apart from being very easy to use, the POS at Pizza Capers allows franchisees to see real time sales figures from their home computer or laptop, their iPhone, iPad or android phones.

“In-store the POS is very easy to use and can provide all the reports a franchisee would need or want and is great with budgeting for labour or stock control,” Cobb adds. All POS updates are sent after hours to not interrupt any service times and are very easily installed.

Digital marketing

Behind the scenes, the other key trend for the pizza industry is digital marketing: integrating technology into marketing campaigns to better reach and engage with customers.

Eagle Boys says it’s all about using the right mix of traditional marketing with digital marketing. “The smorgasbord of digital marketing channels on offer can sometimes be intoxicating,” Hooper explains. “But at the end of the day you’re still looking for those channels with the proven ability to reach your target market and achieve the sales objectives.

“In many respects, you have to think about what channels the target market is comfortable communicating with you through. For a growing number of people, they prefer digital channels, but there remain segments which do not. “Mobile applications are still in the infancy stages for us,” admits Hooper, “but we see it as playing a greater role in the future in growing sales, particularly through online ordering.”

Online training and recruitment

Pizza Hut’s Graeme Houston says that other trends include online training and recruitment systems. “They improve employee and franchise engagement, leading to better and more aligned customer experiences.”

In fact, Australia is the first Pizza Hut market globally to have online standards reference with video and audio plus linked training cards and quizzes — one system and standard clearly communicated nationally.

Houston says Pizza Hut ensures it stays at the forefront of technology by having a global presence and continuously leveraging best practice. He says this includes, “Consistent engagement with our franchisees, customers and employees to understand the best way to interact with them.”

ItÕs also about significant investment in technology and IT capability through marketing, human resources and operations functions, as well as ongoing work with digital agencies to ensure understanding of consumer trends and developments in this field.

R&D technology

At Pizza Capers, a great deal of time is devoted to the research and development department. “The founders are very active in R&D, and listen to feedback from customers and staff,” says Cobb. In fact, Pizza Capers still has the creators of the original Pizza Capers menu (1996) trialling and testing new products and procedures.

Through the technology derived from the research and development department, Pizza Capers was able to offer healthier pizza options. “The 97 percent fat free pizza range was introduced about 12 months ago and received a fantastic response,” Cobb announces.

“The 97 percent fat free range now accounts for over 10 percent of total transactions and growing. Most of these are additional sales, which has a positive impact on the business,” says Cobb.