online, mobile, and text food ordering in the u.s...
TRANSCRIPT
wwwchrcornelledu
Cornell Hospitality ReportVol 11 No 7 March 2011
Online Mobile and Text Food Ordering in the US Restaurant Industry
by Sheryl E Kimes PhD and Philipp F Laqueacute
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 7 (March 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Phone 607-255-9780Fax 607-254-2922wwwchrcornelledu
Back cover photo by permission of The Cornellian and Jeff Wang
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Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
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Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
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4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
Asurveyofthetop326USrestaurantchainsinallcategoriesfindstheindustrygraduallyadoptingelectronicordering intheformofonlinemobileandtextordersQuick-servicechainsmostnotablythosesellingpizzaandfast-casualchainsarefaraheadofothersegmentsinadoptingelectronicorderingparticularlyusingonlineapproaches
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 5
abouT ThE auThorS
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornELL hoSPiTaLiTy rEPorT
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Cornell Center for Hospitality Research
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
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Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
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Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
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Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
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2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
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2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
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Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 7 (March 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Phone 607-255-9780Fax 607-254-2922wwwchrcornelledu
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Industry Leader Hospitality amp Leisure Practice PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
HyattGregg Gilman Partner Co-Chair Employment Practices
Davis amp Gilbert LLPSusan Helstab EVP Corporate Marketing
Four Seasons Hotels and ResortsJeffrey A Horwitz Chair Lodging + Gaming and Co-Head
Mergers + Acquisitions ProskauerKevin J Jacobs Senior Vice President Corporate Strategy amp
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno President Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Vice President of Global Business Development
Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
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Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
Asurveyofthetop326USrestaurantchainsinallcategoriesfindstheindustrygraduallyadoptingelectronicordering intheformofonlinemobileandtextordersQuick-servicechainsmostnotablythosesellingpizzaandfast-casualchainsarefaraheadofothersegmentsinadoptingelectronicorderingparticularlyusingonlineapproaches
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 5
abouT ThE auThorS
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornELL hoSPiTaLiTy rEPorT
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
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Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
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Vol9No3Compendium2009
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2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
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4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
Asurveyofthetop326USrestaurantchainsinallcategoriesfindstheindustrygraduallyadoptingelectronicordering intheformofonlinemobileandtextordersQuick-servicechainsmostnotablythosesellingpizzaandfast-casualchainsarefaraheadofothersegmentsinadoptingelectronicorderingparticularlyusingonlineapproaches
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 5
abouT ThE auThorS
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornELL hoSPiTaLiTy rEPorT
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
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Cornell Center for Hospitality Research
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
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Success
AdvancingBusiness
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bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
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Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
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Vol9No3Compendium2009
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2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
Asurveyofthetop326USrestaurantchainsinallcategoriesfindstheindustrygraduallyadoptingelectronicordering intheformofonlinemobileandtextordersQuick-servicechainsmostnotablythosesellingpizzaandfast-casualchainsarefaraheadofothersegmentsinadoptingelectronicorderingparticularlyusingonlineapproaches
MobileappsarelesscommonalthoughtheiruseisgrowingAlthoughorder-placingfunctionalityislimited for mobile apps the fast-casual chains are leading the way in allowing customers to placeorders Nearly all restaurant chains have a Facebook presence but just 3 percent allowed orderingthrough that channel The advantages of electronic ordering include increased sales particularlythroughautomaticupsellingandbystoringorder informationsothatcustomersareencouragedtorepeattheirpreviousorderswithasingleclickOtherthanthecostofinstallationandoperationthechiefdisadvantageofelectronicorderingisthepotentialforamplifyingrushtimevolumewiththepotentialofoverwhelmingthekitchenCreatingaseparatelineforelectronicordersandpickupsisonewaytoaddressthatproblem
OnlineMobileandTextFoodOrderingin the US Restaurant Industry
bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 5
abouT ThE auThorS
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornELL hoSPiTaLiTy rEPorT
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
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Success
AdvancingBusiness
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wwwchrcornell edu
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 5
abouT ThE auThorS
Sheryl E Kimes PhD is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration where she has also served as interim dean (sek6cornelledu) In teaching restaurant revenue management yield management and food and beverage management she has been named the schoolrsquos graduate teacher of the year three times Her research interests include revenue management and forecasting in the restaurant hotel and golf industries She has published over fifty articles in leading journals such as Interfaces Journal of Operations Management Journal of Service Research Decision Sciences and Cornell Hospitality Quarterly She has served as a consultant to many hospitality enterprises around the world including Chevyrsquos FreshMex Restaurants Walt Disney World Resorts Rubyrsquos Diners Starwood Asia-Pacific and Troon Golf
Philipp Laqueacute is a student in the Master of Management in Hospitality program at the School of Hotel Administration (pfl23cornelledu) During his time at
Cornell University Philipp concentrated in multiunit restaurant management Prior to joining the MMH class of 2011 he worked for Starbucks Coffee in Germany and the trade publications FoodSerivce Europe amp Middle East and food-service Philipp completed internships at The Savoy Hotel London The Palace Hotel Beijing and Darden Orlando Philipp holds a Bachelor of Science Degree in International Hospitality Management from the
Ecole hocircteliegravere de Lausanne Switzerland
The authors and the Cornell Center for Hospitality Research greatly appreciate the sponsorship of Nationrsquos Restaurant News in supporting this research study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornELL hoSPiTaLiTy rEPorT
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
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Cornell Center for Hospitality Research
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
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Success
AdvancingBusiness
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bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
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Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
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2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
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2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
6 TheCenterforHospitalityResearchbullCornellUniversity
CornELL hoSPiTaLiTy rEPorT
Online mobile and text food ordering is growing in popularity among bothconsumersandrestaurantsbecauseelectronicorderingcanbenefitallconcernedConsumers are embracing electronic ordering because of its ease speed andprecision1 while restaurants see the potential for increased revenue and fewer
errorsmdashand they are responding to obvious consumer demand Electronic ordering has becomeparticularlysuccessfulforpizzachainsAfterlaunchinganupdatedonlineorderingsystemin2009Dominorsquosisnowthenumber-fouronlineretailerintheUS2andPapaJohnrsquoshasreportedthatover25percentofitstrafficcomesfromelectronicorders3
1MichaelJDixonSherylEKimesandRohitVermaldquoCustomerPreferencesandUseofTechnology-BasedServiceInnovationsinRestaurantsrdquoCornell Hospitality Report Vol9No7(2009)CenterforHospitalityResearchhttpwwwhotelschoolcornelleduresearchchrpubsreportsabstract-15027htmlandTechnomicldquoLeveragingSocialMediaandTechnologyUserdquoTechnomicAssociates20102ClaireCainMillerldquoOntheGoandHungryDinnerIsanAppAwayrdquoNew York TimesMay312010httpwwwnytimescom20100531technology31snapfingerhtml_r=1ampdbkviewedDecember2320103PapaJohnrsquosldquoOnlineOrderingLeaderPapaJohnrsquosFirsttoSurpass$2BillioninOnlineSalesrdquoMay32010httpirpapajohnscomreleasedetailcfmReleaseID=465852viewedDecember262010
OnlineMobileandTextFoodOrdering
in the US Restaurant Industry bySherylEKimesandPhilippFLaqueacute
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
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Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
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2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
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Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 7
Thisreportreviewstherestaurantindustryrsquoscurrentstatusregardingelectronicorderingincludingrestaurantsrsquocurrentelectronicorderingcapabilitiesandexaminestheis-suesinvolvedinitsadoptionSubsequentreportswillpresenttheresultsofasurveyofUSconsumersrsquoattitudestowardanduseofdifferentelectronicorderingoptionsandasurveyofhowUSfast-casualandquick-servicerestaurantsareusingelectronicorderingprocessesandwhatexperiencetheyhavehadwiththesetechnologies
Wewillstartbyreviewingorderinganddistributionchannelsandvendorsandthendiscussthepotentialadvan-tagesanddisadvantagesofusingonlinetextingandmobilesourcesfororderingWewillnextconsidercustomeradop-tionandreactiontoelectronicorderingSubsequentlywewillpresenttheresultsofastudyoftheelectronicorderingcapabilitiesofthelargest326USrestaurantchainsWewillconcludewithadiscussionofissuesthatrestaurantoperatorsshouldconsiderbeforeimplementingelectronicordering
ElectronicDistributionChannelsandProvidersRestaurantscanofferelectronicorderingboththroughtheirowninternetormobilesiteandthroughmulti-restaurantsitesIfarestaurantwantstouseitsownsiteitneedstomakesure(1)ithasorderingcapabilityand(2)itdoesitsbesttothelinktheelectronicorderenginetothePOSsystemasdirectlyaspossibleDevelopingaproprietarysystemcanbeexpensiveintermsofdevelopmentcostsbutwouldofferamodestcostperorderoncethesystemisestablishedSeveralvendorsdevelopproprietarysystemsorsupportrestaurantsrsquoelectronicorder-ingsystemsincludingExit41KudzuSnapfingerONOSYSorderTalkQuikOrderandTakeOutTechnologiesAllofthesevendorsofferonlineorderingandmostalsooffermo-bileappsExit41KudzuSnapfingerandorderTalkalsosup-portFacebookorderingandtextorderingForthesesystems
upfrontdevelopmentcostswouldbefairlylowbutthecostperorderwouldbeacontinuingexpense
Multi-restaurant siteEvenifarestaurantestablishesitsownsiteitmayalsowanttoappearonamulti-restau-rantsitesuchasSnapfingercomorGrubhubcomWhilethesesitesincreasearestaurantrsquosvisibilitytheyalsoriskpossiblecommoditizationoftherestaurantandtheyincurper-ordercosts
Thelargestmulti-restaurantelectronicorderingsiteSnapfingerKudzulists28000restaurantsandothermajorplayersalsohaveasubstantialnumberofclientsCampus-Foodcom(25000restaurants)GrubHub(13000restau-rants)andDeliverycom(10000restaurants)ThevolumeofmobileapporderinghasgrownforthesesitesIn2010Snapfingerrsquosmobileordervolumeroseto17percentwithinoneyearofthelaunchofitsmobileapps4
Facebook orderingAlthoughmostrestaurantshaveaFacebookpresencefewofferFacebookorderingExcep-tionsincludePizzaHutwhichbeganFacebookorderingin2008JimmyJohnrsquosGourmetSandwichesandCaliforniaPizzaKitchen5FacebookuserscanalsoldquoLikerdquoaparticularmenuitemandtheirfriendscanclickintotherestaurantrsquosonlineorderingsystemiftheywanttoordertheldquoLikedrdquoitem6
4AlanJLiddleldquoMoreConsumersUsingMobileAppsforRestaurantsrdquoNationrsquos Restaurant NewsNovember92010httpwwwnrncomarticlemore-consumers-using-mobile-apps-restaurantsad=marketingviewedDecember2320105AlanJLiddleldquoRestaurantsUsingFacebooktoDriveOnlineOrdersrdquoNationrsquos Restaurant NewsNovember192010httpwwwnrncomar-ticlerestaurants-using-facebook-drive-online-ordersviewedDecember2320106Ibid
8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
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8 TheCenterforHospitalityResearchbullCornellUniversity
preparetheorderandbetterspreadouttheloadonthekitchenMoretothepointincreasedordervolumecanhelptherestaurantmakebetteruseofanyslackinkitchencapacity
(3) Improved order accuracy and productivityElectronicorderingcanhelprestaurantsimproveorderaccuracyandemployeeproductivityElectronicorderingim-provesorderaccuracysincetheordersareallinwrittenformandproductwasteandreworkshouldbereducedInadditionelectronicorderingreducesoreliminatestheordertakingfunctionfreeingemployeestofocusonproducinganddeliveringanorder
(4) Improved customer relationship managementFinallyelectronicorderingroutinesproviderestaurantopera-torswithkeycustomerinformationthatcanbeusefulfordevelopingpromotionstrategiesincludingtargetedpromotionsdesignedtobuildoff-peakdemandspecialsaimedatcertaincustomersegmentsandcouponingstrategiesWithelectronicorderingcustomersrsquodataarestoredautomaticallywhothecustomersareandhow(andwhether)tocontactthemwhattheyliketoorderhowmuchtheyusuallyspendandwhentheyliketoorder
PotentialDisadvantagesPossibledisadvantagesofonlinemobileandtextorderingincludeincreasedcostoverburdenedfacilitiesandpotentialcommoditization
Increased costsThecostofeachorder(typically5to7percentoftheorderamountpaidtotheorder-systemvendor)orthecapitalcostofbuildingasystemandintegrat-ingitwiththePOSmustbeconsideredespeciallyiftheelectronicorderingcannibalizestraditionalorderingmecha-nismsandaveragecheckremainsthesame
Impact on food quality and customer satisfactionWhileweanticipatethatelectronicorderingwillhelpwithworkflowitispossiblethatdemandwillnotbesmoothProductionpeaksmayoverwhelmthekitchentothedetri-mentoffoodqualityandcustomersatisfaction
ThekitchenoverloadissueisnothypotheticalAlthoughelectronicorderingsystemscanofferincentivesforoff-peakoradvanceorderingrestaurantsstillcannotcontrolwhenelectronicorderswillcomein(anymorethantheycancon-trolconventionalorders)IfelectronicorderspileontopofanormallybusytimefortherestaurantthekitchenmaynotbeabletokeepupwiththeincreaseddemandForexampleChipotleencounteredthisproblemwhenitlaunchedonlineorderingin2005InparticularanincreaseingroupordersoverburdeneditskitchensduringbusyperiodsTodealwiththisChipotleremodeleditsbusiestrestaurantswithalinededicatedtoonlineordersduringpeakperiodsWhenthe
Text orderingPapaJohnrsquosSubwayandMcDonaldrsquosareamongtherestaurantsthathavegivencustomersaspecifictextingnumbertoenterintotheirmobilephoneWhentherestaurantreceivesthetextorderaconfirmationtextissentbacktothecustomerwhocanthenjustgototherestauranttopickuptheorderAmongthemulti-restaurantsitesthatsupporttextorderingareExit41GoMoboandZingleWeexpecttextorderingtodiminishaspeopleinstallorderingappsontheirsmartphonesbutwestillseegreatpotentialintext-messagemarketing
PotentialAdvantagesofElectronicFoodOrderingWeseethefollowingfourpotentialbenefitsfromelectronicordering(1)increasedrevenue(2)improvedcapacitymanagement(3)improvedproductivityand(4)improvedtransactionalmarketingandcustomerrelationshipmanagement(1) Increased revenueElectronicorderinghasthepoten-
tialtoincreaserevenueinfourways(a)higheraver-agecheckthroughupselling(b)increasedvolume(c)increasedorderfrequency(byfacilitatingrepeatorders)and(d)prepaidorders
(a) Increased average checkRestaurantsusingelec-tronicorderingreportanaveragecheckincreaseof25percentprimarilyduetosuccessfulupselling7Upsellingisenhancedwithelectronicorderingsincetheupsellofferismadeautomatically
(b) Increased volumeRestaurantsusingelectronicorderingalsoreportmorefrequentordersandincreasesingroupandcateringordersbecauseoftheeaseofplacinganorderThesimpleadditionofnewdistributionchannelshasahighprobabilityofattractingcustomers
(c) Increased frequencyBythesametokenrestau-rantsusingelectronicorderingreportanincreaseinrepeatbusinessbecauseitiseasierforcustomerstoplacerepeatordersespeciallywhenthesystemstorespastorderssothatcustomerscansimplyclickontheirpreviousorder
(d) Increase in prepaid ordersWhencustomersplaceelectronicorderstheyoftenpayupfrontwithacredit(ordebit)cardmeaningthattherersquoslittlechanceforapersontoorderandnevershoworotherwisefailtopay
(2) Improved capacity managementCapacitymanage-mentisimprovedintwowaysIfordersareplacedaheadoftime(asisoftenthecasewithcateringandgrouporders)therestaurantcanbetterplanwhento
7Milleropcit
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
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2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
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2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
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2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
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Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
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The Executive Path Hospitality Leadership Through Learning
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Success
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CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 9
in-storepeakendstheonlineordersareswitchedbacktotheregularline8
Possible commoditizationAsweindicatedabovewhenarestaurantislistedonathird-partyorderingsiteitispossiblethatcustomersmightbemorelikelytoviewthatrestaurantasacommoditysincethereanumberofrestau-rantstochoosefrom
CustomerAdoptionofandReactionstoElectronicOrderingAsmadeclearbytheexampleofChipotlecustomershaveembracedonlinemobileandtextorderingA2010Technomicstudyof1000adultsshowedthat43percentofsurveyrespondentshadorderedonlinewithacomputerand23percenthadorderedfoodviatextmessage9Youngerconsumersweremorelikelytohaveusedelectronicorder-ingForexample60percentofrespondentsbetween18and34yearsoldhadorderedonlineasopposedto35percentofpeopleaged35oroverSimilarlyyoungerrespondentsweremorelikelytohaveorderedviatextmessage(29vs20)orbysmartphoneapp(8vs2)
The541percentofrespondentswhohadusedelec-tronicorderingfounditeasierthanspeakingtoaliveperson(18ndash34yearsold5935yearsandolder52)faster(18ndash345935+45)andmoreaccurate(18ndash344235+35)Respondentsalsoreportedthattheyfeltmorecomfortableplacingelectronicordersbecausetheydidnotfeelasrushedaswhentheyweretalkingwitharestau-rantemployee(18ndash343735+30)Theavailabilityofdiscountsandpromotionsinfluencedabout25percentofrespondents
Respondentswhohadnotusedelectronicorderingsaidtheypreferredplacingordersoverthephonewithaliveper-son(male42female39)andpreferredtoplaceordersinpersonevenifitmeantawait(male22female19)Lackofawarenessofonlinemobileortextorderingtech-nologyalsoplayedaroleAgoodportionofrespondentshadneverconsideredorderingonline(male30female40)orviatext(male15female26)Lackofavailabil-itywasalsoanissuesinceaboutaquarterofrespondentssaidthatnoneoftherestaurantstheypatronizedofferedelectronicordering
Distribution channel useMostcustomers(57)placeelectronicordersdirectlywiththerestaurantratherthanthroughmulti-restaurantsites10Ofthemulti-restaurantsitesTechnomicfoundthatDeliverycomhadthehighest
8SteveCoomesldquoChipotleTurnsCursesofOnlineOrderingintoBless-ingsrdquoNationrsquos Restaurant NewsMay122009httpwwwnrncomarticlechipotle-turns-curses-online-ordering-blessingsviewedDecem-ber2320109Technomicloc cit10Ibid
Restaurant customers have embraced online mobile and
text ordering particularly for fast-casual and quick-service
concepts
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
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Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
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2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
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Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
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Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
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Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
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2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
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wwwchrcornell edu
10 TheCenterforHospitalityResearchbullCornellUniversity
usage(11)followedbyDiningincom(7)campusfoodcom(6)Grubhubcom(6)andorderlunchcom(6)
OurStudyWestudiedtheonlineorderingcapabilityofthewebsitesofthelargest100casual-diningrestaurants66fast-casualrestaurants45full-servicemidscalerestaurants15fine-diningrestaurantsand100QSRsWeusedrecentdatafromTechnomicInctoidentifytherestaurants(listedintheappendix)Aspartofthisstudywelookedatwhethereachchain(1)offeredonlinefoodorderingcapabilities(2)hadaFacebookpresenceand(3)hadasmartphoneapp
OnlineFoodOrderingWewantedtofindoutthefollowingwhetheronlinefoodorderingvariedbyrestaurantsegmentandbycuisinetypetheextentofavailablepaymentoptionsandtheuseofupsellingscreensandwhetherthechainhadacustom-builtorderingsystemoriftheyemployedavendorWeevaluatedthewebsitesofthe326largestrestaurantchainsaslistedbyTechnomicWebelievetheresultsarealsoofusetoindependentoperatorswhofaceissuesidenticaltothoseofthechains
Wefoundthat23percentofthechainsaccepton-lineordersmostfrequentlyinthefast-casual(485ofallrestaurants)andthequick-servicesegments(220)Onlineorderingwasmuchlessprevalentinthecasual(180)andthefull-servicemidscale(89)segmentsanditwasnonexistentamongfine-diningchains(Exhibit1)
Asweindicatedattheoutsetpizza(607)andsandwich(619)restaurantsweremostlikelytoacceptelectronicorders(Exhibit2)Mexican(444)restaurantswerenotfarbehindinfrequencyfollowedbyAsianornoodle(333)andchicken(308)concepts
About36percentofrestaurantchainsmaintainedanupsellingscreenmostcommonlyinthemidscale(750)andcasual(500)segmentsascomparedwiththefast-casual(300)andquick-service(277)sectors(Exhibit3)
PaymentoptionsalsovariedAbouthalf(47)gavecustomerstheopportunitytoeitherpayonlineorattherestaurantaboutathird(32)permittedonlyonlinesettlementandtheremaining21percentdidnotofferonlinepayment(Exhibit4)Aswithupsellingscreenspaymentoptionsvariedbysec-torThreeofthefivecasualrestaurantsthatofferedonlineorderingdidnotofferonlinesettlementwhile
Midscale Casual Quick service Fast casual
89
180220
485
Exhibit 1
online ordering frequency by restaurant segment
Note Fine-dining restaurants recorded no online ordering
Exhibit 2
online ordering frequency by cuisine
Sandwich PizzaMexican
asian or noodle
Chicken
hamburger
Frozen dessert
70
60
50
40
30
20
10
0
Note Cafeteria and buffet donut and coffee and beverage restaurants recorded insufficient online ordering to appear on this graph
Exhibit 3
upselling screen frequency by segment
80
70
60
50
40
30
20
10
0
Midscale Casual Fast casual Quick service
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
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Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
Vol9No14ProductTiersandADRClustersIntegratingTwoMethodsforDeterminingHotelCompetitiveSetsbyJin-YoungKimandLindaCaninaPhD
Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
Vol9No12HotelRevenueManagementinanEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol9No9ManagingaWineCellarUsingaSpreadsheetbyGaryMThompsonPhD
Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
Vol9No6FosteringServiceExcellencethroughListeningWhatHospitalityManagersNeedtoKnowbyJudiBrownellPhD
Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 11
onlyabout20percentoffastcasualandquickservicerestau-rantsdidnotofferthisoption
Aboutone-third(342)ofchainswithonlineorderingcapabilitieshadinstalledacustom-builtsolutionOurreviewofrestaurantwebsitesshowedtheuseofSnapfinger(171)orderTalk(79)ONOSYS(66)TakeOutTech(53)andExit41(53)aswellasnumeroussmallervendors
Facebook presenceNearlyalloftherestaurants(96)werepresentonFacebookbutonly3percentofferedorder-ingcapabilitiesthroughFacebook
AppsWebelievethatsmartphoneappspresentagreatopportunitygiventhatonly16percentoftherestaurantssurveyedofferedthemQSRswerefurtheraheadonthisasnearlyaquarter(220)hadappswhile182percentoffast-casualrestaurantsdidsoOnceagainfewrestaurantsintheothersegmentswereonboardwiththistrendfinedining(67)midscale(65)andcasual(50)(Exhibit5) 11
HoweverofferinganappdidnrsquotmeanthatcustomerscouldorderusingtheirsmartphoneOfthethirty-fourQSRandfast-casualrestaurantsthatofferedsmartphoneappsjust352percenthadorderingcapabilitiesassociatedwiththeappOrderingcapabilitywasmorecommoninthefast-casualsector(583)thanthequick-servicesector(227)Itshouldcomeaslittlesurprisethatallfiveofthequick-servicechainsthatofferedorderingcapabilitieswerepizzarestaurants
IssuestoConsiderAsrestaurantoperatorsconsiderwhethertoofferelectronicorderingwebelievetheyneedtoconsiderthefollowingissues
CostAsastartingpointrestaurateursshoulddeter-minewhetherthepotentialforincrementalbusinessfromelectronicorderingwillbesufficienttooffsettheirinvest-mentForthemomentwersquollsetasidethelikelihoodthatcustomerswillsimplyexpectarestauranttoofferonlinetextormobileappsfororderingastimegoesonEvidencefromthefieldindicatesthatbothvolumeandaveragecheckshouldincreasebutoperatorsshouldconsiderthisdecisioncarefullyanddevelopplansonhowtheywillpromotetheirelectronicorderingcapabilitytobuildvolume
Production capacityInconjunctionwithconsider-ationsofsystemcostoperatorsalsoneedtocarefullyconsid-erwhethertheirkitchencanhandletheincreasednumberofusersthatmayresultfromelectronicordersespeciallydur-ingpeaktimesforconventionaltrafficTherestaurantmightsetupadedicatedlineasChipotledid(assumingthereisspaceavailable)orconsideroff-siteproductionstreamlinedfoodproductionoranincreaseinpersonnelTheseissuesbecomepartofthecost-benefitconsideration
11ForafewexamplesoffinediningappspleaseseeappsfromAlainDucasseMichaelRouxJrandRuthrsquosChrisSteakHouse
Exhibit 4
relative frequency of online payment practices
online only
at restaurant only
both online and at restaurant
Exhibit 5
Frequency of smartphone apps by segment
Fine dining Midscale Casual Quick service Fast casual
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
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Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
12 TheCenterforHospitalityResearchbullCornellUniversity
tobudgetforsinceitrsquosnotpossibletopredicttheprecisevolumeofelectronicordersfrommonthtomonth
System integrationItisessentialthatelectronicordersareclearlycommunicatedtothekitchenThiscanbeac-complishedwithfullintegrationwiththePOSsystem(idealbutthemostcostly)orbyemailfaxortext(fairlylowcostbutastaffmemberneedstoensurethatthekitchenactuallyreceivestheorders)
Payment optionsRestaurantsshouldconsiderofferingonlinecredit(ordebit)cardpaymentforelectroniccustom-ersThisprovidesaddedconvenienceforthecustomersandalsohelpsspeedthetransactionforbothcarryoutanddeliveryorders
Completion-time estimatesWementionedpostingcompletion-timeestimatesinconjunctionwithgroupbusi-nessbutthiscanbehelpfulforallcustomersWhencustom-ersorderattherestauranttheycanseethequeueandre-maininformedregardinghowlongitwilltaketofulfilltheirorderOperatorsshouldconsiderofferingtimeestimatesforelectronicordersaswellThechallengeofhowtodevelopareasonablyaccuratetimeestimateshouldbeovercomeastheoperatorgainsexperiencewiththesystem
Placement on a multi-restaurant siteOnceares-taurantrsquosonlineorderingsystemisuptherestaurateurcandeterminewhethertobelistedonamulti-restaurantsiteasanadditionaldistributionchannelMulti-restaurantsitesoffertheadvantageofincreasedexposurebuttherestaurantthenbecomesjustoneofmanyrestaurantsforcustomerstochoosefrom
ConclusionInconclusionelectronicorderingoffersgreatpotentialfortherestaurantindustrymdashandalmostcertainlywillbecomeafeaturethatmostcustomersexpecttohaveavailabletothemOver40percentofUSadultshaveorderedfoodonlineandrestaurantsusingelectronicorderingreportincreasesinbothaveragecheckandorderfrequency12Settingasidecustomerexpectationstheadvantagesofelectronicorder-ing(improvedorderaccuracyimprovedproductivityandenhancedcustomerrelationshipmanagementabilities)willprobablyoffsetthecostsandoperationalchallengesformostrestauranttypesn
12Technomicloc cit
Delivery capacitySimilarconsiderationsapplytodeliverycapacityIfthekitchencanproducethefooditemsbutdeliverycannotkeepuptherestaurantmayhavetoadddeliverydriversorvehiclestoaccommodateincreasedelectronicorders
Group ordersRestaurateursmustalsotakeintoac-counttheeffectsofapossibleincreaseingroupandcateringordersOnewaytogetaheadoftheinevitableproductionbulgesfromgroupordersistoconsiderpoliciesregardinghowfaraheadgroupordersneedtobeplacedorhavethesystemgivecompletiontimeestimatestosetappropriateex-pectationsforthecustomerandtomanageproductionflow
Carryout concernsRestaurateursalsomustdeterminehowtohandletheircarryouttrafficiftheyoffercarryoutHavingcustomerswaitinlinetopickuptheirorderdefeatsthepurposeofelectronicorderingsincespeedisessentialTheChipotlesolutionofhavingaseparatelinealsoapplieshereOneIthacarestaurantrecentlysetupanentirelysepa-ratelocationforcarryoutorderstodirectthattrafficawayfromtheirmainoperationwhichincludesabarandtableservice(andavoidcloggingthebarentrancewithpeoplewaitingforpickuporders)
Make or buyOncethedecisionhasbeenmadetogoforwardwithelectronicorderingtherestaurantopera-tormustconsiderwhethertodeveloptheirownelectronicorderingcapabilitiesoruseanoutsidevendorAswithanymake-or-buydecisionthetrade-offbetweenupfrontcostsandoperatingcostsmustbeanalyzedaswediscussedearlier
Ifarestaurantwantstobuilditsownsystemthecompanymusttakeintoaccounttheneedforpaymentcarddatasecuritystandards(PCIcertification)theneedforaninternalteamtomaintaintheelectronicsystemandthecostsassociatedwithdevelopingandmaintainingasafeandsecurehostingenvironmentMostvendorsincludethesefea-turesandoftenincludesystemupgradesandimprovementsaspartoftheirfee
Restaurateurswhoplantoengageavendorshouldconsiderwhetherthevendoroffersaflatmonthlyfeeorapercentage-basedfeemodelMonthlyfeesmakeiteasiertobudgetanddependingonthevolumeofelectronicordersmaybealessexpensiveoptionPercentage-basedfeescanbealowercostoptionwhenelectronicvolumeislowbutthecostswillquicklyaddupasordervolumeincreasesInadditionpercentage-basedfeeapproachesaremoredifficult
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
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The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 13
Fast Casual Chains1 Panera BreadSaint Louis Bread Co 2 Chipotle Mexican Grill 3 Panda Express 4 Zaxbyrsquos 5 El Pollo Loco 6 Boston Market 7 Jasonrsquos Deli 8 Five Guys Burgers and Fries 9 Qdoba Mexican Grill 10 Einstein Bros Bagels 11 Moersquos Southwest Grill 12 McAlisterrsquos Deli 13 Fuddruckers 14 Au Bon Pain 15 Wingstop 16 Pei Wei Asian Diner 17 Baja Fresh Mexican Grill 18 Taco Cabana 19 Schlotzskyrsquos 20 Corner Bakery Cafeacute 21 Fazolirsquos 22 Noodles amp Company 23 Portillorsquos Hot Dogs 24 Taco Bueno 25 Brueggerrsquos 26 Rubiorsquos Fresh Mexican Grill 27 Donatos Pizza 28 Pollo Tropical 29 Cosigrave 30 Raising Canersquos Chicken Fingers 31 Paradise Bakery amp Cafeacute 32 Atlanta Bread Company 33 Back Yard Burgers 34 la Madeleine Country Frxench Cafe 35 DrsquoAngelo Grilled Sandwiches 36 Farmer Boys 37 Taco Del Mar 38 Wolfgang Puck Express 39 Jazzmanrsquos Cafe 40 Pick Up Stix 41 La Salsa Fresh Mexican Grill 42 Saladworks 43 Daphnersquos Greek Cafe 44 Pollo Campero 45 Sandellarsquos Flatbread Cafeacute 46 Tijuana Flats 47 Burgerville 48 Le Pain Quotidien 49 Fatburger 50 Salsaritarsquos Fresh Cantina 51 Wahoorsquos Fish Taco 52 Camillersquos Sidewalk Cafe 53 Which Wich Superior Sandwiches 54 RedBrick Pizza 55 Jerryrsquos Subs amp Pizza 56 ZPizza 57 Crispers
AppEndix
restaurant chains included in this study
58 Pancherorsquos Mexican Grill 59 Shanersquos Rib Shack 60 Pat amp Oscarrsquos 61 Leeann Chin 62 Straw Hat Pizza 63 Bajio Mexican Grill 64 Counter The 65 Salad Creations 66 Naturersquos Table Cafeacute
QSr Chains1 McDonaldrsquos 2 Subway 3 Burger King 4 Wendyrsquos Old Fashioned Hamburgers 5 Starbucks 6 Taco Bell 7 Dunkinrsquo Donuts 8 Pizza Hut 9 KFC 10 SONIC Drive-Ins 11 Arbyrsquos 12 Chick-fil-A 13 Jack in the Box 14 Dominorsquos Pizza 15 Dairy Queen 16 Papa Johnrsquos 17 Quiznos 18 Hardeersquos 19 Popeyes Louisiana Kitchen 20 Golden Corral 21 Carlrsquos Jr 22 Little Caesars 23 Whataburger 24 Churchrsquos Chicken 25 Old Country BuffetHomeTown Buffet 26 Long John Silverrsquos 27 Bojanglesrsquo Famous Chicken lsquoN Biscuits 28 Culverrsquos Frozen Custard 29 Papa Murphyrsquos Take lsquoNrsquo Bake Pizza 30 Jimmy Johnrsquos Gourmet Sandwich Shop 31 CiCirsquos Pizza 32 Baskin-Robbins 33 Del Taco 34 White Castle 35 Sbarro 36 Ryanrsquos Grill Buffet amp Bakery 37 Krispy Kreme 38 Captain Drsquos Seafood Kitchen 39 In-N-Out Burger 40 Tim Hortons 41 Jamba Juice 42 Chuck E Cheesersquos 43 Cold Stone Creamery 44 Krystal Company
45 Round Table Pizza 46 Checkers Drive-In Restaurants 47 Sizzler 48 Godfatherrsquos Pizza 49 Auntie Annersquos 50 Braumrsquos Ice Cream amp Dairy Stores 51 Rallyrsquos Hamburgers 52 PonderosaBonanza 53 Caribou Coffee 54 Taco Johnrsquos 55 Hungry Howiersquos Pizza 56 Souplantation amp Sweet Tomatoes 57 Lubyrsquos 58 Wienerschnitzel 59 Potbelly Sandwich Shop 60 Piccadilly 61 Firehouse Subs 62 Peetrsquos Coffee amp Tea 63 AampW All-American Food 64 Blimpie Subs amp Salads 65 Foxrsquos Pizza Den 66 Cinnabon 67 Charleyrsquos Grilled Subs 68 WesterN SizzliN 69 Jersey Mikersquos Subs 70 Peter Piper Pizza 71 Mazziorsquos Italian Eatery 72 Papa Ginorsquos Pizzeria 73 Jetrsquos Pizza 74 Smoothie King 75 Fresheumlns 76 Gattirsquos Pizza 77 TCBY 78 Coffee Bean amp Tea Leaf The 79 Carvel Ice Cream 80 Pizza Pro 81 Togorsquos Sandwiches 82 TacoTime 83 Nathanrsquos Famous 84 Sarku Japan 85 Pizza Inn 86 Penn Station East Coast Subs 87 Ben amp Jerryrsquos 88 Furrrsquos Family Dining 89 Ritarsquos Ice 90 Tastee Freez 91 Villa Fresh Italian Kitchen 92 Pizza Ranch 93 Pinkberry 94 Tropical Smoothie Cafeacute 95 LampL Hawaiian Barbecue 96 Marcorsquos Pizza 97 Haumlagen-Dazs 98 Rosatirsquos Pizza 99 KampW Cafeterias 100 Leersquos Famous Recipe Chicken
Continued on next page
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 Proceedings
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol10No4CasesinInnovativePracticesinHospitalityandRelatedServicesSet2BrewerkzComfortDelgroTaxiDinnerBrokercomIggyrsquosJumboSeafoodOpenTablecomPriceYourMealcomSakaeSushiShangri-LaSingaporeandStevensPassbySherylEKimesPhDCathyAEnzPhDJudyASiguawDBARohitVermaPhDandKateWalshPhD
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
Vol10No1Compendium2010
2010 Industry PerspectivesNo6TheFutureofMeetingsTheCaseforFacetoFacebyChristineDuffyandMaryBethMcEuen
No5MakingCustomerSatisfactionPayConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitorePhDDanSeldinPhDandArianneWalkerPhD
No4HospitalityBusinessModelsConfronttheFutureofMeetingsbyHowardLockandJamesMacaulay
2010 Roundtable RetrospectivesVol2No1SustainabilityRoundtable2009TheHotelIndustrySeekstheElusiveldquoGreenBulletrdquo
2010 ToolsToolNo10MeasuringthePerformanceofSearchEngineMarketingTwoToolsfortheHospitalityIndustrybyAnilAggarwalandBillCarrollPhD
TheWineCellarManagementToolmdash20byGaryMThompsonPhD
2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
Vol9No17CasesinInnovativePracticesinHospitalityandRelatedServicesSet1AquabyGrandstandBrandKarmaCapellaHotelsampResortsEnTripHotelscomVisualiserLuggageClubRoyalPlazaonScottsTastingsTuneHotelsandVisitBritaincombyJudyASiguawDBACathyAEnzPhDSherylEKimesPhDRohitVermaPhDandKateWalshPhD
Vol9No16TheBillboardEffectOnlineTravelAgentImpactonNon-OTAReservationVolumebyChrisKAndersonPhD
Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
Vol9No14ProductTiersandADRClustersIntegratingTwoMethodsforDeterminingHotelCompetitiveSetsbyJin-YoungKimandLindaCaninaPhD
Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
Vol9No12HotelRevenueManagementinanEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol9No9ManagingaWineCellarUsingaSpreadsheetbyGaryMThompsonPhD
Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
Vol9No6FosteringServiceExcellencethroughListeningWhatHospitalityManagersNeedtoKnowbyJudiBrownellPhD
Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
14 TheCenterforHospitalityResearchbullCornellUniversity
Casual Chains1 Applebeersquos Neighborhood Grill amp Bar 2 Chilirsquos Grill amp Bar 3 Olive Garden 4 Red Lobster 5 Outback Steakhouse 6 TGI Fridayrsquos 7 Ruby Tuesday 8 Buffalo Wild Wings Grill amp Bar 9 Cheesecake Factory The 10 Texas Roadhouse 11 Red Robin Gourmet Burgers 12 PF Changrsquos China Bistro 13 Hooters 14 LongHorn Steakhouse 15 California Pizza Kitchen 16 Carrabbarsquos Italian Grill 17 Romanorsquos Macaroni Grill 18 OrsquoCharleyrsquos 19 Loganrsquos Roadhouse 20 Famous Daversquos 21 BJrsquos Restaurant amp Brewhouse 22 On The Border Mexican Grill amp Cantina 23 Mimirsquos Cafe 24 Uno Chicago Grill 25 Bonefish Grill 26 Maggianorsquos Little Italy 27 Carinorsquos Italian 28 Hard Rock Cafe 29 McCormick amp Schmickrsquos 30 Joersquos Crab Shack 31 Claim Jumper 32 Ninety Nine Restaurants 33 Cheddarrsquos Casual Cafe 34 Houlihanrsquos 35 Johnny Rockets 36 Benihana 37 Dave amp Busterrsquos 38 Chevys Fresh Mex 39 Lone Star Steakhouse amp Saloon 40 Old Chicago Restaurants 41 Champps Entertainment Inc 42 Buca di Beppo 43 Houstonrsquos 44 Beef lsquoOrsquo Bradyrsquos 45 Bertuccirsquos Italian Restaurant 46 Max amp Ermarsquos 47 El Torito 48 Elephant Bar Restaurant 49 Rainforest Cafe 50 Millerrsquos Ale House 51 Yard House 52 Legal Sea Foods 53 Islands Fine Burgers amp Drinks 54 Fox and Hound English Pub amp Grille 55 Smokey Bones Bar amp Fire Grill 56 Brio Tuscan Grille 57 Bubba Gump Shrimp Co Restaurant amp Market 58 Bravo Cucina Italiana
59 J Alexanderrsquos 60 Saltgrass Steak House 61 Black Angus Steakhouse 62 Bostonrsquos The Gourmet Pizza Restaurant amp Sports Bar 63 Grand Lux Cafe 64 Bahama Breeze 65 Abuelorsquos 66 Rock Bottom Restaurant amp Brewery 67 Pappadeaux Seafood Kitchen 68 Jimmy Buffettrsquos Margaritaville 69 Charlie Brownrsquos Steakhouses 70 Bar Louie 71 Il Fornaio 72 Damonrsquos Grill 73 Gordon Biersch Brewery Restaurant 74 El Chico Cafe 75 Lucillersquos Smokehouse Bar-B-Que 76 Quaker Steak amp Lube 77 Cheeseburger in Paradise 78 Benniganrsquos Grill amp Tavern 79 Wow Cafe amp Wingery 80 Tony Romarsquos 81 ESPN Zone 82 Chart House 83 Fatz Cafe 84 Tedrsquos Montana Grill 85 Cantina Laredo 86 Bugaboo Creek Steak House 87 Old Spaghetti Factory The 88 Uncle Juliorsquos 89 Granite City Food amp Brewery 90 Kona Grill 91 Don Pablorsquos 92 Landryrsquos Seafood House 93 Daily Grill 94 Sullivanrsquos Steakhouse 95 Carlos OrsquoKellyrsquos 96 Mellow Mushroom 97 Texas Land amp Cattle Steak House 98 House of Blues 99 Cheeburger Cheeburger 100 Black-eyed Pea
Concluded on next page
AppEndix
restaurant chains included in this study (continued)
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 Proceedings
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol10No4CasesinInnovativePracticesinHospitalityandRelatedServicesSet2BrewerkzComfortDelgroTaxiDinnerBrokercomIggyrsquosJumboSeafoodOpenTablecomPriceYourMealcomSakaeSushiShangri-LaSingaporeandStevensPassbySherylEKimesPhDCathyAEnzPhDJudyASiguawDBARohitVermaPhDandKateWalshPhD
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
Vol10No1Compendium2010
2010 Industry PerspectivesNo6TheFutureofMeetingsTheCaseforFacetoFacebyChristineDuffyandMaryBethMcEuen
No5MakingCustomerSatisfactionPayConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitorePhDDanSeldinPhDandArianneWalkerPhD
No4HospitalityBusinessModelsConfronttheFutureofMeetingsbyHowardLockandJamesMacaulay
2010 Roundtable RetrospectivesVol2No1SustainabilityRoundtable2009TheHotelIndustrySeekstheElusiveldquoGreenBulletrdquo
2010 ToolsToolNo10MeasuringthePerformanceofSearchEngineMarketingTwoToolsfortheHospitalityIndustrybyAnilAggarwalandBillCarrollPhD
TheWineCellarManagementToolmdash20byGaryMThompsonPhD
2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
Vol9No17CasesinInnovativePracticesinHospitalityandRelatedServicesSet1AquabyGrandstandBrandKarmaCapellaHotelsampResortsEnTripHotelscomVisualiserLuggageClubRoyalPlazaonScottsTastingsTuneHotelsandVisitBritaincombyJudyASiguawDBACathyAEnzPhDSherylEKimesPhDRohitVermaPhDandKateWalshPhD
Vol9No16TheBillboardEffectOnlineTravelAgentImpactonNon-OTAReservationVolumebyChrisKAndersonPhD
Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
Vol9No14ProductTiersandADRClustersIntegratingTwoMethodsforDeterminingHotelCompetitiveSetsbyJin-YoungKimandLindaCaninaPhD
Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
Vol9No12HotelRevenueManagementinanEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol9No9ManagingaWineCellarUsingaSpreadsheetbyGaryMThompsonPhD
Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
Vol9No6FosteringServiceExcellencethroughListeningWhatHospitalityManagersNeedtoKnowbyJudiBrownellPhD
Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullMarch2011bullwwwchrcornelledu 15
Midscale Chains1 Pappas Bar-B-Q 2 Perkins Restaurant amp Bakery 3 Perkorsquos Cafe Grill 4 Ramrsquos Horn Family Restaurant 5 Original Pancake House The 6 Olgarsquos Kitchen 7 Kings Family Restaurants 8 LaRosarsquos Pizzeria 9 Le Peep 10 Marie Callenderrsquos Restaurant amp Bakery 11 Rib Crib BBQ amp Grill 12 Rubyrsquos Diner 13 Valentinorsquos 14 Village Inn 15 Waffle House 16 Wingerrsquos Grill amp Bar 17 Steak n Shake 18 Sonnyrsquos Real Pit Bar-B-Q 19 Sharirsquos Restaurants 20 Shoneyrsquos 21 Silver Diner 22 Johnnyrsquos New York Style Pizza 23 Jim lsquoN Nickrsquos Bar-B-Q 24 Country Kitchen 25 Country Market Restaurant amp Buffet The 26 Country Pride 27 Cracker Barrel Old Country Store 28 Cocorsquos Bakery Restaurant 29 Carrows Restaurants 30 Big Boy 31 Bill Miller Bar-B-Q 32 Black Bear Diner 33 Bob Evans 34 Dennyrsquos 35 Dickeyrsquos Barbecue Pit 36 Huddle House 37 IHOP 38 Iron Skillet 39 JBrsquos Restaurants 40 Friendlyrsquos 41 First Watch 42 Eatrsquon Park 43 Egg amp I Breakfast amp Lunch 44 Elmerrsquos 45 Bakers Square
AppEndix
restaurant chains included in this study (concluded)
Fine Dining Chains1 Ruthrsquos Chris Steak House 2 Royrsquos Restaurants 3 Shularsquos Steak House 4 Smith amp Wollensky 5 Texas de Brazil Churrascaria 6 SushiSamba 7 Palm Restaurant 8 Oceanaire Seafood Room 9 Flemingrsquos Prime Steakhouse amp Wine Bar 10 Del Friscorsquos Double Eagle Steak House 11 Fogo de Chatildeo 12 Melting Pot 13 Nobu 14 Mortonrsquos The Steakhouse 15 Capital Grille The
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 Proceedings
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol10No4CasesinInnovativePracticesinHospitalityandRelatedServicesSet2BrewerkzComfortDelgroTaxiDinnerBrokercomIggyrsquosJumboSeafoodOpenTablecomPriceYourMealcomSakaeSushiShangri-LaSingaporeandStevensPassbySherylEKimesPhDCathyAEnzPhDJudyASiguawDBARohitVermaPhDandKateWalshPhD
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
Vol10No1Compendium2010
2010 Industry PerspectivesNo6TheFutureofMeetingsTheCaseforFacetoFacebyChristineDuffyandMaryBethMcEuen
No5MakingCustomerSatisfactionPayConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitorePhDDanSeldinPhDandArianneWalkerPhD
No4HospitalityBusinessModelsConfronttheFutureofMeetingsbyHowardLockandJamesMacaulay
2010 Roundtable RetrospectivesVol2No1SustainabilityRoundtable2009TheHotelIndustrySeekstheElusiveldquoGreenBulletrdquo
2010 ToolsToolNo10MeasuringthePerformanceofSearchEngineMarketingTwoToolsfortheHospitalityIndustrybyAnilAggarwalandBillCarrollPhD
TheWineCellarManagementToolmdash20byGaryMThompsonPhD
2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
Vol9No17CasesinInnovativePracticesinHospitalityandRelatedServicesSet1AquabyGrandstandBrandKarmaCapellaHotelsampResortsEnTripHotelscomVisualiserLuggageClubRoyalPlazaonScottsTastingsTuneHotelsandVisitBritaincombyJudyASiguawDBACathyAEnzPhDSherylEKimesPhDRohitVermaPhDandKateWalshPhD
Vol9No16TheBillboardEffectOnlineTravelAgentImpactonNon-OTAReservationVolumebyChrisKAndersonPhD
Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
Vol9No14ProductTiersandADRClustersIntegratingTwoMethodsforDeterminingHotelCompetitiveSetsbyJin-YoungKimandLindaCaninaPhD
Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
Vol9No12HotelRevenueManagementinanEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol9No9ManagingaWineCellarUsingaSpreadsheetbyGaryMThompsonPhD
Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
Vol9No6FosteringServiceExcellencethroughListeningWhatHospitalityManagersNeedtoKnowbyJudiBrownellPhD
Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 Proceedings
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol10No4CasesinInnovativePracticesinHospitalityandRelatedServicesSet2BrewerkzComfortDelgroTaxiDinnerBrokercomIggyrsquosJumboSeafoodOpenTablecomPriceYourMealcomSakaeSushiShangri-LaSingaporeandStevensPassbySherylEKimesPhDCathyAEnzPhDJudyASiguawDBARohitVermaPhDandKateWalshPhD
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
Vol10No1Compendium2010
2010 Industry PerspectivesNo6TheFutureofMeetingsTheCaseforFacetoFacebyChristineDuffyandMaryBethMcEuen
No5MakingCustomerSatisfactionPayConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitorePhDDanSeldinPhDandArianneWalkerPhD
No4HospitalityBusinessModelsConfronttheFutureofMeetingsbyHowardLockandJamesMacaulay
2010 Roundtable RetrospectivesVol2No1SustainabilityRoundtable2009TheHotelIndustrySeekstheElusiveldquoGreenBulletrdquo
2010 ToolsToolNo10MeasuringthePerformanceofSearchEngineMarketingTwoToolsfortheHospitalityIndustrybyAnilAggarwalandBillCarrollPhD
TheWineCellarManagementToolmdash20byGaryMThompsonPhD
2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
Vol9No17CasesinInnovativePracticesinHospitalityandRelatedServicesSet1AquabyGrandstandBrandKarmaCapellaHotelsampResortsEnTripHotelscomVisualiserLuggageClubRoyalPlazaonScottsTastingsTuneHotelsandVisitBritaincombyJudyASiguawDBACathyAEnzPhDSherylEKimesPhDRohitVermaPhDandKateWalshPhD
Vol9No16TheBillboardEffectOnlineTravelAgentImpactonNon-OTAReservationVolumebyChrisKAndersonPhD
Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
Vol9No14ProductTiersandADRClustersIntegratingTwoMethodsforDeterminingHotelCompetitiveSetsbyJin-YoungKimandLindaCaninaPhD
Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
Vol9No12HotelRevenueManagementinanEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol9No9ManagingaWineCellarUsingaSpreadsheetbyGaryMThompsonPhD
Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
Vol9No6FosteringServiceExcellencethroughListeningWhatHospitalityManagersNeedtoKnowbyJudiBrownellPhD
Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Vol10No3CustomerPreferencesforRestaurantBrandsCuisineandFoodCourtConfigurationsinShoppingCentersbyWayneJTaylorandRohitVermaPhD
Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD
Vol10No1Compendium2010
2010 Industry PerspectivesNo6TheFutureofMeetingsTheCaseforFacetoFacebyChristineDuffyandMaryBethMcEuen
No5MakingCustomerSatisfactionPayConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitorePhDDanSeldinPhDandArianneWalkerPhD
No4HospitalityBusinessModelsConfronttheFutureofMeetingsbyHowardLockandJamesMacaulay
2010 Roundtable RetrospectivesVol2No1SustainabilityRoundtable2009TheHotelIndustrySeekstheElusiveldquoGreenBulletrdquo
2010 ToolsToolNo10MeasuringthePerformanceofSearchEngineMarketingTwoToolsfortheHospitalityIndustrybyAnilAggarwalandBillCarrollPhD
TheWineCellarManagementToolmdash20byGaryMThompsonPhD
2009 ReportsVol9No18HospitalityManagersandCommunicationTechnologiesChallengesandSolutionsbyJudiBrownellPhDandAmyNewman
Vol9No17CasesinInnovativePracticesinHospitalityandRelatedServicesSet1AquabyGrandstandBrandKarmaCapellaHotelsampResortsEnTripHotelscomVisualiserLuggageClubRoyalPlazaonScottsTastingsTuneHotelsandVisitBritaincombyJudyASiguawDBACathyAEnzPhDSherylEKimesPhDRohitVermaPhDandKateWalshPhD
Vol9No16TheBillboardEffectOnlineTravelAgentImpactonNon-OTAReservationVolumebyChrisKAndersonPhD
Vol9No15OperationalHedgingandExchangeRateRiskACross-sectionalExaminationofCanadarsquosHotelIndustrybyCharlesChangPhDandLiyaMa
Vol9No14ProductTiersandADRClustersIntegratingTwoMethodsforDeterminingHotelCompetitiveSetsbyJin-YoungKimandLindaCaninaPhD
Vol9No13SafetyandSecurityinUSHotelsbyCathyAEnzPhD
Vol9No12HotelRevenueManagementinanEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol9No11Wine-listCharacteristicsAssociatedwithGreaterWineSalesbySybilSYangandMichaelLynnPhD
Vol9No10CompetitiveHotelPricinginUncertainTimesbyCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Vol9No9ManagingaWineCellarUsingaSpreadsheetbyGaryMThompsonPhD
Vol9No8EffectsofMenu-priceFormatsonRestaurantChecksbySybilSYangSherylEKimesPhDandMauroMSessarego
Vol9No7CustomerPreferencesforRestaurantTechnologyInnovationsbyMichaelJDixonSherylEKimesPhDandRohitVermaPhD
Vol9No6FosteringServiceExcellencethroughListeningWhatHospitalityManagersNeedtoKnowbyJudiBrownellPhD
Vol9No5HowRestaurantCustomersViewOnlineReservationsbySherylEKimesPhD
Vol9No4KeyIssuesofConcernintheHospitalityIndustryWhatWorriesManagersbyCathyAEnzPhD
Vol9No3Compendium2009
Vol9No2DonrsquotSitSoClosetoMeRestaurantTableCharacteristicsandGuestSatisfactionbyStephanieKARobsonandSherylEKimesPhD
Vol9No1TheJobCompatibilityIndexANewApproachtoDefiningtheHospitalityLaborMarketbyWilliamJCarrollPhDandMichaelCSturmanPhD
2009 Roundtable RetrospectivesNo3RestaurantsattheCrossroadsAStateByStateSummaryofKeyWage-and-HourProvisionsAffectingtheRestaurantIndustrybyCarolynDRichmondJDandDavidSherwynJDandMarthaLomannowithDarrenPBRumackandJasonEShapiro
No2RetaliationWhyanIncreaseinClaimsDoesNotMeantheSkyIsFallingbyDavidSherwynJDandGreggGilmanJD
2009 ToolsToolNo12MeasuringtheDiningExperienceTheCaseofVitaNovabyKeshPrasadandFredJDeMiccoPhD
2008 Roundtable ProceedingsNo1KeyElementsinServiceInnovationInsightsfortheHospitalityIndustrybyRohitVermaPhDwithChrisAndersonPhDMichaelDixonCathyEnzPhDGaryThompsonPhDandLianaVictorinoPhD
2008 ReportsVol8No20ServiceScriptingACustomerrsquosPerspectiveofQualityandPerformancebyLianaVictorinoPhDRohitVermaPhDandDonWardell
Vol8No19NontradedREITsConsiderationsforHotelInvestorsbyJohnBCorgelPhDandScottGibsonPhD
Vol8No18FortyHoursDoesnrsquotWorkforEveryoneDeterminingEmployeePreferencesforWorkHoursbyLindseyAZahnandMichaelCSturmanPhD
Vol8No17TheImportanceofBehavioralIntegrityinaMulticulturalWorkplacebyTonySimonsPhDRayFriedmanPhDLeighAnneLiuPhDandJudiMcLeanParksPhD
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
wwwchrcornell edu