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How Big Chains Like Taco Bell and KFC Digitized to Win Customers

How Big Chains Like Taco Bell and KFC Digitized to Win Customers

TLDR

46, 30, 8. 

You may be wondering if these are some lucky numbers for 2024. These are not some lucky-draw numbers at random. These figures highlight the staggering statistics of rising customer demand for digital ordering services. 

Taco Bell nearly doubled its online sales to $7 billion by 2023.

In China, KFC gets 46% of its orders through its digital channels.

McDonald's has seen a remarkable surge in online sales, with over 30% of its global revenue now generated through its mobile app.

The surge in demand is the result of several variables coming together, including the rising usage of smartphones, the wide appeal of mobile apps, and the growing preference for convenient, contactless ordering options. Leveraging technology isn't just about competing with these big fast-food chains. It's about embracing what your customers want - convenience, personalization, and experiences tailored to them. 

How Chains Like Taco Bell and KFC Thrived Through Mobile Ordering

Digital sales currently make up 45% of sales at Yum, the parent company of fast-food giants Taco Bell, KFC, and Pizza Hut. This shows the immense opportunity that lies in digital channels for restaurants.

Taco Bell saw its digital sales increase by approximately 60% through initiatives like mobile ordering and payment, in-store kiosks, and delivery partnerships such as with Doordash.

KFC in China gets 46% of its orders through digital channels like mobile apps, kiosks, and third-party delivery services. This allows them to engage with customers in new ways and them feel like VIPs. Their app also offers a rewards program to keep customers engaged and loyal to their brand. According to a study conducted by Retail Dive, their mobile app ordering has proven to cut down waiting time as well as in-store lines by 60-70%.

If you want to retain loyal customers and compete with massive chains, digitalization must be part of your future. Per Diem, along with Square POS integration, offers convenience to your customers through online ordering, promotions, loyalty programs, and more to help drive digital growth. This can increase convenience, order frequency, and revenue over time

Prioritizing mobile ordering will be key to staying ahead in 2024 and beyond. With the right tools, your local shop can thrive just like the major chains.

The Risks of Not Adopting New Restaurant Technologies

If you're an independent restaurant owner in 2024, adopting technology is no longer optional - it's essential for survival. According to recent surveys, 75% of independent restaurants plan to adopt new technologies, indicating that not doing so could put a restaurant at a competitive disadvantage.

Failure to digitize means losing ground to big chains which get nearly half their orders from mobile apps and other digital channels. As customers increasingly prefer streamlined digital ordering and payment, you risk frustrating your loyal customers and turning off new potential customers if you don't provide a user-friendly mobile ordering experience. An app with digital ordering and payment options keeps you competitive and gives customers what they want - a quick, convenient way to order their favorites.

Going digital also means gaining data-driven insights into your business. Per Diem also provides analytics on your most regulars, popular items, busiest hours, and ways to improve operations through real-time reviews. You'll know your customers' preferences in detail and be able to tailor your offerings to keep them coming back.

The future is online ordering for restaurants, and with turnkey solutions now available, any restaurant can easily get on board. An intuitive, customized mobile app with essential features like push notifications, easy payments, rewards, and analytics allows you to thrive rather than survive in 2024 and beyond. 

Technologies Your Restaurant Should Have in 2024

  • Mobile apps make ordering food incredibly convenient for your customers and keep them engaged with notifications and rewards. Apps like Per Diem integrate with your Square POS and can be customized with your branding. Mobile ordering has become a must-have - make sure your restaurant has its own app. 
  • Your website is your digital storefront. Make sure it's mobile-friendly, easy to navigate, and enables online ordering. A modern, well-designed website shows you're keeping up with the times.
  • Kitchen display systems like Square KDS speed up order processing, reduce errors, and improve coordination between front and back-of-house staff. Upgrade from paper tickets to a digital system.

Going digital provides convenience for customers and optimizes operations. Local restaurants can compete with major chains by focusing on great food, service, and smart use of technology.

Future-Proof Your Business With Per Diem 

Technology is the way of the future for food and beverage industry. To keep up with the transformation in the restaurant industry, partnering with a company like Per Diem to develop a feature-rich mobile ordering app is key to future-proofing your business.

Own Your Customers' Experience

A mobile app allows you to own the entire experience on your customers' devices. You control the look, feel, and features to match your brand. Unlike third-party delivery apps, you keep the data and insights into your customers' ordering habits and preferences to improve their experience.

Increase Revenue and Loyalty

With a custom app, you make it easy for your regulars to order their favorites or try something new right from their phone. Studies show that customers who order digitally visit more often and spend over 15% more. Push notifications through your app allow you to share updates, specials, and rewards to keep customers engaged and coming back.

Streamline Operations

An integrated mobile app solution connects directly to your point of sale system, automatically updating your menu, product details, and pricing in real-time. Orders flow straight into your POS, reducing errors and saving time.

Be Found Online

Having a mobile app helps boost your online visibility and rankings in search engines like Google. Your app will appear in the app stores, and you can submit it to "best of" lists in your area. An optimized app also helps your website rank higher in local search results. All of this additional exposure and visibility translates into more new customers discovering your business.

Don't let big chains beat you. Go digital to better compete, boost revenue, and keep customers happy and coming back. With a tailored app connecting you to dine-in and takeout customers, you can become the local favorite.

Final Thoughts

Now you have a choice to make. Do you want to get left behind as future-focused restaurants continue to gain market share through digital channels, or do you want to future-proof your business by meeting customers where they are - on their mobile devices? The stats don't lie. Nearly 50% of all restaurant orders now happen digitally. If you don't make the move to digital ordering and beyond, your loyal customers will start looking elsewhere out of convenience and necessity.

TLDR

46, 30, 8. 

You may be wondering if these are some lucky numbers for 2024. These are not some lucky-draw numbers at random. These figures highlight the staggering statistics of rising customer demand for digital ordering services. 

Taco Bell nearly doubled its online sales to $7 billion by 2023.

In China, KFC gets 46% of its orders through its digital channels.

McDonald's has seen a remarkable surge in online sales, with over 30% of its global revenue now generated through its mobile app.

The surge in demand is the result of several variables coming together, including the rising usage of smartphones, the wide appeal of mobile apps, and the growing preference for convenient, contactless ordering options. Leveraging technology isn't just about competing with these big fast-food chains. It's about embracing what your customers want - convenience, personalization, and experiences tailored to them. 

How Chains Like Taco Bell and KFC Thrived Through Mobile Ordering

Digital sales currently make up 45% of sales at Yum, the parent company of fast-food giants Taco Bell, KFC, and Pizza Hut. This shows the immense opportunity that lies in digital channels for restaurants.

Taco Bell saw its digital sales increase by approximately 60% through initiatives like mobile ordering and payment, in-store kiosks, and delivery partnerships such as with Doordash.

KFC in China gets 46% of its orders through digital channels like mobile apps, kiosks, and third-party delivery services. This allows them to engage with customers in new ways and them feel like VIPs. Their app also offers a rewards program to keep customers engaged and loyal to their brand. According to a study conducted by Retail Dive, their mobile app ordering has proven to cut down waiting time as well as in-store lines by 60-70%.

If you want to retain loyal customers and compete with massive chains, digitalization must be part of your future. Per Diem, along with Square POS integration, offers convenience to your customers through online ordering, promotions, loyalty programs, and more to help drive digital growth. This can increase convenience, order frequency, and revenue over time

Prioritizing mobile ordering will be key to staying ahead in 2024 and beyond. With the right tools, your local shop can thrive just like the major chains.

The Risks of Not Adopting New Restaurant Technologies

If you're an independent restaurant owner in 2024, adopting technology is no longer optional - it's essential for survival. According to recent surveys, 75% of independent restaurants plan to adopt new technologies, indicating that not doing so could put a restaurant at a competitive disadvantage.

Failure to digitize means losing ground to big chains which get nearly half their orders from mobile apps and other digital channels. As customers increasingly prefer streamlined digital ordering and payment, you risk frustrating your loyal customers and turning off new potential customers if you don't provide a user-friendly mobile ordering experience. An app with digital ordering and payment options keeps you competitive and gives customers what they want - a quick, convenient way to order their favorites.

Going digital also means gaining data-driven insights into your business. Per Diem also provides analytics on your most regulars, popular items, busiest hours, and ways to improve operations through real-time reviews. You'll know your customers' preferences in detail and be able to tailor your offerings to keep them coming back.

The future is online ordering for restaurants, and with turnkey solutions now available, any restaurant can easily get on board. An intuitive, customized mobile app with essential features like push notifications, easy payments, rewards, and analytics allows you to thrive rather than survive in 2024 and beyond. 

Technologies Your Restaurant Should Have in 2024

  • Mobile apps make ordering food incredibly convenient for your customers and keep them engaged with notifications and rewards. Apps like Per Diem integrate with your Square POS and can be customized with your branding. Mobile ordering has become a must-have - make sure your restaurant has its own app. 
  • Your website is your digital storefront. Make sure it's mobile-friendly, easy to navigate, and enables online ordering. A modern, well-designed website shows you're keeping up with the times.
  • Kitchen display systems like Square KDS speed up order processing, reduce errors, and improve coordination between front and back-of-house staff. Upgrade from paper tickets to a digital system.

Going digital provides convenience for customers and optimizes operations. Local restaurants can compete with major chains by focusing on great food, service, and smart use of technology.

Future-Proof Your Business With Per Diem 

Technology is the way of the future for food and beverage industry. To keep up with the transformation in the restaurant industry, partnering with a company like Per Diem to develop a feature-rich mobile ordering app is key to future-proofing your business.

Own Your Customers' Experience

A mobile app allows you to own the entire experience on your customers' devices. You control the look, feel, and features to match your brand. Unlike third-party delivery apps, you keep the data and insights into your customers' ordering habits and preferences to improve their experience.

Increase Revenue and Loyalty

With a custom app, you make it easy for your regulars to order their favorites or try something new right from their phone. Studies show that customers who order digitally visit more often and spend over 15% more. Push notifications through your app allow you to share updates, specials, and rewards to keep customers engaged and coming back.

Streamline Operations

An integrated mobile app solution connects directly to your point of sale system, automatically updating your menu, product details, and pricing in real-time. Orders flow straight into your POS, reducing errors and saving time.

Be Found Online

Having a mobile app helps boost your online visibility and rankings in search engines like Google. Your app will appear in the app stores, and you can submit it to "best of" lists in your area. An optimized app also helps your website rank higher in local search results. All of this additional exposure and visibility translates into more new customers discovering your business.

Don't let big chains beat you. Go digital to better compete, boost revenue, and keep customers happy and coming back. With a tailored app connecting you to dine-in and takeout customers, you can become the local favorite.

Final Thoughts

Now you have a choice to make. Do you want to get left behind as future-focused restaurants continue to gain market share through digital channels, or do you want to future-proof your business by meeting customers where they are - on their mobile devices? The stats don't lie. Nearly 50% of all restaurant orders now happen digitally. If you don't make the move to digital ordering and beyond, your loyal customers will start looking elsewhere out of convenience and necessity.

Doron Segal
Doron Segal

Hey I'm Doron, the co-founder & CTO of Per Diem — a mobile app platform for restaurants. I'm also a dad and a husband. I love to travel and meet new people.I love creating things, and see people using the stuff I built.Prior to Per Diem I worked at Saildrone, OpenTable, Apple, Beats Music, Siemens.

Tomer Molovinsky
Tomer Molovinsky

A second time founder with a passion for building products at the intersection of hospitality and technology. I've had the pleasure of launching reservation systems, mobile payment solutions, and loyalty programs at OpenTable and Resy, and witnessed how operators were losing a direct connection with their customers online. We built Per Diem to strengthen the relationships that businesses have with those customers, and to ensure that local businesses can thrive in today's economy.

Ashley Rodriguez
Ashley Rodriguez

Ashley is a freelance writer and podcast producer based in Madison, Wisconsin. She hosts a podcast called Boss Barista and writes an accompanying newsletter with full transcripts of each episode and articles about coffee and restaurant work. You can check out her work here (ashleyrodriguez.work/).

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