• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling

2

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

3

'Where we are today is frightening': a Pulitzer-winning historian sees a doomsday scenario involving China and the national debt

1

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling

2

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

3

'Where we are today is frightening': a Pulitzer-winning historian sees a doomsday scenario involving China and the national debt
Tech

Facebook and Amazon Have Become Weapons in the Restaurant Arms Race

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
August 15, 2017, 10:02 AM ET

The cutthroat U.S. restaurant industry is getting increasingly aggressive about technology, enlisting Facebook Inc. and Amazon.com Inc. in their race to make it easier for customers to order and pay for their food.

Last month, TGI Fridays began letting customers foot the bill using their Amazon accounts. And pizza chains are locked in an escalating battle to adopt new ordering methods — a contest that involves chat bots, voice-activated devices and social networks.

Papa John’s International Inc. went to so far as to declare itself an “e-commerce company” this month after delivering surprisingly strong results.

“We’re much more close, I would argue, to Amazon than we are to a brick-and-mortar restaurant,” Brandon Rhoten, Papa John’s chief marketing officer, said in an interview.

The stakes are high to make restaurant technology as effortless — and fun — as possible. Customers, especially millennials, are no longer content to call up a pizza place and dictate an order over their phone. And they don’t want to wait in line at the Starbucks register.

For a company like TGI Fridays, there’s added pressure. U.S. consumers have turned away from casual-dining spots, and the restaurants need a way to show that they’re evolving. TGI Fridays, a 52-year-old chain that’s currently backed by private equity firm Sentinel Capital Partners, has turned to partnerships with both Facebook and Amazon to drive online orders and keep patrons loyal.

The company is making a big push to get customers to pay digitally and sign up for its rewards program, said Chief Marketing Officer Stephanie Perdue. And the campaign is beginning to bear fruit. Online orders and the number of loyalty members are up, especially among the coveted millennial group.

Living on Phones

“It’s about creating that dialogue and relationship with the younger customer,” she said, adding that consumers do everything on their phones now. “I think a lot of these brands are just getting there.”

The broader restaurant industry is suffering from many of the same woes afflicting retailers: There are too many physical locations, and customers would frequently prefer to have everything delivered to their door.

That’s why pizza chains, especially Domino’s and Papa John’s, have been able to gain an edge. The companies have posted enviable same-store sales gains — a key benchmark for the industry — as it gets easier for customers to making a buying decision.

An online ad, for instance, can be turned into an order with a few clicks. Most other restaurant chains are still figuring out how to get customers to do that, said Rhoten, who joined Papa John’s from Wendy’s Co. earlier this year.

It’s a “fundamental shift that most in the category haven’t taken advantage of,” he said.

Facebook Foray

The company began accepting orders on Facebook in June, and the feature was an instant hit: Hundreds of orders flowed in during the first few hours. In all forms, digital orders now make up over 60 percent of Papa John’s sales.

Domino’s and Pizza Hut, meanwhile, have been experimenting with chat bots since last year. These platforms let users maker orders via Facebook Messenger and Twitter Inc.’s service. Through conversation, the bot finds out whether you want to order one of your favorites or see the latest deals. Shake Shack Inc. unveiled a similar chat-bot program in August as part of a push for more online orders.

But many companies are still early in their efforts to go digital. McDonald’s Corp., the world’s biggest restaurant chain, is counting on Uber Technologies Inc. to build out its “McDelivery” program. The UberEats app, which typically charges a booking fee of $5 or so, lets customers order Big Macs and fries and have them shepherded to their homes.

The move to embrace technology is a no-brainer, especially when it comes to digital payments, said Joe Pawlak, a vice president at research firm Technomic.

“It enables a quick transaction,” he said. “Consumers are moving that way in terms of letting technology do the paying for them.”

No Wallets

TGI Fridays’ Perdue joined the company earlier this year from Taco Bell, which was a pioneer in letting customers order with their phones. Now, TGI Fridays has become the first restaurant chain to let people pay with their Amazon accounts — a new wrinkle in the convenience wars. Rather than fumbling with wallets and finding credit cards, customers use the Amazon app on their phones.

But mobile ordering has brought some headaches. At Starbucks, its app has become so popular that it’s creating new traffic patterns. Customers bypass the registers and bunch up around the pickup area of cafes, creating slowdowns and hassles. The coffee giant has been working to fix the problem this year.

Voice-activated devices could be another frontier. Domino’s lets customers use Amazon’s Echo and Google Home to place orders. And Burger King launched a publicity stunt earlier this year where a TV ad attempted to trigger Google Home devices into reading a description of the Whopper.

Companies are still casting a wide net with the technologies they adopt, said Mike Nettles, chief information and digital officer of Papa John’s. And that’s kind of the point.

“You’ve got to be able to meet the customer on originally whatever device they happen to have in front of them,” he said “We want to meet the customers where they are when they’re thinking about food.”

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

These Fortune 500 companies are bigger than most national economies—here’s where they’d rank as countries
Big TechFortune 500
These Fortune 500 companies are bigger than most national economies—here’s where they’d rank as countries
By Catherina GioinoJune 3, 2026
2 hours ago
ste
EconomyRecession
OECD warns of ‘scarring effects,’ recession scenarios—but finds ‘no signs of widespread labour displacement’ from AI
By Nick LichtenbergJune 3, 2026
2 hours ago
Google CEO Sundar Pichai
AICorporate America
By every measure, U.S. companies are winning on AI adoption—but a series of high-profile snafus shows they’re getting pummeled by costs
By Tristan BoveJune 3, 2026
2 hours ago
‘A landmark moment for homebuying’: A San Francisco seller wants OpenAI or Anthropic stock for their $3 million home
Real EstateHousing
‘A landmark moment for homebuying’: A San Francisco seller wants OpenAI or Anthropic stock for their $3 million home
By Sydney LakeJune 3, 2026
2 hours ago
Bernie Sanders wants Americans to own a piece of AI. The Trump White House seems to agree
AIBernie Sanders
Bernie Sanders wants Americans to own a piece of AI. The Trump White House seems to agree
By Catherina GioinoJune 3, 2026
3 hours ago
dw
ConferencesCOO Summit
This CEO has had 6 major jobs in Silicon Valley: How Dennis Woodside built a career on saying yes to hard problems
By Nick LichtenbergJune 3, 2026
3 hours ago

Most Popular

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling
North America
Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling
By Katie Savin, Callie Freitag, Matthew Borus and The ConversationJune 2, 2026
1 day ago
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
Environment
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
By Marco Quiroz-GutierrezJune 1, 2026
2 days ago
'Where we are today is frightening': a Pulitzer-winning historian sees a doomsday scenario involving China and the national debt
Banking
'Where we are today is frightening': a Pulitzer-winning historian sees a doomsday scenario involving China and the national debt
By Nick LichtenbergJune 2, 2026
1 day ago
Cognizant CEO says AI is remaking middle managers into player-coaches who can 'both  execute and develop others'
Newsletters
Cognizant CEO says AI is remaking middle managers into player-coaches who can 'both execute and develop others'
By Diane BradyJune 2, 2026
1 day ago
Current price of oil as of June 2, 2026
Personal Finance
Current price of oil as of June 2, 2026
By Joseph HostetlerJune 2, 2026
1 day ago
Current price of gold as of June 2, 2026
Personal Finance
Current price of gold as of June 2, 2026
By Danny BakstJune 2, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.