Not only do national pizza chains want to be on your table, they also want to be on your tablet, your phone and your computer.
The competition over digital ordering is revving up in recent months, particularly with a new television spot from one of Papa John’s International Inc.'s largest competitors.
Domino’s Pizza Inc. is airing a television commercial (shown at right below) that promotes its digital-ordering services by showing how difficult and irritated its employees are by phone orders.
However, the Domino’s (NYSE: DPZ) message isn’t missed. It wants its customers to order through its digital outlets — the company’s website and/or mobile app.
The company said that this is the first time it has taken a direct approach to getting consumers to switch from traditional phone ordering to digital platforms. It recently introduced profiles where customers can save specific orders and then place orders more quickly when they return.
“The simpler you can make it, the more you’re going to drive orders out of it and the happier your customers are going to be,” said J. Patrick Doyle, CEO of Domino’s, during the company’s earnings call last month. “And so we focus very hard on how we can make that process easier.”
Papa John’s International Inc. (NASDAQ: PZZA) is prepared to release its third-quarter earnings on Tuesday evening, but it won’t be until Wednesday morning during the company’s third-quarter earnings call when we might get some information about how Papa John’s will strive to gain digital efforts.
The consensus estimate of analysts surveyed by Thomson Reuters calls for Papa John’s to post earnings per share of 65 cents on revenue of $374.85 million.
For last year's third quarter, Papa John's reported earnings of 55 cents per share, diluted, and revenue of $325.5 million.
Last month, Mark Kalinowski of Janney Capital Markets increased his rating on Papa John’s to “buy” from “neutral,” in part because he believes the pizza chain could see a market-share boost from the trend toward digital ordering.
Officials with Papa John’s have said in the past that the company's digital-ordering platforms have an advantage over some competitors.
Following the second quarter, Papa John’s said that about 40 percent of the company’s orders were coming from digital channels. Domino’s said last month that it sees a similar percentage of digital orders.