Smaller chains need mobile, too

With big chains like Starbucks, Subway and Dunkin Donuts testing mobile payment systems, it makes sense that other restaurant operators are looking into it as well.

Take sweetgreen, for example. The Washington D.C.-based chain with about 15 units has implemented a custom-branded mobile payment app designed by LevelUp, a mobile payment company turned loyalty and marketing platform. The Boston-based company recently launched a white-label version of its mobile payment platform, meaning merchants — like sweetgreen — can use the infrastructure to run loyalty and payment programs at the point of sale on their own custom-branded mobile apps. That's key for companies that want to keep the emphasis on their own brands.

"It's a way for us to give our customers a branded sweetgreen experience, and enjoy all the benefits of LevelUp's loyalty programs, rewards, analytics and security," said Nathaniel Ru, sweetgreen co-founder.

Many of LevelUp's partners have brands with cult followings, said LevelUp Chief Ninja Seth Priebatsch, so it made sense to provide a solution that would showcase their identities.

"They've told us they want LevelUp's unique combination of mobile payments and loyalty-driving campaigns, but they've got to make it their own," he said.

How it works
When users pay with their phones on the LevelUp platform, businesses pay no payment processing fees as they would with credit cards systems. Instead, they are able to reinvest those savings into growing their businesses by attracting new customers and bringing them back, Priebatsch said. There is a fee, however, if operators run their marketing campaign through LevelUp. The company charges merchants a percentage when those campaigns succeed. For every incremental dollar brought in the company collects 35 cents.

"Our customers tend to be tech savvy and 'in the know," Ru said. "The philosophy behind sweetgreen is to create experiences that exceed expectations, so it is important for us to also stay at the forefront of any type of technology that is great for both our business and our customers."

Ru may be onto something, said Mobile Payments Analyst James Wester, editor of MobilePaymentsToday.com.

"Mobile payments are still in the early stages in many ways, but it's not too soon for even small merchants to start looking at how to use the channel effectively," he said. "Smartphone users actively use their devices to find restaurants or read reviews, and mobile is only going to become more important. Smart merchants like sweetgreen are using this time to figure out how to integrate mobile into everything from marketing to ordering to payments in order to find new patrons and improve the customer experience."

The ROI sweetspot
The ROI for sweetgreen can be expressed in numbers but more importantly in increased consumer brand connection, Ru said.

"We're foodies, but we're also tech geeks, and we see this as a way to cultivate increased brand loyalty through reward and convenience," he said. "If our app can make your day just a bit easier, that's tangible ROI.

The actual numbers are there, too, according to LevelUp, which boasts the following: Merchants bring in $18 for every $1 spent on customer loyalty campaigns; the average LevelUp user saves $25/month; and 40 percent of all new customers complete a loyalty progression within 30 days.

"We believe the app is a win-win," Ru said. "Customers will not only be able to pay using their phones but will also receive rewards the more they dine with us."

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User Comments – Give us your opinion!
  • Kelly Donner
    48202150
    Great article.

    I do mobile marketing myself (SMS, Mobile Sites & Apps) and one thing I have noticed in the Pizza Industry at the Owners level is that they are over whelm with the changes in the last 2-3yrs with technology to promote their business. Text messaging, Social Media, Mobile Sites, Online Reputation Mgt, Mobile Apps and whatever else the future has to bring. These changes are coming so fast that the normal Pizzeria Owner can not process the benefits fast enough to to take advantage of them, but the ones that do has seen the light are ready for their customers.

    I work with the Independent to Chain Pizzerias and resistances I get from most of them that this is an added cost to do business and I have been fine with out it all these years so why do I need it now? So I have to explain to them it is not you but your customers are at this level and you have to keep up them. Yes the Pizzeria Owner has to keep up with their customers and take advantage of that environment to do business with them. This is hard to explain to some of the smaller chains and almost impossible to explain to a Ma & Pa Pizzeria. The rule of thumb I give is look at what the large chains are doing to move forward with your business. The bigger challenges I have faced is when I find a pizzeria owner that still doesn't have a website and now I have to show them that this is not the 1990's.

    Mobile is key for the next generation of pizza promotions. Being Mobile ready is essential for keeping and capturing customers. Mobile Apps for Pizzeria Owners are great for this generation of Pizza Consumers, are you ready for them?

    Kelly Donner
    http://www.Click4Solutions.com
    htp://www.PizzaTactics.com
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