Domino’s topping up IT plan

Domino’s Pizza is to invest in a range of new technologies this year to prepare for significant growth in its online business and rapid branch expansion.

The fast food industry is placing increasing emphasis on new technology as competition for customers heats up.

Domino’s IT director Jane Kimberlin says managing the chain’s growth, which at the moment sees about 50 new outlets opened each year, will be the biggest challenge for her department.

‘We already have more than 430 stores across the UK and expect that this will eventually grow to 1,000,’ she said.

‘We must ensure we have the appropriate software, hardware and processes in place without significantly increasing costs.’

Kimberlin says the company will replace its tills and introduce business intelligence software next year. It has already installed real-time statistical analysis software to track key performance indicators (Computing, 4 January).

‘It can be difficult to track all the necessary information at a larger company, but we need accurate information on sales and trends,’ she said.

‘Purchases of fast food are often linked to particular events such as TV specials and we need to know what is happening and respond accordingly.’

Domino’s also plans to significantly increase its online presence following an upgrade in bandwidth capacity from 10Mbit/s to 30Mbit/s.

‘Web orders currently make up some 12 per cent of our overall orders, but we found that customers who purchase online spend 25 per cent more than customers who order by phone,’ said Kimberlin.

‘Online purchases are rising by 40 per cent year on year and we must be at the forefront of technology to improve customer service and productivity in a cost-effective way.’

Fast food giant McDonald’s is also looking to customer-facing technology to arrest a recent slump in its UK performance.

This year it plans to expand the use of handheld wireless devices in its outlets, conduct tests of cashless payment systems, introduce loyalty cards and replace back-office systems.

‘IT is driving the business now more than ever,’ said Steve Tiley, head of information systems at McDonald’s. ‘All these new initiatives involve using technology to resolve business issues and offer better service.’

Butler Group analyst Michael Azoff says fast food companies have traditionally been slow to adopt new technology, though some larger chains have focused on back-office IT.

‘Now there is a push to use technology to improve customer-facing service,’ he said. ‘One example is using business intelligence tools at the point-of-sale to prompt staff to offer customers further products based on past purchasing trends.

‘Food companies are waking up to the benefits of technology in speeding up processes and maximising sales while being cost-effective.’

Fast food IT... in 30 seconds

• Domino’s has introduced a number of IT initiatives and expects online ordering to become popular, particularly as it appeals to younger customers. To build on this popularity, it is also looking to introduce text message ordering this year.

• McDonald’s is replacing 15-year-old tills with touchscreen units that transmit orders directly to screens in the kitchen. The new tills also boast added functionality and speed, which allows food to be cooked to order.

• McDonald’s was also one of the first retailers to offer WiFi to entice remote or travelling workers. It has plans to extend WiFi access from 500 outlets to the whole chain.

• Interactive kiosks could be the technology of the future, with sandwich chain Subway installing kiosks at drive-thru outlets. The technology could also be used in-store to encourage sales by prompting customers about special deals or add-ons.

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Further reading

Domino’s tastes real-time data

McDonald’s puts IT on its menu

Domino's gets its teeth into Dell deal