Comments on: Pizza Hut iPhone App Generates $1 million in Pizza Sales

By: jared

jared — Tue, 29 Dec 2009 06:03:20 +0000

I need to get out of the stone age and get one of these iPhone. I can't beleive the stuff you can do with your phone these days.

By: Uri

Uri — Tue, 10 Nov 2009 08:29:40 +0000

Indeed, congrats!

By: Alex

Alex — Mon, 09 Nov 2009 19:12:14 +0000

Congrats on the acquisition, by the way.

By: McGuire’s Law » Blog Archive » Observations: Uses - November 8, 2009

Mon, 09 Nov 2009 03:00:15 +0000

[...] Pizza Hut iPhone App Generates $1 million in Pizza Sales [...]

By: Alex

Alex — Sun, 08 Nov 2009 02:57:12 +0000

Russell, again I can’t disagree – differentiators like this can only help win business from competitors who are slow on the uptake with new sales channels.

I can’t see much future using the iTunes payment channel though – Apple take a 30% cut of the revenues, which means that prices would need to rise by more than 40% for Pizza Hut to take the same money. I’ve no idea what the margin is on a Pizza, but surely even iPhone owners won’t pay this premium for a tiny increase in convenience.

On the other hand, is there anything stopping Pizza Hut just asking users for their credit card details in the app?

By: Russell Buckley

Russell Buckley — Fri, 06 Nov 2009 14:24:04 +0000

Alex – I’m sure that some might have cannibalised other channels. On the other hand, I think they’ve done a fine job at allowing their customers to order in the way they like. I would also bet that they won some of these orders from people who would have used their competitors, but for the iPhone App. Factor into account the efficiency of the iPhone channel ie doesn’t need synchronous (expensive) communication, like someone to answer the phone live and they have a winner.

I don’t believe that this included a payment system. However, there is certainly potential for that using the iTunes payment platform, or an indie one. And that’s where things will get really interesting.

Russell

By: Alex

Alex — Fri, 06 Nov 2009 14:02:57 +0000

Very interesting read about Pizza Hut – it’s a very impressive statistic, very cool.

Might have a pinch of salt with mine though – how much of this $1M would actually have been done over the phone or on the website were it not for the iPhone application? I suspect the majority. That said, a dedicated pizza-ordering app can’t help but build brand loyalty and repeat purchases.

Also, to what extent is this mCommerce? Does the application accept payments within the app, or do you still have to give the delivery man cash when he turns up with the goods?

By: iPhone Developer

iPhone Developer — Wed, 04 Nov 2009 16:23:00 +0000

That’s a great app and it’s very encouraging that it’s delivering the dough for Pizza Hut!