Papa John's passes $1B in online pizza sales
LOUISVILLE, Ky. (AP) - May 8, 2008 That's because orders are rolling in through the Internet.
"It's pretty amazing not to hear a phone ring on a busy
night," said Freitas, an operating partner with the largest Papa
John's franchisee in the Washington, D.C., market.
In the past seven years, Louisville-based Papa John's
International Inc. has made a lot of dough from online ordering -
more than $1 billion to be exact.
The nation's third-largest pizza delivery chain trumpeted the $1
billion milestone Wednesday, noting that its U.S. online sales have
been growing at an average clip of more than 50 percent per year.
In 2001, the chain's online sales totaled $20.4 million. Last year,
its online sales approached $400 million.
"It took us seven years to reach our first billion in online
sales, and at our current pace and growth rate it will take us less
than three years to hit our next billion," said Jim Ensign, vice
president of marketing communications at Papa John's.
Other chains in the fiercely competitive pizza industry are
tapping into the technology craze to give customers ways to order
pies other than through the standard phone call or trip to a
restaurant.
Dominos Pizza Inc. put its own twist on online ordering early
this year by introducing a "Pizza Tracker," which lets customers
keep tabs on the progress of their orders. Consumers can find out
when their pies are in the oven, when they're on the way, and even
the first name of their delivery person.
The tracking system has given a "big bump" to the growing
online business, said Jenny Fouracre, a spokeswoman for Ann Arbor,
Mich.-based Domino's. She declined to disclose specific online
sales numbers.
Domino's also lets customers place orders from Web-enabled
mobile devices.
Pizza Hut said it's online orders have grown sixfold in the last
three years. Company spokesman Chris Fuller said the online segment
is a significant part of the overall business, but he wouldn't give
specifics.
Pizza Hut, the nation's biggest pizza chain, also allows
customers to order via text messaging and mobile Web. The unit of
Yum Brands Inc. soon will unveil a new method for ordering pizzas,
dubbed "Pizza Hut Shortcut," that it says will be the fastest in
the industry. Customers will be able to download a "widget" onto
their computers that will let them place their favorite pizza
orders with just one click.
Since launching its Web-based ordering in 2001, Papa John's said
it has invested more than $15 million in online ordering
technology. Customers can place online orders up to 21 days in
advance. Another function lets consumers repeat their most recent
orders with just one click.
Papa John's said more than 20 percent of its sales come from
online or through text messaging, an option it introduced last
year. The company said text sales are meeting expectations, but it
didn't provide specifics.
Freitas said online business is driving higher overall sales at
his more than 50 Washington-area stores. Online orders account for
about half of overall sales at a couple of his restaurants, he
said.
"I knew it would be a big part of our business, but this has
blown my expectations away, and I think it's even going to go
higher," Freitas said.
The concept is tailored for customers like Emily Goatcher of
Raleigh, N.C.
"I'm so into the Internet and the ease of doing things that
way," she said in a phone interview.
The online option lets her scan the menu and look up specials.
She also thinks there's less of a chance of getting the wrong
order. But the mother of two young children said the main
attraction is convenience.
"Being able to log in and do it versus trying to talk over a
baby crying or a 2½-year-old that's running around the house is
probably one of the main reasons I like to order that way,"
Goatcher said.
Not everyone in her family has made the Web-based conversion -
her husband still places orders to Papa John's the old-fashioned
way by phone, she said.
Ensign wouldn't tip the company's hand on future tech-driven
ordering, but he said Papa John's plans to roll out new methods in
coming months to make it even easier for customers to place orders.
He predicted the ordering options will multiply as technology
advances.
"We're just going to maybe have five or six or seven or eight
or nine or 10 different ways the consumers can order," he said,
seemingly conjuring up new options as he spoke.