Ringing Up Sales

Baron Concors, chief information officer for Pizza Hut, is a proponent of retailers and restaurants developing mobile applications.

Image: Jake Dean

Pizza Hut's almost year-old iPhone app has generated up to $7 million in sales and is now serving as a model for other restaurants trying to quickly move into the smartphone space.

“It has way exceeded our expectations,” said Baron Concors, chief information officer for Dallas-based Pizza Hut.

“I talk to senior-level retail people, and I’m shocked when I hear them say they think it’s a fad that’s going to pass,” Concors said of smartphone applications. “It’s no longer going to be a cool thing to have a mobile app. It’s going to be a customer expectation.”

Richard Mader, executive director of the National Retail Federation’s association for retail technology standards, said mobile applications will become the go-to device for shoppers and diners.

“If you’re not somewhere mobile by 2011 and 2012, you’re going to hurt,” he said.

While Mader said restaurants and retailers should explore mobile apps, rushing into the space without a plan could be disastrous. Companies should consider, for example, if they want an app for iPhones or for Androids. Not all systems are designed to work with both devices.

“It’s very important to think through how you are going to establish a beneficial way to communicate with your customer,” he said. Concors agrees.

“Having a mobile application is not just about being in that game,” Concors said. “It represents what your brand is about. Are you about being innovative or are you about being relevant?”

For more on how Pizza Hut is making money through its iPhone app, click here for the full story from the Dallas Business Journal (subscription required).