Technology/Services

Paytronix Report Shows Online Ordering Was 27% of Convenience-Store, Restaurant Orders for 2023

First-party online ordering platforms key to brand’s success, loyalty program provider says
Online ordering at convenience stores
Photograph: Shutterstock

Online ordering represented 27% of all orders for convenience stores and restaurants in 2023, according to a new report from Paytronix. The 2024 Paytronix Online Ordering Report also found that customers transacting directly with a brand order 35% more items per check compared to those who order via third-party marketplaces.

“The biggest takeaway is that while third-party marketplaces have their uses, a first-party online ordering platform is key to a brand’s online ordering success,” said Tim Ridgely, vice president of online ordering at Paytronix. “Moreover, those brands that build a robust digital guest engagement platform that includes loyalty and a mobile app are better equipped to leverage modern [artificial intelligence] tools, get closer to their guests and deliver a powerful omnichannel guest experience.”

Other highlights from the report include:

  • Customers who order both in-store and online have the highest order frequency, the best retention and 35% more lifetime value than customers who only order in-store.
  • First-party ordering platforms are the preferred method for consumers during lunch and dinner, and they spend 30% more per transaction. However, late-night orders (after 8 p.m.) are nearly one-third more likely to be made using third-party marketplace apps.
  • Loyalty program members visit their favorite establishment over 40% more often than non-members.  

Data in the 2024 Paytronix Online Ordering Report is from 2023 and aggregated from a subset of Paytronix online ordering customers. For a store to be included, it must have been open throughout the whole of 2023. Data is rolled up to the merchant level before aggregation to avoid weighting large chains more heavily, Paytronix said.

Newton, Massachusetts-based Paytronix is a cloud-based digital guest engagement platform for the hospitality industry. Its platform provides loyalty programs, online ordering, gift cards, branded mobile applications and strategic insights on more than 1,800 leading restaurant and convenience-store brands.

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