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Online pizza ordering becomes a billion-dollar industry

By Tim Conneally, BetaNews

May 8, 2008, 1:40 PM

In another sign of the changing nature of communications in the US economy, Papa John's, America's third-largest pizza chain, has recently passed $1 billion in completed online transactions.

At the risk of editorializing an otherwise fluffy story for the approaching weekend, it's worth noting that some of us at BetaNews have a soft spot for lighthearted examples of modernity. Take for example, the coverage we have given to the trend of pizza delivery franchises embracing technology to improve business.

It could be that we are enamored with the idea of decreasing our time spent shopping, or maybe we just love pizza. But in truth, it's because time-saving communications applications are playing an increasingly pivotal role in the American economy.

Illustrating this point is the national pizza delivery chain Papa John's, which the Associated Press recently reported has completed over $1 billion in online transactions. Granted, the ability to order Papa John's online has existed for more than seven years, but its growth is the impressive factor: By reaching the one billion dollar mark, the company has had its revenue from online ordering increase by over 50% every year. Last year, sales were around $400 million.

By comparison, Amazon.com, the Internet's top retail destination, last year took in $14.84 billion in revenue.

The nation's three biggest pizza chains -- Domino's, Pizza Hut, and Papa John's -- are in a dead heat for offering the easiest way of obtaining their food: All three allow customers to send in orders via text message, Domino's offers a moment-by-moment gauge of your order's status, and Pizza Hut is reportedly developing a desktop widget for one-click order placement.

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By Jahmekan

posted May 9, 2008 - 4:11 PM

Cool, *minimize WoW and order pizza...then get off my fat a$$...pickup pizza...eat while playing WoW...get crap on my mouse and keyboard* Yep, gotta love technology.

Score: 0

By booboo_babies

posted May 9, 2008 - 2:09 PM

When I e-mailed this to my husband, he told me about an episode of NYPD Blue back in the '90s where a guy was being ridiculed for investing in online pizza delivery. People sneered at him "No one is going to order pizza online when they can just pick up the phone." Famous last words!

Score: 0

By booboo_babies

edited May 9, 2008 - 12:35 PM

Online pizza ordering is nice, but not for everyone. Our family found this out the hard way. Our daughter works at a Papa John's, and we learned after we placed the order that employee's discounts do not apply to online orders. So we ended up paying full price on that one.

Score: 0

By mjm01010101

posted May 9, 2008 - 5:35 PM

Wow. Did it break the budget for the month? How did you make it through the touch times?

Details.

Score: 0

By Program86

posted May 8, 2008 - 5:39 PM

fu*cking about time!

Score: 0

By alphatrigon

posted May 8, 2008 - 5:22 PM

this shouldn't really be news for the US...meaning, the US has way too many fatties, and well...this shouldn't have happened...lol

Score: 0

By xyzcb1

posted May 8, 2008 - 4:27 PM

This is so related to "beta" of software.

Score: 0

By shy_one

posted May 8, 2008 - 4:06 PM

Where was this when i worked at a pizza joint.

Nothing worse than trying to take someones order when they are using a cheap cordless phone.

Score: 0

By Hollywood__

edited May 8, 2008 - 9:06 PM

Ahem:

(Hand goes up)

Neoprimal,

I think I've got you beat. The amount of crap I have ordered online would stagger any normal person. We get a package at least three times a week from somewhere.

I do call in our pizza orders however. The one place we really like is owned by my freinds uncle, and he runs the entire take-out kitchen on Fridays and Saturdays when it's crazy. I make it a point to order by phone and go early pick it up in person so we can sit in the kitchen and watch the White Sox on a tiny 6 inch black and white CRT with rabbit ears (if they're on) and shoot the s*** while the pie is is the oven.

It's a Chicago thing.

Score: 0

By daq

posted May 8, 2008 - 6:53 PM

Where do you get the money to order so much. We all know you don't work...

Score: 0

By Hollywood__

edited May 8, 2008 - 9:07 PM

It's not that I don't work. It's just I don't work very hard. I developed custom software for company XXXXXX a few years ago. Another company bought the rights to exclusively distribute that software and takes a cut from every sale, so I don't have to do anything but wait to get paid every month. They handle everything.

I also do custom graphics work as a subcontractor. This is why I am always home. It took a few months for my wife to adjust to having both of us in the house 24 hours a day. Sometimes I have to travel and meet clients but a lot is done over the phone.

Up until that point, I worked 50+ hours a week installing home theaters and hanging plasmas etc... so there you have it.

p.s. the name Hollywood was given to me by the guys I use to work with because I had to ditch work to go meet the company XXXX guys .... in Hollywood. Everyone knew except the owner and I quit about two weeks later.

Score: 0

By marrix

edited May 9, 2008 - 10:05 AM

Hollywood_,
As an observer here who rarely posts, thanks for the heads up. Will give me a better perspective when when I read your posts in future.
I like the exclusivity, I wrote a simple tune 30+ years ago that brings me in a motza, gets sampled frequently and is played constantly on both MOR & AOR stations daily all over the world (was 20 when I wrote it).
Since my misspent youth, have done Law, Accounting, and a little IT Education, jeez learned SQL & DB2 in 1986-88.
These days, an SME with a team doing SIU, don't need to work, yet the day it stops so do I.
But, I gotta say, I cannot agree with your comments re Vista. To me it's a crock, however I'll not disparage your comments again (unless of course a stirring is warranted).

Score: 0

By Neoprimal

posted May 8, 2008 - 2:26 PM

I don't think it's fluffy. It's a valid story. It can be good or bad though, in the long run. We're truly becoming an internet dependent society - I'm no exception. I buy ALMOST everything online (even furniture) and I can't tell the last time I've purchased a pizza through carry out or even calling them....it's not a monumental deal, but it's noteworthy.
The same goes for other things...the only thing I go to a bank for is to deposit a check. My clothes, especially jeans - online. Computer parts, etc...you get the drift.

I know people that even depend on it moreso than I do.

Score: 0

By Bug42

edited May 8, 2008 - 3:29 PM

Domino's moment-by-moment gauge was stolen by me. I worked for the company that designed the software, and when I suggested this cool idea, the owner of the company I worked for looked at me and said "That is stupid!"
I then found out after I left the company, that the owner had gone to Dominos with this great new idea.

Score: 0

By Hollywood__

posted May 8, 2008 - 4:03 PM

Do you mean, "stolen from you"

Score: 0

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