Restaurants use mobile order and pay-ahead apps to boost sales, facilitate order/payment, and increase customer loyalty. Only a few years ago, customers relied on restaurant mobile apps primarily to find a nearby location or to browse a menu. Now, customers are reaching for their phone for a whole lot more. And, with these solutions come legal issues that restaurant operators must address. Consumers increasingly use mobile apps to order ahead, pay, and skip the line, as well as to have meals delivered, order and send gift cards, study nutritional information on menu items and track their loyalty rewards points. These options offer lucrative avenues for boosting business and customer loyalty. But as with all innovation, mobile ordering can also pose some legal risks that businesses should be aware of and take steps to help prevent. The most common issues relate to ecommerce and privacy concerns.

One way to reduce risk is to have comprehensive privacy policies and terms of use agreements with customers in place, as well as to provide express opt-in and/or opt-out provisions. These agreements are relatively inexpensive and should be custom created to cover the different types of options offered to consumers. However, the agreements should also be maintained through periodic review, because ecommerce law changes frequently as new technology develops and new options are available for consumers.

Restaurants that do tackle these privacy issues, and design their mobile apps well, are reaping the rewards. It has been the pizza providers that have chalked up the most digital experience over the last 15 years, first in online and now mobile ordering. Papa John’s, Pizza Hut and Domino’s see more than 50 percent of their sales coming through digital ordering versus analog ordering.

But, it’s not just pizza options anymore! Two restaurant chains that get frequently packed for lunch provide good examples of how these mobile ordering solutions really help consumers get what they want and in turn boost revenue for the restaurants. Panera Bread and Jason’s Deli allow you to order remotely for a specific pickup time, so you can walk in, grab your order and walk out, all without waiting in line. Consumers expect the same ease and convenience from all their favorite restaurants, with mobile apps offering information on nutrition, remote ordering for curb-side pickup, loyalty programs, the saving of your favorite orders, retrieving special offers . . . the possibilities seem endless. The restaurants willing to invest in good privacy policies and user agreements with their mobile app offerings will stay a step ahead of their competition.

For more information on this topic, please visit our eCommerce Agreements service page, which is part of our Internet & eCommerce Practice.

Klemchuk LLP is an Intellectual Property (IP), Technology, Internet, and Business law firm located in Dallas, TX.  The firm offers comprehensive legal services including litigation and enforcement of all forms of IP as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides a wide range of technology, Internet, e-commerce, and business services including business planning, formation, and financing, mergers and acquisitions, business litigation, data privacy, and domain name dispute resolution.  Additional information about the Internet & eCommerce law firm and its Internet & eCommerce attorneys may be found at www.klemchuk.com.

Klemchuk LLP hosts Culture Counts, a blog devoted to the discussion of law firm culture and corporate core values with frequent topics about positive work environment, conscious capitalism, entrepreneurial management, positive workplace culture, workplace productivity, and corporate core values.

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