Burger King strives to beat McDonald’s to app payments

Order-and-pay plan coming to Tim Hortons

CHICAGO • In the fast- food industry’s race to let customers order and pay with their phones, Burger King is seeking an early lead on McDonald’s Corp.

The chain has been testing mobile-payment technology in the Miami area since December and is looking to introduce it more broadly soon, according to Jose Cil, Burger King’s president. That will set the stage for a national rollout within months.

Burger King owner Restaurant Brands also is working on a mobile order- andpay app for its Tim Hortons chain, based almost entirely in Canada. The company plans to introduce it later this year, chief executive Daniel Schwartz said during a conference call.

The contest to get the technology out first represents the next big battle for burger joints. Though

Starbucks Corp. and pizza chains have been using mobile- ordering apps for years, the biggest fast- food companies are now trying to catch up. McDonald’s is planning i ts nationwide debut in the fourth quarter, potentially giving Burger King an opportunity to move ahead of its far-larger rival.

An app that lets users order and complete purchases via a mobile phone would help Burger King build a tighter connection with customers, Cil said.

“Our guests want to interact with us in more convenient ways, and we’re looking to put our brand in the palm of their hands,” he said.

The burger chain, part of Brazilian- owned Restaurant Brands International Inc., declined to give an exact date for a U.S.-wide introduction of the app, or whether it would extend to Canada. McDonald’s also wouldn’t comment on the specific timing of its mobile-pay technology, beyond saying it would happen by the end of 2017.

“We have been focused on restaurant integration to ensure our customers enjoy a seamless experience and more convenience than ever before,” Terri Hickey, a spokeswoman McDonald’s, said in an email. The technology will offer “the flexibility to pick up their order at the front counter, the drivethru or with new curbside delivery,” she said.

For Burger King, t he stakes are particularly high. The company has had to fight harder for customers this year, and the entire fast-food market is relying heavily on discounts and promotions to prop up results. In March, U.S. industry same-store sales fell 0.6 per cent, declining for the fourth straight month.

Against this backdrop, McDonald’s has been outduelling Burger King. Thanks to a Big Mac overhaul and beverage specials, the Golden Arches posted surprisingly strong sales last quarter. Burger King reported a decline.

A mobile- payment app could help lock in customers by breezing them through the purchasing process.