Cinnabon's bet on iPad lets you tap a screen to buy the pastries
Can a sweet treat and tech savvy combine to boost profits? Cinnabon thinks so. The company plans to open its 10th store in the region at the newly remodeled Philadelphia Mills mall in Northeast Philadelphia come fall.
Can a sweet treat and tech savvy combine to boost profits? Cinnabon thinks so.
The company plans to open its 10th store in the region at the newly remodeled Philadelphia Mills mall in Northeast Philadelphia come fall.
Here's the hook: When it opens in October, it'll be one of the first in the Cinnabon chain to feature the Revel Systems iPad POS. By using an iPad interface, a customer has different ways to pay for an order - by cash, credit card, or Apple Pay - and can easily sign with a finger directly on the screen.
"The Revel iPad has a friendly interface for guests and allows us to engage with them in a relevant, cool, hip, fun way," said Cinnabon president Joe Guith (pronounced Gwooth).
The new iPad system is being rolled out across all new Cinnabons, such as Philadelphia Mills, while existing bakeries have the option - but are not required - to upgrade from the old one.
At stake are those 19- to 34-year-olds whom every retailer is after: the millennials.
"Today's consumers - millennials, in particular - are increasingly selective in their choices of indulgence, which are based on portion size, quality ingredients, authentic brand experiences, and products that are worth it," Guith said. "Cinnabon is constantly innovating its menu to meet these changing needs by offering smaller products that provide permission to indulge, more portable products for guests who are on the go, and a variety of seasonal specials that provide flavor options."
Specialty treats, such as Cinnabon Stix and Mini Chillatta drinks, are two examples.
A recent study of millennials' favorite restaurant chains by food analytics company Technomic named Cinnabon as a top-five "quick service" chain. Other picks were Krispy Kreme, In-N-Out Burger, Chick-fil-A, and Ben & Jerry's.
Founded in 1985, Cinnabon is a chain of American baked-goods stores and kiosks. The company's signature item is a large cinnamon roll.
The chain is owned by privately held Focus Brands Inc., which, through its affiliate brands, is the franchisor and operator of more than 5,000 ice cream shops, bakeries, restaurants, and cafes under such brand names as Carvel, Auntie Anne's, and McAlister's Deli.
U.S. sales for Cinnabon were $143 million last year, up 11 percent from $128.6 million in 2014. Guith is counting on the company's expansion and new technology to boost 2016 numbers.
"It's a luxury indulgence, and there's a growing market for it," explained Guith, who attended the shopping center industry's uber-convention in Las Vegas last month.
I initially discounted his pitch, thinking I had no reason to pursue a piece on a snack that I was most familiar with through trips to the drive-through at Taco Bell, with which Cinnabon has a partnership.
But there's a story here - one that underscores the convergence of retail and technology and Cinnabon's role in it.
Sweetgreen, a fast-casual salad chain, eliminated cash payments starting in March in a select number of stores, including its Center City location, and limits patrons to credit cards or the chain's app.
Convenience store and restaurant-on-the-go Wawa has used electronic kiosks for food and drink orders since 2003.
"This is likely to continue and expand in both grocery and restaurants," said Bill Bishop, chief architect of Brick Meets Click, a grocery research and consultancy, of technology's trajectory. "Customers all want to save time, and the new payment options let them do it."
Cinnabon's 10 locations in the area include one in Chester and four in South Jersey: Deptford, Cherry Hill, Moorestown, and Mount Laurel.
There are two more in Newark, Del., and another in Exton, Pa. The Philadelphia Mills store will be the second in the city. The other is in the Gallery at Market East.
Coincidentally, the new Cinnabon debuts just months after the mall - formerly known as Franklin Mills - unveiled a new look earlier this month after an extensive $30 million redesign.
It opened two restaurants - Suki Hana and Charleys Philly Steaks - as part of the redesign. Elizabeth Arden debuted last month, while Calvin Klein will open in a few months.
The new Cinnabon design is inspired by the French pastry shop with an open kitchen twist. Baking activities will all happen in the front for customers to see, instead of in the back of the store.
The layout will feature an updated Cinnabon logo, light-colored woods and menu boards, and large bakery-display cases to be more contemporary-looking and accentuate its top seller.
"If you look at the larger space of all sweet treats, you could say Cinnabon has a lot of competition," Guith said. "But Cinnabon is the market leader among cinnamon roll bakeries, and there really isn't a direct competitor."
The chain is building up its multichannel division, which offers customers the flavors of Cinnabon in more than 70 consumer packaged goods, such as Pillsbury and Keurig products, and is looking to expand licensing opportunities.
The Revel iPad technology will give franchisees more control by allowing access to the management console from their mobile device and letting them track business performance, monitor inventory levels, and manage team members' schedules.
"We believe the utilization of technology is essential for our growth," Guith said, "and we're taking steps to ensure we're prepared for it."
215-854-4184@SuzParmley