QSR Tech Innovation is Transforming How Quick Service Restaurants Win
As a professional or consumer, we’ve all felt the seismic shift in the restaurant industry in recent years. Consumer demand has changed drastically, along with new health concerns and the need for convenience. Quick Service Restaurants (QSR) are feeling the pull of these new trends and must react quickly to maintain market share. Advanced technology is answering the needs of QSRs all over the globe, from robotic process automation (RPA) automating the ordering process, to advanced application development creating contactless pick-up and delivery procedures. Choosing the right technology that’s best for your business can be a challenge. Let’s review some technologies that are gaining the most momentum in the QSR space and see how they can help streamline processes and increase the bottom line.
The New Normal for Quick Service Restaurants
Walk into any restaurant today and you’ll notice some apparent differences. The store may be less full, but the kitchen is busier than ever. You’ll eventually catch site of a large counter or shelf full of orders, all ready to be picked up by customers and delivery drivers. This is the new normal for the restaurant industry, and experts don’t see this trend changing anytime soon.
Here’s what Gartner envisions as the new normal for restaurants.
- 60% less foot traffic
- Express Pickup
- Expanded Drive-thru
- Enhanced Curbside
- Added Drive-ins
Take Chipotle for example – the national fast casual Latin food chain has innovated and gained market share by enhancing their pick-up options and has even expanded into drive-thru lanes called “Chipotlanes.” This change increased Chipotle’s revenue and digital sales, while shortening service time. (Gain deeper insights in this article thanks to QSR Magazine: “Innovation Heats Up in Quick-Service Restaurants”)
Top Technologies for Innovative QSRs
There are some core technologies that can be implemented to pull off all these new restaurant standards and here are a select few.
Geofence Location Data
Consider deploying geofencing technology around your restaurant. Understand your business area of influence – whether it’s a few blocks or a few miles – and work with mobile marketing partners to create a geofence around that area. Anyone within that designated area would see your mobile ad. Location Data can also be added so that notifications are triggered when a loyal customer is in the vicinity. (Go deeper on QSR geofencing here)
Mobile
Mobile ordering and curbside pickup have become so popular over the last year, many QSR businesses are moving forward with expanding drive-thru lanes to include curbside pick-up stations.
More than 60% of consumers want automated check-in on arrival or for staff to bring orders out to them.
Oracle
Mobile integration within QSRs also provides the opportunity for creating customized text messages based on a QSRs target market and customer preferences. Whether these messages include coupons or announce restaurant specials, integrating more personalized mobile messages to your customer base will increase sales and customer retention.
75 percent of customers want offers sent to them via text message. On top of that, 98 percent of text messages are open and read within the first three minutes.
QSR Magazine
Internet of Things (IoT)
Energy and Appliance Management
QSRs can benefit from IoT integration when it comes to energy and appliance management, leading to more efficient operations, better use of resources, and increased savings. Consider utilizing IoT to track temperature levels on energy devices (thermostats, HVAC equipment, etc.) or restaurant appliances. Threshold temperatures can be set on a variety of equipment in a restaurant. If temperatures fall below or increase above that threshold, management can be alerted directly through web or mobile application notifications. For example, if a freezer’s temperature begins to creep above freezing, alerts will notify management that quick action needs to be taken to recover any food products within that appliance.
Supply Management
IoT can also serve a critical purpose for a QSR’s supply management. IoT can integrate with cameras and sensors to monitor and alert management of food supply levels to ensure stocks are consistently maintained. With proper integration, this technology can automate supply ordering when stocks run low.
Improving the Associates Experience with “Digital” Workplaces
Digital innovation doesn’t stop at the customer journey. Digital solutions can be applied to the employee experience to delight, retain, and simplify how associates engage and interact with the store, one another, and customers. This new generation of workers are empowered to utilize mobile applications for work schedules and continuing education of new products and services.
Digital Workplace Priorities
- Improving Workplace flexibility
- Encouraging Cross-Employee Collaboration
- Focusing on Health and Wellness
- Improve Availability of Training Resources
- Move to a Labor-on-Demand Model
Why Does QSR Innovation Matter?
Leveraging the power of innovation and applying advanced technology like Artificial Intelligence, Machine Learning, and simply improving mobile experiences for associates and customers alike is not an option. QSR innovation is no longer for those leading the edge, but has become a mandatory standard for those QSRs that wish to evolved and compete for future consumer dollars. Digital franchisee experiences and support is also required and a topic we will breach in a follow-up article but we leave you with this simple list of what your next steps can be as you lay-out the technology road map for your QSR team:
- Exclusive and Lucrative Privileges for App Users (Repeat customers)
- Ready for Drive-Thru ONLY Experiences?
- Multi-Channel Ordering Options
- Partnerships with Influencers (the digital game must extend into the social space)
- Timely and Connected Social Media Campaigns
At V-Soft Digital our passion is to support you on your digital transformation journey. For a complimentary discovery call just send us an email with your name, company, and your biggest challenge to innovation and we’ll share how we’ve help others innovate@vsoftdigital.com or fill out our contact us form here.
