Commentary

A Look At QSR Industry's Next Chapter

At MediaPost’s recent Brand Insider Summit: QSR, we absorbed the collected wisdom and experience of a huge variety of QSR and fast casual brands -- though it's clear that any meaningful distinction between those two categories is being eroded by the day.

The talk ranged from the post-COVID customer landscape to the value of TikTok influencers.

Having had a couple of weeks to reflect on what we heard, I've found myself thinking most about the following three themes:

1. Optimization over innovation. Pre-COVID, there was a lot of talk in QSR circles about disruptive innovation: robots flipping burgers, AI-connected cameras inspecting pizzas, or drones delivering meals. But a rapid acceleration in delivery services highlighted that there's a lot more fundamental work to do with technology in order to get the basics right: seamless ops integration, proper training for team members and franchisees, leveraging data to drive real ROI, and more.

Many businesses have spent the last two years procuring and integrating a plethora of technology platforms, hardware and software -- but few companies are confident they're making the most of these tools. Over the next 12 months, rather than seeking shiny, new tools, it's worth considering whether the technology and innovation roadmaps are correctly focused on optimizing and increasing the (positive) guest impact of the platforms already in place,

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2. Authenticity, authenticity, authenticity. Whether it's an established chain of restaurants with an aging fanbase seeking to lure in Gen Z, or a young and vibrant brand gaining in popularity and challenging the establishment, it’s clear that cultural relevance and having an authentic and believable voice is non-negotiable.

Almost every brand we heard had a story about a TikTok or influencer campaign that outperformed most of their traditional paid media. What united the most-successful stories was that the influencer(s) in question were natural fits who had a clear and authentic connection to the particular QSR’s guests.  Influencers spoke with a voice that didn't feel paid, and were treated as partners rather than a content “experiment,” or a cheap alternative to expensive talent.

The clear recipe for success: building relationships with creators and the platforms that power them, understanding what authentic looks like in the lived experiences of your guests, and putting serious weight (brand and budget) behind these campaigns.

3. Co-branding and partnerships. Co-branded dining spaces are not just for food halls and malls. A new generation of brands is finding smart ways to co-exist that deliver a more resilient portfolio for them, and a more satisfying and flexible experience for guests.

Imagine a burger restaurant that wants to offer an expanded menu in a completely different category -- to take advantage of different dayparts, to cater to new customer profiles or focus on takeout for big events.  It's going to be more authentic and believable to guests if a QSR partners with a separate (known) brand, rather than simply expanding its existing menu.

This brings with it significant challenges -- from server uniforms and menu design to Google Maps listings and supply chain management -- but the payoff is often worth it.  Co-branded restaurant spaces have been delivering more guests, a higher check average, and increased transaction frequency.

 

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