Operations

The next generation of QSRs part 3: Why operational excellence is the modern competitive advantage

As restaurants move beyond competing primarily on value and marketing, operational excellence is emerging as the next major battleground for growth. Major QSR brands are illustrating this shift, emphasizing execution, technology, food quality, hospitality and workforce development to drive both customer satisfaction and long-term profitability.

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August 6, 2026 by Valerie Gritton

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Editors note: This is the third article in our four-part series on the next generation of quick-service restaurants. This series explores the forces reshaping the next generation of quick-service restaurants, examining how shifting consumer behaviors, economic pressures, operator strategies and emerging technologies are redefining the path to growth. In part 4, we'll discuss how restaurant brands are building for the future.

When McDonald's announced its Q2 earnings, the company recognized it fell below market expectations. While the company still posted strong gains in some areas, the consensus was focused more on how it was working to recover same-store sales for the system, which increased a mere 0.8% in its U.S. market.

To build more momentum, CEO Chris Kempczinski said the company is shifting its focus to execution and strengthening its competitive advantages, rather than marketing and in June announced its McDonald's Next strategy.

McDonald's Next has one clear goal: "to be more customer's first choice" for restaurants, Kempczinski said during the company's Q2 earnings call.

"We'll do this by improving the taste and quality of our food, engaging and co-creating with our fans in exciting new ways, (and) simplifying our restaurants so our crew can deliver great hospitality for our guests," he said. "These priorities are highly complementary to the execution improvements we're focused on today."

That focus is one reason why the new state of quick-service restaurants, and the brands most likely to win, will be defined by operational execution and customer-centric improvements that drive both sales and long-term growth.

Through its McDonald's > NEXT strategy, the company is framing growth not as a choice between investing in the business and protecting margins, but as a way to achieve both.

"Most operators are making the wrong capital decisions. They're investing in potential, not P&L," said Michael Benoit, founder of California Contractor Bond & Insurance Services and president of Pacific United Insurance Services, said in an email interview. "The smart operators ask the question first: 'Does this save labor hours, increase throughput or eliminate waste in 90 days or less?'"

Benoit says operators who are successfully navigating today's labor challenges are taking a broader view of efficiency by looking beyond simply reducing costs, investing instead in systems that improve productivity, maximize their existing workforce and create more flexibility in restaurant operations.

"It's not only about the increase in the minimum wage. It's the total of turnover, training costs and scheduling issues that go over the budget of more operators. Less bodies, less hands when busy: less hours might be cut by the operators getting ahead. Those operators who are starting to be successful are intermingling employees. Successful operators are taking steps to cross train employees," he said.

Technology also is a key player when it comes to creating a system operationally efficient across all aspects of the business.

By leveraging technology, streamlining operations and improving execution, Kempczinski said in the McDonald's earnings call that the company aims to create productivity gains that generate the cash flow needed to fund future investments. And they're doing this by leveraging their own funds and restaurant P&Ls.

"While this plan will require system investment, we expect it will also be meaningfully self-funded by the many productivity opportunities that we see in our company and franchisee restaurant P&Ls, along with the strong top-line growth that it will deliver," Kempczinski said.

Leaning into labor

As part of McDonald's > NEXT, the company plans to retrain more than 2 million restaurant crew members, corporate employees and supplier partners beginning Oct. 5, with a focus on gold-standard taste, quality and hospitality.

That emphasis on training aligns with a broader industry trend of using workforce development to improve operational efficiency while addressing ongoing labor challenges.

Wendy's is another prime example of this in motion.

During the company's Q1 2026 earnings call, CEO Ken Cook said the company's focus is on operational excellence as it rolls out enhanced training for restaurant employees, a new learning management system, expanded field operations teams to coach franchisees, and technology tools that make execution easier for crews.

The company also continues to invest in its end-to-end digital experience — something on the minds of operators across all industry segments — leveraging consumer insights to drive app frequency and engagement while expanding payment options at the checkout to create a more seamless experience and improved conversion rates.

"Together, these actions will strengthen the system by enabling restaurants to consistently deliver the quality and service Wendy's was built on while strengthening franchisee economics," Cook said during the company's earnings call.

The common thread among these initiatives for both McDonald's and Wendy's, as prime examples, is a shift in how QSR brands define growth. Success is no longer solely dependent on driving traffic through promotions or menu innovation; it increasingly depends on creating operational systems that allow restaurants to execute consistently.

Kempczinski and his team are confident that McDonald's > NEXT "will catalyze" its global business by staying true to its foundation. Something each brand is independently looking to achieve.

"We're not waiting to get after the opportunities within McDonald's > NEXT," he said. "As we've been saying internally, Next is now."