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3 guides to QSR growth in 2019
QSRs are doing quite well, thank you. But as we all know, staying on top is not a one-and-done thing. To keep the momentum building in the year ahead, heed these three pointers for quality quick-service growth in 2019.
December 26, 2018 by Ray Reddy — CEO and Co-Founder, Ritual
Quick-service restaurants have led the restaurant industry in growth in 2018. In fact, according to First Data's 2018 Payments and Commerce Mid-Year Review, QSRs saw 7 percent year-over-year growth, which accounted for 38 percent of overall restaurant spend in the U.S.
What's been driving this growth?
The Deloitte Restaurant of the Future Survey found customers now really want to customize their food choices directly to their needs. The survey also found that restaurant technology is helping QSRs drive conversions and build customer loyalty. For instance, 50 percent of consumers prefer to use a restaurant app to place their orders, and using technology to place an order increased the average order spend by 20 percent.
QSRs are on the right path, but what can quick-service do for an even better 2019? The following trio of suggestions all use menu planning, forecasting, strategic expansion and restaurant technology together to push your brand forward in 2019.
Healthful customer-centered menus are game-changers
When it comes to food consumption in the U.S., the International Food Information Council Foundation's 2018 Food & Health Survey indicates Americans rank healthful eating as one of their top 3 concerns. In fact, 36 percent of Americans between the ages of 16-34 are on a diet or specific eating pattern. Clearly, eating healthfully is a priority now and into the future.
I've seen this trend at my own restaurant technology company with everything from salads and grain bowls, to smoothies and poke bowls coming in as QSR best-sellers in the past year. Likewise, at cafes and coffee shops, our company is seeing an increase in coffee, juice and tea orders as part of an overall trend toward lighter and more healthful eating.
o best take advantage of this trend, QSR leaders should make sure their brand's menu is clearly labeled for customers with dietary restrictions and allergies. It's also helpful if you use recognizable icons that designate which menu items are healthful food choices, as well as those that are good for heart-health or for those avoiding gluten or meat.
This helps establish your brand as a go-to spot for an increasingly health-conscious audience. Customers will feel more comfortable with the brand's menu which goes a long way toward development of diners' trust.
Seasonal and sustainable offerings also sustain QSRs
In 2018, according to the previously mentioned Food & Health Survey, six of 10 consumers said sustainably produced food was important to them. In a similar way, consumers are also looking for menus that use fresh, in-season vegetables.
In-season vegetable purchasing is not only cost-effective, but helps QSRs diversify menu offerings. Brands can create grain bowls, salads and soups with produce that is custom to the season. Similarly, this practice forces brands to change their offerings regularly, which, in turn, gives customers a reason to return.
Expanding to the right location
When it comes to expanding your QSR and finding a product market fit for its offerings, look for three key details to build a successful franchise, beginning with a thorough data review on the number of people, offices and similar restaurants in that area.
Next, conduct research on trends currently taking place in that location. For instance, if it's a financial district with high office building density, the population there will likely be looking for more grab-and-go options at a lower, to mid-range price point. But if the area is brimming with nightclubs, it's likely your QSR can get away with higher price points, as well as options for sit-down dining.
Finally, look at other restaurants in the area the brand is eyeing and review those businesses' offerings and price points to ensure you are competitive in the market.
Overall, QSRs are headed for even more growth in the New Year. But by creating customizable, health-conscious menus, with seasonal and sustainable ingredients and affordable options, brands ensure a competitive edge in an always-crowded market.
Photo: iStock
About Ray Reddy
Ray Reddy is a repeat entrepreneur and now the CEO & Co-Founder of Ritual- an order ahead app connecting local restaurants with customers and data analytics to help them compete in the digital restaurant age.On the platform, restaurants have seen 3-4x growth in repeat customer visits & size orders due to speed, convenience, social features and a clear pricing structure.
