Technology

Pay it forward: The payment options QSR customers want in 2021

The pandemic has transformed the way even the most Luddite of consumers now choose to pay at their neighborhood QSRs. Is your brand ready for this new and much-more digitally inclined customer?

Photo: iStock.

December 8, 2020 by Brian Dammeir

Earlier this year, I rented an RV and took my family on a road-trip to visit our national parks and get some much needed fresh air, with requisite pit stops along the way. At every highway exit, it was clear by the groups of patrons waiting for their orders outside of some locations, which restaurants were ready for the pandemic and which were not.

Invariably, those brands that have thrived were those that invested in digital, contactless customer experiences early and were able, as a result, to pivot to these channels quickly during the pandemic. And, while drive-thrus and outdoor seating have long been a QSR standard, the pandemic accelerated the adoption of touch-free, delivery and mobile app services.

For example, delivery orders, either facilitated directly, or through third-party providers like Uber Eats, now account for 16% of a given QSR's business, with that number continuing to grow. QSRs are also attracting a more diverse group of customers to their digital channels now, expanding into segments that were previously tech-averse. And as lockdowns and restrictions ease we are finding that these new digital customers are sticking around.

According to 451 Research, more than 60% of shoppers say that they will be more likely to order digitally after the pandemic than they were before. In fact, 30% of Baby Boomers — notoriously slow to go digital en masse — have indicated the same. As a result, QSRs are realizing that digital is the new normal for many consumers and are focusing on optimizing these channels as they go into 2021.

From a payments perspective, here are some things I've learned this year from working with our QSR partners, and the trends we expect to continue long into the future:

New norm is in-app ordering, payment: We've seen a massive shift to curbside pickup, kiosk, in-app and delivery purchases versus traditional in-person ordering and payments. But consumers are now demanding better experiences. As competitors focus on seamless customer journeys, QSRs can no longer count on customers being patient enough to interact with poorly designed apps with clunky payment flows.
The multi-channel diner: Previously, customers fell mostly into one bucket, generally preferring a single channel. Cohort analysis of consumer trends shows now that there is a higher likelihood of customers floating between multiple channels.

With more equality between digital and traditional channels, attribution and tracking of customers between those channels – by unifying your tech stack and using a channel-agnostic payment partner — is going to become mission-critical going forward.

U.S. contactless payments soar:The U.S. had been slow to adopt chip and contactless modes of payment. That, however, is ancient with diners now demanding the option to tap to pay at checkout. Even QR codes — long used in the Asia-Pacific for payments — are gaining ground in the West where they are now being employed to share menus, order, access perks and pay. With the right technology and forward-thinking in place, QSR merchants can see through the digital transformation of their customer journeys while modernizing and consolidating their in-store experiences.

It's clear why QSRs are leading the way in this new era of digital commerce. The need to feed communities doesn't go away with a pandemic and QSRs are quickly adapting to keep their mission moving forward. It's also interesting to see the out-of-the-box ideas reimagining physical restaurant spaces and outdoor dining.

There's much that other industries can learn from the solutions this sector has found to keep customers safe and coming back for more. But there's still work to be done.
Even now, only 25% of QSRs have a formal digital strategy, which is no longer adequate. Brands need an agile tech stack that can be flexible and adaptable to changing business and customer needs.

After all, some experts believe the pandemic has pushed digital commerce ahead 5 to 10 years. With the right pieces in place — especially around digital payments — your QSR will not just be ready for whatever's coming down the pike, you'll be way out in front