Commentary

Tech has power to dazzle drive-thru diners even in a 'down' market

Much of the drive-thru's draw of the drive-thru is rooted in speed and convenience. But, recent advancements in technology have created the potential for an even faster, more seamless drive-thru transaction and tech-savvy brands are reaping the rewards.

March 3, 2017 by Elizabeth Friend — Strategy Analyst, Euromonitor International

The drive-thru is a cornerstone of the chained fast food experience, so much so that 53 percent of fast food sales in the U.S. went through the drive-thru in 2015. While penetration in other global markets varies widely, drive-thru value is still growing steadily alongside the chained segment, increasing from $103 billion in 2010, to $139 billion in 2015, according to Euromonitor International.
Much of the draw of the drive-thru is rooted in speed and convenience. But, recent advancements in technology have created the potential for an even faster, more seamless drive-thru transaction. Some new concepts, like California's Starbird chain, have taken this idea to its logical conclusion by using a mobile technology and a retail-esque click-and-collect model.

Starbird's drive-thru 2.0

The drive-thru was built as a simple system: A way to funnel cars through the transaction allowing consumers to read the menu, place orders, pay and pick up food as quickly as possible. Customers did not need to get out of their cars, and operators could serve customers from two points of sale simultaneously, helping to minimize lines inside the restaurant.

Starbird's curbside delivery offers the same benefits on both sides, but further speeds the transaction by making most of it occur virtually, and likely before the consumer even gets to the restaurant.
At Starbird's first outlet in Sunnyvale, California, consumers have the option to dine-in or use a mobile-based curbside delivery service to "drive through." If choosing the latter, customers can download Starbird's proprietary app, which allows them to view the menu, make selections, and pay for their meals ahead of time.

After arriving at the outlet, customers alert restaurant employees by selecting an "I'm here" button in the app that kicks off their order's preparation. While Starbird did consider using proximity technology to begin order preparation before customers actually arrived, according to President Aaron Noveshen, the method was too inconsistent to effectively minimize wait times.

Instead, the restaurant created a simple, easy-to-assemble menu that was designed to ensure orders could be made as specified and fulfilled as quickly as possible. Starbird promises mobile orders will be delivered to cars within three to five minutes of pressing the "I'm here" button.

Benefits of a virtual drive-thru

In ideal conditions, the traditional drive-thru system works well, but its one-customer-at-a-time nature does not allow for triage in the kitchen or ordering line. Large orders or indecisive customers can cause a bottleneck at the front, significantly slowing the flow for all customers.

Customers ordering via Starbird's mobile app can peruse the menu at their leisure and even view photos and descriptions of items without affecting other customers who are already, virtually, "in line." Starbird's management doubled-down on this benefit, investing significant resources in the app, as well as in food photography. They recognized that the app may be the first experience many consumers may have with their food (and their brand as a whole) and took steps to make sure it was a positive experience.

In addition, moving the first three steps of the drive-thru process to the virtual realm lessens the space required by a traditional drive-thru, which demands a large physical footprint to allow for a line of cars. This fact can place limitations on operators who wish to expand, but find suitable space in premium locations tough to find and afford.

Granted, mobile drive-thru still requires vehicle waiting space, but significantly less than that needed for a line or lines of cars. In urban locations, the mobile click-and-collect system could also just as easily be applied for customers on foot or on bicycles.

Finally, like online ordering, the mobile drive-thru allows operators to capture valuable customer data regarding ordering patterns and frequency. This opens up a wealth of possibilities for loyalty programs, customer feedback, targeted marketing campaigns, and even geo-fencing possibilities.

What does this mean for fast food?

The system is not without drawbacks. Like the recent move toward delivery in all categories of foodservice, a move to mobile click-and-collect services in restaurants gives operators yet another reason to shift focus away from dine-in customers who, arguably, should always be first priority.

While mobile drive-thru service could prevent some of the long lines and bottlenecks associated with traditional drive-thru operations, they could also cause back-ups for in-store diners who might be delayed by an unforeseen rush of virtual traffic. Mobile drive-thrus will not necessarily have the ability to limit the volume of incoming orders, so a surge in demand — particularly during busy periods like the lunch rush — could cause difficulties.

In other operational concerns, much of the convenience of a mobile drive-thru rests on the outlet's ability to execute effectively. Consumers who are kept waiting longer than five minutes will likely find the new system unappealing.

Despite the potential drawbacks, Starbird's mobile drive-thru demonstrates how operators can build on new technology to better serve customer needs. Consumers have shown that convenience, speed and simplicity are important to them. In fact, for some it might be just as important as ingredient quality and in-store dining experience.

So, as we reach the limits of daypart expansion, as well as new outlet construction and other more traditional ways of differentiating brands and growing sales, it is obvious that one of the few frontiers left for expansion may well be speeding the transaction process and making restaurants more accessible.

Starbird is a brand built around the idea of quality food served quickly and conveniently through digital channel assistance. In fact, there are examples in other industries that suggest this may be part of a global shift.

Technology is now so deeply ingrained that new concepts are designed explicitly to support full integration of tech innovations like Amazon's experimentation with "Amazon Go" outlets in the U.S. which allow customers to scan their smartphones upon entry and then simply leave the store with their chosen items.

As convenience becomes more attainable in every purchase we make, consumers are growing increasingly less willing to accept the usual delays that have been part of the dining experience. Lines of any kind in everything from grocery stores to restaurants are becoming avoidable through new tech which consumers are keen to see in the form of rapid improvements by players who may well take the lead on this fact exclusively. It's an edge that everyone in foodservice would do well to take seriously, because it's clear that your competition is doing so.

For more information on improving the customer experience, visit The Interactive Customer Experience Association. Its mission is to help brands apply technology to the goal of creating transcendent customer experiences. The ICX Association is a vital hub that connects users and suppliers in collaborative forums, be they virtual or physical, to understand how seemingly unrelated technologies can be integrated to create experiences so meaningful that customers can’t imagine doing business elsewhere. (The Association's website, icxa.org, is a sister site to this one.)

Cover photo: iStock