Navigating and Thriving in the QSR Industry’s New Normal
Since the onset of the COVID-19 pandemic, the Quick Service Restaurant (QSR) industry has experienced significant changes resulting in many closings, a shifting consumer landscape and a competitive climate.
The recovery phase ushered in increasing demand met with supply chain issues and labor shortages.
Today, we are in the midst of inflationary pressures that are tremendously impacting the food and beverage industries. How can QSRs ensure they are focusing on expansion in the right markets and trade areas, using the right tools and reaching the right customers with optimal offers at the right time?
Contact us for a free demo and report of SiteScore—our turnkey location solution for QSRs.
1. Hyper-focus on location
This is nothing new to the QSR industry, but the complexity of our current environment means that your location decisions must be made leveraging the latest data available. Trade area mapping that utilizes up-to-date mobility data, advanced analytics, and relevant data sources can help you understand trade area potential, identify opportunities, and manage operations effectively.
2. Know your customer
Once you scope out your trade area, introduce yourself again to customers. With new economic factors influencing purchase decisions, even your most loyal customers will likely have changed their purchasing behaviors. Trade area mapping that includes available metrics on QSR demand, daypart and usage frequency, provides rich insights on trade area potential. Additional customer research is then leveraged to optimize sales through strategic marketing, offers and other incentives.
3. Know your competition
Inflationary pressures mean that most households have reduced discretionary budget. QSRs must evaluate themselves against sales for both primary and secondary competitors to mitigate customer attrition and optimize revenue potential. Site evaluation tools, such as SiteScore, that include competitors, their current sales and relative brand performance by market and nationally, are critical when assessing a site opportunity in a competitive marketplace.
4. Leverage the opportunity
The QSR industry is well-positioned for growth despite the challenges. Bottom-line inflationary pressures can be offset with revenue gains through data-driven decision making. Contactless ordering and payment are here to stay and, when combined with an integrated offer through rewards and digital coupons, QSR operators can better understand and adapt to consumer behavior quickly and efficiently.
For more information on SiteScore, including a free demo and report for an existing or prospective location, contact us.