TOP TAKEAWAYS: QSR Evolution 2024

This year’s QSR Evolution and Next Gen Restaurant Summit just wrapped up. It’s a unique event that brings together both QSR and Full-Service restaurants under one roof. 

From Fast Casual Growth to Technology in Food Service, we were excited to learn as much as we could from the wide variety of topics the event covered. The Restaurant Experience of the Future and information about Drive-Thru and the Omnichannel World caught our eye in particular. 

Here’s a few things we took away:

1. Top-of-mind Metrics

These are the key areas that QSR leaders are focusing on in today’s environment:

• Brand relevance – Today, it’s not enough to have awareness. It's essential to stay relevant to evolving customer needs.
• Local/store-level performance metrics – Drilling all the way down and understanding performance at the individual location level is crucial.
• Satisfaction scores – Measuring and improving customer satisfaction remains a key focus.
• Customer frequency – Not only getting customers to come back again and again, but tracking how often they’re returning is vital for sustained success.

2. AI. AI. AI.

Everyone was talking about AI, but like most other industries, QSRs are in search of ways to approach and apply this ever-evolving technology. A few key takeaways were:

• Reframing how AI is understood – AI isn’t just a tool you can put into practice. It’s evolved to be a capability and discipline of its own, and should be treated as such. AI has the potential to transform the entire operating model of the restaurant industry and redefine the playbook altogether.
• Impacting the customer experience in multiple ways – AI can take the weight and work off employees as well. Happy, less stressed employees make a happier customer experience, creating more meaningful interactions between team members and guests, plus lower turnover. 
• Deploying AI in the right places with the right people – AI can do A LOT, so it’s important to take the time to identify tasks, processes, and areas of inefficiency—whether in cost, time, or accuracy, then find strategic partners, developers or internal resources who can help. 
• Adopting AI requires patience – Algorithms need time to learn, adapt, and improve, so giving it the time it needs is essential. 
• Viewing AI as a business generator – While AI is currently excelling at saving costs, its real potential lies in driving revenue in the future.

3. Beyond Loyalty Enrollment

Loyalty programs are a numbers game, but many are focused on the wrong ones. While a high total number of downloads or enrollments is great, more emphasis should be put on frequency and repeat business. Shifting the focus to engagement, data capture and long-term value will drive more meaningful results.

A few metrics to focus on for continuing growth and customer engagement are: 

• Capture Rate – The percentage of total revenue attributed to the loyalty program.
• Activation Rate – The percentage of first-time customers who return for a third purchase.
• Retention Rate – The percentage of activated customers who remain engaged 6-12 months after joining.
• Effective Discount Rate – The cost-to-profitability ratio of the loyalty program.
• Customer Lifetime Value (CLV) – Maximizing the long-term value of loyalty members.
• Business Incrementality – Measuring the added business driven by the loyalty program.
• Customer Behavior Insights – Leveraging data to increase purchase frequency among non-loyalty customers.

4. Getting Orders Right is Big Business 

Order accuracy is the number one priority for guests, and it remains one of the most significant challenges for QSRs. Chick-fil-A is recognized for having the highest order accuracy in the industry and has an impressive average unit volume of $9.3 million. This means there’s a direct connection between operational excellence and financial performance, and it’s an area for improvement for all QSRs. 

We had an amazing time and got to meet a lot of inspiring leaders. If you were at #QSREvolution, what stood out to you?

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