“Mandy Wolf Detwiler”
QSR Web
In 2024, QSRs are expected to prioritize several key trends to meet evolving consumer preferences and industry demands. Personalization and technology integration will play a pivotal role as QSRs aim to enhance the customer experience. Advanced ordering systems, mobile apps and artificial intelligence will enable seamless customization, allowing patrons to tailor their meals to individual preferences.
As the global economy embraces diversity, QSRs will also explore culinary fusion and inclusivity in their offerings, reflecting a broader range of international flavors. Automation and robotics are poised to streamline operations, improving efficiency and reducing labor costs.
Restaurants can no longer afford to get by on food alone, not with hospitality making or breaking the difference between winning and losing.
Predictions for the new year
"In previous years, the QSR battle has been for a portion of the guest's stomach and mind. In 2024 with increasing costs and increasing value of individual guests, the next frontier of battle will no longer be reserved for those ahead of the curve — that will be the battle for the guest's heart. Ture hospitality will need to define successful QSRs in 2024," said Zack Oates, founder and CEO of Ovation, a guest satisfaction company.
Amir Hudda, CEO at Qu, a commerce platform and POS brand, said he agrees, and believes brands have a pretty good handle on the volume of digital orders, we'll see a renewed focus on guest satisfaction.
"Restaurants will be looking for ways to nail order consistency, order accuracy and promise delivery time, and those are operational challenges. It's a balancing act between how much food you prepare and how fast you serve," Hudda said. "The increase in volume of orders is great for stores, but only if they can deliver the right food, in a reasonable time while not upsetting guests that are waiting for their orders in-store. Front counter plus digital orders, plus drive thru, plus kiosks can be overwhelming. In-store operations were not built for that kind of volume and complexity. It will take a combination of modern technology, processes, and strategies for stores to reach this new level of production."
Vicent Montanelli, CEO of Wetzel's Pretzels, said his brand expects customers to continue to be sensitive around pricing.
"At Wetzel's, we continue to make ordering as easy as possible via the mobile app and delivery platforms while innovating with limited-time offers, like our S'more Bitz. Wetzel's will be celebrating 30 years of business in 2024, and we're excited for those first customers who found us in malls during the mid-1990s to share their favorite pretzels with the next generation."
Priya Monga, senior director of Instacart Business, which delivers supplies to restaurants, said she expects retailers and restaurant owners to continue to navigate continued fluctuations in supply chain disruptions, labor shortages and hard-to-forecast visitor numbers — which makes it more challenging to send employees to the store for last-minute needs or even do reliable demand planning and procurement ordering.
"As a result, we're seeing an increasing number of these businesses try to depressurize these factors by relying on a flexible "plan B" same-day delivery service to augment their weekly distributor deliveries," Monga said.
QSRs prioritize endpoint management
Technology will continue to rise in 2024 as more QSRs and restaurants focus on endpoint management, which has risen in complexity alongside the deployment of in-store and drive-thru technology like self-service kiosks, POS systems, detachable mobile tablets, table-side payments and consumer-facing apps, according to Jay Burdette, senior director of the Enterprise Process Innovation Center at Panasonic Connect North America.
"QSRs want to optimize current technology systems, and make the installation, service, and support of endpoints much easier," Burdette said. "The industry is already seeing a growing appetite for endpoint management software, and the demand for simpler, smarter, and predictive endpoint management will evolve as innovative technology continues to enter the QSR world. The deployment and management of this technology will help QSRs overcome operational challenges, mitigate ongoing staffing shortages, and elevate the customer experience."
And POS systems will continue to be heavily influenced by an increased emphasis on customer experience, according to Christin Dorner, content and media manager of Star Micronics America, a POS company. "A significant shift will be toward tailoring these systems to offer more seamless, efficient and personalized customer interactions. This evolution will see a greater rise in POS systems incorporating advanced technologies such as artificial intelligence (AI) to better understand customer preferences and buying behaviors.
"As a result, businesses can offer highly personalized shopping experiences, with POS systems suggesting products, offering tailored discounts and remembering past purchases for quicker transactions," Dorner said. "Moreover, synthesizing omnichannel capabilities will ensure a consistent and smooth experience across all retail platforms, whether in-store, online, or mobile, with strategic labeling playing a key role in order organization and delivery operations. The focus will be on minimizing friction in the buying process and enhancing customer satisfaction and loyalty, which are crucial in the increasingly competitive retail landscape."
Voice AI ordering is poised to play a pivotal role in the restaurant industry in 2024, representing a significant stride toward digital transformation, said Vinay Shukla, co-founder and CEO of ConverseNow, a voice AI company.
"The emergence of new generative AI models enables the delivery of a seamless, human-like and fluid guest experience tailored to each restaurant brand" Shukla said. "Its impact goes beyond improving operational efficiency — it's about fundamentally changing how restaurants interact with their customers and setting new standards in service and innovation. In 2024, Voice AI is set to streamline restaurant operations, improve the working environment for staff, and provide customers with an exceptionally refined ordering experience. Looking into 2024, Voice AI is expected to become a cornerstone in the industry; it proves indispensable for those aspiring to lead in customer engagement and operational excellence. … It's good to note that the industry is now recognizing a clear distinction between true AI and hyped AI."
Menu development
Restaurants will continue to cash in on current flavor trends like plant-based dishes and Nashville hot chicken, said Graham Humphreys, CEO of The Culinary Edge.
"Shake Shack's new Veggie Shack, with its mix of veggies and grains, is showing QSR brands what customers want and sets the tone for an industry-wide trend in 2024," he said. "In response to the changing perceptions of meat analogs, brands like Impossible are also introducing new offerings that prioritize both indulgence and health. Now, with the recent USDA approval of lab-grown meat sales, we can also expect to see alternative protein sources on QSR menus.
"At the same time, a big trend I'm excited about is the Nashville Hot Fish Sandwich, with brands like Arby's already diving in."
Marketing through texting and gaming
Restaurant marketers grappling with increased data privacy concerns and continued economic pressures will need to further accommodate evolving consumer expectations and engagement in 2024, said Jeff Michaels, Mobivity VP of marketing. This is especially true for their loyalty programs.
"Despite successfully enrolling loyalty members, restaurants face a challenge in fostering consistent engagement with these programs. There is, however, a relatively untapped reservoir of engagement potential for restaurant, pizza and QSR brands in mobile gaming. Mobile gaming outranks social media and texting on mobile phones and innovative marketers that have collaborated to connect their brand offers to mobile games are reaping the rewards in the form of increased brand loyalty and customer engagement. One leading QSR brand used a mobile game promotion to offer a free menu item, redeemable exclusively through their loyalty app. This led to a fourfold member purchase increase in 30 days.
"Another QSR brand employed a similar strategy and re-engaged inactive customers, who drove more than half of the total campaign redemptions. Aligning loyalty programs with consumer behavior trends is critical to restaurant marketers' sustained success. And connecting loyalty rewards to mobile gaming is a key to unlocking new growth in 2024 and beyond."