QSRs have now started to see the benefit of putting resources into an advanced technological arrangement that assists them with improving their tasks as well as set aside some funds, get 100% perceptibility for their business, and drive proper ROI for their business.
The onset of the pandemic has hit the QSR enterprises hard. During the first wave of the pandemic in India, the footfall in restaurants reduced to a significantly low level, making them face unprecedented trials and hurdles. Most of the restaurants faced a drastic decline in their sales. A report suggests that QSR visits from each household decreased by 29%. This impacted the advertising spend, which dropped down by 37%. Revenues went down by 20% and footfalls went down by 30%. However, with the end of the first wave, QSR industries started moving towards bringing a revolutionary transformation in their business model to stay afloat in business. They started incorporating technological advancements to drive sales and revenue.
During the second wave of the pandemic in India, the QSR industry is now well-versed with digitization. They have started focusing on harnessing technological advancements for surviving in the business. QSR industries are now proficient enough in accepting quick change and advancement. From the online application of ordering food to AI technology, they are taking up innovation to meet developing buyer inclinations for improved speed. This drastic transformation in the QSR industry can lead to a constant change in their business model as much of the population prefers a few taps and clicks rather than visiting the store physically. It is evident from a report that the expected growth of QSRs is by 50% during FY21-25.
The target audience of QSR industries is now moving particularly to millennials and GenZ. This class of audience is acquainted with digitization. They prefer online services over their in-store counterparts. A new market study tracked down that 39% of QSR visitors put in their food requests utilizing an android or iOS application.
The outbreak of coronavirus forced a huge chunk of the population to stay indoors. Due to this, QSR industries had to upgrade their digital marketing approaches.
Some of the digital trends that have brought success to the QSR industries:
● Digital wallets – No need to run for cash or pennies while making a transaction. Digital wallets have made it possible for the QSR industries to instantly receive payments. These digital wallets are a boon to the users. They even grant loyalty points to the users while making a payment. In the era of digital wallets, QSR industries no longer have to maintain a huge customer database. Digital wallets help the customers and QSR industry to save a lot of time. Digital wallets facilitate faster processing of money which helps in automating business processes.
● Business Intelligence Tools – Restaurants equipped with business intelligence tools performed better in the pandemic as compared to restaurants relying on traditional strategies. This business intelligence software provides a complete spectrum of insights into the performance of the restaurant. Using this data, quick-service restaurants can be receptive to adapt themselves to elements of quick services. These artificial and business intelligence tools forecast sales, which helps in giving a bigger picture to decide and plan marketing activities.
● SaaS model – The SaaS service allowed the QSR industries to keep a track of business developments. Restaurants could easily register themselves on the software and can start taking online orders. The data tracker of the software helped to track customer’s activities and analyze their behavior. It was now easier to keep tabs on order history, billings, repeated visits, and footfalls. QSR industries took aid from various aggregation models which helped them to survive during the pandemic. SaaS was an efficient way to make customers aware of offers and deals. It helped the QSR market to shoot these offers to the client at the right time.
● Online commerce – Due to the pandemic, the QSR restaurants lost their visibility across many locations. The online applications allowed them to continue with their marketing campaigns and stay visible and accessible across all the locations. Online ordering of food and contactless deliveries have driven up the sales of many Quick Service Restaurants during the pandemic. People are no longer required to physically visit the food outlet and make in-store purchases.
QSRs have now started to see the benefit of putting resources into an advanced technological arrangement that assists them with improving their tasks as well as set aside some funds, get 100% perceptibility for their business, and drive proper ROI (Return of Investment) for their business. The adoption of digital and SaaS trends made the QSR industry stay afloat in business during the pandemic. Digital solutions have effectively associated QSR sponsors with their most applicable crowds, streamlining efforts, boosting commitment, and driving the return of investment.
Source: Business World
