{ "site": "americas", "thumbnailImage": "https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F992bed2790ee44d9b69706ca81e0e8f8", "bannerImage": "https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F992bed2790ee44d9b69706ca81e0e8f8", "slug": "strategies-for-qsr-brands-to-thrive-amid-industry-disruptions", "relatedBlogs": {}, "seo": { "title": "Strategies for QSR Brands to Thrive Amid Industry Disruptions", "description": "Discover how QSR brands leverage digital transformation, automation, and innovative strategies to thrive amid market shifts." }, "title": "Strategies for QSR Brands to Thrive Amid Industry Disruptions", "content": "

In the fast-paced world of Quick Service Restaurants (QSRs), where competition is fierce and consumer expectations are ever-evolving, staying ahead is not just a matter of choice — it’s a necessity for survival. Over the past decade, the American quick service restaurant industry has witnessed a series of significant events and transformative trends that have not only shaped its landscape but have also redefined the way in which QSR businesses operate and adapt to change.

From a high-profile food contamination outbreak that sent shockwaves through the QSR industry, forcing everyone to reexamine their food safety standards and supply chain management, to the emergence of plant-based meat alternatives that have challenged traditional notions of fast-food ingredients and sustainability — the QSR sector has been subject to major disruptions and paradigm shifts. Moreover, the global pandemic of unprecedented scale has further tested the capabilities of many QSR brands in their innovation, adaptability, and resilience in the face of unforeseen challenges.

In this article, we will spotlight three strategic themes that we believe have become critically important for QSR brands to recognize as they navigate a changing landscape and adapt to evolving consumer expectations.

Unlocking Customer Insights

Earning and retaining customer loyalty in a crowded QSR landscape, full of options, is already a demanding feat. This is further exacerbated when external influences start shaping the way customers think, behave and act when making their purchasing decisions. For instance, when there is a recession and the meal that did cost $10 is now $11, due to unpredictable changes in consumer price elasticity in the QSR market, customers might rethink how often they choose that meal and explore more affordable alternatives. To create a deeper connection with customers, QSR brands must harness the power of data, staying acutely attuned to evolving trends that may influence customer behavior, and use that data to create personalized experiences that resonate on a stronger level.

“According to Technomic’s 2020 Center of the Plate: Seafood and Vegetarian Consumer Trend Report, Gen Z consumers sit ahead of the pack when it comes to routine consumption of vegetarian and vegan options, with 63 percent consuming vegetarian or vegan dishes at least once per month, and 44 percent doing so once or more a week”[1]. The new generation is increasingly attuned to the imperatives of environmental sustainability and personal well-being. Some QSR brands have successfully evolved their predominantly meat-focused menus to capture this particular segment of customers while others fell short. QSR leaders such as McDonald’s, Burger King and Del Taco, chose to embrace the risk, guided by an understanding of shifting consumer attitudes and created plant-based alternatives of their products.

Del Taco partnered with Beyond Meat in 2019 to offer plant-based meat beef tacos on their menu and it sold over 2 million units in the span of the first 2 months. In 2019, Burger King generated strong sales that summer with its Impossible Whopper introduction [2].

Conversely, McDonald’s saw underwhelming sales with their McPlant burger, launched in 2021. Despite careful testing in select U.S. locations, the McPlant’s lackluster performance could be attributed to its timing. The McPlant burger made its debut two years after the market had potentially reached a saturation point, leaving many to wonder if the Golden Arches had missed a prime opportunity. Given how plant-based meat sales have plateaued, perhaps McDonald’s would have been better served by focusing on their core product strengths and skipping the plant-based meat trend altogether.

Among the most iconic brands celebrated for its loyal customer base, Starbucks faced a big shift in consumer behavior during the pandemic, transforming the daily ritual of “I’ll grab Starbucks on my way to work” into a profound question — “Do I truly need to venture outside today?” This forced Starbucks to not only re-engage its devoted patrons but also quickly meet them where they now found themselves. Starbucks’s ability to send hyper-personalized and targeted marketing offers to their customers is powered by their “digital flywheel program, a cloud-based artificial intelligence engine that processes over 90 million transactions a week across 25,000 stores worldwide amongst 17 million mobile app users. It’s so sophisticated that the recommendations will change based on what makes the most sense according to the day’s weather, if it’s a holiday or a weekday, and what location you’re at” [3].

Recognizing the evolving lifestyle of customers, with more people embracing home comfort, Starbucks harnessed the power of data to curate a powerful lineup of products available in grocery stores

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