Per the Qu 2024 State of Digital Report, quick service (QSR) and fast casual restaurants will add more kiosks in stores this year, along with new mobile apps and voice AI on the phone and in drive-thrus. Self-service preferences were identified as key to helping brands manage labor challenges and increase sales. Data-driven solutions will lead the way with API-centric platforms, new loyalty frameworks and more AI use cases.
Highlights of the report include the following:
Kiosks are making a comeback. Kiosks are the top new ordering channel for 2024 with 44% of restaurant brands planning to add them, followed in order by mobile apps, expanded delivery partners, phone AI ordering and voice ordering in the drive-thru.
Fewer swings and surprises in digital sales. Three-quarters of brands increased digital sales in 2023 and 87% expect it to grow in 2024. Digital ordering is still higher at fast casuals than QSRs. Almost half of fast casuals had 26-50% digital sales in 2023 while nearly half of QSRs had 11-25% digital sales last year.
Loyalty 3.0 emerges as top tech investment for 2024. Four out of five respondents indicate that loyalty is not working for their brand. The report indicates that a new data-centric loyalty framework is expected to emerge with guest experience the key driver.
Flexible platforms are the future. The shift to flexible AI and data-driven platforms is underway with two-thirds of respondents indicating they plan to, or already have, transitioned to a cloud-based, API-centric ordering and commerce platform. These platforms have been increasing ROI through enhanced data access/normalization, increasing brands’ ability to personalize their customer offerings through a consistent source of information.
These trends will continue to evolve and change. For example, McDonald’s recently ended its test of AI chatbots at drive-thrus in >100 locations due to dialect/accent challenges, raising questions about the industry’s push to roll out the technology. The system, which featured an AI voice responding to customer orders, had been tested as part of a deal between McDonald’s and IBM that began in 2021.
MOSIMTEC helps QSRs and fast casual restaurants improve their digital and physical performance. For example, in a series of simulations, we modeled potential QSR drive-thru sites and their surrounding road network to assess the compatibility of the store and the environment, i.e. traffic lights, traffic counts and neighboring businesses. We have also included geo-fencing in our modeling. QSR and fast casual restaurants are using geo-fencing in various degrees to automate the arrival trigger at the restaurant. When the customer’s digital device detects it has crossed the geo threshold, the order is automatically activated in the kitchen for processing. MOSIMTEC can help you future-proof your business.
Keywords: quick service restaurants, fast casual restaurants, digital ordering, digital sales, drive-thrus, ordering channels, self-service preferences, kiosks, mobile apps, voice AI, phone AI ordering, voice ordering, data-driven solutions, API-centric platforms, loyalty frameworks, loyalty 3.0, McDonald’s, AI chatbots, IBM, geo-fencing