New trends and changes in the quick-service restaurant (QSR) segment are playing a major role in the revamping of the food service segment, especially in the wake of the massive adjustments all restaurants had to make during the COVID-19 pandemic over the past three years.
Accordingly, to industry stakeholders, three prominent trends include: offering as much value as possible, because value is what is most important to customers; breakfast is becoming the most important meal of the day for QSRs, thanks to heightened consumer interest; and continuous new technology is making it easier for consumers to patronize QSRs – and to increase QSR profits.
Breakfast-time is playing an increasingly important role in the success of quick-service restaurants. Breakfast eaten away from home is a growing consumer trend that QSRs are taking advantage of to play a major part in the restaurant industry.
At the same time, meat and poultry processors, who are suppliers to quick-service restaurants, needed to adjust what they do. In many cases, this has resulted in growth for these poultry and meat processors, who create products and supply other services for McDonald’s, Subway and other QSRs.
State of play
INFO, based in Chicago, helps restaurants, including quick-service restaurants, grow and improve customer ordering by supplying self-ordering kiosks and online ordering.
Company officials don’t think restaurants have gone back to their pre-pandemic status yet. Other food service trends in QSRs include growth of plant-based foods, including protein. Despite current setbacks in plant-based protein, they believe the plant-based market will grow over the next eight or 10 years. They also believe increased investment in delivery channels, including direct digital ordering, will bypass costly third-party partnerships.
Supply chain and food supply problems will continue due to inflation and rising food costs, so QSRs may have to reduce items on their menus to deal with these issues. “Ghost kitchen” restaurants, including some QSRs, will continue. These kitchens emphasize takeout, less on dine-in and direct customer interaction.
And the use of automation and contactless services is on the rise. During the pandemic, many restaurants, including QSRs, embraced digitization to stay in business and connect better with customers. That trend is continuing, because it reduces the need for labor, and increases profit and customer satisfaction, all at the same time.
It has become increasingly important for meat and poultry processors to take care of their customers, including quick-service restaurants, said Jay Russell, key account manager for poultry with Lenexa, Kan.-based Mark. The company provides solutions, services and software to the poultry and meat processing industry.
“With the COVID-19 pandemic behind it and people eating out again, the QSR sector is once again a major player in any chicken processor’s portfolio,” Mr. Russell explained. “QSR chains have strict demands which must be met on a continuous basis. The demands center around the type and quality of the raw material to be used, as well as tightly defined weight, shape and dimensions of the products to be supplied. For QSR chains, uniformity and consistency are paramount.”
He said QSR consumers want to be sure that what they are eating is healthy and convenient. Products made from freshly portioned muscle meat are seen as being “healthier” than products made from formed meat. “This is why portioned muscle meat is so important for the QSR sector,” he said.
Mr. Russell said some QSRs ask their meat and poultry processors to add value to the supplied products, while some don’t.
“Some like to keep their recipes secret and be supplied with precisely cut versions of raw meat only. Others like their suppliers to deliver a marinated, coated, and breaded product, which only has to be heated up or fried in the restaurant. We can offer both options.”
He added that automation is becoming more important to their customers as labor challenges persist.
“Machines don’t report sick or get tired at the end of a shift. The recent COVID-19 pandemic and the shortage of labor worldwide will only have strengthened the arguments for automation.”
Breakfast breakthrough
The breakfast day part is playing an increasingly important role in the success of quick-service restaurants. More consumers are eating breakfast away from home, and QSRs are turning that trend into an advantage.
Wendy’s, in ending its fiscal third quarter at the beginning of October this year, kept its focus on three long-term efforts: building breakfast as the most important part of its day, expanding its operations across the world, and making its digital business even bigger. One-step Wendy’s took in expanding breakfast was adding French toast sticks to its menu.
Todd Allan Reneger, chief executive officer at Wendy’s, noted during a call with analysts in November that the morning treat has quickly become Wendy’s top-selling breakfast item.
The launch helped us maintain our morning meal dollar share in the QSR burger category and drove a meaningful acceleration in US breakfast sales over the course of the quarter, with average weekly sales of $3,000 as we exited quarter 3.
“This success, alongside our recently launched $3 croissant promotion, gives us confidence in reaching our goal of $3,000 average weekly breakfast sales by year-end. We remain committed to fighting for our share of the QSR breakfast business,” he said.
You must be logged in to post a comment.