Getting a meal at a quick-service restaurant (QSR) is quickly becoming an entirely different experience than it was just a few years ago. The pandemic forced restauranters to pivot away from indoor dining and the labor shortage led to slower than usual service or worse, permanently shuttered doors.
Unfortunately, for most quick-service restaurants, neither of these issues are fully resolved and there's a new goliath in the ring – inflation. According to Lending Tree, 85% of Americans say inflation is impacting how much they eat out. In fact, 67% of consumers reported dining out less frequently due to inflation and 25% reported reviewing prices more closely.
In many cases, restauranters cannot afford to lower their prices amid inflation due to rising supplier costs. But luckily, there are ways that QSRs can keep consumers engaged through technology. The key is to make the dining-in experience as convenient and affordable as possible.
Technology Increases Convenience at QSRs
Ever since the pandemic began, curbside pickup has skyrocketed in popularity. And with inflation on the rise, this trend is predicted to remain strong. Domino's CEO Russel Weiner told investors that inflation will likely impact delivery more than carryout or curbside due to the added expenses incurred during the delivery process, like fees and tips. In fact, the market value of DoorDash has dropped 67% in recent months.
Curbside and carryout options are growing in popularity as consumers look to achieve a convenient experience without paying delivery prices. Restaurants will look to technology to keep these unique customer journeys efficient.
A seamless omnichannel experience and a frictionless payment process is critical to the success of mobile ordering and curbside pickup. That's why GK offers TransAction+, a family of certified solutions that give restaurants the flexibility they need to integrate all payment processes into one secure system. Transaction+ makes it easy to incorporate new checkout experiences that entice consumers back to the restaurant.
Dynamic Pricing Reduces the Impact of Inflation
For QSRs that prepare fresh food daily, reluctancy to dine out can be extra costly. Not only are these restaurants dealing with decreased traffic, they're also up against expensive food waste.
In response, QSRs can implement dynamic pricing and promotions. As the day progresses and the likelihood of selling the products at full price diminishes, these restauranters can rely on artificial intelligence and machine learning to strategically change prices. With AI and ML, the pricing strategy is always optimized, ensuring the consumer will be intrigued by the price, without lowering margins too far for the restaurant.
With GK AIR Dynamic Pricing, QSRs set pricing strategies based on their goals – whether that's increased sell-through rate or maximized profits. The solution can be easily integrated into existing touchpoints to create cost-efficient and error-free pricing workflows.
Enhanced Use of Data Improves the Customer Experience
Oftentimes, QSRs don't use consumer data to the fullest. By collecting data and using the related insights to drive the customer experience, QSRs can increase traffic despite inflation. Customer behavior will continue to change even as the current challenges abate so proper data and insights will remain critical.
GK's CLOUD4RETAIL platform makes it easy for data to flow through a restaurant setting. The features of the solution include full table-service functionality, integrations with kitchen production systems, and enhanced APIs to enable third-party integrations and customization for restaurant-specific requirements.
How GK Can Support Innovative QSRs
The best way to withstand any storm is to be customer-centric and respond to the needs of the target audience. By investing in the tools and technology needed to create the strongest customer experience, QSRs can continue to thrive amid today's challenges.
GK is here to support QSRs through their digital transformation. Whether it's dynamic pricing or increased cloud capabilities, GK has the solutions that foster long-term success. Reach out to us today to learn more.
